High performance films

High performance films manufacturers and film converters

Demand for major high-performance films grew negatively in 2022, around 20 percent below the preceding year. Although the demand is turning for the better in early 2023 as most user companies resumed full operation, the speed of recovery is slower than the rate of shrinkage. It may take another 2 to 3 years for the full recovery to 2021-level, when the market peaked. Besides, the lack of new game-changer application after TVs and smartphones is affecting the market growth. The weak yen and higher costs weigh on Japanese converters, who develop new film together with roll film makers, hindering them to invest in new product development.

One way for Japanese film makers to keep ahead of the competition is to focus on the state-of-the-art “environmental” technology, such as Film-to-Film recycling, and establish a new competition framework that proves validity of premium value of resource circulation and carbon neutrality. While making efforts to cutdown the costs involved in production of recycled products, manufacturers must find ways to add value to recycled films to avoid competing only on price.

I. Outlook of High-Performance Film Market

• Film-to-Film recycle technology garners attention as the market currently lacks new 'game-changer' application
• Japanese film makers should increase presence in the global market by their film formation/processing/quality management technologies
• Double-digit percentage drop in 2022 as a repercussion of ‘special demand’ during COVID-19 pandemic
• Although the market bottomed out in early 2023, V-shaped recovery is still unseen. The market size is projected to recover to its peak level around 2025
• Despite high expectations for applications like fordable phone covers and low-dielectric films for 5G, the demand stayed sluggish for transparent colorless PI film & modified polyimide (MPI)
• Some makers are witnessed to focus on battery sensors until ‘Beyond 5G’ or 6G networks roll out around the world
• PET film makers struggle to develop a new product  with novel property that is mass-producible 
• Rise of local polarizing film makers in China, the main market of polarizing films by region
• Film-to-Film recycle as competitive edge for Japanese companies!
• Manufacturers should aim for high-value added recycled film which can compete with virgin Chinese films by means of technological fusions of original films plus processing!
• As recycling became a value, now is the time for manufacturers to develop technology that can reduce cost and secure profits
• Japanese makers need to add value to recycled films with state-of-the-art technology and top-tier product quality to validate premium price of recycled films

II. PET Film Market Analysis

• After two consecutive years of special demand, the market in 2022 fell to below-500,000 t level
• While V-curb recovery is expected for Korea, Japan is projected to recover moderately for 2023 
• In Korea, not only Kolon scrapped two production lines but also others go for improving utilization rate by suspending their production lines. Meanwhile, Japanese companies made advancements in production capabilities in and out of Japan.
• Even new application needs to be produced in quantity. To replace other materials, setting a reasonable price and appealing recyclability may be stronger as marketing strategy than to pursue novel property 
• For optical applications, manufacturers are seen to shift toward high-definition display panels like OLED, QD, and polarizer filters  
• Moves to localize procurement of auxiliary materials witnessed in China, the main market for polarizing films
• The market of MLCC release film expects recovery in 2024 to 2021-level 
• Competition with Chinese makers intensify for DFR in premium market segment
• Toyobo and Nanya are investing in silicone coating film production facilities. The companies plan to begin operation in 2024 

III. Noteworthy High-Performance Films Market Trends

IV. Perspectives and Strategies at Industrial High-Performance Film Manufacturers

• Kolon Industries
• SK microworks
• Kaneka Corporation
• PI Advanced Materials
• Toray-Dupont
• Toyobo