Decorative Films and Foils Market

Global Decorative Films and Foils Market Size & Share

According to Persistence Market Research's most recent market report, the global market for decorative film foils will reach US$ 18,453.8 Mn in 2023. The market for decorative film foils is expected to reach US$ 30,636.7 million in value by 2033 with a steady growth rate of 5.2%.

A decorative film is a thin laminate film, having a clear or colored pattern, which can be applied on the exterior or interior surfaces of substrate materials. Decorative films are mostly used for glass substrates, such as windows, doors, and furniture glasses. However, they also find applications on other substrates, such as wood. Decorative films are available with a variety of opacity, color, transparency, patterns, and textures.

Whereas, a decorative foil is an impregnated paper product consisting of a paper base that is printed with the rotogravure system and laminated with polymer resin materials, such as PET. The foil may either be pre-impregnated during the manufacturing of the paper itself or post-impregnated after the completion of the curing process of the paper. Using adhesive systems, decorative foils are bonded onto substrate materials, mostly wooden in nature

The Boom in construction activity in recent years has shown an upward growth for the decorative films and foils industry. The industry has seen a significant rise in home interior and commercial furniture spending, and this trend is expected to continue in the coming years. The wide utilization of decorative films and foils in commercial, industrial, and residential construction for a variety of applications has been showing an upward graph owing to the rising demand for furniture, door, and window films, there is a commendable increase in demand for decorative films and foils.

Historical (2017-22) v/s Forecast (2023-33) Market Outlook for Decorative Films and Foils Market

According to the historical analysis, the market for decorative films and foils expanded at a compound annual growth rate (CAGR) of 5.6% from 2017 to 2022. Growth in the construction activities in developing regions, such as Asia-Pacific has bolstered the demand for decorative films & foils over the historical period. Countries in the Asia Pacific, such as China and India, among others, are the major contributors to the growth of the global decorative films and foils market. The COVID-19 pandemic caused a significant drop in the growth of the market, owing to the complete shutdown of manufacturing facilities, non-availability of raw materials, and decline in construction activities across the globe, but consumption will increase once the economy recovers after the pandemic has been contained.

The market is predicted to expand at a CAGR of 5.2% over the forecast timeframe influenced by a number of factors, including a surge in investments in infrastructure development along with the rise in the refurbishing of old buildings and growing innovations in product and technology a with focus on eco-friendly and cost-efficient solutions.

With growing disposable income and transformation in personal choices, individuals and corporate buyers are increasingly demanding customized designs in the furniture sector in order to stand out. The advent of online stores, which offer such customized designs to consumers with the click of a button without the need for physical catalogs, has only furthered this trend. These digital technologies and increased custom requirements will provide new opportunities for manufacturers to create distinguished products and experiences for their customers with the option of premium pricing to cater to such requirements.

Market Dynamics

Energy Efficiency Benefits of Decorative Films and Foils create ample space for Protective Coating.

Space heating and cooling are by far the largest energy-consuming applications in buildings, accounting for 35%-50% of overall consumption. The application of Decorative Films on windows helps reduces the need for temperature management to a great extent. Window films play an effective role in re-directing sunlight and filtering UV rays. Decorative window films with ceramic technology can reject up to 55% of solar heat, thus preventing temperature rise in buildings, maintaining thermal balance, and reducing the need for cooling. Decorative Films & Foils have been claimed to reduce electrical lighting needs by up to 52% or more, thus translating into significant energy cost savings, which is another factor helping drive the market of these products. Decorative window films can potentially offer annual savings of 5% to 10 % on the total energy bill of a facility, as per the International Window Film Association.

Moreover, decorative films and foils are also used for their physical properties, in addition to the design and aesthetic appeal they provide. Decorative films and foils commonly protect the substrate on which they are applied from physical damage, such as scratches, protection from stains, spillage of water or other liquids, and so on. All of these benefits raise the durability and working life of the products which form the substrate for these decorative films and foils, such as furniture, windows & door glasses, and others. Window films also protect the interior spaces from harmful ultraviolet (UV) rays, thereby providing comfort as well as a healthy environment for homes and offices or other commercial and industrial spaces where they are applied.

Increasing Adoption of Energy Efficient Solutions is the new key trend in Residential and Commercial Buildings

With the growing adverse effects of climate change and the need to reduce wasteful energy consumption, there is a concerted effort on the part of policy planners and governments to encourage and in some cases mandate the adoption of energy efficiency measures to reduce the total energy needs. The building and construction sector, particularly for commercial and residential spaces, is a prime target area for the application of such energy efficiency measures, as a reduction in heating and cooling energy demand will significantly impact overall environmental goals. The application of decorative films & foils in commercial and residential buildings is already gaining traction in developed countries and there is still huge potential for new opportunities there as well as in rapidly developing countries.

Availability of Substitute Products and Stringent Environmental Regulations Constraints the market growth for Decorative Films and Foils.

Decorative films & foils face competition from substitute products such as decorative laminates in the case of furniture design. The use of decorative laminates is growing fast, owing to the strength, chemical resistance, and variety of design and texture patterns offered by those products. Similarly, in the case of decorative window films or glass films, traditional equipment such as curtains and blinders offer an alternative to tinted or patterned glass films, along with aesthetic appeal, although their cost is comparatively higher. Thus, the presence of substitute products can act as a restraint for the decorative films & foils market.

Environmental regulations pertaining to the use of non-degradable materials, and chemically-treated products used in human proximity are getting more and more stringent. Manufacturers are being pushed to comply with new regulations, whether by changing their raw material compositions, and production processes or by switching to environmentally safe materials, which at times may affect business margins. Moreover, the supply of certain raw materials may get limited due to regulations in one or more regions through which the supply chain flows. All of these factors have the potential to cause an imbalance in supply to meet customer demands, thereby restraining market growth.

Country-wise Insights

What is the Growth Outlook of the Decorative Films and Foils Market in North America?

North America is estimated to be one of the prominent regions for the growth of the global decorative film and foils market during the forecast period. The region is estimated to account for a share of around 17.4% of the global market. The U.S. remains one of the top countries in North America on the back of a rising construction industry, which has had a positive impact on the furniture sector, with a rise in spending recorded across the country. As such, growth in the construction industry and a consequent increase in furniture and related accessories spending is a key driver of the U.S. decorative films and foils market.

What is the Growth Outlook of the Decorative Films and Foils Market in Asia Pacific?

Asia Pacific is one of the fastest-growing markets for decorative films and foils market during the forecast period. Growing construction activities in countries such as India, China, Indonesia, the Philippines, and Vietnam are expected to fuel the growth of the decorative films & foils market during the forecast period. These countries are witnessing increasing spending on residential, commercial as well as institutional construction markets, which is positively impacting the growth of the decorative film and foils market in the region. India and China are key countries witnessing a significant growth rate of 6.9% and 6.3% uring the forecast period.

Category-wise Insights

What is the demand outlook of the Polyvinyl Chloride segment in the Decorative Films and Foils market?

Over the forecast period, the polyvinyl chloride segment will continue to account for more than one-third of the global share by material. The segment is projected to hold almost 42.90% of the market share. The high degree of versatility offered by polyvinyl chloride is a key factor in this type of decorative film and foils, finding wide application across various end-use cases, including furniture, glass windows/doors, and automotive, which drives its dominant market share.

How does the Infrastructure segment fairing in the Decorative Films and Foils market?

Furniture applications continue to hold a majority of the market for decorative films and foils, accounting for more than 40.6% of the total share over the projected period. The segment growth is mainly due to the rapid growth of residential and commercial construction activities. Decorative films and foils offer cost-effective alternatives to costlier décor options such as the use of actual wood patterns or stone/marble patterns. Changing tastes of consumers in terms of design and aesthetics are driving demand for decorative films and foils for this segment.

Competitive Landscape

With the increasing demand from the construction industry, prominent manufacturers are gearing up to tap the market by expanding their presence across regions and improving their product portfolio. Key players in the market are focusing on strengthening their supply chain to stay at the forefront of the market competition. The majority of key players are also focusing on the acquisition of small players, whereas small-scale companies need to make significant investments in R&D to introduce new products and enhance their presence across the globe.

• In November 2018, LG HAUSYS, Ltd. launched a new line of products called DECORIGID, which are luxury vinyl planks/tiles.
• In 2018, OMNOVA Solutions, Inc. acquired Resiquímica, S.A., which is a producer of resins and binders for coatings used in the construction industry

Decorative Films Foils Industry Scope of Report

Decorative Films and Foils Industry Segmentation

By Material, the Decorative Films and Foils market is segmented as:

• Polyvinyl Chloride
• Polyester
• Polypropylene
• Vinyl

By Applications, the Decorative Films and Foils market is segmented as:

• Furniture
• Doors & Windows
• Flooring
• Automotive Interior & Exterior

By End Use, the Decorative Films and Foils market is segmented as:

• Residential
• Commercial
• Institutional

By Region, the Decorative Films and Foils market is segmented as:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa

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