CPG calls for are pushing the packaging equipment business to new heights. The U.S. packaging equipment trade is as strong as ever. It grew 4.8% from 2015 to 2016, with a total market worth of $9.8 billion, following the 2017 State of the Industry – U.S. Packaging Machinery Report from PMMI which also stands for The Association for Packaging and Processing Technologies.
The report finds that the worth of U.S. domestic shipments of packaging equipment was worth about $7.73 billion in 2016. It forecasts a compound annual progress fee (CAGR) of 2.2% to $8.8 billion in 2022.
Whereas packaging equipment shipments in pharmaceuticals are forecasted to develop the quickest of all sectors at a CAGR of 3.6% from 2016 to 2022, the meals and beverage trade follows close behind with a forecasted CAGR of 2.3%.
The reported credit calls for from CPGs for pushing the packaging equipment business towards unprecedented heights. For example, more end customers desire a full packaging line that comes with quite a few capabilities, comparable to filling, closing, labeling, and wrapping, from a single vendor. But there’s additionally a rising demand for other modular machines to be able to accommodate quite a lot of supplies and packaging types in addition to the development of SKUs.
One other issue contributing to the expansion of packaging equipment is the Food Safety Modernization Act (FSMA), in response to the report. FSMA requires meals and beverage firms to determine the rapid provider and recipient (aside from retailers to shoppers) of a product. In consequence, meals and beverage firms are investing in tools that may hint merchandise all through the provision chain.
The rise of e-commerce can also be affecting the packaging equipment trade, following the report. As a result of e-commerce has elevated touchpoints with shoppers, packaging and the provision chain should comply with suit.