Compared to 120 million in 2018, India is expected to be home to 220 million online shoppers by 2025, says the India Brand Equity Foundation (IBEF). Consequently, from $38.5 billion in 2017, the Indian e-commerce industry would mushroom to $200 billion by 2027. This is a result of the rapidly increasing uptake of smartphones and rising number of people who can access the internet. Online platforms, such as Amazon, Ebay, Myntra, and Jabong, are already doing robust business in the country. The situation in the rest of the world is similar, where the number of online shoppers is rapidly surging.

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With the growing volume of shipments, e-commerce companies are using an ever-increasing amount of corrugated packaging material. Thus, with the expansion of e-commerce, the corrugated packaging market is predicted to witness an increase in its size, to $294.3 billion by 2023, from $237.5 billion in 2017, at a 3.7% CAGR during the forecast period (2018–2023). Corrugated packaging includes those typical brown boxes in which electronic gadgets, personal care products, and even clothes are delivered at home. It is made from paperboard, which is itself made from paper pulp, so is entirely biodegradable.

The concerns raised over the use of plastic boxes, which are not degradable, and hence, cause surface pollution, have been one of the major reasons behind the switch to paperboards. Though plastics are easily recyclable, most of it goes into the trash, instead of a reprocessing facility. As per the estimates by the National Geographic Society, since the 1950s, 6.9 million tons of plastic has been produced, but only 0.6 million tons has made it to recycling plants. Therefore, to cut the problem of plastic pollution at the source, corrugated packaging is being promoted.

Another reason the usage of such packaging materials, or packaging materials in general, is increasing is the rising manufacturing output. As per the World Bank, the gross domestic product (GDP) around the world has steadily increased from $60.334 trillion to $85.91 trillion during 2009–2018. With the volume of goods being produced increasing year-on-year, the logistics, shipping, and transportation activities are rising too, which is leading to a surging demand for various packaging materials, including paperboards and fiberboards.

Corrugated packaging materials are used for the transportation of fresh food and produce, processed food, personal and household care products, beverages, paper products, chemicals, glassware and ceramics, electrical and electronics goods, wood & timber, tobacco, mail & post items, textiles, footwear, furniture, and apparel. Among these, corrugated packaging was used most for the transport of processed food up till the last few years, as such stuff requires flexible and secure packaging to offer customers convenience.

The consumption of processed food has ballooned up in emerging economies in the last 10–15 years, owing to an increase in the disposable income of the people. Processed food is generally more expensive than fresh food or that which is sold loose, which is why earlier, the consumption of packaged food stuff has high in developed countries, but not in developing ones. But, with rapid industrialization and migration of people from the rural areas to urban pockets in emerging companies, their wages increased and so did their purchasing power, which is why chips, soft drinks, chocolates and other such products are becoming popular here.

This is also why Asia-Pacific (APAC) was the largest corrugated packaging market during the last 5–6 years and the situation would be the same, at least till 2023. Apart from packaged food, the sale of other non-durable and durable goods is also growing in India, Indonesia, and China, which leading to a rising requirement for packaging materials. Additionally, with a strong focus on sustainability, the consumption of eco-friendly materials, such as paperboard boxes, is surging.

Therefore, with economic prosperity around the world, the demand for corrugated packaging would continue to rise.

One of the major factors boosting the demand for extrusion coatings is the thriving food and beverage industry across the globe. The surging disposable income of the people in various countries, increasing awareness amongst the masses regarding health and wellness, and the rising urbanization are the main factors responsible for the boom of the food & beverage industry. Moreover, people are increasingly preferring gluten-free, low-calorie, and sugar-free food products, which is further boosting the demand for packaged food products. These coatings enhance the aesthetic appeal of the packaged food items protect them from several external environmental factors.

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The other major factors fuelling the rising demand for extrusion coatings are the increasing packaging of consumer goods, personal care products, sporting goods, and electronic items throughout the world. Extrusion coatings are widely used in the manufacturing of packaging paperboards, films, and papers that are commonly used for the packaging of consumer goods. Due to these factors, the value of the global extrusion coating market is set to increase from $3,703.8 million to more than $4,759.3 million from 2017 to 2023. The market is predicted to advance at a CAGR of 4.2% during the forecast period (2018–2023).

The major trend currently being witnessed in the extrusion coating market is the rising usage of polypropylene (PP) in food and beverage packaging applications across the world. The main factor responsible for the surging utilization of PP is its toughness and high flexibility. Moreover, PPcan be used as a fiber or a plastic in numerous plastic end-use applications. In addition to this, polypropylene is a highly recyclable material and therefore, it is being widely used by many food and beverage companies for product packaging purposes.

Globally, the Asia-Pacific (APAC) region is predicted to observe the fastest growth in the usage of extrusion coatings during the forecast period. This is primarily credited to the mushrooming demand for these coatings for packaging applications in a wide array of industries such as healthcare, personal care, and food and beverage. In addition to this, the increasing disposable income of people and price deflation are creating huge demand for packaged food items, which is in turn, fuelling the rise in the demand for extrusion coating materials in the region.

Recent Strategic Developments of Major Extrusion Coating Market Players

In recent years, key players in the extrusion coating market have taken several strategic measures such as product launches and geographical expansions to gain a competitive edge in the industry. For instance, in March 2018, Chevron Phillips Chemical Company LP announced introduction of feedstock and commencement of operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas, to meet the growing demand for ethylene and polyethylene for the production of various consumer and industrial products.