World Demand for Packaging Machinery ot Approach $36 Billion in 2014

Global demand for packaging machinery is projected to rise 4.7 percent annually through 2014 to $35.9 billion, an improvement over market growth during the recession-impacted 2004-2009 period.  Sales growth will be driven by an acceleration in manufacturing output, as well as by a favorable fixed investment environment worldwide. These and other trends, including market share and product segmentation, are presented in World Packaging Machinery, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Gains in developing nations will be the driving force behind advances in the global market for packaging equipment.  China, for example, will alone account for 41 percent of all additional demand through 2014, with growth stimulated by increases in manufacturing production and the use of packaging as industrialization efforts continue and income levels rise.  Other nations in Asia with smaller, less-developed economies, such as India, Indonesia, Malaysia and Thailand, will also record healthy market gains.  In developed areas of the world, most notably the US, Western Europe and Japan, demand will rebound after a period of decline, although sales advances will not be as strong as those in developing nations.

Demand for packaging machinery is led by the food market, which will account for 43 percent of all sales worldwide in 2014.  However, the beverage market will post the fastest gains, averaging 5.2 percent annually through 2014.  Growth in global food and beverage markets for packaging machinery will largely be attributable to gains in the Asia/Pacific region, most notably in China. 

Growth in sales of labeling and coding machines, and filling and form/fill/seal machines will be the fastest of any major product category through 2014.  Demand for labeling and coding equipment will be driven by an increasing need for shippers to accurately track items for safety and security reasons, particularly in the food, beverage and pharmaceutical industries, as well as to help combat counterfeiting.  Advances in sales of filling and form/fill/seal machinery will be spurred by continuing technological advances aimed at improving efficiency and flexibility.  As a result, filling and form/fill/seal machinery will solidify its position as the largest product segment, accounting for just under one-fourth of all packaging equipment demand in 2014.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.