Waterproof Coating for Paper & Paperboard Packaging Market

Waterproof Coating for Paper & Paperboard Packaging Market Outlook (2024 to 2034)

The global waterproof coating for paper & paperboard packaging market is set to reach a value of US$ 3.7 billion in 2024 and further expand at a CAGR of 4.8% to end up at US$ 5.9 billion by 2034. Waterproofing offers exceptional water resistance and reduces the likelihood of damage to packed products.

Premature deterioration of products can be prevented by high heat sealability and the high barrier properties of waterproof coating. The food packaging industry is adapting waterproof paper for packaging as it also enhances the durability and attractiveness of the package.

Ability to withstand certain chemicals and being impervious to grease and tear resistance makes waterproof coating paper an eco-friendly choice for posters and brochures. The use of waterproof coatings on cardboard boxes allows safer and more secure transportation of consumer electronics, personal care products, and pharmaceuticals.

Report Attributes	Details
Waterproof Coating for Paper & Paperboard Packaging Market Size (2023A)	US$ 3.5 Billion
Estimated Market Value (2024E)	US$ 3.7 Billion
Forecasted Market Value (2034F)	US$ 5.9 Billion
Global Market Growth Rate (2024 to 2034)	4.8% CAGR
North America Market Share (2024E)	11.6%
East Asia Market Share (2024E)	34.8%
Key Companies Profiled	Dow Chemical Mitsubishi Chemical Corp. Asahi Kasei Evonik Celanese Corporation Arkema DIC Corporation Synthomer Michelman Paramelt Daikin Solenis Imerys The Lubrizol Corporation

Sales Analysis of Waterproof Coatings for Paper & Paperboard Packaging (2019 to 2023) vs. Market Forecasts (2024 to 2034)

Initially, plastic paper was the only option as a water-resistant sheet for packaging. However, in 2008, Brisbane Biotechnology invented the world’s first waterproof paper. Cellulose from unused sugarcane plants was used in the production of this waterproof paper.

• Short Term (2024 to 2028): The food packaging sector holds a leading waterproof coating for paper & paperboard packaging market share in 2024. Currently, most coatings contain hazardous petroleum-based additives, which are harmful to health. An edible waterproof coating is a suitable solution for it.
• Medium Term (2028 to 2030): Production and use of biodegradable waterproof coating paper are projected to rise in the medium term, in line with sustainability goals. Also, governments are encouraging the industry to produce eco-friendly packaging.
• Long Term (2030 to 2034): The United States National Science Foundation recently developed self-healing, water-resistant coating. This coating could be the solution to the drawbacks of biodegradable waterproof coatings. Also, self-healing properties make the reuse and recycling of materials efficient. The use of these sustainable and environment-friendly packaging options is forecasted to drive waterproof coating for paper & paperboard packaging market growth in the long term.

From 2019 to 2023, consumption of waterproof coatings for paper & paperboard packaging increased at a value CAGR of 3.2%, according to Fact.MR, a market research and competitive intelligence provider. The market is projected to expand faster at 4.8% CAGR from 2024 to 2034.

What are the Key Waterproof Coating for Paper & Paperboard Packaging Market Trends?

“Increased Consumer Demand for Eco-Friendly and Recyclable Products”

Waterproof paper coatings are a substitute for plastic. Paper has become more popular due to its recyclability and reusability. However, it has several other limitations compared with plastic. Waterproof coatings for paper overcomes many of these limitations. Plastic waste management rules have prompted companies to adopt recyclable and renewable packaging.

The government in the United Kingdom is discouraging plastic use by enforcing the Plastic Packaging Tax Regulations. Also, the Canadian and Indian governments have banned single-use plastic. With this push, companies are accepting waterproof coatings for paper and paperboard packaging. Companies are also meeting their sustainability goals by making a switch to paper-based food packaging.

• The European Union aims to reduce the overall plastic packaging use to 10% by 2030, to 15% by 2035, and 20% by 2040. Unilever, which is a British multinational company, claims to follow this directive of reduced plastic usage.
• McDonald's is reducing plastic use in Europe by redesigning items such as paper-based straws, and deploying new McFlurry cups without plastic lids.
• Amcor is a key company that offers paper-based packaging solutions to customers.

“Expansion of Food-Delivery Ecosystem”

Fast-growing food-delivery ecosystem is a key contributor to the expansion of the waterproof coating for paper & paperboard packaging market size. Convenience food packaging such as ready-to-eat and ready-to-heat-and-eat food depends on waterproof coatings for protecting food products from moisture damage and preserving their freshness. The growth of the food packaging industry is projected to significantly influence the demand for waterproof coating paper and packaging solutions.

• According to the World Packaging Organization, in 2021, the size of the global packaging market was 1,012.6 billion, and it is forecasted to expand at a 3.9% CAGR through 2027. This growth is mainly led by different end-use industries such as the e-Commerce industry, and food service industry.

Consumer and regulatory expectations pressurize retail stores to adopt sustainable packaging, and many key companies have already adopted paper-based packaging.

• Zara, the fast fashion giant, promised to go zero waste by 2025 by using 100% recyclable cardboard boxes and paper-based packaging.

Consumers are prioritizing convenience and sustainability, and there is a growing need for packaging materials that are both functional and environmentally friendly. These trends are projected to drive the waterproof coating for paper & paperboard packaging market.

What are the Challenges Encountered by Manufacturers of Waterproof Coatings for Paper?

“High Production Cost Associated with Specialized Materials for Waterproof Coatings”

Cost considerations can significantly restrict market growth. Specialized materials and processes involved in waterproof coatings contribute to elevated production expenses. Secondly, the necessity for advanced technology and equipment for coating applications can further escalate costs for manufacturers. Also, pricing pressures from competitors and consumer budget constraints may limit the market's capacity to accommodate higher costs.

Small- and medium-sized enterprises may encounter difficulties affording waterproof coatings, thus affecting their adoption rates. Maintaining a balance between cost and performance is essential, as excessively high prices relative to benefits may dissuade potential customers from investing in waterproof coating solutions.

Country-wise Insights

Why is the United States a Lucrative Market for Waterproof Packaging Manufacturers?

“Emphasis on Continuous Innovation and Technological Advancements”

The United States market is projected to expand at a CAGR of 5.1% over the projected period to reach a valuation of US$ 688 million by 2034-end.

• According to the United States Department of Agriculture, many Americans prefer convenience food due to time constraints, higher income levels, and the food environment.

Paper packaging plays a crucial role in keeping food safe and fresh. To keep the food packaging leakproof, a water-resistant coating is applied to the paper. Continuous innovation and technological advancements are driving the development of improved coatings, meeting both performance and sustainability demands. The United States market for waterproof coatings for paper and paperboard packaging is exceptionally important for manufacturers due to a sizable consumer base and stringent regulatory standards.

Growing awareness of environmental concerns is fostering demand for eco-friendly coatings, while diverse application areas beyond food packaging further expand market opportunities. Strategic collaborations and partnerships enhance market competitiveness and profitability.

Why is Demand for Waterproof Coatings Rising Rapidly in China?

“Growth of e-Commerce Industry Augmenting Consumption of Packaged Goods”

• According to the Chinese Paper Association, demand for paper and paper products in China is projected to expand at a CAGR of 13%.

The vast population and expanding middle class create a significant consumer base, necessitating protective packaging solutions. Also, the expansion of the e-commerce industry in China has boosted the consumption of packaged goods, further driving demand.

• According to the International Trade Administration, China became the largest market for e-commerce in 2021 with US$ 1.5 trillion in revenue, and the market valuation forecasted to reach US$ 3.56 trillion in 2024.

Safe and secure delivery of goods is a core principle in the logistics industry. However, the Chinese government in January 2021 ordered a ban on plastic bags and single-use plastic straws, which is pushing e-commerce giants to use paper-based packaging.

Technological innovations in waterproof coating technologies and materials have widened the opportunities in the market. Chinese companies are coming up with new features such as anti-rust, anti-curl, and moisture-proof packaging paper, which are more suitable for gift wrapping paper and the printing paper industry.

Category-wise Insights

Why is Use of Polyethylene Rising in Production of Waterproof Packaging?

“Role of PE in Creating Robust Barrier against Oils, Greases, and Contaminants”

Use of polyethylene (PE) packaging is set to reach US$ 1 billion in 2024 and is forecasted to expand at a CAGR of 4.7% to end up at US$ 1.6 billion by the end of 2034. Demand for polyethylene in manufacturing waterproof coatings for paper and paperboard packaging stems from several key factors. PE's superior water resistance makes it ideal for safeguarding products from moisture damage.

Versatility of polyethylene allows for various application methods like extrusion coating and lamination, ensuring compatibility with different packaging materials. Additionally, PE coatings create a robust barrier against oils, greases, and contaminants, bolstering product integrity and shelf life.

PE is more cost-effective as compared to some alternatives, appealing to manufacturers seeking a balance between performance and affordability. PE coatings can be tailored to meet specific performance needs, offering design and functional flexibility. The wide availability of PE resin and established manufacturing processes further solidify its position in the market for waterproof coatings for paper and paperboard packaging.

Why is Food-Grade Waterproof Packaging So Widely Demanded?

“Extensive Use of Food-Grade Packaging Driven by Rising Trend of On-the-Go Food Consumption”

Global revenue from the sales of food-grade waterproof coatings stood at US$ 2.4 billion in 2023 and is projected to increase at a CAGR of 4.9% to reach US$ 4 billion by 2034. Food-grade coatings offer anti-fungal and anti-bacterial properties to paper. This grade of waterproofing is more suitable for food packaging as it prevents food decaying and poisoning.

Food-grade coatings are formulated to meet stringent food safety regulations, ensuring packaged food remains uncontaminated and safe for consumption. With consumers placing increasing importance on food safety and hygiene, there is a rising demand for packaging solutions that offer both moisture resistance and compliance with regulatory standards.

Growing popularity of convenience foods and on-the-go consumption further underscores the need for durable and protective packaging materials. Consequently, manufacturers in the food and beverage industry are increasingly turning to food-grade waterproof coatings to prolong the shelf life and attractiveness of their products. This trend is projected to continue as companies endeavor to meet evolving consumer expectations for safe, convenient, and high-quality packaged foods.

Competitive Landscape

Key players in the waterproof coating for paper & paperboard packaging market are BASF, Dow, Mitsubishi Chemical Corp, Asahi Kasei, Evonik, Celanese Corporation, Arkema, DIC Corporation, Synthomer, Michelman, Paramelt, Daikin, Solenis, Imerys, and The Lubrizol Corporation.

Manufacturers of waterproof coatings for paper and paperboard packaging are adopting diverse strategies to maintain their competitiveness. This includes prioritizing research and development to innovate new coating technologies for better performance and sustainability. Collaborations with suppliers and manufacturers streamline supply chains and ensure access to top-quality materials.

• In February 2024, ARKEMA introduced new technologies for decarbonization and increased energy efficiency. Also, the company is planning to introduce powder & acrylic-based bio mass-balance solutions, which are projected to reduce the carbon footprint of end-use industries.

Fact.MR has provided detailed information about the price points of key manufacturers of waterproof coatings for paper & paperboard packaging positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Waterproof Coating for Paper & Paperboard Packaging Market Research

• By Material :

  • Polyethylene (PE)
  • Polyethylene Terephthalate (PET)
  • Alkylketendimer (AKD)
  • Acrylnitril-Styrol-Acrylat (ASA)
  • Polylactic Acid (PLA)
  • Polybutylene Adipate Terephthalate (PBAT)
  • Wax
  • Fluorochemicals
  • Silicone
  • Acrylics
  • Starch-Based
  • Mineral Oil
  • Aluminum Foil
  • UV-Curable

• By Grade :

  • Food Grade
  • Industrial Grade
  • Premium/Specialty Grade

• By Application :

  • Food Packaging
  • Paper Plates & Containers
  • Posters & Brochures
  • Bakery Paper
  • Cardboard Boxes
  • Decorative Laminates

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA