Global Packaging Machinery Demand to Grow 4.5% Annually Through 2023
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A new Freedonia Group analysis projects healthy 4.5% annual growth for the global packaging machinery market through 2023, driven by global increases in manufacturing activity, rising mechanization in developing countries, and high-value sales of state-of-the-art equipment in affluent markets. In particular, trends in the dominant food and beverage market and in the leading regional market, the Asia/Pacific, will continue to be major influences on global sales.
Manufacturers of food and beverage products are among the most intensive users of both packaging materials and associated machinery. Accordingly, these markets will account for 56% of all new packaging machinery demand through 2023, as:
- Global food and beverage production expands and suppliers develop new products, which often require new packaging configurations
- Leading suppliers increase spending on newly developed packaging technologies (e.g., use of more sensors to improve product performance and increase the number of functions a machine can provide) and specialty models
- Producers invest in new equipment to comply with new technical and safety standards targeting the food and beverage industries
The Asia/Pacific region, led by China, will account for a majority of new product sales through 2023. In part, the robust annual growth projected for the region will be driven by fast expected gains in countries outside of China, such as Indonesia, India, and Thailand, as manufacturing activity and mechanization rates increase. Furthermore:
The Asia/Pacific region's packaging equipment needs will continue to expand as new plants are built and existing production facilities are upgraded.
Due in part to increasing foreign participation in the regional manufacturing sector, the use of higher quality packaging materials and technologically advanced packaging machinery will grow at a swift pace, adding to gains in value terms.
