U.S. Release Coating Market Size, Share & COVID-19 Impact Analysis, By Material Type (Silicone and Non-Silicone), By Formulation (Solvent-Based, Solventless, Emulsions, and Others), By Application (Labels, Tapes, Hygiene, Industrial, Medical, Food Bakery, Graphic Films, and Others), and Country Forecast, 2023-2030

The U.S. release coating market size was USD 43.68 million in 2022 and is projected to grow at a CAGR of 6.2% during the forecast period.

Release coatings are materials applied to label liners and adhesive tapes during manufacturing. The technology addresses many problems and maximizes opportunities by offering long-lasting coatings and enhanced abrasion resistance. This coating is typically made of silicone and non-silicone to ensure the smooth and clean release of the carrier film. Labels made from these materials peel off, leaving a minimal or insignificant amount of label, tape, or paper material on the surface to which they are applied. Owing to the above-mentioned unique properties, the product is highly utilized in tapes and label applications. Further, the rapidly growing packaging industry will fuel the market growth during the forecast period.

The COVID-19 pandemic reduced the consumption of products in labels, adhesive tapes, food bakeries, graphic films, and other industrial applications due to lowered production in these industries. On the contrary, there had been an increased demand for medical and hygiene products during the pandemic. Halt in import-export across borders caused supply chain disruption, impacting the overall sales in the market.

U.S. Release Coating Market Trends

Growing Applications of Pressure-Sensitive Adhesives are Set to Fuel Product Demand

The efficacy of offering resistivity to extreme climates and environmental exposures makes pressure-sensitive adhesives (PSA) an ideal choice in many applications. Pressure-sensitive adhesives do not require solvents, water, or heat to activate the adhesive. Pressure-sensitive adhesive tapes (PSAs) are used in various applications, and new applications are discovered almost every day. Release coatings are becoming an integral part of fast-curing PSA applications, offering excellent anchorage to various substrates and stable release over time. Thus, growing demand for fast-curing PSA applications will boost the U.S. market growth.

U.S. Release Coating Market Growth Factors

Rising Packaging Industry to Propel Market Growth

Release coatings are utilized in many applications, such as automotive, food and healthcare. One of the major applications of these coatings is identified as labels. Due to their physical appearance, these labels are used in the packaging and consumer goods industries. Silicone labels are especially preferred in the packaging industry as they reveal product specifications, contact details, safety warnings, and pricing.  Over time, the prevalence of labels on consumer and household products has increased, with various businesses using them to showcase their brand values ​​and incorporating barcode labels to create strong, long-lasting visual interest. Additionally, key market players utilize these labels for tracking purposes due to their digital printing capabilities with variable data barcodes that improve supply chain efficiency. The consumer goods industry is witnessing increased advertising for various brands, leading to heightened product demand.

RESTRAINING FACTORS

Complexity Associated with Recycling Silicon-Based Coating to Hamper Market Growth

Controlled release coatings are widely used in tape and label manufacturing due to their ability to provide the necessary release force to remove tapes and labels. Silicon-based coating is the most consumed material owing to its numerous advantages. However, silicon-based release coated papers present challenges and are expensive to separate during paper recycling processes. As a result, most of the labels produced from this technology are landfilled, posing a threat to the environment. In response to rising environmental concerns and government pressure, manufacturers are moving toward solventless and silicone-free alternatives. This momentum will reduce potential emissions and landfill waste generated from the traditional silicon-based coating. The complexities associated with silicon-based material and the industry’s transition toward alternatives may hamper its demand during the forecast period.

U.S. Release Coating Market Segmentation Analysis

By Material Type Analysis

Based on material type, the market is segmented into silicone and non-silicone. 

Silicone held the largest U.S. release coating market share in 2022 and is poised to remain the dominant material type in the foreseen period. A wide range of applications that utilize silicon-based coating are labels & graphics art, self-adhesive tapes, bakery & food, hygiene products, medical, and others. With a wide range of applications listed, this segment accounted for over three-fourths of the U.S. market in 2022. The ability of the silicone material type to protect the adhesive units from damaged cracks will drive the segment growth.

However, the non-silicone segment is projected to grow at a moderate rate. High temperature resistance offered by non-silicone material types is expected to drive segment growth.

By Formulation Analysis

Based on formulation, the market is segmented into solvent-based, solventless, emulsions, and others. 

Solvent-based segment holds the largest share of the U.S. market. It remains the preferred formulation choice due to its ability to provide a perfect coating for pressure-sensitive adhesives used in tapes and label applications.

• The market is moving toward more customized and specialized applications, driving the demand for specialty products such as UV-curable silicone and UV-led curable silicone release coatings. Such developments will create an additional revenue stream in the market.

By Application Analysis

Based on application, the market is segmented into labels, tapes, hygiene, industrial, medical, food bakery, graphic films, and others.

Labels segment is estimated to hold the largest market share and will expand at a significant CAGR during the forecast period. The growth is attributed to the demand from the packaging industry, where e-commerce will play a crucial role.

• The U.S. is the largest e-commerce market, with nearly 50% of retail customers shopping online, creating significant demand for packaging solutions during the forecast period.

List of Key Companies in U.S. Release Coating Market

In terms of the competitive landscape, the market depicts the presence of established and emerging companies. Dow, Wacker Chemie AG, Evonik Industries AG, and Momentive Performance Materials, Inc. are among the leading manufacturers in the U.S. release coating market, holding a considerable market share. Manufacturers are shifting toward more sustainable solutions, such as solvent free coatings, that will shape the U.S. market over the assessment period.

LIST OF KEY COMPANIES PROFILED:

• Dow (U.S.)


• Wacker Chemie AG (Germany)


• Evonik Industries AG (Germany)


• Momentive (U.S.)


• Hitac Adhesives and Coatings (U.S.)


• Mayzo, Inc. (U.S.)


• Elkem (Norway)


• Rayven, Inc. (U.S.)


• Synthomer PLC (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: Elkem launched an innovative UV LED curable silicone coating solution. The company developed this promising solution, which consumed less energy and eliminated greenhouse gas emissions, contributing to a sustainable footprint.


• October 2021: Evonik launched a new TEGO RC 1442 silicone-based coating product. With this product launch, the company enhanced its product portfolio for quickly curing PSA applications.

REPORT COVERAGE

The study report thoroughly examines key factors such as leading companies, material types, formulations, and applications. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the country level.

Report Scope & Segmentation