Forecasts look bright for global packaging machinery markets, and the Asia Pacific region is set to maintain the lead it currently holds.
That’s according to PMMI Business Intelligence’s “2023 World Packaging Machinery” report. Business Intelligence researchers predict a 5% compound annual growth rate (CAGR) for the global packaging machinery market from 2023 to 2027, rising from $45.9 billion to 56 billion.
Asia Pacific Maintains the Largest Packaging Machinery Market Share
Asia Pacific was the leading market of packaging machinery in 2022, representing around 36% of the world total. The region is expected to show the highest 2023-2027 CAGR at 6%.
Although growth in China slowed in H1 2023, following lower than expected demand for packaged goods, Asia Pacific growth outlook remains healthy and will benefit from several key drivers over the next few years.
For example, new packaging regulations in China (enforced in September 2023) will place further pressure on packaging producers to invest in recycling and waste reduction processes.
Southeast Asia will continue to attract investment from multinational packaging companies, enabled by important free trade agreements and a focus on developing a strong manufacturing hub for packaged goods and materials.
Moreover, as consumers in Asia Pacific are increasingly taking sustainability and eco-friendliness into account for brand selection, CPGs will need to focus on environmental impacts in both production and further down the supply chain.
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Europe, Middle East, and Africa Keep Second Place Through 2027
Europe, the Middle East, and Africa (EMEA) is ranked the second largest region, representing 33% of the world packaging machinery market in 2022.
Following an anticipated drop in demand in 2023 and 2024, the market is expected to recover from 2025 onward, underpinned by investments in technology addressing sustainable and traceable packaging.
By 2027, the EMEA market is predicted to exceed $18 billion, representing a CAGR of 4.3%.
Regulation, certification, and consumer awareness will remain key growth drivers over the forecast period. Packaged goods producers will likely place continued attention toward package material reduction, recyclable packaging, and refill solutions.
Notably, the European Union (E.U.) is working on revising its rules on packaging and package waste to align with its goal of creating a low-carbon circular economy. The recently proposed Packaging and Packaging Waste Regulation (PPWR) is expected to change the industry significantly once implemented.
However, the regulation must be approved before the E.U. parliamentary elections in June 2024, to avoid restarting the legislative process. The timing could still be a challenge as the E.U. Parliament and Council are still reviewing and amending the proposal.
Strong Growth in The Americas, With Regulatory Changes in the Mix
The Americas market is expected to outperform EMEA in terms of growth, with a CAGR of 4.5% between 2023 and 2027.
U.S. packaging companies and packaged goods producers are already focusing heavily on the commercialization of sustainable packaging.
Packaged goods producers in the U.S. and other established markets will look for opportunities to scale new models and technologies, like reuse/refill, direct print, and digital printing. The implementation of digital technologies will also open new opportunities for machinery suppliers to provide extended service offerings such as remote maintenance and diagnostics.
The U.S. also has a strong focus on regulatory changes to support the introduction of sustainable, safer, and green chemistry. For example, the U.S. recently phased out certain chemistries of PFAS, which are typically used to treat paper products that serve and package greasy food.
Moreover, in 2022, the FDA amended its food additive regulations to no longer provide for most phthalates used in food contact and food packaging applications.
The FDA revoked authorizations for the food contact use of 23 phthalates and two other substances used as plasticizers, adhesives, defoaming agents, surface lubricants, resins, and slimicides.
Source: PMMI Business Intelligence: 2023 World Packaging Machinery Report
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