Market Overview: Vacuum Coated Films & Papers
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1 Market Overview: Vacuum Coated Films & Papers Corey M Reardon President & CEO AWA Alexander Watson Associates AIMCAL Web Coating Conference Reno, NV October 2011
2 Agenda Global & Regional Markets Materials Trends & Developments Challenges
3 Global & Regional Markets
4 Global Vacuum Coated Material Demand, 2010 Source: AWA
5 % Growth 2010/2009 Regional Growth, 2010/ North America Europe Asia South America ROW Source: AWA
6 Materials
7 Global Vacuum Coated Market by Materials, % 1% 78% Film Papers Board Source: AWA
8 Regional Markets by Materials, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% North America Europe Asia South America ROW Board Paper Film Source: AWA
9 Global Vacuum Coated Paper Market, % 5% 4% 26% 57% Board Labels Packaging Gifwrap Others Source: AWA
10 Global Vacuum Coated Film Market, % 7% 34% 57% PP PET PVC Others Source: AWA
11 Materials - Films Issues of availability of PET thru 2010 and into early Freer availability from mid 2011: Commissioning of new PET manufacturing capacity in late 2011/early 2012 Legislation banning use of PET in Indian tobacco packaging freeing capacity Metallized OPP films largest component of vacuum coated film market packaging is main use, but growth in use as labels
12 Materials Board/Papers Growth in European use of transfer metallized board: Improved yield over met PET/board laminates Improved machinability less twisting in high speed packaging lines End uses toothpaste cartons, cigarettes, cosmetics Competition to metallized papers for European cigarette packaging from printed papers cost & environmental perception Met paper label growth influenced by slowing beer market in developed regions, positive growth in China, and competition from clear film PS labels
13 Trends & Developments
14 Trends Global growth for all vacuum coated materials estimated at 5% in 2010 Growth in North American and European markets recovered and stabilizing at around 3% depending on material Growth in vacuum coating technologies/capacities in China, India, Korea, and Taiwan Growth in demand for vacuum metallized papers greatest in South America and China South American metallized paper demand for labels served by high levels of imports base and finished labels
15 Trends Competition in met label markets from clear film PS labels Growth in exports of metallized films and papers from China and India improved quality but need to maintain developments to serve European and North American markets with latest materials Low cost metallized films from integrated vacuum coaters/film manufacturers throughout South America
16 Developments Active developments for further end uses of metallized papers at all leading paper metallizers Barrier film applications strongest area of growth for films Growth in vacuum coated biodegradable films PLA Bio PET Cellulosic films
17 Developments Investments in new coating equipment dedicated to clear, oxide coatings (e-beam) Clear, barrier packaging Security holograms Interest in coatings other than aluminum copper, metal alloys
18 Challenges
19 Increasing polymer prices Competition for polymers/shortages of polymers/lead times Global dynamics increased sourcing of quality vacuum coated barrier films from India and China Prices/costs Challenges Commoditization of decorative holograms Asian sourcing
20 Challenges Increased level of environmental and sustainability concerns at materials used for packaging Perception of aluminized films as environmentally unacceptable Mixed material laminates and issues of recyclability
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