PPG raises packaging coatings prices by up to 20% as petrochemical, energy costs surge

NORTH AMERICA – PPG has implemented price increases worldwide across its paints, coatings, and specialty products business, with rises of up to 20 percent on a customer-by-customer basis due to swings and shortages in petrochemical, energy, and freight markets.

The company noted that several products, technologies, and regions could face larger increases where needed to match current cost inflation.

PPG also outlined the possibility of further price rises if market conditions keep changing.

Sourcing, manufacturing, and logistics teams are using the company’s production base and supplier network to limit disruption.

Why Coatings Are Getting More Expensive

The coatings industry is highly exposed to petrochemical feedstocks, which have seen dramatic price swings due to Middle East supply disruptions.

Resins, solvents, and additives, the building blocks of paints and coatings, are derived from crude oil and natural gas.

Energy costs for manufacturing and transport have also risen, compressing margins for suppliers. PPG’s 20 percent increase signals that the company can no longer absorb these costs.

The Impact on Packaging

For the packaging industry, coatings are essential for metal cans, glass bottles, and flexible packaging. Can coatings prevent corrosion and food contamination. Glass coatings provide scratch resistance and label adhesion.

Flexible packaging relies on coatings for barrier properties and printability. A 20 percent increase in coating prices will flow through to packaging costs, pressuring beverage, food, and aerosol brands.

A Customer-by-Customer Approach

Rather than announcing a blanket increase, PPG is applying the hike on a customer-by-customer basis or where existing contracts allow.

This approach gives the company flexibility to respond to competitive pressure, as some customers may have fixed-price contracts that limit immediate increases. For packaging converters, negotiating power will vary depending on contract terms.

Leadership Context

Tim Knavish, PPG chairman and CEO, explained that the company’s top priority remains supporting customers with consistent quality, dependable supply, and technical expertise.

He noted that this pricing action allows PPG to ensure availability of supply as it navigates unexpected and increased cost pressures.

When Coatings Cost More

A 20 percent price hike on coatings is not a rounding error. For can makers and flexible packaging converters, it is a direct hit to margins.

PPG’s increase is a symptom of a broader reality: petrochemical volatility is here to stay, and packaging buyers will pay the price.

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