PACKAGING MACHINERY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Packaging Machinery Market Size and Trends

The packaging machinery market is estimated to be valued at USD 58.32 Bn in 2024 and is expected to reach USD 87.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.

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The growing demand from the food and beverage industry is expected to drive the need for packaging machinery. Rapid urbanization and changing consumer lifestyle have increased the demand for packaged and processed food products. This has necessitated the use of automated packaging machinery for higher production volumes. Furthermore, the surge in e-commerce industry has increased the use of packaging materials for product delivery and transportation. 

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Insights By Machine Type - Rising demand for packaged food and beverages is driving the filling segment growth

In terms of machine type, filling segment is expected to hold 29.2% share of the market in 2024, owing to increased demand for packaged beverages and food products The filling segment has seen tremendous growth driven primarily by the beverage industry. The need for hygienic, high-speed filling of liquids into bottles, cans, and other containers is paramount as consumer demand for packaged drinks continues increasing worldwide.

Insights By Application - Rising consumption of cold drinks ultimately rises boosts demand for beverages

In terms of application, beverages segment is expected to hold 24.5% share of the market in 2024, due to rising consumption worldwide. With increasing disposable incomes, changing lifestyles, and rising urbanization across developing regions, the demand for packaged drinks continues gaining momentum year-over-year. 

Regional Insights

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Regional Analysis:

Dominating Region: Asia Pacific

Asia Pacific is expected to dominate the market in 2024 with an estimated share of 39.5%. Countries like China and India offer a low-cost manufacturing environment and tax incentives for machinery imports, fueling the market growth. Major players like Bosch Packaging Technology and Krones AG have established a strong presence in the region with innovative products.

Fastest-Growing Region: Europe

Europe exhibits the fastest growth driven by expanding manufacturing sectors, growing e-commerce, and rising foreign investments in industries like food and beverage. Countries like the U.K. offer a low-cost manufacturing environment and tax incentives for machinery imports, fueling market growth.

Packaging Machinery Market Outlook for Key Countries

Germany's Packaging Machinery Sector Leads with Industry 4.0: Spotlight on FOCUS-ON's Innovative FOCUS-1 Device

Germany remains at the forefront of the packaging machinery sector, owing to its engineering excellence and ability to deliver highly customized solutions. Integrating digital technologies and advanced automation systems, known collectively as Industry 4.0, is significantly reshaping manufacturing processes in Germany, driving both efficiency and productivity.

China's Industrial Surge: Make-in-China and Sustainability Drive Machinery Demand and Innovation in Packaging

Rapid industrialization and Make-in-China initiative are driving considerable machinery demand. There is a rising demand for sustainable packaging solutions, prompting investments in eco-friendly machinery. Stringent regulations regarding food safety and packaging materials are influencing machinery design and production standards. The industrial sector contributes nearly one-third of China's GDP, with industrial output growing over 6% year-on-year in early 2024, outpacing the general GDP growth of 5.3%

Japan's Automation Edge: The Rise of Robotics in Response to Aging Demographics and Sector Demands

Japanese companies, including SMC, are increasingly adopting automation solutions to enhance efficiency in the electronics and pharmaceutical sectors. For instance, data published on Asia. Nikkei in 2023, As of 2022, Japan was responsible for approximately 45% of all industrial robots produced or designed globally. The country achieved record orders for industrial robots, totaling 955.8 billion yen (approximately $7.35 billion), marking a 1.6% increase from the previous year.

India's Packaging Machinery Boom: 'Make in India' and Rising Consumption Drive Market Expansion

The India packaging machinery market is witnessing strong growth on the back of supportive initiatives like Make in India. Government initiatives aimed at improving manufacturing infrastructure and logistics support the market expansion. According to the Indian Institute of Packaging (IIP) data published on January 2024, The Indian packaging industry has seen a consumption increase from 4.3 kg per person per annum (pppa) to 8.6 kg pppa over the past decade, indicating a significant rise in demand driven by economic growth and changing consumer preferences.

Challenges in the U.K. Packaging Machinery Market Post-Brexit

The U.K. packaging machinery market, serving sectors like food, pharmaceuticals, and consumer goods, faces challenges due to post-Brexit trade regulations. Increased paperwork and complexities have impacted machinery imports and exports between the U.K. and EU. According to Swift Pak data from 2021, these regulatory changes led to a 40.7% drop in U.K. goods exports to the EU and a 28.8% decline in imports in January 2021, marking the largest monthly declines on record.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Packaging Machinery Market Players

• Established players in the market focus heavily on research and development to drive innovation. Companies like Bosch Packaging Technology dedicate over 5% of annual revenue to R&D in order to develop high-performance products incorporating cutting-edge technologies.
• Mid-level players emphasize delivering affordable, quality solutions. Federation of Internet Service Providers of the Americas (FISPA) focuses on providing budget-friendly packaging equipment targeted towards price-conscious consumers in emerging markets. They collaborate with technology partners to boost capabilities and expand their product portfolio.
• Small-scale players thrive by specializing in niche markets. Italian company, Ilapak, has found success focusing on pharmaceutical and food packaging needs. Intelligent Deposition develops specialized coating technologies for applications such as enhanced food freshness. They adopt advanced technologies like AI and IoT to optimize production and outpace larger competitors.

Emerging Startups in the Packaging Machinery Market

Several innovating startups are developing technologies that could significantly impact the packaging machinery industry. Anthropic develops AI-powered automation solutions for visual inspection and quality control tasks. Their technology enables more precise and efficient operations reducing costs for manufacturers.

Sustainability is a priority for startups like Solo Cup Europe and Evronic. Solo Cup develops compostable and recyclable foodservice packaging using renewable plant-based materials. Evronic produces smart packaging that extends shelf-life for food and beverages through sensors integrated into material coating. Their technologies lower environmental impact.

Other startups address specific market needs. Syntegon packs focuses on developing integrated packaging lines for pharmaceuticals. Their dedicated solutions enhance compliance and efficiency for pharmaceutical manufacturers. Skan Group develops aseptic filling machines suited for filling sensitive products like liquid foods.

Packaging Machinery Industry News

• In February 2024, IMA Group, a producer of automatic machines for pharmaceutical, food, and battery processing and packaging, unveiled two artificial intelligence (AI) solutions designed to improve the efficiency and effectiveness of its customer services. The IMA Sandbox solution is a collaborative, cloud-based platform that facilitates co-development and partnership in creating advanced algorithms within a secure and shared environment. IMA Group, formally known as IMA S.p.A., is an Italy-based company, specializing in the design and production of automated machinery for processing and packaging.
• In July 2024, Eliter Packaging Machinery launched its newest model of automatic sleeving machine, the Multi-Wrap C-80S, designed for multipacks with a maximum speed of 80 wraps per minute. This machine efficiently groups packaging containers such as cans, bottles, cups, and pots into various configurations, ranging from 1x2x1 to 1x4x1, as well as cluster-pack formats like 2x2x1 and 2x3x1. It features a grouping system that enables quick changeovers to accommodate different packaging arrangements. ÉLITER Packaging Machinery, a division of the HUANENG company, is a China-based, family-owned business with over three generations of expertise in secondary packaging machinery.
• In July 2024, Cama Group introduced a new top-loading packaging machine, the MTL. This flexible, modular system significantly enhances the efficiency of packaging a variety of boxes.  Cama Group is an Italy-based engineering and manufacturing company specializing in secondary packaging systems.

Key Takeaways from Analyst

• Rapid urbanization and changing lifestyles are fueling the demand for packaged goods. Moreover, growth in e-commerce is prompting companies to focus on effective packaging solutions for safe delivery of products to customers.
• However, high initial investments required for automation equipment may restrain the growth of the market to some extent. Small and medium businesses may not prefer investing huge capital in advanced packaging lines. Fluctuations in raw material prices is another challenge for machinery producers.
• The Asia Pacific region, especially developing economies like China and India, offer massive opportunities. Growing middle-class population with increased disposable incomes is driving the sales of packaged consumer goods. This will trigger the need for innovative packaging solutions and machinery. North America and Western Europe are relatively mature markets but demand for specialized equipment from industries like pharmaceuticals and electronics provides opportunities.

Market Report Scope

Market Dynamics

Market Driver - Growth of end use industries like food and beverages

The packaging machinery market is strongly influenced by the growth and demand from end-use industries where packaged products are consumed. With rising population, increasing disposable incomes and changing lifestyles, the demand for packaged food and beverages has seen strong growth over the past few decades. In 2022, UN Food and Agriculture Organization (FAO) report highlighted that the proportion of packaged food is growing quickly especially in developing nations due to rapid urbanization and changing food consumption patterns.

Market Challenge - High initial investment costs

The market faces significant challenge due to high initial investment costs associated with machinery. Packaging machinery such as filling machines, cartooning equipment, labelling, and coding systems require huge capital expenditure which ranges from several million to tens of millions of dollars depending on type, size and automation level of machinery. According to a 2021 report by the United Nations Environment Programme, the usage of reusable and recyclable packaging is lagging in developing nations due to the increased costs of machinery required to implement related packaging solutions.

Market Opportunity - Developing economies representing huge market potential

The market sees huge growth opportunity in developing economies which are witnessing rising consumption and manufacturing activities. Countries like China, India, Brazil, Indonesia, and others present massive market potential given their large population base and rapid urbanization. According to data from United Nations Conference on Trade and Development (UNCTAD) reported in June 2024, the share of world merchandise trade by developing countries rose from 36% in 2000 to 45% in 2023 indicating growing global trade integration. 

Market Segmentation

•  Machine Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Filling
  • Labelling
  • Form Fill & Seal
  • Cartoning
  • Wrapping
  • Palletizing
  • Others
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Beverages
  • Food
  • Chemicals
  • Personal Care
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Langley Holding plc
  • Maillis Group
  • Rovema GmbH
  • Douglas Machine Inc.
  • KHS Group
  • SIG
  • Tetra Laval International S.A.
  • Krones AG
  • ProMach
  • GEA Group Aktiengesellschaf
  • Sacmi
  • Coesia S.p.A.
  • Duravant