Corrugated Equipment Market Projected to Exceed $282.3 Million by 2027
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Based on a Global Market Insights report, the Corrugated Equipment Market size was estimated at $226.77 million in 2020 and is slated to surpass $282.3 million by 2027, registering a CAGR of 3.3% from 2021 to 2027.
The COVID-19 crisis has severely affected the industry landscape. Disruptions in raw material supply have hindered production activities in the industry. Product prices fell in 2020 due to a sudden drop in demand and rising inventory. Moreover, logistics and supply chain difficulties have also affected the corrugated equipment market demand.
Non-HQ Flexo equipment held a substantial revenue share of over 33.2% in 2020 due to its large acceptance in industries such as electrical & electronics and home & personal care textiles. The machine is inexpensive compared to HQ-Flexo and can print up to four colors. The product can print a high volume of paperboards and offers several advantages such as less electricity consumption, high-speed running, and noiseless performance.
Rotary die cutters will grow at the highest growth rate of 3.5% CAGR through 2027. These machines are gaining popularity due to their high quality, energy-saving, and safety characteristics. The increasing demand for effective packaging solutions in the global retail sector will drive the corrugated equipment market growth. These machines run at high speed, making them suitable for high volume industries such as food & beverage and home & personal care. The increasing demand for efficient & high-speed cutting and slitting machines will propel the rotary die cutter market for the paperboard packaging industry.
The food & beverages sector will dominate the overall market and is anticipated to grow at a CAGR of 3.7% by 2027. The food & beverage industry is a major consumer of paperboard packaging. The growing consumption of processed food will drive the demand for packaging machines. Moreover, the increasing usage of recyclable materials for processed food will result in high demand for corrugated equipment.
The Web-to-Sheet litho-laminators segment will grow at a modest growth rate and account for a revenue share of over USD 26.7 million by 2027. The high demand for decorative packaging products will escalate the demand for litho laminators. A rise in paperboard packaging and an increasing demand for efficient machines are driving the market of web-to-sheet laminators around the world. The end use industries, such as food & beverage and cosmetics, are witnessing a strong demand, which has created tremendous opportunities for corrugated equipment market participants.
Product revenue from the home & personal care industry will reach USD 25.1 million by 2027. The growing population in the Asian countries along with the improving socio-economic conditions will drive the global home & personal care industry. The region has witnessed dramatic growth over the past decade, which has spurred consumerism, and demand & trade of household goods. Moreover, the rising awareness of health & hygiene around the world will escalate the growth of the packaging industry.
Latin America is expected to grow at a CAGR of 3.5%. The LATAM food & beverage industry is showcasing high growth due to a rise in export opportunities and a favorable regulatory framework. The growing demand for ultra-processed food & beverages in the region is anticipated to drive the corrugated equipment market demand over the study timeframe. Moreover, countries including Mexico and Brazil are investing in industrialization and key industries such as pharmaceuticals and electrical & electronics. The rising population and economic growth will fuel the product demand by 2027.
The Asia Pacific will hold a significant share of 46.9% in the global market by 2027. The growing population, rising income levels, and changing consumption patterns of the working population have offered lucrative opportunities to ready-to-eat food products. Moreover, the growing demand for electronics and textiles in the region is expected to drive the regional corrugated equipment market share.
