Despite the strong advantages, the poly coated paper market faces several challenges. One of the biggest is the trade-off between performance and recyclability: many high-barrier coatings make recycling more difficult, and infrastructure for separating polymer layers from paper is not universal. This complicates claims of sustainability for some poly-coated products. 

Another challenge lies in cost. Advanced coating methods, such as multilayer extrusion or barrier polymers, add significant cost compared to traditional paperboard. For smaller converters or low-margin applications, the premium may not justify switching to coated paper, especially when plastic alternatives remain cheap.

Manufacturing complexity is also a factor. Coating lines require precise control over temperature, speed, and polymer distribution to ensure performance. Any inconsistency can lead to weak spots in the barrier or poor adhesion, reducing product lifespan or quality.

Finally, regulatory uncertainty adds risk. As governments tighten rules around single-use packaging and recycling, coated paper producers need to balance performance with compliance. In some regions, there is a push for fully recyclable or compostable materials, which may limit the use of certain polymer coatings.

Insights from Poly Coated Paper Market Challenges help companies anticipate these risks. By understanding the obstacles around recycling, cost, and regulation, stakeholders can make strategic choices about coating types, production methods, and end-use markets that balance performance with long-term viability.