Plastics, packaging, polymers, coatings, adhesives, films, sealants, lubricants, and elastomers — the materials ecosystem is vast! Each segment assures high growth potential, driven by innovations and collaborations.
So, what’s the latest in this dynamic domain?
An increase in demand for healthcare material applications, lightweight automotive materials, sustainable packaging, and antimicrobial materials is opening new avenues. While these opportunities are certainly worth exploring, before that, let’s identify the transformative trends driving this shift:
- Geopolitical Chaos: Ongoing conflicts, inflation, and supply chain disruptions are pushing material prices higher, allowing players to maximize profits.
- Sustainability: Growing customer demand for eco-friendly products and changing regulations are prompting companies to reduce packaging weight, minimize waste, and lower their carbon footprint.
- Technological Megatrends: Innovations like electrification and automation are driving the demand for purpose-built materials with unique functionalities.
In other words, the materials industry is poised for exponential growth. Are you capitalizing on this shift?
A closer look at the growth opportunities and the key players leading the charge:
GROWTH SPOTLIGHT: Materials for Healthcare and Automobiles
Facilitating High-Value Manufacturing
Why?
The healthcare industry has long depended on materials: for instance, polyvinyl chloride (PVC) is used for critical applications, from IV bags to respiratory tubing. In the automotive ecosystem, the demand for specialized coatings, adhesives, and sealants that meet electric vehicle (EV)-specific requirements — such as thermal, electrical, and fire protection — is surging.
Growth Opportunities
- EV manufacturers are seeking eTransmission fluids and eGreases (eFluids) to meet their production needs and safety requirements, prompting lubricants companies to produce these alternatives.
- Regulations are pushing companies away from PVC due to health concerns and recycling challenges, paving the way for polyolefins (POs) as an alternative. However, adoption remains low, encouraging players to try bridge the gap.
Companies to Action:
- Teknor Apex: This chemical material company’s Medical-grade thermoplastic elastomers (TPEs) are becoming popular as PVC replacements for critical medical applications like tubing and face masks.
- Nippon Paint Holdings Co., Ltd: Leading the way in automotive coatings, Nippon Paint’s innovative film and in-mold coating technologies reduce emissions and eliminate the need for traditional paint booths.
To learn about more growth opportunities for automotive and healthcare materials, view our expert analysis.
GROWTH SPOTLIGHT: Sustainable Packaging Materials
Driving Sustainability Through Innovation
Why?
The sustainability movement is changing packaging considerations. Plastics like polyethylene terephthalate (PET), polypropylene (PP), and high-density polyethylene (HDPE) are being recognized for their recyclability and their lower environmental impact compared to glass and metals. Biomaterials derived from fungi, cellulose, and other natural sources are similarly on the rise for their eco-friendly properties.
Growth Opportunity
Packaging players are focusing on developing greener alternatives, such as bioplastics, that deliver plastic-like benefits while significantly reducing environmental impact. This innovation, in fact, is allowing packaging companies to also lower their own carbon footprint.
Company to Action
TotalEnergies and New Energy Blue: These companies are pioneers in bioplastics, partnering with the food industry to supply eco-friendly packaging solutions that cater to a sustainable future.
To learn about more growth opportunities for sustainable packaging materials, view our expert analysis.
GROWTH SPOTLIGHT: Antimicrobial Materials
Safe, Hygienic, and Future-Ready
Why?
Post-pandemic, the demand for antimicrobial technologies has surged. These materials are now being integrated across industries — from healthcare to packaging — to enhance hygiene and safety.
Growth Opportunity
The antimicrobial materials market is projected to grow at over 16% compound annual growth rate (CAGR) between 2023 and 2030. Cross-industry collaborations between materials manufacturers and regulated sectors, such as healthcare and food packaging, present opportunities for scaling up manufacturing, procurement, and distribution.
Companies to Action
Amcor: The company’s LifeSpan® antimicrobial film, incorporating copper microparticles, is designed to prevent microbial growth, keeping food products fresher for longer periods.
To learn about more growth opportunities for antimicrobial materials, view our expert analysis.
Are you missing out on the explosive growth of antimicrobial materials, sustainable packaging, and materials for the healthcare and automotive industries? Change that today:
Frost & Sullivan, the growth pipeline company, enables organizations like yours to accelerate growth and achieve best-in-class industry positioning in terms of innovation and leadership. The company’s ‘Growth Pipeline-as-a-Service’ provides corporate management teams with transformational strategies and best-practice models that catalyze growth opportunity generation, evaluation, and implementation.
Let us coach you on your transformational journey, while we actively support you in fostering collaborative initiatives within the global materials ecosystem. This journey is fueled by four powerful components, ensuring your success in navigating dynamic business and industry landscapes.
- Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
- Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
- Join Frost & Sullivan’s Growth Council and become an integral member of a dynamic community focused on identifying growth opportunities and addressing critical challenges that influence industries.
- Designate your company as a Companies to Action to maximize your exposure to investors, new M&A opportunities, and other growth prospects.
