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Demand for packaging machinery to grow – new report

Thursday, 19 September 2013
By Print 21 Online Article

The global demand for packaging machinery is set to rise 4.6 per cent annually by 2017 to US$41.8 billion, with labels and coding equipment representing the fastest growing sector according to a new report.

The world packaging machinery industry is currently worth some US$33.4 billion. A report from The Freedonia Group says an improved business climate will trigger the need for investment, manufacturing output, and packaging demand. 

Food manufacturing will account for some 40 per cent of total sales, making it the largest market for total sales, while the global demand for labeling and coding equipment is expected to increase at 5.5 per cent annually by 2017 to US$6.3 billion, driven by the need for label-intensive nondurable goods, including single-serving food items.

The Asia-Pacific region is expected to rise 5.7 per cent by 2017, as machines used in the packaging of chemicals and personal care products will post the fastest sales gains in percentage terms.

The Asia-Pacific region is expected to provide the best growth opportunity for packaging equipment suppliers led by the Chinese and Indian markets. Local and foreign companies are expected to continue developing manufacturing facilities in the Asia-Pacific region, making it the fastest growing region for packaging machinery shipments.

China is set to surpass the US as the largest national market for packaging equipment globally by 2017. However, the US will continue to account for one-sixth of the total demand. China and India together are expected to account for 21 per cent of global packaging machinery demand in 2017.

The report consisted historical demand data for 2002, 2007 and 2012, and forecasts for 2017 and 2022 by machinery type including: Labeling; coding; wrapping; bundling; palletizing; pharmaceuticals and personal care products.