Release Coating Market Size, Share & Industry 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 Regional Forecast, 2024-2032

The global release coating market size was valued at USD 295.0 million in 2023 and is projected to grow from USD 311.0 million in 2024 to USD 515.6 million by 2032, with a CAGR of 6.4% during the forecast period. Asia Pacific dominated the release coating market with a market share of 38.95% in 2023. Moreover, the release coating market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 78.1 million by 2032, driven by rise in product demand from the label application. These labels are utilized in the packaging and consumer goods industries due to their physical representation.

The release coating is the material applied to the labels' backing surface and tapes during their production process. This coating is usually made of silicone and non-silicone that offers a smooth, and clean release of the backing sheet. For instance, the solventless silicone coating agent is utilized in medical, hygiene products, label stock, consumer, industrial products, and pressure-sensitive tape. These silicone and non-silicone coating materials enable excellent properties over the glued coating. The labels made using these materials release with the minimum or negligible part of the label, tape, or paper material remaining stuck to the surface where it was applied. Therefore, the demand for the release coating from end-use industries has gradually increased over the past years.

The COVID-19 pandemic impacted the release coating market growth as the restrictions on manufacturing units across various industries caused a decline in release coating consumption across labels, tapes, food bakeries, graphic films, and industrial applications. This resulted in a negative growth rate and a huge supply chain disruption in the coating market. These factors impacted the market growth during COVID-19. On the contrary, the rise in the medical and hygiene industries boosted the coating demand during the pandemic period.

Release Coating Market Trends

Growing Popularity of Polydimethylsiloxane-Based Release Coating to Foster Market Growth

The demand for polydimethylsiloxane (PDMS) -based release coating is an emerging trend in the market. The PDMS offers desired properties, it cures quickly on various backing substrates, and limits migration problems. Additionally, it provides enhanced release performance and great cost-effectiveness. Thus, the PDMS-based coating has created a space for the new and existing coating manufacturers to establish their presence in the market.

Moreover, the key manufacturers started to develop the PDMS-based released coating with other materials, including carbamates, fluorocarbon, polyolefins, and polyacrylates. These combinations of the materials with PDMS-based release coating cure at 210 degrees Fahrenheit that is appropriate for different end-use applications such as labels, tapes, and hygiene. Therefore, multiple opportunities exist in the market for coating manufacturers.

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Release Coating Market Growth Factors

High Usage of the Labels in the Packaging and Consumer Goods Industries is Anticipated Drive Market Growth

The release coating market share has increased in the coating market due to the rise in product demand from the label application. These labels are utilized in the packaging and consumer goods industries due to their physical representation. Silicone labels are mainly preferred in the packaging industry that discloses contact details, product specifications, health & safety warning, marketing branding, and pricing. Additionally, the usage of labels in consumer and household products has drastically increased over time. The various companies showcase their brand and value to generate strong and long-lasting visual interest using barcode labels. Moreover, the key market players use these labels to track and trace purposes due to their digital printing capability with the variable data barcodes that enhance supply chain efficiencies. Thus, the increased advertisement in the consumer goods industry for different brands is further surging release coating demand.

Expanding Healthcare Industry to Boost the Market Growth

The rise in disposable income, population, and increasing urbanization rate is propelling the market growth of the medical industry.  Most of the revenue of the healthcare industry comes from clinical trials, devices, and medical equipment used to serve people suffering from chronic diseases. These trials and equipment use a huge number of labelling barcodes and codes to maintain records and for temporary use owing to the ease of insertion and low friction.  On the other hand, consumers have become more aware of health and hygiene practices. This has resulted in the increased rate of regular medical tests and fitness tests, which further increase the consumption of release coating-based labels. Additionally, release coating is consumed in personal care & hygiene products such as sanitary napkins, machine-finished kraft papers, and bandages owing to the easy release property. Therefore, the utilization of the product in the healthcare industry is anticipated to boost the market during the forecast period.

RESTRAINING FACTORS

Variations in Release Control Factor of Release Coating May Hamper the Market Growth

In tape and label manufacturing, the control release coating is widely utilized as it provides the release force required to remove a tape or label. Therefore, the tight-release liners are usually combined with the removable labels. They control multiple factors, such as thickness, adhesive formulation, laminate storage conditions, and liner handling. Therefore, the significant variation in these factors led to the failure of the release control coating.

On the other hand, fluctuations in the raw material price are the other key restraint for the global market. In the coating, some raw materials are obtained from crude oil. Therefore, the up and downs in the crude oil price affect the coating production.

Release Coating Market Segmentation Analysis

By Material Type

Silicone Type Segment to Register Appreciable Growth Owing to Expanding Usage in the Labels Industry

On the basis of the type, the market is segmented into silicone and non-silicone.

The silicone segment's growth is associated with its properties as it offers multiple-layer construction. Most of the time, the coatings are applied on the off-line coaters, which are highly compatible with various adhesive technologies. Therefore, silicone coating provides an excellent layer of adherence to protect the adhesive units from damaged cracks over time.

The non-silicone coating such as fluoropolymer offers remarkable chemical specifications to end-use applications as it provides a great resisting temperature range from 100°F to 500°F. Moreover, the fluoropolymer has high tensile strength and excellent chemical stability, making it preferable as the release agent. Thus, the segment's growth has increased gradually over the past years.

By Formulation Analysis

Solventless Segment to Register a Significant Growth Rate Due to its Chemical Properties

Based on formulation, the market is segmented into solvent-based, solventless, emulsion, and others. The solvent-based segment had significant growth owing to the demand from industrial and graphic film applications. These solvent-based coatings provide stable releasing properties to the polymer films used to produce tapes and labels.

The growth of the solventless segment is associated with the rising demand for advanced releasing material from the packaging industry. This solventless coating reduces the manufacturing cost as it can be applied easily to the PE films used in tapes, and labels.

The emulsion segment accounted for a significant market share in 2022. The demand for water and oil-based emulsion for manufacturing high-quality waterproof tapes is anticipated to drive the segment growth during the forecast period.

By Application Analysis

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Labels Segment to Exhibit Significant Growth Rate from Packaging Industry Due to its Printing Capability

In terms of application, the market is segmented into labels, tapes, hygiene, industrial, medical, food bakery, graphic films, and others.

The growth of the labels segment is due to the high demand from the packaging industry. They provide product information, pricing, and printability enabling the track and trace option for accurate shipment and logistics details. Therefore, the rise in consumption of labels in the packaging industry further surges the release coating demand.

The growth of the tapes segment is associated with the rise in the e-commerce industry. After COVID-19, consumers started to buy goods online, which surged the drastic demand for microflute cartoons and boxes. The silicone release-based tapes are highly utilized to seal these boxes. Thus, the rise in the e-commerce sector boosted the tape demand, further surging the coating demand.

The rise in consumer awareness of health and hygiene after a massive hit of the pandemic surged the demand for products such as removable bandages and paper-based wax. The coating agent is highly used in these products as it provides desirable adhering properties.

The growth of the industrial, graphical film, and food bakery segment has been associated with the rise in industrialization as the product is consumed in the components such as impellers, bladers, tins & trays, and non-sticky food paper.

REGIONAL INSIGHTS

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The market size in the Asia Pacific was valued at USD 114.9 million in 2023, and China has the largest share in the region. The market growth in the region is associated with the rise in the packaging industry. The region has a high population. The busy lifestyle and change in behavior for food product consumption created an opportunity for the food and packaging industries, further propelling the label requirement. The coating is one of the key materials used in the labels. Therefore, the coating market will grow in the forecast period.

The market growth in North America is associated with the rising e-commerce industry. The consumption of removable tapes and labels is elevated in the e-commerce industry. These tapes and labels are used to track and trace the parcels. Therefore, the market is expected to grow significantly during the forecast period.

The market in Europe had significant gains owing to the high per capita income and modern lifestyle. Moreover, the beauty and personal care industry has a strong presence in the region on account of a large number of manufacturers. This has resulted in a rise in the consumption of packaging materials such as microflute cartoon boxes, tapes, and labels, further surging the product demand.

Rapid industrialization in Latin America is associated with the growing demand for the release coatings. At the same time, the product market in the Middle East & Africa is expected to grow at a moderate CAGR during the forecast period owing to the entrance of key product manufacturers and suppliers.

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List of Key Companies in Release Coating Market

Key Players to Strengthen Their Position by Increasing Regional Presence Worldwide

Leading companies in the market include Dow, Wacker Chemie AG, Evonik Industries, and Shin-Etsu Chemical Co., Ltd. Dow has a strong presence in the Americas, Asia Pacific, Europe, and Middle East & Africa. The company offers a wide range of coating agents. Similarly, leading players have established a strong regional presence, robust distribution channels, and varied product offerings.

LIST OF KEY COMPANIES PROFILED:

• Dow (U.S.)


• Wacker Chemie AG (Germany)


• Evonik Industries (Germany)


• Shin-Etsu Chemical Co., Ltd. (Japan)


• Momentive (U.S.)


• HITAC ADHESIVES & COATINGS (U.S.)


• Mayzo, Inc. (U.S.)


• Elkem (Norway)


• Rayven, Inc. (U.S.)


• Synthomer PLC (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• September 2023- Dow launched a new range of release coatings with the name SYL-OFF SL 184. The product delivers fast curing and stable release properties. The purpose of the product expansion is to meet the increasing demand for release coating from the packaging industry.


• November 2021 - Dow introduced the new solvent-free silicone release coatings that will minimize misting and improve production efficiency in high-speed coating operations. The purpose of the new product launch is to maximize revenue.


• October 2021 - Wacker Chemie AG announced the acquisition of the 60 percent stake in Chinese specialty silane manufacturer SICO performance material. The acquisition aims to establish a presence in the silicone business.


• October 2022 - Shin-Etsu Chemical Co., Ltd. announced launching transparent, water-resistant coating material for paper products. The purpose of the launch is to maximize revenue.


• January 2021 - Momentive announced the acquisition of the silicone business of the KCC Corporation. The acquisition is aimed to strengthen the company’s global capabilities in advanced silicones.


• October 2020 - Mayzo, Inc. announced to acquire the Bio AccuTech Inc. The acquired company is a leading distributor and manufactures specialty chemicals for inks, coatings, and plastic.

REPORT COVERAGE

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The research report provides a detailed market analysis and focuses on crucial aspects such as material types, formulation, applications, and leading companies. It provides quantitative data in terms of value, and volume, research methodology for market size estimation, and insights into market trends. It highlights key industry developments, profiles leading players, and covers competitive landscape. In addition to the above mentioned factors, the report encompasses numerous factors that have contributed to driving the growth of the market over recent years.

Report Scope & Segmentation