Packaging Machinery Market

Market Overview

The global packaging machinery market size was valued at USD 48.23 billion in 2022. It is estimated to reach USD 83.33 billion by 2031, growing at a CAGR of 6.14% during the forecast period (2023–2031).

Packaging machinery is the equipment used to package products or components. Packaging machinery is used for a wide variety of functions that include canning; container cleaning, filling, and forming; bagging, packing, unpacking, bottling, sealing, and lidding; inspection and check to weigh; wrapping, shrink film, and heat sealing; case forming, labeling, and encoding; palletizing and depalletizing; and related applications. Modern automated packaging machines are used in different packaging stages and ensure that the stages are completed in minutes rather than hours compared to the older versions. The key factor driving the market for packaging machinery is the increase in demand for packaging robots from several end-user industries. Packaging machines are vital in ensuring product safety throughout the supply chain.

Highlights

• Filling machines dominates the type segment
• Food and beverage dominate the end-user segment
• Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Global Packaging Machinery Market Drivers

Development of Innovative and Energy Efficient Packaging Machinery

Packaging machinery makers are creating highly specialized machinery. This equipment fills and packs large amounts of food, cosmetics, and chemicals. These machines' flexibility, high production, product protection, and process assurance are attracting end-user industries. Components are processed and assembled by machines on the packing line. Most machinery is low-maintenance and has a long service life. These machines have proven to be reliable and effective.

Additionally, ingenious manufacturers of machinery provide power savings. As energy prices continue to rise, many manufacturers are equipping their packaging machines with energy-monitoring features. Energy metering devices in the control system give packaging facilities real-time energy consumption statistics. Online performance improvement is possible with centralized operational and process data collecting. Such factors drive market growth over the forecast period.

Increasing Usage of Automation in the Packaging Industry

Industry 4.0 and the Industrial Internet of Things (IoT) are reducing packaging companies' total cost of ownership (TCO) by making machinery easy to operate and maintain. Mass customization of this machinery is being done to enable the automatic adoption of production to real-time demand. In addition, Widespread adoption of Packaging Machine Language (PackML) and OPC Unified Architecture (OPC UA) is ensuring operational efficiency over the entire packaging line, thereby boosting overall equipment effectiveness (OEE). The packaging industry has been a forerunner in adopting innovative packaging machinery, which already operates according to these principles. Many filling and packaging lines produce products with personalized packaging and customized containers, driving market growth.

Global Packaging Machinery Market Restraint

Stringent Government Regulations

Packaging machines are used in most of the manufacturing industries. The largest proportion is used in the food/drink manufacturing industry, with the pharmaceutical industry being the second largest user. The Health and Safety Executive (HSE) has determined from analysis of packaging machinery accidents investigated in the food/drink industry that injuries resulting from using, maintaining, or clearing blockages at packaging machines can be severe or even fatal (like with palletizers). Regional laws emphasize product quality and prevent contamination during packaging. These laws can hinder the market growth.

Global Packaging Machinery Market Opportunities

Growth in the E-commerce and Retail industry

Packaging machinery has been used in the e-commerce and retail sectors to gain an edge over the competition. The upsurge in demand for fast delivery and high consumer expectations have provided an impetus for e-retailers to make innovations in operation for timely order fulfillment and to remain competitive in the market. This provides a huge opportunity for the packaging machinery to witness rapid adoption in the e-commerce industry. For instance, packaging automation solutions offered by Kiva Systems pick items from the shelf and hand over the products to human workers. As a result, the work efficiency increases by two to three times compared to conventional methods. Therefore, e-commerce and retailing companies are now investing in integrating robotics to deal with high-volume and high-value orders.

Regional Analysis

Based on region, the global packaging machinery market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global packaging machinery market shareholder and is anticipated to grow at a CAGR of 5.6% during the forecasted period. China is the leading market for packaging machinery in the Asia-Pacific region and is expected to witness tremendous growth during the forecast period. Food processing is the largest market for the packaging machinery industry in the Asia-Pacific market. The global packaging machinery market is largely driven by emerging countries in Asia-Pacific, such as China, India, Vietnam, Indonesia, and others. In addition, packaging consumption in several countries in the Asia-Pacific region has remained positive and reliably strong. There is a vast potential for growth with an increase in consumer disposable income, urbanization, and a rise in consumption of cosmetics and other fast-moving consumer goods, driving the global market. The increase in the e-commerce sector in the region is also one of the prime reasons for growth in the Asia-Pacific region.

In North America, the packaging machinery market is experiencing growth due to the surge in the number of packaging applications in the food and beverages, pharmaceutical, and cosmetics sectors. In North America, the major focus of the consumers of packed goods was on convenience and packaging that suits their lifestyle and delivers value. The growth of industrial automation and technological advancements in manufacturing facilities has increased the adoption rate of packaging machinery in the North American region. Customers' preferences for environmentally friendly packaging have drastically changed, encouraging the use and production of eco-friendly materials. The other factors for the growth of the packaging machinery market in North America include increased demand for packed food, increased consumer awareness, and laws and legislation related to food hygiene.

European nations have used packing machines extensively due to their robust economies. In Western Europe, the packaging market has matured after developing rapidly in the 1980s. Over the recent decade, plastic packaging share climbed while metal packing machinery grew steadily. The food and beverage, healthcare, and cosmetics industries led Europe's demand for packaging machinery. The packaging uses paper, paperboard, plastics, metal, glass, and wood. In addition, European market success is increasingly dependent on packaging. Western European governments are addressing packaging waste and recycling due to environmental concerns. Recent European Commission packaging guidelines have set tough recycling objectives, and national governments are exploring novel ways to reduce packaging waste. European companies that manufacture packaging also use a greater percentage of recycled materials, driving market growth.

In LAMEA, Brazil is among the major markets for packaging machinery globally, and the packaging sector in the region has strong ties to environmental organizations and tries to adapt to the requirements of environmentally friendly production. In Africa, South Africa accounts for the majority of the demand for packaging machinery in the region. Latin America and Africa are among the fastest-growing regional markets for packaging machinery. The food and beverage industry is the largest end-user segment accounting for more than 60% of the overall demand. In addition, the demand for packaged goods in the region is driven by rises in personal disposable income in nations like Argentina, Columbia, Nigeria, and others, raising the demand for packaging equipment. The rise in urbanization and e-retailing are further driving the market for packaging machinery.

Segmental Analysis

The global market is bifurcated into type and end-user.

Based on types, the global market is bifurcated into filling machines, Form, Fill, and Seal (FFS) Machines, cartooning machines, palletizing machines, labeling machines, wrapping machines, and cleaning and sterilizing machines.

The filling machines segment dominates the global market and is expected to grow at a CAGR of 6.01% over the forecast period. Filling machines include rotary and inline filling and capping packaging solutions for food and beverage, pharmaceutical products, and personal care products. The filling machines used in packaging provide rigid and flexible packaging solutions, including power filling machines, granule filling machines, and automated liquid filling machines. Companies in the market provide liquid filling machine solutions for different volumes with a dispense range of 200 to more than 1,000 ml per cycle.

Additionally, factors such as the availability of equipment that will be functional for as long as possible and easy to accommodate different material types or size is anticipated to create lucrative growth opportunities for the filling machines market. The providence of custom-designed machines to fit multiple options is expected to gain traction in the competitive environment. Avoiding possible hazards such as exposure to pollutants, odors, and dust particles, thereby adhering to the different government regulations related to safety, is anticipated to supplement the market growth.

Based on end-user, the global market is classified into food and beverage, pharmaceuticals, chemical, cosmetics, and others.

The food and beverage segment owns the global market and is anticipated to grow a CAGR of 5.12% over the forecast period. Packaging is the most important thing that decides the marketing of any food product. The food and beverage industry comprises ample varieties of food items, and those varieties require different types of packaging techniques as beverages need consistent seal integrity for better protection against leaks and dairy products. It also needs to retain freshness and flavor. For these requirements, packaging machine companies have invented innovative automation techniques capable of supporting multiple food packaging requirements. Packaging machinery for the food and beverages industry is used for case forming, cartons, sealing, barcoding and labeling, palletizing, and others.

An increasing global population means more people will need access to food and drink. This is expected to boost the growth of the food and beverages industry at a significant rate. Container cleaning equipment, liquid fillers, capping machines, and labeling machinery are the major packaging types of machinery in the food and beverage industry. Due to hygiene and safety regulations, sanitary packaging and sanitary packaging processes are anticipated to play a large part in manufacturing a packaging system for food and beverages. Additionally, increasing the use of vacuum packaging machines for food packaging is expected to supplement the market growth. Increasing preference for highly visible packaging materials further drives market growth.

Recent Developments

• April 2022- JBT Corporation, a major maker of packing machines, is buying Multivac Group. With this purchase, JBT will be able to offer more products and better serve its users around the world.
• May 2022- Tetra Pak, a big company that makes packing machines, stated that its factory in China would get bigger. Thanks to the growth, the company will be able to meet the rising demand for its goods in the Asia-Pacific market.