Food and beverage sector major demand driver for packaging machinery in the US

US packaging machinery shipment market to be US$ 8.5 billion by 2020

Jorge Izquierdo, vice president – market development, PMMI speaking at the launch of 2016 State of the Industry U.S. Packaging Machinery Report

Domestic US shipment of packaging machinery is expected to grow at a compound annual growth rate of 2.4% reaching US$ 8.5 billion in 2020, according to a report by Pack Expo owner and producer, The Association for Packaging and Processing Technologies (PMMI).

The Packaging Machinery Report was officially released on 6 November during a media event at the Pack Expo and Pharma Expo venue in Chicago. The report says that half of this growth is expected to come from the food and beverage sector.

In 2015, the value of domestic shipments of US-produced machinery rose 0.3% to US$ 7.51 billion. Exports of packaging machinery in 2015 increased by 3.2%, compared to 2014 and are now US$ 1.1 billion. Backlog orders of packaging machinery grew by 14.1% compared to backlog orders at the end of 2014, the report says.

“The forecast for the packaging machinery market is strong. We continue to anticipate growth in major market segments such as pharmaceutical as well as beverage. Factors such as changing consumer habits, new regulations as well as general economic development are fuelling this development,” says Jorge Izquierdo, vice president – market development, PMMI.

PMMI produces the State of the Industry study based on US Census Bureau reports and shipments data provided by association members who manufacture packaging machinery. The report, which analyzes 28 packaging machinery categories, describes trends and the outlook for packaging machinery shipments through 2020.

According to the report, the labeling, decorating and coding and case handling machinery groups are forecast to increase the fastest of all machinery types through 2020, at annual growth rate of 3.9% and 2.5%, respectively. The pharmaceutical sector is forecast to grow the fastest of all sectors through 2020, at 2.8%. This is followed by the beverage sector, which is forecast to grow at annual compounded rate of 2.4%.

With regard to the machinery categories, the rapid growth anticipated in the labeling, decorating and case handling segment is largely a result of new legislation demanding increased labeling and coding, continuing developments in printing technologies and the proliferation of SKUs.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement , for editorial and for subscriptions

– Naresh Khanna

Subscribe Now