Packaging Automation Market Scope with top companies by 2031

Automation in packaging refers to packaging processes that do not require human intervention. It is a clever strategy for eliminating redundant jobs and allowing manufacturers and packagers to accomplish more with fewer employees. Packaging automation reduces reliance on human labor, enhances packaging repeatability and efficiency, and consequently enables more efficient floor space utilization. It also enhances packaging quality while reducing total packaging expenses. Manufacturing processes are made more efficient and productive by the use of automated machines.

Market Dynamics

Increasing Adoption of Automation Solutions across Various Industries Drives the Global Market

Beverage manufacturers are implementing intelligent automation to expedite changeover times, automate complex packaging operations, such as the assembly of variety packs, and increase productivity through intuitive and comprehensive HSR and PLC interfaces. These changes are also essential in the face of persistent shortages of skilled labor in the manufacturing industry.

In addition, several pharma packaging companies are increasing their involvement in packaging automation in response to market expansion. In December 2021, Jones Healthcare Group, a provider of advanced packaging and medication dispensing solutions, will expand its Qube and FlexRx medication adherence product lines with the first-of-its-kind environmentally friendly packaging for pharmacies. The factors above contribute to the expansion of markets across industries.

Technological Advancements in Packaging Machines Creates Tremendous Opportunities

Manufacturers are developing cutting-edge innovations in response to the demand for intelligent packaging-enabled machines. For instance, ULMA Packaging announced in May 2022 that it would display TSA 400, a newly developed compact tray sealer, at IFFA 2022. The TSA 400 is designed to be a versatile machine that performs well in SKIN, MAP, LEAFSKINTM, and LEAFMAPTM applications. The tray sealer has a small footprint and a high-speed output of 2.3 meters, making it ideal for spaces with limited space.

Similarly, Crawford Packaging introduced Evolution S, the most advanced seal packaging machinery, in November 2021. The new high-speed tray sealing machine from Packaging Automation Ltd. can seal up to 250 packs per minute in a single-lane configuration. Such advancements in packaging machines by key players are anticipated to generate additional growth opportunities in the global packaging automation market.

Regional Analysis

Asia-Pacific is the most significant global packaging automation market shareholder and is anticipated to exhibit a CAGR of 8.31% during the forecast period. China is anticipated to be the sector's most significant market due to its rising investments and expanding retail market. The increase in consumer spending accelerates the demand for more packaging, influencing the market for packaging robots. In addition, the packaging industry in Japan continues to expand. Packaged foods and beverages have become more popular, and the demand for rigid packaging has increased nationally. It is anticipated that the expanding processed food market in Japan will be a significant growth factor for the packaging automation market.

Additionally, the Indian packaging industry has experienced growth in recent years. Numerous manufacturing facilities, eco-friendly materials, and a greater emphasis on research and development have produced appealing and innovative products. All of these are locally produced at minimal cost. Government initiatives such as "Make in India" are also anticipated to play a larger role in promoting these initiatives. Thus, expanding the packaging industry in various parts of the Asia-Pacific region stimulates regional market expansion.

Europe is estimated to exhibit a CAGR of 6.84% over the forecast period. The adoption of new technology and numerous manufacturing industries drive the market for packaging automation in Europe. The increasing demand for automation also drives strategic acquisitions in the region. For instance, in November 2021, protective packaging specialist Storopack signed an agreement to acquire 74.9% of OPITZ Packaging Systems GmbH's shares. Storopack will be able to utilize the OPITZ portfolio of carton erectors, volume reducers, and carton sealers utilizing palletizers, paper, self-adhesive tape, and systems for automating the entire packaging process due to the acquisition.

With the advent of e-commerce in the European market, businesses have been introducing new and innovative products to maintain a competitive edge. Consumers continue to demand sustainability in e-commerce, and according to a Packsize survey, 86% of frequent shoppers believe packaging automation technology is a driving force in making this a reality.

Key Highlights

The global packaging automation market size was valued at USD 64.77 billion in 2022. It is estimated to reach USD 125.32 billion by 2031, growing at a CAGR of 7.61% during the forecast period (2023–2031).
Based on product type, the global packaging automation market is divided into filling, labeling, case packaging, bagging, palletizing, capping, wrapping, and other product types. The filling segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 8.11% over the forecast period.
Based on the end-user, the global packaging automation market is segmented into food, beverage, pharmaceuticals, personal care and toiletries, industrial and chemicals, and other end-users. The food segment owns the highest market share and is estimated to exhibit a CAGR of 7.02% during the forecast period.
Asia-Pacific is the most significant global packaging automation market shareholder and is anticipated to exhibit a CAGR of 8.31% during the forecast period.