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By pharmatrax
Category: Technoloy
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FDA and EU regulations, along with increasing end user demands to add flexibility and cut waste, are driving global packaging machinery growth.
The global packaging machinery market continues its upward trajectory as end user demands shift with the times and legislation prompts change.
That’s according to PMMI Business Intelligence’s 2023 World Packaging Machinery report, which predicts a 5% compound annual growth rate (CAGR) for the global packaging machinery market from 2023 to 2027, rising from $45.9 billion to 56 billion.
Filling and dosing will maintain its place as the largest machinery segment, representing more than 20% of total packaging machinery sales by 2027.
Demand for greater speed and flexibility of production lines will continue to drive the need for machines that can quickly fill materials while maintaining weight accuracy. Investment in such automated machines is critical as they help the user to increase efficiency throughout the packaging process, and ultimately improve the bottom line.
At a compound annual growth rate (CAGR) of 5.2%, labeling, decorating, and coding machines are set to exhibit one of the highest machinery segment growth rates during the forecast period, reaching $7.2 billion in 2027.
Demand for such equipment is driven by legislation, particularly in the food and beverage segments. The pharmaceutical industry is also pushing demand for these machines, as it aims for greater visibility and traceability of packaged items from source to finish.
The FDA Requirements for the Food Traceability Final Rule requires companies to maintain records for foods on the Food Traceability List (FTL), to support more efficient and accurate traceability of potentially contaminated food.
In the EU, new labeling requirements are being introduced to a growing list of products. For example, all wine sold in the EU which was not produced before Dec. 8, 2023, will be legally required to provide allergy, energy, ingredient, and nutritional information to consumers on their labels.
Case handling and bottling line machinery are also important segments in terms of value, representing 12% and 10% respectively of the market in 2022.
Evolving consumer preferences are also impacting these machinery segments. In the short term, economic uncertainty and targeted consumer spending will put some beverage companies under pressure to manage cost whether through reformulation, pack sizes or bottle formats.
Heightened scrutiny on the supply chain is also expected as drinks companies are looking to remove unnecessary or wasteful elements.
The impact of these activities could result in a focus on beverages that are cheaper or easier to ship like powder or concentrate formats.
The case handling machinery segment will benefit from companies investing to improve operational efficiency through increasing productivity and reducing production cost.
Case handling machinery is essential in this effort due to its ability to streamline packaging processes, reduce the need for human intervention, and optimize entire production lines.
Case handling machinery is also important to support the need for packaging that maintains product integrity while reducing waste as consumers become more environmentally conscious.
The technology focus in this area is for machinery that provides better flexibility to consolidate multiple primary lines as well as better respond to demand fluctuations.
The market for palletizing machinery is forecast to reach $3.3 billion in 2027, with a CAGR of 4.6% from 2022.
Trends in palletizing are focused on efficiency, flexibility, sustainability, and safety. Therefore, there is a growing demand for technologies that can support the optimization of palletizing processes and better align with demands on logistics and supply chain management.
Companies that embrace these trends in pallet packing stand to gain cost savings, advance their environmental practices, and elevate overall efficiency in their supply chain operations.
Source: https://www.packworld.com/news/business-intelligence/article/22883945/end-user-trends-legislation-fuel-packaging-machinery-market-growth