The rise in the consumer purchasing power has resulted in the improvement in standard of living which indeed is anticipated to increase the demand for pre-cooked food and meals. Additionally, the growth has resulted in increased demand for healthcare and personal care products which is estimated to increase the demand for better packaging solutions that can provide longevity, consistency and durability to the product.
The adoption of several technologies in packaging equipment industry, for instance, smart sensors, fault detection, remote monitoring, data collectivity, IoT technology and control features are anticipated to improve the operational productivity. Use of fully automatic machinery and equipment have resulted in cost reduction in some preferred industries, for instance, cosmetics and food & beverages coupled with improved and time efficient outputs. Enterprises are investing more in automation in palletizing machines and using industrial robots in packaging, automatic wrapping and cartoning machines which is anticipated to drive the market resulting in better quality product and better customer services. Additionally, increase adoption of energy efficient machines and equipment ensuring minimum environmental effect and safety across the value chain is anticipated to encourage the automatic equipment demand.
The packaging equipment market is anticipated to record a CAGR of around 7.2% during the forecast period 2019-2027. The market is segmented by product, by application and by technology, out of which, the application segment is anticipated to have leading shares on account of rise in the adoption of packaging material in food and beverage industry. It is anticipated to hold a massive share in the market during the forecast period. Additionally, the increase in the purchasing power of customers and changing lifestyles coupled with change in eating habits, particularly among the youth and the working population have resulted in significant demand for ready-to-eat food than the fresh food which is anticipated to be one of the driving factors of the global packaging equipment market growth during the forecast period. The pharmaceutical industry is anticipated to contribute essentially towards the market growth on the back of growing requirement of proper packaging for protection from environmental conditions and prevention from chemical modification. The significant growth in healthcare sector has resulted in adoption of various automated packaging equipment and machinery. The product segment is anticipated to improve the market growth on the back of increased use of automation in labelers and coders which account for around 5% CAGR. Additionally, filling machines are anticipated to account for a significant share in the overall market during the forecast period along with increase in market growth of paperboard packaging on the back of increased business to customer e-commerce space and changing customer buying behavior. CLICK TO DOWNLOAD SAMPLE REPORT
High Cost to backlash the market growth
High costs associated with the development and installation of equipment are restricting the packaging equipment market growth. Small scale enterprises are unable to afford the high cost as a result of which they have to adopt manual packing over automated. Additionally, increasing maintenance costs of the equipment are further hindering the industry demand as periodical maintenance is required for efficient working of equipment.
Our-in depth analysis of the packaging equipment market includes the following segments:
Food & Beverage
On the basis of regional analysis, the packaging equipment market is segmented into five major regions including North America, Europe, Asia Pacific, South America and Middle East & Africa region.
The market in North America is anticipated to have a market share of around 28% owing to rise in technological developments and innovations in smart packaging solutions on the account of which the end use industries have raised the demand. Additionally, with these solutions the manufacturers are capable of providing better, accurate and efficient end products with minimum human interference thereby, providing economic method with minimum wastage. The market in Asia-Pacific is anticipated to have a significant market share during the forecast period owing to food and beverage industry and huge presence of pharmaceutical and personal care industry in the region. The automation in the manufacturing sector coupled with government imposed rules and regulations which have made it compulsory to follow standards while using packaging material has resulted in significant growth of the market.
The packaging equipment market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Sadaf Naaz, Mohd Shadab