Packaging Machinery Market Size, Share | Industry Trends [2020-2027]

The global packaging machinery market size was valued at USD 42.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.1% from 2021 to 2028. The increasing demand for packaged food and beverages, coupled with the flourishing e-commerce industry, is expected to drive the demand for packaging machinery. The rising awareness regarding personal health and hygiene, coupled with the increased spending on pharmaceutical products, is anticipated to favor the market growth over the coming years. Moreover, the COVID-19 pandemic is expected to accelerate the usage of sustainable packaging, thereby augmenting market growth.

The U.S. economy was severely hit due to the COVID-19 pandemic in 2020, thereby negatively impacting the growth of various industries, such as chemicals, petrochemicals, oil and gas, and automobile. However, surging demand for hand sanitizers, pharmaceutical & medical products, and packaged food and beverage products in the country during the pandemic period augmented the demand for packaging machinery.

The market for packaging machinery is customer-oriented and driven by the increased demand for a variety of products in different types and sizes of packages. Manufacturers in the end-use industries are adopting modular packaging machines that offer flexibility and quickly adapt to the changing packaging formats, along with complete packaging lines that incorporate multiple functions, such as filling, labeling, and closing from a single source.

Sustainability and rising environmental concerns have increased the demand for lightweight and thin-walled packaging to reduce the amount of material used for packaging. Thus, to facilitate these requirements, equipment manufacturers focus on the development of machines with improved functionality to maximize production speeds while accommodating more fragile and thinner packaging materials.

Automation within the packaging equipment offers various benefits, such as increased operability and flexibility of the equipment, coupled with a higher throughput rate. In line with the automation trend, the use of robotics offers many benefits, including a high throughput rate, better precision, consistency, and minimal scrap/waste. Thus, the incorporation of robotics has increased over the past decade and is expanding in various end-of-line processes, such as wrapping and palletizing.

Machine Type Insights

The others segment led the market and held a revenue share of over 25.0% in 2020. The filling segment accounted for the second-largest revenue share in 2020. Filling machines measure out the product by a fixed value, volume, weight, or count from a bulk supply, filled into various packaging formats. The simplest form of filling machine can be a manually operated single-head mounted device or sophisticated rotary fillers having numerous filler heads used to fill thousands of containers per minute.

Labeling machines dispense and apply or print and apply labels on numerous types of packaging containers as well as display, transit, and point-of-sale packs. Labels are used to brand, decorate, or provide valuable information about the product or the brand to customers. Favorable regulations such as the Food Safety Modernization Act (FSMA) and the Drug Quality and Security Act (DQSA) for traceability and serialization are likely to drive the demand for labeling machines.

The form-fill-seal segment is likely to register the highest CAGR of 5.2% over the forecast period on account of the increasing preference for single-serve packages and small portions, coupled with the growing popularity of flexible packaging. Form-fill-seal machines are designed to form packages with the material fed off a roll, fill it with the product, and seal it. Most of these machines form the primary package, such as a bag or a pouch, using a flexible film.

Wrapping machines are generally used for secondary and tertiary packaging of products or groups of products. These machines wrap flexible packaging materials, such as plastic film, paper, or aluminum, around a single product or a group of products. Commonly used wrapping machines include shrink wrapping machines and stretch wrapping machines. Wrapping machines are widely used for the safe wrapping, stacking, and transportation of commercial and industrial goods.

End-use Insights

The food segment led the market and accounted for over 35.0% share of the global revenue in 2020. Factors such as new product launches and the expansion of the retail network are anticipated to positively impact the demand for packaged food, in turn, favoring the market growth.

The demand for packaging machines in the beverage industry is likely to be driven by factors such as the growing consumption of beverages, changing preference towards organic and functional beverage consumption, and an increase in the variety of beverage products. Many beverage product manufacturers have diversified their product offerings, thus increasing the demand for highly sophisticated and flexible packaging machines to accommodate these product offerings.

The pharmaceuticals end-use segment is likely to expand at the highest CAGR of 4.8% over the forecast period. Packaging machines are used for the packaging of different pharmaceutical products, such as tablets, capsules, vaccines, liquids, and antiseptic creams. Highly sophisticated packaging machines are required to safeguard the drugs and keep them free of contamination.

The personal care industry is expected to witness growth in the years to come owing to various factors such as increasing spending and purchasing power, changing lifestyles, and the availability of a wide range of products suitable for every class of customer. Thus, the growing personal care industry is expected to favor market growth.

Regional Insights

Asia Pacific led the market and accounted for over 35.0% share of the global revenue in 2020. Rapid population growth, coupled with the increasing household spending capacity, is expected to drive the demand for packaged consumer products, which is, in turn, anticipated to bolster the market growth in the region. Moreover, the burgeoning pharmaceutical and personal care industries in the region are expected to drive the market.

The demand for packaging machines in China is likely to witness growth in the coming years on account of the rapid expansion of the e-commerce sector in the country. In addition, improving standards and requirements of food processing and safety and packaging technologies, coupled with favorable government policies on energy savings and technology and equipment upgrades, are expected to complement the market growth.

North America is likely to expand at a CAGR of 3.2% over the forecast period. The significant demand for highly automated and integrated machines delivering increased efficiency and higher processing speeds with lower energy consumption is expected to drive the market in the region over the forecast period.

Factors such as fast-paced life in the European nations, increasing demand for ready-to-eat meals, and ascending consumption of healthy and organic food products are anticipated to drive the demand for packaging machines in the region. Moreover, the high demand for automated, efficient, and flexible packaging machines from several end-use industries is anticipated to spur market growth over the coming years.

Key Companies & Market Share Insights

The market is highly competitive owing to the presence of multinationals as well as regional market players and is dependent on technological advancements and product developments. Major market participants have extensively invested in research & development operations in recent years, which has led to the invention of several advanced products that can be utilized across the market.

Market participants offer their customers individual machines as well as the design, development, production, and installation of customized packaging lines. Market players are also focusing on technological concepts, such as the Industrial Internet of Things (IIoT), automation, and robotics, to enhance the operational efficiency of their product offerings. Some prominent players in the global packaging machinery market include:

• KHS Group

• SIG Combibloc Group Ltd.

• Tetra Laval International S.A.

• Krones AG

• I.M.A. Industria Macchine Automatiche S.p.A.

• Syntegon Technology GmbH

• ProMach

• GEA Group Aktiengesellschaft

• Sacmi

• Bradman Lake Ltd.

• ROVEMA GmbH

• Douglas Machine Inc.

• Coesia S.p.A

• Maillis Group

• Duravant

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global packaging machinery market report on the basis of machine type, end use, and region:

• Machine Type Outlook (Revenue, USD Billion, 2017 - 2028)

  • Filling

  • Labeling

  • Form-Fill-Seal

  • Cartoning

  • Wrapping

  • Palletizing

  • Bottling Line

  • Others

• End-use Outlook (Revenue, USD Billion, 2017 - 2028)

  • Beverages

  • Food

  • Chemicals

  • Personal Care

  • Pharmaceuticals

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • Spain

    • Italy

    • U.K.

  • Asia Pacific

    • Australia

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE