Ethylene-Vinyl Alcohol Barrier Materials Market Size (2024 – 2030)

The Global Ethylene-Vinyl Alcohol Barrier Materials Market was valued at USD 984.47 Million and is projected to reach a market size of USD 1.5 Billion by the end of 2030. Over the outlook period of 2024-2030, the market is anticipated to grow at a CAGR of 6.2%.

EVOH, a copolymer known for its exceptional oxygen and moisture barrier properties, is extensively used to enhance the shelf life and preservation of food, pharmaceuticals, and other perishable products. The Ethylene-Vinyl Alcohol (EVOH) Barrier Materials Market is a rapidly expanding sector within the packaging industry. With increasing consumer awareness about food safety and sustainability, the demand for EVOH barrier materials has surged. Moreover, regulatory measures pushing for reduced plastic waste and improved packaging recyclability have driven innovations in EVOH blends and multilayer packaging solutions. As a result, the EVOH barrier materials market is expected to witness sustained growth, especially as the global focus on sustainable and eco-friendly packaging solutions continues to evolve.

Key Market Insights:

The Asia Pacific region experienced a bullish market in 2023. At the beginning of 2023, EVOH prices were relatively low in this region. However, prices began to rise as the demand for EVOH in the Asia Pacific outstripped the available supply, causing challenges for market participants in securing sufficient materials during the first half of 2023. Low inventories in Asian nations and production constraints added to this supply pressure. The heightened demand for EVOH from the food packaging sector further supported these price increases during this period, although consumption in other industries like automotive remained moderate.

In April, before the Labour Day holidays in China, there was strong activity in terms of imports and trading. While production rates were moderate, the overall supply remained weak. However, by mid-May 2023, the demand from the regional food packaging industry had declined, leading to improved supply conditions and subsequently lower prices. The decrease in the cost of the ethylene feedstock contributed to lower production costs.

In the first half of 2023, the U.S. market observed a significant increase in ethyl vinyl alcohol copolymer prices up until April 2023, primarily due to higher production costs resulting from increased support by the ethylene feedstock amid fluctuating crude oil prices. However, by mid-May 2023, the cost of the ethylene feedstock and Vinyl Acetate prices had decreased, resulting in lower EVOH upstream costs and subsequently lower prices. Additionally, reduced consumption rates had a notable impact on the U.S. EVOH market. Prices rose once again towards the end of the first half of 2023 due to limited feedstock supply in the U.S.

Ethylene-Vinyl Alcohol Barrier Materials Market Drivers:

Growing Demand for Extended Shelf Life is a long-term driver in increasing the growth of the Ethylene-Vinyl Alcohol Barrier Materials Market.

The increasing consumer preference for convenient, ready-to-eat, and pre-packaged foods has driven the demand for EVOH barrier materials. EVOH's exceptional oxygen and moisture barrier properties help extend the shelf life of perishable goods, reducing food waste and allowing manufacturers to distribute products over longer distances. As consumers seek fresher products and reduced food spoilage, the adoption of EVOH-based packaging materials continues to grow.

Environmental Concerns and Regulatory Initiatives could heighten the demand for EVOH barrier materials greatly in the future.

Environmental awareness and regulations aimed at reducing plastic waste and enhancing recyclability have prompted the development of sustainable packaging solutions. EVOH barrier materials, when used in multilayer packaging, can help reduce the overall amount of plastic required while maintaining product freshness and integrity. This aligns with the global push for eco-friendly packaging, making EVOH an attractive option for manufacturers seeking to meet sustainability goals and comply with evolving environmental regulations.

Ethylene-Vinyl Alcohol Barrier Materials Market Restraints and Challenges:

Environmental Concerns and Sustainability issues associated with polymers like EVOH barrier materials could pose significant challenges to the growth of the market.

One significant challenge in the EVOH barrier materials market is the growing emphasis on sustainability and environmental impact. While EVOH offers excellent barrier properties, it is a synthetic polymer, and its production and disposal can contribute to plastic waste and environmental issues. As governments and consumers become more conscious of sustainability, there is a need for the industry to develop eco-friendly alternatives or improve recycling and disposal methods for EVOH materials. The challenge lies in finding a balance between providing effective barrier solutions and reducing the environmental footprint.

Cost and Price Volatility might be challenging for manufacturers and businesses in the EVOH Barrier materials market.

EVOH is relatively expensive compared to other packaging materials. Its cost can be a significant challenge for manufacturers, especially for products with thin profit margins. Furthermore, EVOH prices can be subject to fluctuations based on factors like raw material costs and supply chain disruptions. Manufacturers need to manage these cost challenges to keep products competitively priced while ensuring the high barrier performance that EVOH provides, which is crucial for certain applications like food packaging.

Ethylene-Vinyl Alcohol Barrier Materials Market Opportunities:

The Ethylene-Vinyl Alcohol (EVOH) Barrier Materials Market offers significant opportunities, particularly in innovation and diversification. Manufacturers can invest in the development of advanced EVOH formulations that are more sustainable and biodegradable, aligning with the increasing demand for eco-friendly packaging materials. Additionally, exploring new applications for EVOH, such as in non-food sectors like pharmaceuticals and electronics, and capitalizing on the growing demand for high-performance barrier materials in emerging markets can open doors to substantial growth in the EVOH barrier materials industry.

ETHYLENE-VINYL ALCOHOL BARRIER MATERIALS MARKET REPORT COVERAGE:

Ethylene-Vinyl Alcohol Barrier Materials Market Segmentation: By Product Type

• EVOH Resins

• EVOH Films

• EVOH-based Compounds

The largest segment by product type is EVOH Resins having a market share of 43.4%. This dominance can be attributed to the versatility of EVOH resins, which serve as the foundation for various EVOH-based products, including films and compounds. EVOH resins provide exceptional barrier properties against oxygen and moisture, making them indispensable in a wide range of applications such as food and pharmaceutical packaging. The inherent flexibility in using EVOH resins as a building block for diverse packaging solutions, including multilayer structures, enables their widespread adoption and establishes them as the primary and largest product category in the EVOH market.

The fastest-growing segment in the EVOH barrier materials market by product type is EVOH Films due to the versatility and wide range of applications offered by EVOH films, which provide exceptional oxygen and moisture barrier properties. As demand increases for flexible and transparent packaging solutions in the food, pharmaceutical, and consumer goods sectors, EVOH films are being increasingly preferred for their ability to extend shelf life, reduce food waste, and enhance product protection. Innovations in film technology, including thinner and eco-friendly options, are driving the rapid expansion of this segment in response to both consumer preferences and sustainability goals.

Ethylene-Vinyl Alcohol Barrier Materials Market Segmentation: By Application

• Food Packaging

• Pharmaceutical Packaging

• Agriculture Films

• Automotive Fuel Tanks

• Cosmetic Packaging

• Others

The largest segment by application in the EVOH barrier materials market is Food Packaging holding a share of 40.6%. This dominance is primarily due to the critical role EVOH plays in extending the shelf life of various food products, maintaining freshness, and preventing spoilage by acting as a superior oxygen and moisture barrier. As consumer demand for packaged and convenience foods continues to rise, EVOH-based materials are extensively employed in a wide range of food packaging solutions, including pouches, trays, and barrier films, to meet stringent quality and safety standards, making it the largest and pivotal application sector in the market.

The fastest growing segment by application is also Food Packaging growing at a CAGR of 25.6%, due to the heightened focus on food safety and sustainability. EVOH barrier materials are in high demand for food packaging applications as they effectively extend the shelf life of perishable goods, reduce food waste, and enhance product freshness. The global trend toward convenient, ready-to-eat, and online food delivery options, which require reliable packaging to maintain food quality during transit, has further accelerated the demand for EVOH in food packaging, making it the fastest-growing application segment in the market.

Ethylene-Vinyl Alcohol Barrier Materials Market Segmentation: By Barrier Type

• High Barrier

• Medium Barrier

• Low Barrier

The largest segment in the EVOH barrier materials market by barrier type is the High Barrier. This dominance is due to the unmatched performance of high-barrier EVOH materials in preventing the permeation of oxygen and moisture, which are crucial factors for preserving the freshness and quality of packaged goods, especially in the food and pharmaceutical industries. High-barrier EVOH is essential for extending shelf life, preventing spoilage, and ensuring the safety of sensitive products, making it the preferred choice for applications where stringent barrier requirements are a top priority. The fastest-growing segment is also the High Barrier. This growth can be attributed to the increasing need for superior product protection and extended shelf life across various industries. High-barrier EVOH materials provide exceptional resistance against oxygen and moisture, making them ideal for safeguarding the freshness and quality of perishable goods, pharmaceuticals, and sensitive products. As consumers demand longer-lasting and safer products, high-barrier EVOH materials have become the preferred choice for manufacturers seeking to ensure the integrity of their offerings, thus driving the rapid expansion of this market segment.

Ethylene-Vinyl Alcohol Barrier Materials Market Segmentation: Regional Analysis

• North America

• Asia- Pacific

• Europe

• South America

• Middle East and Africa

North America is the largest segment by region in the EVOH barrier materials market holding a revenue share of 37%. The region has a well-established food packaging industry, where EVOH is widely used to enhance the preservation and quality of packaged foods, aligning with consumer demands for longer shelf life and food safety. Additionally, the robust pharmaceutical and healthcare sectors in North America rely on EVOH materials for protective packaging, contributing to its market dominance.

The fastest-growing segment is Asia-Pacific growing at a CAGR of 28%. This growth is primarily due to the region's robust manufacturing and packaging industries, increasing consumer awareness of food safety, and the expansion of the food and beverage sector. As the Asia-Pacific region experiences rapid urbanization, rising disposable incomes, and a shift towards convenience foods, there's a heightened demand for effective packaging materials to ensure product quality and longevity. Regulatory efforts to enhance packaging standards, coupled with the growth of e-commerce and online grocery shopping, have further fueled the adoption of EVOH barrier materials in the region, making Asia-Pacific the fastest-growing market segment.

COVID-19 Impact Analysis on the Global Ethylene-Vinyl Alcohol Barrier Materials Market:

The global Ethylene-Vinyl Alcohol (EVOH) Barrier Materials Market experienced a mixed impact from the COVID-19 pandemic. While there was a temporary disruption in supply chains due to lockdowns and restrictions, the pandemic also accelerated certain market trends. The increased emphasis on food safety and longer shelf lives led to a surge in demand for EVOH barrier materials in the food packaging sector. Simultaneously, the rising interest in e-commerce and takeout services drove demand for packaging solutions that ensure product integrity during transit. As the pandemic underscored the importance of effective barrier materials, it reinforced the long-term growth potential of the EVOH market, especially in applications related to food, pharmaceuticals, and online retail packaging.

Latest Trends/ Developments:

A significant trend in the Ethylene-Vinyl Alcohol (EVOH) barrier materials market is the growing emphasis on sustainability. Manufacturers are increasingly focusing on developing EVOH-based materials that are more environmentally friendly. This includes EVOH blends with biodegradable polymers and bio-based EVOH. These innovations aim to reduce the environmental impact of EVOH materials, aligning with the global push for sustainable and recyclable packaging solutions.

Another key strategy in the EVOH market is the development of multilayer packaging solutions. Manufacturers are focusing on creating custom barrier structures that combine EVOH with other materials, such as polyethylene or polypropylene, to optimize the barrier properties and cost-effectiveness for specific applications. These innovations enable tailored packaging solutions for different products, addressing the unique preservation and protection requirements of items like fresh produce, dairy products, or pharmaceuticals. Such multilayer structures offer superior performance while minimizing the amount of EVOH used, which can help reduce costs and environmental impact.

Key Players:

1. Kuraray Co., Ltd.

2. Chang Chun Group

3. SK Global Chemical Co., Ltd.

4. Sekisui Chemical Co., Ltd.

5. Solvay S.A.

6. Plastissimo Film Co., Ltd.

7. Mitsubishi Chemical Corporation

8. Asahi Kasei Corporation

9. EVAL Europe N.V.

In July 2022, the Mitsubishi Chemical Group (MCG) unveiled its intentions to boost the annual production capacity for SoarnoLTM Ethylene Vinyl Alcohol Copolymer Copolymer resin by 21,000 tonnes in the United Kingdom. The augmented production is scheduled to be initiated in July 2025.