Global Packaging Machinery Market to Reach $45.9 Billion by 2026
Packaging is one of the most important aspects for almost all industries. The sector witnesses constant material and design innovations to make the product packaging more appealing to the consumer. Packaging machinery, or machinery used for packing products before their dispatch, storage and distribution, is considered a critical component of marketing process because of the strong impact of packaging on purchasing decisions of consumers. Over the last few years, the packaging industry witnessed a clear trend in increasing shift towards value added machines that offer improved efficiency, sustainability, flexibility and superior performance. End-use markets are increasingly shifting towards more sophisticated, faster, integrated and standardized equipment, to reduce packaging waste and to comply with environmental standards. Continued growth in manufacturing output as well as a favorable environment for investments in fixed assets comprises major factors propelling growth in the global market for packaging machinery. The market is abuzz with new discoveries and technological enhancements in terms of features, size, material types and package designs. In tandem, the downstream packaging machinery industry is also striving to keep pace with market developments, discarding obsolete, high cost and time consuming machines and bringing in a new wave of technologically advanced machinery that offer automation, flexibility, speed, energy conservation, efficiency, intelligence and other superior features.
Evolving market trends include increasing deployment of servos, networking architectures and robotic applications in packaging machinery. The trend in fact offers a strong opportunity for OEMs to respond to the need for increased automation by substituting traditional pneumatic machinery with advanced electromechanical systems. In this context, increasing deployment of robotics and related technology is a significant step in the effort to introduce complete automation in the packaging process. Amid the COVID-19 crisis, the global market for Packaging Machinery estimated at US$43.4 Billion in the year 2022, is projected to reach a revised size of US$45.9 Billion by 2026, growing at a CAGR of 1.6% over the analysis period. Bottling Line, one of the segments analyzed in the report, is projected to grow at a 1.2% CAGR to reach US$4 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Case Forming & Sealing segment is readjusted to a revised 1.6% CAGR for the next 7-year period. This segment currently accounts for a 13.9% share of the global Packaging Machinery market.
The U.S. Market is Estimated at $11.6 Billion in 2022, While China is Forecast to Reach $8.6 Billion by 2026
The Packaging Machinery market in the U.S. is estimated at US$11.6 Billion in the year 2022. The country currently accounts for a 27.12% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$8.6 Billion in the year 2026 trailing a CAGR of 3.3% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 1.9% and 2.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.3% CAGR while Rest of European market (as defined in the study) will reach US$9.8 Billion by the end of the analysis period. Strong growth is expected in developing economies, given their steady expansion of manufacturing capacity, improving standards of living, steadily increasing middle class population, urbanization, changing lifestyles, hectic industrial and economic activity, rapid growth of food processing and consumer durables sectors, and burgeoning foreign investment in local production facilities. Gains in these markets are expected to drive advances in the machinery market. In the developed countries, demand is expected to be underpinned by primary and secondary factors such as increasing diversity of products, improved consumer spending, growing health consciousness among consumers, an expanding aging population, and recovery in industrial and manufacturing operations. Constant innovations are also resulting in replacement of old machinery with sophisticated machinery upgrades designed to lower overall investment cost and time.
Form-Fill-Seal Segment to Reach $3.9 Billion by 2026
Demand for form/fill/seal machinery is driven by innovations and new product introductions and increasing use in food and beverage industries. Advanced machinery with improved efficiencies and flexibility features would continue to both invigorate replacement demand and broaden the application area in this segment. As these machines feature computer interfaces and offer high speed and versatility, they are able to address the growing demand for flexible packaging formats. Vertical form fill seal machines are capable of forming packaging of various shapes and sizes ranging from pillow packs to bottles/vials. Global market for Form-Fill-Seal (Type) segment is estimated at US$3.5 Billion in 2022, and is projected to reach US$3.9 Billion by 2026 reflecting a compounded annual growth rate of 2.8% over the analysis period. United States constitutes the largest regional market for Form-Fill-Seal segment, accounting for 27.1% of the global sales. China is poised to register the fastest compounded annual growth rate of 5.3% over the analysis period, to reach US$844.7 Million by the close of the analysis period.
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