(I-BusinessNews.Com, September 06, 2021 ) Nano Enabled Packaging Market size is forecast to reach $45.6 billion by 2026, after growing at a CAGR of 13% during 2021-2026. With the rise in food packaging, the demand for polypropylene and polyethylene-based nanomaterials will also increase as they were used to reduce the atmospheric oxygen’s permeability of food packaging, hence the nano-enabled packaging industry would witness an increase in demand in the upcoming years.
Growing popularity in several concerns of food packaging, such as food safety, packaging, processing, bioavailability, among others will further enhance the overall market demand for nano-enabled packaging industry during the forecast period, as nanocomposites or nanomaterials food packaging are multilayered barrier film. The polyamide and metal nanofilms ensure impermeability to gases and moisture, keeping the product fresh for longer, whilst retaining the flexibility of the polyester and thermoplastic polyolefin films.
The rapid spread of coronavirus has had a major impact on global markets as major economies of the world were in completely lockdown due to the pandemic. According to the International Foodservice Distributors Association , $300 billion food service industry has seen a sales decline of 60% to 90% due to COVID-19. This decline in food services have hindered the market growth for nano-enabled packaging.
Nano-Enabled Packaging Market Segment Analysis – By Type
Active Packaging segment held the largest share in the nano-enabled packaging market in the year 2020 and is expected to grow at a CAGR of 7.2% during the forecast period. Active packaging incorporates the active constituent using nanotechnology into a food package material such as polypropylene, thymol and others, which increases the shelf-life, food quality and safety of the food product. The use of nanomaterials helps to interact directly with food or environment to allow better protection of the product.
Various nanomaterials such as nanocopper oxide, nanosilver, nanotitanium dioxide, nanomagnesium oxide and carbon nanotubes can provide antimicrobial properties. Whereas the drawbacks in existing packaging technique such as lack of recyclability, non-sustainable production, inadequate mechanical and barrier properties are certain challenges that should be tackled by the packaging industries. So, the growing demand for packaging and investments by food packaging companies is expected to increase the market growth for nano-enabled packaging.
Nano-Enabled Packaging Market Segment Analysis – By End Use Industry
Food & Beverages sector has been the primary market for nano-enabled packaging in the year 2020 and is expected to grow at a CAGR of 13.5% during the forecast period. Nanotechnology is used to in food and beverages to improve in temperature resistance, enhanced durability, flame resistance, barrier, recycling and others. Whereas the nanotech packaging also helps to maintain the taste of the food.
One example is bottles made with nanocomposites or nanomaterials that minimizes the leakage of carbon dioxide out of the bottle, this increases the shelf life of carbonated beverages without having to use heavier glass bottles or more expensive cans. According to United States Department of Agriculture (USDA), the federal expenditures for USDA 's 15 food and nutrition assistance programs totaled for USD $92.4 billion in fiscal year 2019. So, with the increasing investments towards the food security will increase the market growth for nano-enabled packaging during the forecast time period.
Nano-Enabled Packaging Market Segment Analysis – By Geography
APAC dominated the nano-enabled packaging market in the year 2020 and is expected to grow at a CAGR of 13.2% during the forecast period. Countries such as India and China are the major countries in this region, owing to the higher consumption from food & beverages and pharmaceutical industries. In September 2019, according to the UAE-India food corridor project, major UAE entities are expected to invest up to USD $7 billion in India’s food sector in the upcoming years. Thus, the investments towards food around these countries will boost the nano-enabled packaging market.
Nanotechnology in pharmaceutical packaging prevents products from being distributed outside of their intended market and also helps brand owners to track where distributors are sending their product. This helps to avoid any kind of black market of medicines. Whereas the increasing spending towards pharmaceutical industries will enhance the market growth for nano-enabled packaging.
Government Initiatives Regarding Nanotechnology
Governments globally are focusing on boosting the nanotechnology by investing more towards their R&D centres. The “National Nanotechnology Initiative” (NNI) has a supplement to the 2019 budget where it was revealed that cumulative funding for the initiative since 2001 is now almost US$27 billion. So, owing to this the nano-enabled packaging market is expected to grow.
Nano-Enabled Packaging Market Challenges
Expensive Developing Cost
Nanotechnology is very expensive and developing it can cost a lot of money. It is also pretty difficult to manufacture, which is probably why products made with nanotechnology are more expensive. The price of gold nanoparticles is $80,000 per gram while a gram of pure. Therefore, the expensive developing cost and raw product may hinder the market growth for nano-enabled packaging.
Nano-Enabled Packaging Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the nano-enabled packaging market. Major players in the nano-enabled packaging market are Amcor Limited, Avery Dennison, Basf Se, Bemis Company, Inc, Chevron Phillips Chemical Co. Lcc, Danaflex Nano Llc, Dupont Teijin Film, Honeywell International Inc, Innovia Film, Klckner Pentaplast, Ppg Industries, Inc, Sealed Air among others.
In June 2019, Amcor has successfully completed the acquisition of Bemis Company Inc. The acquisition of Bemis brings additional scale, capabilities and footprint that will strengthen Amcor’s industry leading value proposition and generate significant value for shareholders.
In March 2020, Avery Dennison Corporation has completed the acquisition of Smartrac’s Transponder business, for the purchase price of US $248.09 (€225) million.
Asia-Pacific dominates the nano-enabled packaging market owing to increasing demand from end use industries such as food & beverages, pharmaceutical and others.
The growing popularity nanomaterials such as nano-clay, nano-emulsions among others, in the packaging industry is likely to aid in the market growth of nano-enabled packaging.
The growing food safety for public health concerns will increase the market demand for nano-enabled packaging in the near future.
Expensive developing cost with high-cost end product will create hurdles for the nano-enabled packaging market
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