ALUMINUM LAMINATED FILM MARKET ANALYSIS

Global aluminum laminated film market was valued at US$ 44.1 Mn in 2022, and is expected to exhibit a CAGR of 16.7%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 152.1 Mn by 2030. Aluminum laminated film is a composite material made of aluminum foil or resin film that offers greater molding flexibility, better heat dissipation, and is lighter weight than metallic cans. Lithium-ion batteries, which are used in consumer electronics, e-bikes and e-scooters, power tools, and electric vehicle batteries, are frequently packaged using this aluminum laminated film.

Global Aluminum Laminated Film Market - Impact of Coronavirus (COVID-19) Pandemic

The disease has spread to nearly 100 countries since the COVID-19 virus outbreak in December 2019, and the World Health Organization has declared it a public health emergency. The market for aluminum laminated film will experience significant market-wide effects from the coronavirus disease 2019 (COVID-19) in 2020.

The three main ways that COVID-19 can have an impact on the world economy are by directly affecting supply and demand, by disrupting the market and supply chain, and by having an economic impact on businesses and financial markets.

Figure 1. Global Aluminum Laminated Film Market, By Process, in 2022

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Global Aluminum Laminated Film Market: Growth Drivers

Increasing Demand for Lithium-Ion Batteries for Various Electrical Applications

Increasing demand for various micro-mobility channels for short-distance travel, micro-mobility companies have started providing various micro modes of transportation such as e-bikes and e-scooters. These vehicles provide the convenience of pickup and drop-off anywhere and are cost-efficient. There has been significant growth in the adoption of these micro-mobility modes of transportation in recent years. Various e-scooter mobility startups have emerged in developed countries such as the U.S. and Germany in recent years.

Growing Demand for Aluminum Laminated Film in Packaging & Pharmaceutical Industry

Aluminum laminated film market growth is being driven by rising demand from the food packaging industry and rising demand from the pharmaceutical industry. Because of its high barrier properties and ability to keep food products fresh for longer periods, aluminum laminated film is widely used in the food packaging industry. Aluminum laminated film demand is expected to rise in response to rising demand for convenience foods and ready-to-eat foods. Aluminum laminated film is also widely used in the pharmaceutical industry for drug and medicine packaging. For instance, According to the European Aluminium Foil Association, demand for aluminum foil increased to 494,000 tones in H1 2022.

Global Aluminum Laminated Film Market: Market Restraints

High Cost of Raw Material  

The unstable raw material prices are also expected to impede the growth of the aluminum foil market during the target period. However, a lack of proper recycling processes may pose additional challenges to the growth of the aluminum film market in the near future.

However, swelling or bulging occurs in pouch lithium-ion batteries, in which laminated aluminum foil is used. Swelling is a result of gas generation during charging and discharging. The pressure from swelling can crack a battery cover, and in some cases break the display and electronic circuit board. These factors are expected to hamper demand for pouch lithium-ion batteries, which can further hamper the market growth of aluminum laminated film over the forecast period. Moreover, to prevent swelling, battery manufacturers add excess film to create a gas bag outside the cell. During the first charge, gases escape into the gasbag, which is then cut off, and the pack is resealed as part of the finishing process.

Figure 2. Global Aluminum Laminated Film Market, By Region, in 2022

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Global Aluminum Laminated Film Market: Market Segmentation

On the basis of process, thermal process dominated the global aluminum laminated film market in 2022 with around 39% of the market share in terms of revenue, followed by dry process, respectively. Thermal laminating films are purely designed to protect products from rough handling and friction during inventory management or transportation. They offer excellent tear resistance, enhancing the security of product packages. Films are also beneficial to the printing industry. Some digital inks dry slowly and are easily scratched or scuffed. By keeping the ink intact, the films help to protect the messaging and branding on packages. The films provide food and non-food packaging with barrier properties, improved appearance, and haptic properties – all of which contribute to improving the feel of a surface. In the paper printing sector, thermal laminating film applications include books, diaries, leaflets, brochures, textbook covers, magazines, and so on. Laminating films also come in handy when it comes to providing excellent protection for official documentation and enhancing their durability.

Global Aluminum Laminated Film Market: Regional Analysis

Asia Pacific accounted for the largest market share in 2022, owing to increasing demand for consumer electronics products across the region. The increasing demand for fast-moving consumer goods, coupled with the growing economy, is expected to lead to the market's high growth in Asia Pacific. For instance, according to the India Brand Equity Foundation, the India consumer electronics market was valued at US$ 10.93 billion in 2019 and is expected to reach US$ 21.18 billion by 2025. The market for aluminum film is dominated by Asia-Pacific because of population growth. The widespread uses in the pharmaceutical industry will also help the region's aluminum foil market grow over the course of the forecast period. Due to the increased use of aluminum film for insulation in both brown goods and white goods, North America is expected to experience significant growth in the aluminum film market. Furthermore, it is anticipated that in the upcoming years, rising food and grocery product consumption will further fuel the expansion of the aluminum film market in the region.

Global Aluminum Laminated Film Market: Recent Developments

• In 2020, Showa Denko has launched a new aluminum-laminate film product. SPALF is a laminated composite film made up of resin films and aluminum foil that are primarily used in the packaging of pouch-type LIBs. Due to its insulation performance and plasticity, SPALF has a large global market share. Pouch-type LIBs have exceptional shaping flexibility and are used in a wide range of small devices, including smartphones and tablets. Furthermore, pouch-type LIBs have begun to be widely used in large-sized equipment, including EVs, in recent years.
• In 2020, Showa Denko has developed a new product to add to the SPALFTM aluminum laminate film lineup, which is used as packaging material for pouch-type lithium-ion batteries (LIBs), and has decided to install equipment to mass-produce the new product. This new product is designed for large-sized LIBs, which are primarily used in automobiles. The new manufacturing equipment is set to go into service.

Global Aluminum Laminated Film Market: Key Companies

Major players operating in the global aluminum laminated film market include Showa Denko K.K., Avocet Steel Strip Ltd., T&T Enertechno Co., Ltd., Daoming Optics and Chemical Co., Ltd., Nanografi Co. Inc., AME Energy Company, Dai Nippon Printing Co., Ltd., Selen Science & Technology Co., Ltd., Targray Technology International, and Gelon LIB Group.

*Definition: Aluminum laminated film is an aluminum foil or resin film composite material, which offers higher flexibility in molding, better heat dissipation, and it is lightweight compared to metallic cans. This aluminum laminated film is widely used as packaging material for lithium-ion batteries. Lithium-ion batteries are categorized into cylindrical cell, button cell, prismatic cell, and pouch cell according to their shape and packaging. Aluminum laminated film is used for packaging the pouch cells. The aluminum laminated film consists of a nylon layer, an aluminum layer, and a sealing layer in order from outside to inside. The nylon layer is used to form an aesthetically pleasing shape and to prevent oxygen & moisture from entering the battery. The main function of aluminum foil is to further prevent the entry of oxygen and moisture into the air and also serve as a skeleton for supporting the outer shape of aluminum laminated film. The sealing layer offers heat sealing adhesion between two layers of aluminum laminated film while protecting the aluminum layer from the corrosive action of electrolyte.