Growth in worldwide demand for packaging machinery is expected to climb at a 4.6% annual pace through 2017 to $41.8 billion, according to a new study from The Freedonia Group.
The study claims that an improved business climate – which will be reflected in expanding fixed investment spending, manufacturing output, and packaging demand – will drive increases in equipment sales through 2017.
Machines used in the packaging of chemicals, pharmaceuticals, and personal care products will post the fastest sales gains in percentage terms. Purchases of packaged pharmaceuticals and consumer goods – and associated equipment demand – will be boosted by rising living standards in developing nations. Food manufacturing will remain the largest market for packaging equipment, accounting for about 40% of total sales.
Labeling and coding equipment will be the fastest growing major product type in value terms due to the increasing need for pharmaceutical, food, and beverage manufacturers to ensure the safety of their products throughout the supply chain. However, filling and form/fill/seal machines will remain the most widely used type of packaging equipment through 2017, with demand bolstered by their extensive use in the large food processing market....