Packaging Additives Market size was over USD 601.3 million in 2024 and is estimated to reach USD 1.3 billion by the end of 2037, expanding at a CAGR of 4.6% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of packaging additives is evaluated at USD 628.9 million.
The increasing demand for enhanced packaging performance is fueling the packaging additives market’s growth. As consumer preferences shift toward longer shelf life, better durability, and sustainable packaging, additives play a crucial role in improving material strength, barrier properties, and recyclability. A survey conducted by McKinsey & Company in October 2020 in 10 different countries, concluded that almost 70% of respondents were willing to pay more for a product packaged sustainably. This trend is driven by industries like food, beverages, and pharmaceuticals, seeking reliable and eco-friendly packaging solutions.
Additionally, as consumers and regulations push for sustainable options, packaging manufacturers are increasingly adopting additives that enhance recyclability, biodegradability, and performance. In the US and the UK, more than half (52%) of consumers want brands to produce goods with recycled or little packaging. These additives help create packaging that meets environmental standards while maintaining durability and protection, aligning with global sustainability goals.
Growth Drivers
Challenge
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.6% |
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Base Year Market Size (2024) |
USD 601.3 million |
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Forecast Year Market Size (2037) |
USD 1.3 billion |
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Regional Scope |
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Type of Additive (Antioxidants, Antimicrobial Agents, Antistatic Agents, UV Stabilizers, Barrier Coatings)
Based on the type of additive, the antioxidants segment is predicted to dominate packaging additives market share of around 33% by the end of 2037. The segment is growing due to its vital role in extending shelf life and maintaining product quality. Antioxidants prevent oxidation, which can spoil packaged foods and beverages by causing off-flavors, discoloration, and nutrient loss. With rising demand for processed and ready-to-eat foods, especially in urban areas, antioxidants help meet consumer expectations for freshness.
For instance, the worldwide demand for ready-to-eat meals is expected to expand by 6.5% between 2024 and 2029, reaching an overall value of USD 0.81 trillion in 2029. Additionally, countries such as Japan have strict food safety regulations that require packaging solutions that effectively preserve food, boosting the adoption of antioxidants. As sustainable packaging grows, antioxidants are also being used in eco-friendly packaging materials to enhance durability and reduce waste, supporting segment growth.
Packaging Material (Plastics, Paper & Paperboard, Metal, Glass)
By packaging material, plastics are expected to hold the majority share in the global packaging additives market due to their versatility, durability, and cost-effectiveness. Plastic packaging is widely used across industries, especially in food and beverages, pharmaceuticals, and personal care, as it provides strong barrier properties that extend product shelf life and preserve freshness. The packaging industry uses about 36% of all polymers manufactured.
Additionally, the lightweight nature of plastics reduces shipping costs and energy consumption, making them highly favorable for manufacturers. While environmental concerns drive demand for alternatives, ongoing innovations in recyclable and biodegradable plastics continue to strengthen plastic’s dominance in the packaging additives market by addressing sustainability challenges. Hence, the segment is anticipated to register significant during the forecast period.
Our in-depth analysis of the global market includes the following segments:
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Type of Additive |
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Packaging Material |
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Functionality |
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North America Market Statistics
North America in packaging additives market is expected to capture around 34.3% revenue share by the end of 2037. With e-commerce booming in North America, demand for durable packaging is increasing. During the projected period, the North America e-commerce packaging opportunity is anticipated to register more than USD 353.0 million. Packaging additives that enhance resistance to moisture, impact, and temperature fluctuation help products reach consumers safely, supporting growth in this sector.
The U.S. is augmenting the packaging additives market with its significant demand for processed foods. As busy lifestyles drive demand for processed and ready-to-eat foods, packaging additives that extend shelf life and preserve freshness are increasingly essential, supporting growth in this market. Ultra-processed food intake increased from 53% of total calories in 2011 to 57% by 2018, according to a CDC study conducted in America over 18 years.
Canada strong environmental policies drive demand for sustainable packaging. For instance, 70% of consumers in Canada indicate they look for goods with environmentally sustainable manufacturing when making purchases of sustainable foods. As companies seek biodegradable and recyclable additives to reduce environmental impact, eco-friendly packaging solutions are seeing significant growth.
APAC Market Analysis
The Asia Pacific region is established to garner substantial packaging additives market share over the forecast period. In the Asia-Pacific area alone, food and water safety-related factors claim the lives of around 700,000 people annually. Pertaining to this food safety becomes a priority in the region. Hence, packaging additives that prevent contamination and maintain freshness are gaining traction, especially with stricter food safety regulations in markets like Japan and South Korea.
China is committed to reducing plastic waste and promoting sustainability. This drives the demand for eco-friendly additives. With measures like the 2018 restriction on importing recyclable plastics, the deployment of large-scale urban waste sorting projects, and the 2022 ban on non-biodegradable single-use plastics, China has acted quickly to address the growing amount of garbage from food and beverage packaging. Biodegradable and recyclable packaging solutions are in high demand as companies work to meet government targets and consumer preferences.
India is creating lucrative investment opportunities for the packaging additives market due to technological advancements. Currently ranked as the fifth largest sector of the Indian economy, packaging is expected to reach USD 204 billion by 2025 at a compound annual growth rate (CAGR) of 26 %. Innovations in packaging additive technologies, such as UV-resistant and oxygen-scavenging materials, improve packaging functionality and quality. These advancements align with India’s evolving consumer demands, further supporting packaging additives market growth.
The packaging additives market companies focuses on sustainability and functionality. Leading companies are developing biodegradable and recyclable additives, responding to environmental demands and stricter regulations. For instance, in May 2024, Clariant launched AddWorks PPA which is a PFAS-free polymer processing aid product line. In addition, it launched AddWorks PKG 158 which is a highly efficient antioxidant solution for color protection, specially formulated for polyolefins containing recycled material. Additionally, companies are also investing in smart packaging additives that enhance durability while maintaining transparency and aesthetic appeal. The major players in the packaging additives market include:
Author Credits: Abhishek Anil
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