World Packaging Machinery (Industry forecasts for 2012 & 2017)

Abstract

World demand for packaging machinery is forecast to grow 5.2 percent annually through 2012 to $39.8 billion. Product sales will be spurred by rising economic output and improved standards of living, resulting in increased consumer spending, manufacturing activity and associated packaging equipment demand. Market gains will be constrained to some extent by a deceleration in global fixed investment expenditures growth, as well as by competition from used and rebuilt machinery. However, the introduction of better performing equipment will provide some offsetting support, leading to the replacement of older units by new packaging machinery that is faster; more flexible, reliable and energy efficient; and able to minimize waste.

Sales advances in developing parts of the world will outpace product demand in Japan, the US and Western Europe. China will register the largest gains of any national market in value terms. Packaging equipment demand in the country will expand by more than $3.3 billion from 2007 to 2012, and China will surpass the US to become the largest market in the world. Increases are also expected to be healthy in India and Russia, as well as in lower-volume markets such as Ukraine, Iran, Indonesia, Malaysia, Saudi Arabia, Mexico, South Africa and Turkey.

Packaging machinery demand will rise as well in developed parts of the world, although growth is expected to be relatively sluggish in a number of nations, including the UK, Germany, Italy and Japan. Packaging equipment production will also increase at a faster rate in developing countries, but new manufacturing capacity is being added in industrialized nations as well. In 2012, Western Europe, Japan and the US will continue to account for over two-thirds of all packaging machinery production.

Labeling and coding equipment will record the strongest gains of any packaging machinery type, driven by rising consumption of label-intensive nondurable goods, a growing need for shippers to accurately track items for safety and security reasons, and an expanding number of labeling regulations. Demand for wrapping, bundling and palletizing equipment will also rise at an aboveaverage pace, fueled in part by improvements in machine design, helping to spur replacement sales. However, filling and form/fill/seal equipment will remain the most widely used type of packaging machinery, accounting for close to onequarter of the 2012 market total.

The pharmaceutical and personal care product market for packaging equipment will register the most rapid advances, stimulated by higher spending for these goods in developing countries, growing use of disposable medical devices and an aging of the population in developed nations, resulting in increased spending for drugs and other pharmaceutical products. Demand for beverage packaging machinery is also expected to be healthy, spurred by rising packaged beverage products consumption in developing parts of the world, and greater use of more productive, higher-end equipment in industrialized countries. Nevertheless, food processing will remain by far the largest market for packaging machinery, accounting for 43 percent of global product sales in 2012.

Study coverage

This new Freedonia industry study, World Packaging Machinery, presents historical demand data (1997, 2002, 2007) as well as forecasts for 2012 and 2017 by product, market, world region and for 31 countries. The study also considers market environment factors, evaluates company market shares and profiles 40 competitors worldwide.

• Establishing consistent economic and market forecasts
• Using input/output ratios, flow charts and other economic methods to quantify data
• Employing in-house analysts who meet stringent quality standards
• Interviewing key industry participants, experts and end users
• Researching a proprietary database that includes trade publications, government reports and corporate literature