According to the latest market study released by Technavio, the global food packaging machinery market is expected to grow at a CAGR of 6.61% during the forecast period.
The research report titled ‘Global Food Packaging Machinery Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. It also includes up to date analysis and forecasts for various market segments and all geographical regions.
In terms of geography, the global food packaging machinery market is divided into three key regions: APAC, EMEA, and the Americas. The key leading countries contributing the highest revenues are the US and China.
Sharan Raj, a lead analyst at Technavio for research on packaging, says, “In the US, consumer’s concern over food wastage has led to the demand for complex and smart packaging, which, in turn, has driven the market. Whereas China is considered to be a manufacturing hub and an export center for all manufactured products. Due to its relative cost advantage, China is attracting global manufacturers to set up production facilities. This has led to an increased need for packaging during transit and export from ports and airports, leading to high demand for packaging machinery in China.”
The global form, fill, and seal (FFS) food packaging machinery market is expected to grow at a steady rate during the forecast period. The FFS food packaging machinery segment accounted for the largest share of the market in 2015. One of the major factors for the growth of the market is growth in sectors such as baby food, bakery products, confectionery, and frozen foods. Developing countries such as China and India are the major revenue contributor to this market. Increased demand for sustainable packaging in developing countries is pushing the growth of global FFS machinery market. In addition, major demand for FSS machines is expected from the snacks and other convenience food segment because these devices provide the versatility and speed required for different packaging formats.
Global labeling and coding packaging machinery market
The global labeling and coding food packaging machinery market is expected to grow in rapid pace during the forecast period. The labeling and coding food packaging machinery segment market share is anticipated to increase from 13.4% in 2015 to 14.2% by 2020. One of the major reasons for the growth of this segment is demand from manufacturers for technologically advanced, new varieties, different shapes, different designs, and different sized labels.
Many vendors such as Tetra Pak and Elopak are establishing manufacturing plants in emerging markets where the efficiency level is high and the production costs are low. Therefore, the production of labels is expected to grow steadily during the forecast period.
Global wrapping and bundling packaging machinery market
The global wrapping and bundling food packaging machinery market is expected to grow moderately during the forecast period. The wrapping machinery segment market share is expected to increase from 10.62% in 2015 to 11.25% by 2020. Some of the major factors for the growth of the market are strong demand from the e-commerce segment and growing concern for food quality among manufacturers. “Manufacturers are greatly concerned about the protection of food products from external damage. Protection from bad weather, reduction of wastage, and making optimum use of packaging material will drive food producers toward buying new wrapping and bundling machines during the forecast period,” adds Sharan.
Global food packaging machinery market by other machinery and spare parts
The global food packaging machinery market by other machinery and spare part segment is expected to grow moderately during the forecast period. Other machinery and spare parts segment includes cleaning machinery, drying machinery, sterilizing machinery, strapping machinery, mounted machinery, and auxiliary packaging machinery.
One of the major factors for the growth of the market is growing the need for replacement parts for defective packaging machines. The demand from end-user segments such as bakery, poultry, and fruits and vegetables, which require regular servicing, is expected to boost the growth of the market. However, with technologically advanced and sturdy machinery being manufactured, the YoY growth rate is expected to be on the lower side.
