The packaging machinery market is projected to grow at a CAGR of 3.05% to reach a market size of US$51.740 billion in 2027 from US$41.939 billion in 2020.

Packaging machinery is used to package final products or components made in a variety of industries, including automotive, food and beverage, pharmaceuticals, electronics, and cosmetics. Urbanization and rising disposable incomes are driving people to raise the demand for packaged products. The packaged products are considered safe and free from damage that could occur during the transit of the products.

This is the major demand driver for packaging machinery. Furthermore, the rapid technological innovations and advancements in packaging equipment due to investments by companies are also fueling the demand for packaging machinery. For instance, Syntegon Technology will be unveiling two of its latest packaging technologies at Interpack 2020 (International Packaging Fair) in May 2020. The company is aiming to achieve a sustainability goal with this launch. Also, automation-led breakthroughs in the packaging machinery market are expected to boost the demand for such equipment.

The development of novel products across various industries is expected to boost the demand for packaging machinery in the forecast period. Leading companies in pharmaceuticals, food and beverages, and consumer electronics are investing huge sums in research and development to invent new products or innovate existing products. This is driving the need for sophisticated machinery to package such products effectively and efficiently. One such example is, that Merck invested nearly €63 million as part of a € 1 billion investment plan up to 2020 to transform the Darmstadt site, which will be dedicated to the packaging and shipping of the company’s pharma medicines.

Additionally, the expansion of e-commerce companies like Amazon and restaurant aggregators like Zomato, and Uber is also raising the demand for the packaging of more products while maintaining their integrity.

Another driver of this market is the rising number of ailments and consequential health-related concerns. The number of geriatric people is rising across various countries like Japan, which is catalyzing the growth of the pharmaceutical industry. On top of that, the spread of pandemics and increasing cases of chronic diseases are also making the consumption of packaged and secured products more popular.

Geographically, the Asia-Pacific region is expected to share the major portion of this market with a high CAGR over the forecast period. This growth is backed by the increasing demand for food, medicine, electronics, and other packaged products due to the growing population in this region. The European region is also expected to hold a significant share of this market owing to the strict regulatory environment with regard to the safety of the products. The American region is also expected to witness a high growth rate due to the rising healthcare expenditure of the population.

Key Developments

• In June 2022, ProMach, a well-known packaging machinery solution acquired Reepack a leading manufacturer of high-quality flexible packaging machinery. This acquisition adds a new flexible packaging portfolio to ProMach company. Further, this addition brings expansion for the acquirer company in the food packaging industry.
• Through the integration of a faster, highly reliable, and technologically advanced system coupled with double dosing units, the GEA re-engineered the H-Packer SO Plus packaging machine in May 2022. This re-engineered version of the machinery enables the pasta manufacturers to increase their product flow and ensures smooth filling in the packaging process.
• In June 2022, Mondi partnered with EW technology to launch a new machine for paper pallet wrapping. Mondi is a UK-based packaging and paper company that had partnered with Austrian mechanical engineering company EW technology to launch a new machine for efficient and sustainable paper pallet wrapping.

COVID-19 Impact on Packaging Machinery Market

The COVID-19 pandemic had a negative impact on the growth of the packaging machinery market in 2020. This is predominantly a result of the drop in demand for different industries like cosmetics, chemicals, logistics, and many more due to the pandemic. The demand for non-essential goods was reduced due to the changes in consumer behavior. During the pandemic period, preference was given to essential goods thus, the cosmetic, chemical, and logistic industries witnessed a reduction in demand. These market conditions partially impacted the revenues of packaging machinery companies. For instance, GEA’s revenue went down from EUR 4,879.7 million in 2019 to EUR 4,635.1 million in 2020.

Packaging Machinery Market Scope:

Segmentation:

• By Machinery Type
  • Filling and Form Machinery
  • Labelling and Coding Machines
  • Wrapping Machines
  • Case Forming Machines
  • Conveyors
  • Others
• By Technology
  • General Packaging
  • Modified Atmosphere Packaging
  • Vacuum Packaging
• By End-User Industry
  • Food and Beverages
  • Pharmaceuticals and Healthcare
  • Consumer Electronics
  • Personal Care
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • The Middle East and Africa
    • UAE
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Others