Looking into the future of The Packaging Industry market
One of the main challenges in any industry is trying to predict any future development and market growth based on the current market situation and trends. As a company that constantly strives to keep in touch with and be a part of leading market trends, Tishma Technologies is here to share with our readers some of the main factors and trends that are influencing the packaging industry’s future development.
Let’s begin with the Packaging Machinery Market Overview:
Let’s start with some shocking numbers. Did you know that one-third of the food produced in the world (or 1.3 billion tons) gets wasted? This is the official information brought to us by the Food and Agriculture Organization of the United Nations. These food losses are worth 680 billion dollars in developed countries and 310 billion dollars in developing countries. These alarming numbers only emphasize the fact that food preservation or using packaged food has become an absolute necessity.
This is why the packaging machinery market is expected to grow up to 5% over the next six years.
As a point of reference: according to some market research reports, the packaging machinery market has a global market size of 39-40 billion dollars.
China is the leading manufacturer of mobile phones, tablets, various gadgets, and other affordable consumer electronics. These gadgets need packaging cartons and cases which results in a remarkable demand for packaging machinery.
According to some analysts, the packaging machinery market in China, Japan, Australia, South Korea, India, Taiwan, Malaysia, and Hong Kong bears 30% to 35% market share. The growth of the packaging machinery market in this area is also driven by the domination of E-Commerce, a considerable surge in industrialization and the large shifts in the food packaging industry. This means that packaging machinery manufacturers from Europe and the USA need to step up their game in order to remain competitive and keep their market share in this industry.
What is the Packaging Machinery Market Outlook?
Packaging machinery has major applications in the Food and Beverage industry which is expected to grow up to 6% in the following period
Packaging machinery makes and utilizes primary and secondary packages and then converts it into distribution packs through fabrication, cleaning, filling, sealing, combining, labeling, overwrapping, cartoning, casing and palletizing. There is a wide range of secondary packaging machinery like cartoners, case packers, palletizers and pouch machines that find applications in various sectors such as Food and Beverage, Pharmaceuticals & Chemicals, Cosmetics, E-Commerce, and retail.
What drives the Growth of Packaging Machinery Market?
There are three key growth drivers when it comes to packaging machinery market: the growth of the E-Commerce sector, the demand for sustainability in the Pharmaceutical Industries and the need for packaging in the Cosmetics Industry.
1. The Growth of E-Commerce Sector
Explosive growth has been noticed in the E-commerce sector in the past decade, and it is expected that it’s market size is only going to escalate. China, India, and Indonesia are leading in the E-Commerce sector, according to the World Bank. According to Forbes, sales of the US E-Commerce grew by 16% in 2018 which translates to $453 billion. This enormous amount of goods ordered online requires packaging cartons and wrappers, which further propels the packaging machinery market growth.
2. The Sustainable Demand for Packaging from the Pharmaceutical Industries
According to the International Federation of Pharmaceutical Manufacturers and Association, the global pharmaceutical market will reach $1,430 billion by 2020. The pharmaceutical industry is constantly growing and this means that there will be constant production of medicines and drugs in pharmaceutical industries across the globe. These medicines need sophisticated packaging which further flourishes the packaging machinery market. The various law requirements for proper labeling and serialization only increase the demand for specific kind of packaging machinery that features various labelers and printers.
3. The Need for Packaging In Cosmetics and Disposable Income Growth
Household disposable income is expected to grow from 1% to as much as 5.5% in most of the developed countries according to the Organization for Economic Co-operation and Development. People with disposable income spend a lot of cosmetics, and they are ready to spend their money on branded products that come in attractive packaging. The packaging machinery market growth is also driven by this game-changing factor.
What about the packaging machinery market challenges?
Rapid changes in technology and the expenditure on human resources represent the major challenges in packaging machinery market. On the other hand, automation is gradually penetrating the packaging machinery sector thus minimizing the cost of human resources and the manufacturers are adapting to the new technologies to sustain their market share.
Tishma Technologies will continue answering challenges and following the trends in this market in order to provide our clients with the best packaging machinery and custom made packaging solutions built according to the client’s needs. How do we plan to do that? Surf across our website, check out our cartoners, case-packers, tray-packers, and palletizers and find out for yourself! If you find yourself interested in some of our packaging solutions, don’t hesitate to reach out!