Tamper Evident Band Applicators Market

Market Overview

The global tamper evident band applicators market is expected to grow at a CAGR of 5.21% between 2017–2027.

A tamper evident band applicator is a device that seals a product with a tamper resistant string while packaging. When the package is opened, these bands leave evidence of tampering. Tamper evident bands are applied using banding guns. It can also be used with a handheld device and standalone or inline machinery. Due to the growing demand for safe and secure food packaging worldwide, tamper evident band applicators have been widely adopted in the food and beverage industry. The pharmaceutical industry's need for tamper evident band applicators is increasing due to the improved demand for tamper-proof packaging of medicines and syrups.

Market Dynamics

A Rise in the Usage of Tamper Evident Bands in Pharmaceutical Packaging 

Tamper evident band applicators are used on various medications. It is necessary to ensure that the seal is not opened. These bands can be placed on the container cap and stretched across the seal to show who tried to pry it off. These are commonly used on medical products such as syringes and pill bottles. They are also used for sealing boxes and containers. Packaging is an essential function that keeps products fresh by preventing oxygen, light, and microbes from entering the product. It contains the product from breaking into the market, increases medical products' shelf life, and prohibits contamination.

The growing pharmaceutical production is expected to drive the demand for tamper evident band applicators during the forecast period. The pharmaceutical industry has witnessed significant growth due to the rising demand for medicines during the pandemic. Given the growing number of COVID-19 cases, the pharmaceutical industry is experiencing substantial growth. The successful vaccination programs worldwide are increasing the need for tamper evident band applicators in the market.

An Increase in the Availability of Substitutes to Hamper the Product Demand

The availability of several tamper evident packaging substitutes, such as tamper evident labels, closures, liners, has limited the demand for tamper evident bands, affecting the tamper evident band applicators market. With the introduction of technology and its rapid advancement, many substitute technologies have been developed. These technological advancements frequently provide cost-effective alternatives to the traditional ones. 

Further, there is an ongoing competition between the manufacturing industries, which additionally affects the demand. This level of competition forces businesses to differentiate their products from their competitors. Unfortunately, tamper evident band applicators are poorly differentiated. Thus, manufacturers cannot use differentiation as a competitive strategy because they face intense competition from substitutes with similar band applicators.

These tamper evident band applicators are perfectly competitive products, evidenced by numerous competitors offering the same product at relatively uniform prices. This forces all competitors to sell their products at a uniform price. Profit margins in this market are low due to competitors' tactics leading to decreasing motivation in the manufacturers.

Inclination Towards Eco-Friendly Packaging Material to Create New Opportunities 

As consumers become more aware of the harmful effects of non-recyclable plastics, they have begun to seek out eco-friendly packaging alternatives, for example, reusable and recyclable packaging materials. Shrink sleeve labels are one example of long-term and sustainable innovation.

Further, shrink labels are removable. They can be stripped off and recycled separately from the container once a bottle is on the recycling line. As a result, shrink sleeves outperform tape labels and stick-on labels. New shrink sleeves are thinner than those made just a few years back due to recent advances in film manufacturing technology. Today, the amount of harmful material used in some shrink sleeve labels has been reduced by 30 to 50%. The demand is increasing gradually as people become more conscious of their lifestyles and purchases. This industry is predicted to be one of the fastest-growing sectors of the packaging supply industry.

Segmental Analysis

The global tamper evident band applicators market is divided into two segments based on machine type: standalone and inline. The standalone machine type is considered to have the most significant market share. It is predicted to develop with the highest CAGR of 5.48 % due to increased demand for high-quality industrial valves in the machinery and equipment and other sectors.

The tamper evident band applicators market is divided into five categories based on banding speed: up to 60 CPM, 60 to 120 CPM, 120 to 200 CPM, 200 to 350 CPM, and Above 350 CPM. CPM ranging from 200 to 350 banding speed is thought to have the most market share due to its capacity to produce optimal output. Additionally, the over 350 CPM category is predicted to increase at a CAGR of 7.76% due to technological advancements.

The market comprises five applications: bottles, tubs, jars, and clamshells. Bottles have the largest market share because they are used for packaging a wide range of liquid and semi-liquid items, including beer, soda, mineral water, liquefied gases, cosmetic products, medicines, refined oil products, and petrochemicals. It is predicted to expand at a CAGR of 5.82% due to a rise in the use of bottles for product packaging by various sectors.

The tamper evident band applicators market is divided into five segments based on banding type: full-body banding, neck banding, and others. The neck banding type is estimated to have the largest market share. It is popular due to its simplicity of use and inexpensive cost compared to full-body bands. It is predicted to expand rapidly with a CAGR of 5.85%, given the convenience of application on items that do not have a complicated shape and size.

The tamper evident band applicators market is divided into five sub-segments based on end-uses: food, beverage, home care, personal care, and pharmaceutical. Beverage industries hold the highest market share due to consumers' growing preference for bottled water. It is expected to grow at the highest CAGR of 4.78 % due to increased demand for other waterborne beverages such as carbonated soft drinks, isotonic drinks, fruit juices, sports and energy drinks, ready-to-drink teas and coffee, and others such as kvass and non-alcoholic beer.

Impact of covid-19

Before the pandemic, the manufacturing sector was doing well, with a surge in new manufacturing units in emerging countries. Favorable government policies in several emerging countries have enticed international market participants to invest in these countries. The industry has seen a constant growth in R&D and the development of new products by market players to prevent pollution caused by the growing use of plastic. 

However, due to the COVID-19 pandemic, numerous governments imposed partial or total lockdown. Strict controls were implemented, such as cross-border trade bans, working with a small staff, shutting production operations, or operating at less than 50% capacity. Due to the financial uncertainties experienced by the various industrial sectors, the coronavirus has marginally reduced the demand for tamper evident band applicators. Nonetheless, increased demand from food and beverage and pharmaceutical industries benefited the tamper evident band applicators market. 

The need for tamper evident band applicators in the food and beverage industry has grown due to an expansion in the market for food and grocery items. Further, due to the risk of COVID-19, there was an upsurge in demand for seal-packed foods as consumers desired new and unopened packaging. Following COVID-19, the tamper evident band applicators market will likely rise because of increased healthcare and personal care spending. 

Market Recovery Timeline and its Challenges

The need for high-quality products is projected to drive market recovery in the tamper evident band applicators market following the COVID-19 pandemic. Businesses are working hard to re-employ workers as the economy recovers from the effects of the COVID-19 pandemic. The tamper evident band applicator market is likely to develop considerably in the future as packaging demand rises. The tamper evident band applicator prints tamper evident bands on packages of various sizes. Other industries use them in a variety of ways. For example, it is employed in the pharmaceutical industry to prevent adulteration while packaging liquid medications.

Further, the rising number of product recalls due to tampering has pushed manufacturers to install tamper evident devices to ensure supply chain integrity. Also, the growing food retail trend is projected to drive up demand for tamper evident band applicators. Some of the challenges that market participants may face in the following years include a lack of technological innovation, variable quality, technical assistance, high machine prices, etc.

Regional Analysis

Significant Growth in North America and Asia-Pacific 

The extensive benefits of tamper evident band applicators, such as higher production rates and product safety, are driving expansion in the North American region. Intelligent packaging machines are one of the most recent packaging advancements. Additional advantages of employing this equipment include more precision because no human interaction is necessary, faster results owing to the employment of robots, and customization settings with multiple speed adjustments.

Tamper evident banding applicators are currently a popular option in many physical retail businesses as a novel technique to avoid product tampering. These machines use flocked or adhesive-backed seals for the secure sealing of items. Additionally, the usefulness of these machines extends further since they can apply tamper evidence to unattended objects, which implies large-scale manufacturing lines, resulting in the market's future growth.

The Asia-Pacific region is predicted to be the second-largest market for tamper evident bands. With private labeling growing significantly, particularly in China, there will be a rise in branded and private-label items where tamper evidence packaging or 'smart packaging' will assist businesses in preventing tampering.

Recent Developments

• September 2021 – PDC International announced a launch of new R-Series with a New R-150 Shrinklabeler with a more advanced version.
• December 2019 – PDC International announced a partnership with Yankee Candle. PDC to provide a 90C-E Shrink Sleever for the packaging of candles and make them protected, clean, and unmarred throughout distribution and the point of purchase.
• September 2018 – Accutek Packaging Equipment Companies, Inc announced an opening of their new facility in San Diego County, CA.
• June 2020 – Bandall International announced this new optional feature for Bandall banding equipment. That will change the machine to produce multiple bandwidths in only a few moments, adding to the flexibility already provided by Bandall banding technology. 

Tamper Evident Band Applicators Market Segmentation

By Machine Type

• Standalone
• In-Line

By Banding Speed

• Up to 60 CPM
• 60 to 120 CPM
• 120 to 200 CPM
• 200 to 350 CPM
• Above 350 CPM

By Application

• Bottles
• Tubs
• Jars
• Clamshells

By Banding Type

• Full-Body Banding
• Neck Banding

By End-Use

• Food
• Beverage
• Homecare
• Personal Care
• Pharmaceutical

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa