Packaging Automation Market Size, Share & Trends Analysis Report By Product Type (Filling, Labeling, Case Packaging, Bagging, Palletizing, Capping, Wrapping, Other Product Types), By End-User (Food, Beverage, Pharmaceuticals, Personal Care and Toiletries, Industrial and Chemicals, Other end-users) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

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).

With the surging digitization, automation has penetrated all industries worldwide, and the packaging industry is no exception. The demand for packaging automation has increased across several end-user verticals, boosting the market expansion. The tremendous growth in online shopping has also led to soaring demand for packaging automation.

Packaging encompasses the interdisciplinary fields of art, science, and technology, with the primary objective of safeguarding and enclosing objects to facilitate distribution, storage, sale, and utilization. Packaging also includes the creation, evaluation, and design of packages. Packaging is a coordinated system to prepare products for transport, storage, distribution, and ultimate use. Packaging contains, safeguards, preserves, transports, educates, and sells its contents.

Packaging automation refers to the packaging process that does not require human intervention. It is a clever strategy for eliminating redundant jobs and enabling manufacturing and packaging companies to accomplish more with fewer employees. Packaging automation reduces reliance on human labor, improves packaging repeatability and efficiency, and consequently permits more effective floor space utilization. It also improves packaging quality while reducing overall packaging costs. Automated machines increase the efficiency and productivity of manufacturing processes.

Market Dynamics

Global packaging automation market drivers

Increasing adoption of automation solutions across various industries

Numerous small and medium-sized businesses across industries are just beginning to adopt various forms of automation. The implementation of automated packing processes results in heightened output levels and improved operational efficiency within the assembly line. Approximately 66% of consumer packaged goods (CPG) companies have implemented automation in their packaging and processing operations. According to an Association for Packaging and Processing Technologies survey, robotics are already utilized in 94% of food packaging operations.

Beverage manufacturers also utilize intelligent automation to expedite changeover times, automate complex packaging operations, such as the assembly of various packs, and boost productivity via intuitive and comprehensive HSR and PLC interfaces. These changes are also vital in the face of persistent skilled labor shortages in the manufacturing sector. Similarly, many pharma packaging players are expanding their hand in packaging automation, adhering to the market growth. In December 2021, Jones Healthcare Group, a provider of advanced packaging and medication dispensing solutions, is expanding its Qube and FlexRx medication adherence product lines with first-of-its-kind sustainable packaging for pharmacies. The above factors are augmenting the market growth across industries.

Rapid growth of the online retail sector 

The number of people shopping online has dramatically increased, making e-commerce one of the most significant contemporary advancements. Internet shopping is rising quickly in developing nations like China and India. The booming e-commerce industry is fueling the sales of packaging automation since there is a substantial need for packaging equipment throughout all stages of e-commerce manufacturing, including primary and secondary packing, labeling, coding, and marking of the products. In addition, product packaging greatly influences consumers' buying choices, protecting products from damage and separating businesses from one another through appealing and creative designs. Therefore, the growing online retail sector is expected to augment market growth.

Global packaging automation market restraint

High cost of packaging machines

The packaging automation market is hindered by the high development and maintenance costs associated with the packaging machines. The cost of these machines will increase because of the incorporation of advanced technologies and the demand for skilled labor. In addition, the machines' regular and continuous operation necessitates proper and periodic maintenance, which incurs additional expenses. Stringent government regulations regarding worker safety during automated packing techniques hinder the industry's growth.

Global packaging automation market opportunities

Technological advancements in packaging machine

With increasing technological advancements, the demand for intelligent packaging-enabled machines is growing, resulting in manufacturers' introduction of innovative technologies. For instance, ULMA Packaging announced in May 2022 that it would exhibit TSA 400, a recently developed compact tray sealer, at IFFA 2022. The TSA 400 is designed to be a flexible machine capable of performing 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, in November of 2021, Crawford Packaging introduced Evolution S, the most advanced seal packaging machinery. Packaging Automation Ltd.'s new high-speed tray sealing machine can seal up to 250 packs per minute in a single-lane configuration. Such advancements in the packaging machines by key players are further expected to create opportunities for growth in the global packaging automation market.

Regional Analysis

Based on region, the global packaging automation market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-pacific dominates the global market

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. Due to the widespread use of packing machines, the Asia-Pacific region contributes to a substantial market share. Given the rising investments and growing retail market sector, China is predicted to be the most important market for the sector. Consumer spending growth accelerates the need for more packaging, impacting the packaging robot market. In addition, Japan's packaging industry is consistently expanding. Nationwide demand for rigid packaging has increased as packaged foods and beverages have become increasingly popular. Japan's expanding processed food market is anticipated to be a significant growth factor for the packaging automation market.

Furthermore, the Indian packaging industry has been experiencing expansion in recent years. The introduction of numerous manufacturing units, eco-friendly materials, and a greater emphasis on research and development have produced appealing and innovative goods. All of these are produced locally at minimal expense. Likewise, government initiatives, such as 'Make In India,' are expected to increase in boosting these initiatives. Therefore, the growth of the packaging industry in several parts of the Asia-Pacific region is, in turn, boosting the regional market growth.

Europe is estimated to exhibit a CAGR of 6.84% over the forecast period. The adoption of new technology and the presence of numerous manufacturing industries are driving the packaging automation market in the European region. Similarly, the rising demand for automation is fueling strategic acquisitions in the region. For instance, in November 2021, Protective packaging specialist Storopack inked an agreement to acquire 74.9% of shares in OPITZ Packaging Systems GmbH. The acquisition will enable Storopack to leverage the OPITZ portfolio comprising carton erectors, volume reducers, carton sealers utilizing palletizers, paper, self-adhesive tape, and systems for automating the whole packaging process.

In addition, with the advent of e-commerce in the European market, companies have been launching new and innovative products to retain their competitive edge. Consumers are demonstrating continued demand for sustainability in e-commerce, and 86% of frequent shoppers, as per the survey conducted by Packsize, believed that packaging automation technology is a driving force to make this happen.

The United States is one of the developed packaging markets in North America. Large packaging companies, like Amcor Ltd, Mondi PLC, etc., drive investments in innovation and R&D activities. The United States boasts of a solid export base of packaging machinery, contributing to its growth. Recently, the government of the United States announced numerous initiatives to strengthen the manufacturing sector, which is amid the worst economic downturn since the Great Depression, including an investment worth USD 300 billion in R&D. All such initiatives, along with the willingness of the industrial sector in the U.S. toward increased adoption of technology, are expected to expedite the growth of packaging automation.

In addition, the market is witnessing several strategic developments, which suggest the growing demand and adoption of packaging automation in the manufacturing industry. For instance, in March 2022, Brenton, a ProMach brand, showcased a wide range of products in booth 2220 at PACK EXPO East at the Philadelphia Convention Center, including the RT1000 top load case packer, integrated frozen pizza line, Bot Box modular robotic palletizer, East, and other robotic automation solutions.

In the Middle East and Africa, packaging automation is rapidly transforming with increasing demand for automated solutions in the packaging industry. Companies in the region adopt automated solutions for more innovative products to be delivered. Likewise, the market has witnessed entry by various global players. Owing to the rising demand and growth, the market is witnessing strategic partnerships and expansion in the packaging automation market. For instance, in November 2021, Packaging Automation Limited partnered with KayDee Solutions, a process and packaging company specializing in the full specification, supply, installation, and service support for industrial, food, and beverage processes and packaging equipment in the Middle East.

Segmental Analysis

The global packaging automation market is segmented by product type and end-user.

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. Automatic filling machines ensure a constant and reproducible fill with each cycle, regardless of whether the fill is based on volume, level, weight, or other measurements. Automatic filling machines may usually be configured to accommodate a variety of products as well as different container forms and sizes. The right packing and filling machines enable easy adjustments and fast changeovers for companies that package a range of goods, reducing downtime and boosting productivity.

In addition, various companies have been developing automated filling solutions to expand their presence and enhance their position in the market. For instance, Ranpak, a provider of paper-based packaging solutions for industrial supply chains and e-commerce, introduced its AutoFill solution in North America in August 2021. It is a fully automated end-of-line packaging solution that boosts throughput, lowers labor costs, and ensures that each package has the right void fill.

Label and package printing equipment have become increasingly automated due to advancements in motion control, robotics, and Industry 4.0 capabilities. There is the opportunity to provide a safer work environment, lower labor costs, improve efficiencies with improved quality, and save time by automating a label and packaging printing business. As a company grows and the packaging demands increase, labeling automation can tremendously impact efficiency, driving various companies to employ automated labeling solutions. Automation allows label placement on target, even when throughput increases, for various end-user industries, ranging from food products like bakery clamshell containers, wine bottles, or jelly jars to health and beauty products like shampoo and lotions.

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. The automated food packaging process involves packaging facilities executed using robotics. Earlier, factories or manufacturing plants used manual methods to process food items. However, most food packaging facilities now utilize complex machines throughout the assembly line. There are multiple benefits to using automation equipment. Food packaging automation can be an important tool for businesses, as technology can improve productivity and provide safety and security without human intervention.

In addition, various manufacturers turn to Industry 4.0 solutions to reshape food manufacturing. According to the Robotic Industries Association (RIA) and Association for Advancing Automation (A3), orders of robotic systems by food and consumer goods producers increased by 56% in 2020. With the pandemic, various food manufacturing companies turned to automation for their packaging lines to reduce time and maintain efficiency, thereby driving the demand for packaging automation in the industry.

In industrial and chemical packaging processes, increasing the efficiency and productivity of production plants is driving the need for automation. The industry has been witnessing the introduction of automation. The application and combination of advanced technologies to deliver digital transformation end-to-end automation within an organization allows manufacturers to automate complicated tasks and processes. Automated processes also expand capabilities with machine learning (ML), artificial intelligence (AI), process mining, and other advanced manufacturing tools.

Sustainability is one of the crucial factors for manufacturing in the chemical industry. Many players are transforming their core business strategies and processes to achieve a sustainable environment with the help of technology. For instance, in May 2022, Austrian petrochemical producer Borealis entered a joint venture with Relay Group to develop sorting and recycling systems for lightweight plastic packaging waste as demand rises for recycled plastic suitable for high-end applications.

Recent Developments

• January 2023- EndFlex Packaging Machinery of the United States introduced a new system that can be used to pick, place, and seal bottles into cartons. The automated packaging system comprises a Kartnr vertical cartoning machine and a PKR-Delta robotic pick-and-place cell.
• June 2023- Shemesh Automation, an automation solutions provider, introduced its most recent product, the BuckIT TKS25 packaging line. This innovative system provides a complete end-to-end packaging solution for liquid and solid products contained in buckets.