The invention relates to a packaging material comprising: a paperboard substrate comprising a first and a second side, at least one barrier layer applied on the first side of the substrate, the barrier layer comprising a water-soluble polymer selected from the group of polyvinyl alcohol, a copolymer of ethylene and polyvinyl alcohol, starch, carboxymethylcellulose and combinations thereof in an amount of at least 50 weight %, based on the dry weight of the barrier layer, an extrusion coated layer of a polyolefin on the barrier layer, and at least one dispersion barrier layer applied on the second side of the substrate, which at least one dispersion barrier layer forms a printing surface of the packaging material. The invention further relates to a method of manufacturing a respective packaging material.