MDO Films Market Records Impressive Growth Backed by Demand from F&B Sector: TMR
According to a recent study by Transparency Market Research (TMR), the MDO films market is well positioned to expand by 1.4x of its current market value by the end of 2026. The rising demand for packaging solutions in diverse industries such as food & beverages, healthcare, personal care, agriculture, and others will support growth of the market between 2020 and 2026.
The TMR study offers some very crucial insights into the market. For instance, it uncovers hidden growth prospects and gauges investment feasibility across various segments. Some of the key takeaways from the report are highlighted below:
TMR sees incredible opportunities ahead for the market, thanks to the rising demand from various industries. MDO films are considered excellent packaging solutions that offer barrier against moisture, oxygen, and bacteria. This is one of the most sought-after features helping the market gain traction from various industries.
F&B Sector to Remain Dominant End User
Food and beverages industry has continued to account for the lion’s share of the overall market. The expansion of food service chains besides skyrocketing demand for convenience food and easy-to-eat meals has fuelled the demand for efficient packaging solutions.
MDO films are increasingly used for the packaging of food, dairy products, confectionery, snacks, and beverages. The expansion of food chains and changing eating bits in India, China, and ASEAN countries are expected to positively impact the market.
MDO films such as CPP films have become common packaging solutions in North America, where the demand for ready-to-eat and partially-cooked food is visibly high. The rising consumption of convenience food, besides the increasing demand for efficient packaging solutions will enable growth in the MDO films market.
Opportunities Abound in Asia Pacific
While North America continues to lead the global market, Asia Pacific is fast emerging as a major hub for MDO film producers. Expansion of the food & beverages, pharmaceutical, personal care, cosmetics, and agriculture sectors has bode well for the MDO films market in Asia Pacific.
Because Asia Pacific is home several high potential and upcoming markets it offers plenty of scope for investment. Some of the leading market players have been shifting their focus towards Asia Pacific either by collaborating or acquiring local players or buy introducing their brands via product launches.
A key point to note here is that Asia Pacific is likely to exhibit considerably high demand for flexible packaging solutions. These packaging types are increasingly replacing the conventional and rigid packaging that used non-plastic materials.
MDO films are lightweight and better durable. With latest advancements in technologies they are also improving in flexibility. Spurred by these improvements, the demand in China and India is expected to surge considerably in the coming years.
Chances of Possible Quality Degradation
Most commercial films available in the market are either mono layered or 3 layered. In the last couple of years, the demand for 5 and 7 layer barrier films has surged as well. MDO films, which can offer excellent flexibility, it requires expert operators with substantial experience to possess a feeling of the likely outcome whenever variables are changed during production or processing.
Additionally, oriented coextruded films containing polyamide or EVOH might pose challenges with regards to the maintenance of the film after orientation and their adhesive tie layer. Difference in mechanical properties of barrier layers and polyolefin films can reduce the adhesion strength post orientation. Multilayer films may also lose their elasticity and become brittle during the process.
Global MDO films Market: Competition Landscape
Competition is expected to get fiercer in the global MDO films market. Because India and China have emerged as high potential pockets, conflicts between companies to grab the largest share of the pie will increase. Also the presence of several local players will fuel competition witnessed in the market.
TMR in its report profiles some of the leading companies. These include Avery Dennison Corporation, Toray Industries Inc., Lenzing Plastics GmbH & Co KG, Klöckner Pentaplast Group, CCL Industries Inc., NOWOFOL Kunststoffprodukte GmbH & Co. KG, UPM Raflatac Inc., Polythene UK Ltd., Borealis AG, Trico Specialty Films LLC, Futamura Chemical Co. Ltd., Davis-Standard, LLC, LA Plastpacks Pvt. Ltd., and Polysack Plastic Industries Ltd.
For the purpose of the study, it has segregated the companies as Tier 1, Tier 2, and Tier 3 to study their footprint and stronghold in the market. As per the report, Tier 1 players include Klöckner Pentaplast Group, CCL Industries Inc., Borealis AG and Toray Plastics (America), Inc. Tier 2 comprises companies such as Futamura Chemical Co. Ltd, Davis-Standard, LLC, UPM Raflatac Inc. among others.
Global MDO Films Market Segmentation
Global MDO Films Market by Material Type
Global MDO Films Market by Manufacturing Process
Global MDO Films Market by Application
Others Global MDO films Market by End Use Industry
Global MDO films Market by Region
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