The packaging machinery market is projected to grow at a CAGR of 5.29% to reach a market size of US$73.034 billion in 2025 from US$53.605 billion in 2019.Packaging machinery is used to packaged final products or components manufactured across varied industries such as automotive, food and beverage, pharmaceutical, electronics, and cosmetics, among others. Urbanization and rising disposable incomes of the people 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 the 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.
Development of novel products across various industries is expected to boost the demand for packaging machinery in the forecast period. Leading companies in pharmaceutical, food and beverages, and consumer electronics are investing huge sums in the 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.An example being, Merck invested nearly €63 million a part of €1billion 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 the e-commerce companies like Amazon and restaurant aggregators like Zomato, Uber is also raising the demand for 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 population is rising across various countries like Japan, which is catalyzing the growth of the pharmaceutical industry. On top of it, the spread of pandemics and increasing cases of chronic diseases is also making 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, medicines, 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 regards to the safety of the products.Also, the American region is also expected to witness a high growth rate due to the rising healthcare expenditure of the population.