The value of domestic shipments of packaging machinery is projected to grow at a compound annual growth rate (CAGR) of 2.4 percent reaching $8.5 billion in 2020, according to PACK EXPO owner and producer PMMI. More than half of this growth is expected to come from the food and beverage sector.
The report also notes that the value of domestic shipments of U.S. produced machinery rose 0.3 percent to $7.51 billion in 2015. Exports of packaging machinery in 2015 increased by 3.2 percent, compared to 2014, and now add up to $1.1 billion. Backlogged orders of packaging machinery grew by 14.1 percent compared to backlogged orders at the end of 2014.
PMMI produces this study based on U.S. Census Bureau reports and shipments data provided by association members who manufacture packaging machinery. The report analyzes 28 packaging machinery categories and describes the outlook for packaging machinery shipments through 2020.
According to the report, the labeling, decorating & coding sector and case handling machinery sector are projected to increase the fastest of all machinery types through 2020, at CAGRs of 3.9 percent and 2.5 percent, respectively. The pharmaceutical sector is forecast to grow the fastest of all sectors, at a CAGR of 2.8 percent. This is followed by the beverage sector, which is projected to grow at a CAGR of 2.4 percent.
“The forecast for the packaging machinery market is strong. We continue to anticipate growth in major market segments such as pharmaceuticals as well as beverages. Factors such as changing consumer habits, new regulations, and general economic development are fueling this development,” says Jorge Izquierdo, vice president, market development, PMMI.
In regards to 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 full 2016 State of the Industry Report is available for download on www.PMMI.org/research.
