NEW YORK, Feb. 20, 2023 (GLOBE NEWSWIRE) -- Following are some key insights from IndexBox's report on the U.S. packaging machinery market.
Market Analysis
The U.S. packaging machinery market is forecast to expand from $9.2B in 2022 to $11.3B in 2030, rising at a CAGR of 3.7% over the next eight years. The growth will be driven by the surging demand for processed and packaged food, beverages, pharmaceuticals, and other consumer products, as well as rising e-commerce sales. Increasing automation also stimulates the expansion of the market.
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The changing lifestyle of consumers, along with their desire for convenience, has brought about a heightened need for packaged goods. This in turn has led to the growing popularity of packaging machinery, equipped to handle a variety of styles. Vendors have responded by offering innovative machines, such as vertical form fill seal ones featuring pillow packs, gusseted bags and flat bottom bags; horizontal form fill seal types providing pillow packs or gusseted bags; shrink wrapping equipment tailored to sleeve wraps, tray wraps and bundle packs; and overwrapping machines making folded cartons, wrap-around cases and wrap-around boxes possible.
The food and beverage industry primarily utilizes filling machines to pack liquids, solids, powders and pastes in containers or packets. Sealing equipment ensures that the filled containers or packets are secured when it comes to storage and movement. Wrapping materials such as paper, foil, plastic film or cloth are used with wrapping machines to protect products from damage during handling or transit. Labeling equipment applies labels with details like product name, price, manufacturing date and expiry data, while coding machines apply codes for identification during storage or transportation. Coding machines are used to print codes on products which help in their identification during storage and transportation.
The food and beverage industry is the largest end-user of packaging machinery, followed by the pharmaceuticals, cosmetics, and personal care sectors. Compared to other countries, the North American market is projected to grow at the highest CAGR during the forecast period due to the presence of major players in the U.S.
Market Challenges
The packaging machinery market has been facing a number of issues in recent years. The cost of raw materials and components has been increasing, creating a strain on margins. Moreover, competition from lower-priced countries has made it difficult to rely solely on pricing. Further, 3D printing and other newly introduced technologies are causing disruption to traditional approaches, while e-commerce is transforming the demand for small items to meet fast and efficient shipping needs.
Porter's Five Forces Analysis
Threat of new entrants: the barriers to entry in this market are relatively high, due to the need for specialized knowledge and expensive capital investment.
Threat of substitute products or services: apart from packaging manually, there are no substitutes. This limits the power of buyers somewhat, but overall, they remain fairly weak in relation to suppliers.
Bargaining power of suppliers: there are a limited number of packaging machinery manufacturers, and they tend to be large and well-established firms with significant bargaining power over their customers.
Bargaining power of buyers: consumers in this market have some bargaining power due to the availability of alternative suppliers; however, they remain relatively weak compared to most suppliers in the market.
Competitive rivalry within the industry. The packaging machinery market is moderately concentrated with a few large firms accounting for a significant share of total sales. However, there is still high competition among players.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
3M, American Packaging Corporation, Auto-Pak Machinery Company, Inc., The Burcham Bag Company, Bosch Packaging Technology, Pro Mach
Sources
U.S. - Packaging Machinery - Market Analysis, Forecast, Size, Trends and Insights
