The packaging machinery market is estimated to be valued at USD 50.1 Bn in 2024 and is expected to reach USD 68.66 Bn by 2031, growing at a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031. The packaging machinery market has witnessed significant growth over the past few years owing to increasing demand from various end-use industries such as food and beverages, pharmaceuticals, consumer goods and others.

Market Driver - E-commerce Expansion Increases Demand for Secure Packaging

The rapid growth of the e-commerce industry has been a major driver for the packaging machinery market in recent years. E-commerce retailers and third-party logistics companies need reliable packaging solutions to ensure the safe transport and delivery of products ordered online.

Damaged or poorly packaged goods can result in negative customer experience and return shipments. E-commerce orders require extra durable and resilient packaging. Machinery that provides automated packaging customized to product types and shapes is therefore, in high demand.

The materials and designs used for e-commerce packaging need to withstand the rigors of transportation through diverse conditions. Weather resistant and moisture-proof packaging plays a key role, especially for perishable or electronic items. This drives the need for state-of-the-art packaging machinery featuring advanced functionalities.

Meeting expectations of quality experiences will compel companies to optimize packaging processes. The mechanics, controls, and outputs of packaging machinery must evolve to match the dynamic needs of the e-commerce fulfillment ecosystem. This is expected to drive important trends in the packaging machinery market in the coming years.

Market Driver - Rapid Urbanization Increases Demand for Packaged Food and Beverages

Urban centers across the globe have swelled tremendously in recent decades due to economic and employment opportunities. Relying less on fresh foods and more on packaged or preserved alternatives becomes commonplace in cities.

On-the-go snacking and ready-to-eat options see huge demand.

Packaged food manufacturers thus cater to demand for convenience with a variety of offerings requiring different levels of preparation. Packaging machinery allowing automated production, portioning, sealing, and packaging plays a vital role.

Players in the packaging machinery market compete to wow consumers with innovative offerings, attractive designs, and sizes. This spurs the need for flexible, high-output packaging lines to quickly launch new SKUs. Stringent regulations regarding food safety, traceability and recyclability also require advanced packaging technology compliance.

Packaging machinery manufacturers will have opportunities to innovate packaging formats, materials, and automated solutions geared towards urban consumption patterns. Growth of the packaging machinery market will depend on understanding evolving urban lifestyles and meet the multiple needs of today's city consumers through packaging.

Market Challenge - High Cost of Advanced Packaging Machinery, Limiting Adoption by Smaller Companies

The packaging machinery market faces significant challenges due to the high upfront costs associated with advanced packaging equipment. Purchasing state-of-the-art packaging lines and automated packaging machines requires sizable capital investments that many smaller companies are unable or unwilling to make. These advanced systems aim to improve efficiency, quality control, and scale but come with six-figure or even seven-figure price tags.

For developing brands and companies with limited packaging volume needs, the ROI calculation often does not support such large expenditures in the short term. The high barrier of entry prohibits meaningful innovation and modernization of packaging operations for many small and medium businesses. This constrains their growth potential and ability to compete effectively against larger competitors with dedicated packaging assets.

Unless financing options or leasing programs become more accessible, cost will continue restricting the adoption of new packaging technologies among smaller firms.

Market Opportunity - Technological Advancements, such as AI, Robotics, and Blockchain, are Improving Efficiency and Reliability in Packaging

A boon for the packaging machinery industry is the proliferation of technologies that enhance packaging operations. Artificial intelligence, robotics, and blockchain bring opportunities to develop the next generation of packaging solutions. AI and machine learning are powering automation that improves inspection accuracy, increases throughput, and minimizes waste.

Robotic systems paired with predictive analytics maximize uptime on packaging lines. Blockchain, meanwhile, enables supply chain transparency and tracks product provenance from source to shelf. These technologies are translating to higher machine utilization rates, fewer defects, and reduced total cost of ownership for end users.

Equipment builders are also benefiting as they design new systems with advanced controls and connectivity. Packaging machinery market players should continue integrating the latest technologies to solve pain points across industries. It will deliver quantifiable benefits and strengthen demand for their high-tech, highly automated packaging machinery solutions.

Focus on automation and advanced technologies: Leading players like Tetra Pak, Bosch, Krones etc. have focused on developing highly automated packaging machinery solutions integrated with robotics, IoT, AI etc. For example, Tetra Pak launched their new generation A3 line which uses IoT connectivity and predictive maintenance capabilities.

Expanding product portfolio: Companies continuously expand their product portfolio to cater to diverse and evolving customer needs across industries. For example, in 2015 Krones expanded into aseptic filling technology with the acquisition of Eyermann, helping it offer a more comprehensive portfolio for beverages.

Focus on emerging markets: Major players have proactively expanded into these regions over the past decade through greenfield investments, acquisitions and establishing local manufacturing and support infrastructure. For instance, Tetra Pak inaugurated a new plant in India in 2020 to locally produce packaging materials.

Services and customer support: Players complement machinery sales with value-added services like training, maintenance, spare parts management etc. Bosch Packaging offers a Plant Performance Service program for predictive maintenance and maximizing uptime.

Insights, By Machine Type: Growing Demand for Packaged Foods and Beverages

In terms of machine type, filling machines are projected to hold 25.6% share of the packaging machinery market in 2024. This is due to the growing demand for packaged foods and beverages globally. Filling machines are essential for automated filling of liquids, pastes, powders and granular products into rigid or flexible packages such as bottles, cans, cartons, bags, and other containers efficiently and hygienically.

With rising health consciousness, busy lifestyles and preference for convenient packaging formats among consumers, the demand for packaged food and beverage products has increased tremendously over the years. This robust growth in the packaged food and beverage industry acts as a major driver for the filling machines segment.

Insights, By End-use Industry: Increased Automation Across Industry Verticals

In terms of end-use industry, food and beverage industry is projected to hold 35.7% share of the market in 2024. It is mainly driven by increased automation across industry verticals. Growing labor costs and the need for high-speed production are compelling food and beverage manufacturers to increasingly adopt automated packaging machinery solutions for applications such as filling, labeling, packing etc.

Advanced automated packaging machines help improve production efficiencies, ensure product quality and safety, minimize wastage and enable consistent high-speed operations. This rising automation demand from the food and beverage sector significantly contributes to the growth of the overall packaging machinery market.

Insights, By Technology: Rising Complexity of Packaging Processes

In terms of technology, automatic technology contributes the highest share of the packaging machinery market attributed to the rising complexity of packaging processes. With growing customer demands for innovative packages, niche products and small batch customization, packaging processes have become highly complex over the years. This has boosted the preference for fully automatic packaging machinery having advanced features like sensors, drives, HMI interfaces, and integrated controls.

Automatic machines deliver higher productivity and accuracy even for intricate packaging workflows, as compared to semi-automatic or manual options. Their ability to easily handle intricate packages without compromising on speeds or outputs drives their widespread adoption across industries.

• Asia-Pacific Dominance: The Asia-Pacific region holds a significant share of the packaging machinery market due to rapid industrialization and increasing consumption of packaged goods.
• Food and Beverage Sector Leads: Accounting for over 35% of the packaging machinery market share, the food and beverage industry is the largest end-user of packaging machinery.
• Automation Trend: Approximately 60% of new packaging machinery installations are automated systems, reflecting the industry's shift towards efficiency.
• The integration of Industry 4.0 technologies is becoming a standard in packaging machinery, enabling predictive maintenance and real-time monitoring.
• There's a growing trend towards modular packaging machinery that offer flexibility and can be easily adapted for different packaging requirements, catering to customized consumer demands.

The major players operating in the packaging machinery market include Langley Holding plc, Maillis Group, Rovema GmbH, Tetra Laval International S.A., Krones AG, I.M.A. Industria Macchine Automatiche S.p.A., Syntegon Technology GmbH, ProMach Inc., GEA Group Aktiengesellschaf, Sacmi, Coesia S.p.A., Duravant, Douglas Machine Inc., KHS Group, SIG Group AG, Robert Bosch GmbH, Barry-Wehmiller Companies Inc., FUJI MACHINERY Co., Ltd., Multivac Group, and Marchesini Group S.p.A.

• In June 2024, Cama Group launched a new top-loading packaging machinery aimed at boosting productivity and reducing its footprint in the multipack food market. The machine's advanced robotics and modular design make it highly efficient and flexible, improving packaging processes while minimizing energy consumption and waste.
• In May 2024, Mackie’s of Scotland invested £300,000 in a new ice packaging machinery aimed at increasing their production capacity and reducing environmental impact. This state-of-the-art packaging machinery is capable of filling 30 bags of ice per minute and is expected to boost production by up to three million additional bags annually. The investment aligns with Mackie’s sustainability goals, as the machine integrates with their low-carbon refrigeration system, which uses natural refrigerant gases and biomass power.
• In April 2024, Siemens PLC enhanced their packaging machinery with AI and Digital Twin technology, improving throughput and quality by 33%.
• In February 2024, IMA Group introduced two advanced AI solutions aimed at optimizing packaging machinery efficiency. These solutions, IMA Sandbox and IMA AlgoMarket, were designed to enhance industrial AI usage and algorithm development. The IMA Sandbox offers a collaborative, cloud-based platform for co-developing and testing algorithms in a secure environment, simulating complex scenarios before implementation.

• By Machine Type
  • Filling Machines
  • Labeling Machines
  • Form-Fill-Seal Machines
  • Cartoning Machines
  • Wrapping Machines
  • Palletizing Machines
  • Others
• By End-use Industry
  • Food and Beverage
  • Pharmaceutical
  • Chemicals
  • Personal Care
  • Others
• By Technology
  • Automatic
  • Semi-Automatic
  • Manual