Anti-fog additives market size is forecast to reach $436 million by 2025, after growing at a CAGR of 4.5% during 2020-2025, owing to the increasing demand for anti-fog additives such as glycerol esters and sorbitan esters from the agricultural and food packaging end-use industries to manufacture films. The anti-fog additives are being widely used in the agricultural and food packaging industries due to their extensive characteristics such as improved light transmission, improved wet ability, reduced constant water dripping, excellent transparency, reduced surface tension, and more. The increasing demand for anti-fog additives from the food packaging and agricultural industries are anticipated to drive the anti-fog additives market substantially during the forecast period.
- Asia Pacific dominates the anti-fog additives market, owing to the increasing government initiatives in the agricultural sectors in the region. In May 2019, NABARD announced an investment of Rs 700 crore (US$ 100 million) venture capital fund for equity investments in agriculture and rural-focused start-ups in India. Thus, the increasing agricultural sector due to the government initiatives in the region will propel the anti-fog additives market.
- Agricultural land for food crops is now in competition with land for bio-fuels and increasing urbanization. Farmers are under pressure to produce more food from less land. The anti-fogging additives improve light transmission in polytunnels leading to increased growth rates and crop yields which is driving the anti-fog additives market growth during the forecast period.
- In food packaging, fogging reduces the visibility of the product provides a less attractive appearance of the package, and the presence of droplets can even result in deterioration of product quality. Thus, there is an increasing demand for non-ionic surfactants such as anti-fog additives from the food packaging industries, which will boost the anti-fog additives market during the forecast period.
- Due to the COVID-19 pandemic, the entire world has gone into a lockdown period due to which the restaurants and grocery shops are closed and the demand for fresh packaged food and fisheries products has increased, which is driving the anti-fog additives market.
By Type – Segment Analysis
The glycerol esters anti-fog additives segment held the largest share in the anti-fog additives market in 2019, owing to its multifunctional properties and harmless nature glycerol esters are widely used as anti-fog additives in many applications such as in the food packaging and agricultural films. The demand for glycerol ester anti-fog additives will continue to rise as these are safe to use in the food packaging film application and are cheaply available. The extensive characteristics and low cost of glycerol esters based anti-fog additives are anticipated to boost the demand for glycerol ester-based anti-fog additives during the forecast period.
By Application – Segment Analysis
The food packaging application held the largest share in the anti-fog additives market in 2019 and is growing at a CAGR of 4.7%, owing to the increasing demand for anti-fog additives from the food packaging industries to prevent fog build-up on the inside of plastic packaging. The anti-fog based plastic packaging improves the aesthetics and durability of chilled and hot foods. By adding a suitable anti-fogging additive to food wrap film, condensed water droplets are spread into a thin continuous layer which improves packaging transparency and content durability. This also improves the presentation of the food to look more appealing to customers. Thus, the increasing demand for anti-fog additives to prevent fogging in plastic packaging used in food wrapping is anticipated to propel the anti-fog additives market in the food packaging industries during the forecast period.
By Geography – Segment Analysis
Asia Pacific region held the largest share in the anti-fog additives market in 2019 up to 30%, owing to the increasing food packaging industry in the APAC region. Also, there is an increasing demand for anti-fog additives from the food packaging in the region to reduce the fog formation on plastic films or sheets as they are non-ionic surfactants. In 2016, according to the Federation of Indian Chambers of Commerce & Industry (FICCI), the Indian packaging is one of the fastest-growing industries and stands at USD 700 billion globally. In India, it grew at a CAGR of 16% in the last five years and touched approximately USD 32 Billion in 2015. Thus, the increasing food packaging sector in the region is driving the anti-fog additives market growth in the Asia Pacific during the forecast period.
Drivers – Anti-fog Additives Market
- Increasing Food Processing Sector
The food processing industry is increasing in various regions. With the increasing food industry, the demand for anti-fog additives will also increase for packaging foods as anti-fog additives are non-ionic surfactants that lower the surface tension between two liquids or a solid and a liquid. According to the United States Department of Agriculture (USDA), in 2018, Canada’s total food and beverage industry sector sales reached $87 billion. According to the International Trade Administration (ITA), Russia has the eighth largest market for packaged food products with 27.5 million tons of trade volume. In 2018, total processed food production in Ukraine was $15 billion and the processed food exports reached $9.4 billion, accounting for 50 percent of Ukraine’s agricultural products and processed food exports. In 2017, the packaging material production industry represented 1.7 percent of Mexico’s GDP, 5.8 percent of the industrial sector GDP, and 8.5 percent of manufacturing GDP. In 2017, Mexico produced 11.9 million tons of packaging containers and packaging materials with a value of USD 14.6 billion. Thus, the rising food processing sector is increasing the demand for anti-fog additives in various regions, which act as a driver for the anti-fog additives market.
- Increasing Government Initiatives in The Agriculture Sector
Governments of various countries are investing heavily in the field of agriculture as it is one of the most effective ways of promoting agricultural productivity while enhancing environmental sustainability. The fog in agricultural films can lead to a reduced light transmission with a consequent reduction in growth and crop yield. It can also cause damage to the plants due to burning from a ‘lens’ effect and continuous water drip due to which there is an increasing demand for anti-fog additives from the agricultural sectors. In 2020, the Canadian government invested a total of $560,000 on the Canadian Federation of Agriculture (CFA) to develop the Canadian Agri-Food Sustainability Initiative. In 2016, according to China’s Ministry of Agriculture, over 1,300 Chinese enterprises had overseas investments in agriculture, forestry, and fisheries valued at $26 billion. The 2010- 2013 National Strategy for France’s Sustainable Development aimed to develop a more sustainable food production and support green economy and business innovation. Thus, due to the various initiatives by the government, agricultural production is also increasing in the various regions. And with the increasing agricultural production, the demand for anti-fog additives is also increasing which acts as a driver for the anti-fog additives market during the forecast period.
- Covid-19 Impact on The Anti-Fog Additives Market
Due to the COVID-19 outbreak, many countries are under shut down. Stock up on necessary supplies such as dairy products, food, and many more have been in high demand. All these products require anti-fog packing, and their production has been higher than ever before. The consumers and customers around the world prefer packed products rather than initially available and sold lose products such as fruits, vegetables, and more. Hence, the demand for the packaging industry has increased due to the pandemic. And with the flourishing packaging industry, the demand for anti-fog additives is also substantially increasing during the pandemic, which is having a positive impact on the anti-fog additives market during the pandemic.
Challenges – Anti-fog Additives Market
- Stringent Government Regulations On Use of PVC
Several countries have implemented taxes to discourage the use of polyethylene (PE) and Polyvinyl Chloride (PVC) plastics and encouraged the use of the biodegradable option. And anti-fog additives are often used in the PE and PVC based food wraps. According to the Center for Health, Environment & Justice (CHEJ), Polyvinyl Chloride (PVC) packaging has been banned or restricted in several countries around the world, such as Canada, Spain, South Korea, and the Czech Republic. Some U.S. cities such as New Jersey, Rahway, and Glen Cove, New York have prohibited the use of PVC in food packaging or utensils. The Sustainable Packaging for the State of California Act of 2018 stated to dispense prepared food using foodservice packaging that is reusable, recyclable, or compostable. The Food and Drug Administration (FDA) banned the use of PVC food containers in the United States owing to evidence that vinyl chloride monomer in the packaging migrates into fatty and alcohol-based foods. Thus, the ban on Polyvinyl Chloride (PVC) will hinder the anti-fog additives market growth during the forecast period.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the anti-fog additives market. In 2019, the market of anti-fogs additives has been consolidated by the top five players accounting for xx% of the share. Major players in the anti-fog additives market are Nouryon, Croda International Plc., Clariant AG, A. Schulman, PolyOne Corporation, Evonik Industries, Corbion N.V., Tosaf Compounds Ltd., Ashland Inc., and DuPont.
- In January 2018, PolyOne Corporation acquired the IQAP Masterbatch Group S.L. to advance the possibilities for the European customers to meet demanding new standards of design, functionality, and performance.
- In January 2018, Clariant Ag opened its new masterbatch production site in Saudi Arabia as the location provides easy access to key raw materials and enables it to supply customers in Saudi Arabia as well as strengthen their global network in the Middle East and Africa region.
- In April 2018, Tosaf Compounds Ltd. launched novel a 3rd generation anti-fog masterbatch for polyethylene films – “AF7380PE”, which helps in reducing the harmful effects of water drops on packaging film.