The global demand for packing machinery is growing in line with the economy as a whole, according to a recent market report from Allied Market Research. The industry is expected to eclipse $62 billion by 2023. The report’s authors point to several factors that will propel the market forward, including increased demand for consumer goods in emerging markets, a sustained push toward fully automated packaging processes, and worldwide growth in the food and beverage space.
The Demand for Machines to Automate Packaging Continues to Swell
Automation is no longer a luxury for companies in many industry verticals. It’s needed to compete on a global scale. Companies have increased investment in machines to automate various packaging processes in recent years. That trend is forecasted to accelerate over the next decade. Everything from wrapping to palletizing to labeling is in line to be overhauled. This report expects such adoption to drive revenue growth in the machinery sector.
Food and Beverage Dominance to Increase
Checking in at nearly $25 billion in 2016, machines to support the global food and beverage packaging industry dominate the sector as a whole. They account for roughly 63 percent of the entire market, a figure that the report expects to rise to nearly 70 percent by 2023. The new analysis points to demand for packaged foods in underdeveloped regions as the main cause of this segment’s continued dominance.
Developing Markets Around the World
Consumer goods of all types are seeing a surge in demand as underdeveloped regions of the world become more prosperous economically. Consumer packaged goods are expected to double in revenue to nearly $14 trillion by 2025. This drives concurrent demand in the packaging machinery market.
Global players like Aetna Group, Bosch Packaging Machinery and CKD GROUP have recorded increases in machine shipments to regions of the world that are seeing the fastest growth. In particular, the report predicts that the Asia-Pacific region and sub-Saharan Africa will account for the most market expansion in the period ending in 2023. All told, the research team estimates that the packaging machinery market will grow at a compound annual rate of 6.7 percent over the next five years.