By
Adam Maxum
The packing machinery industry has gone through a transformation
over the past few decades. Although the economic downturn affected
numerous industries, including packaging machinery, demand is growing
again and is expected to inch upwards 4.6 percent each year through to
2017, according to a new study by the Freedonia Group.
In the next
four years, the packing machinery industry will be valued at $42
billion. Demand is growing all across the globe, particularly in China
(7.9 percent), the Asian Pacific (6.8 percent), Canada and Mexico (5.8
percent), Central and South America (5.3 percent) and Eastern Europe
(five percent).
An improved business climate related to fixed
investment spending, packaging demand and manufacturing output will lead
to a boost in equipment sales. Most of the machines will be utilized in
the fields of personal care products, chemicals and pharmaceuticals.
Furthermore, due to the increased standard of living in developing
countries, purchases of packaged pharmaceuticals and consumer goods and
the necessary equipment will garner a jump in sales.
"Sales growth
will be driven by expanding consumption of label-intensive nondurable
goods, including convenience and single-serving food items; and by a
rising need for shippers to accurately track items for safety and
security reasons - especially in the food, beverage and pharmaceutical
industries," the report stated.
In the United States, the
packaging machinery demand will see the highest increases in filling
($1.5 billion), labeling and coding ($980 million) and wrapping,
bundling and palletizing ($770 million).
Six firms account for
nearly one-quarter (21 percent) of the entire market, including
Germany's Krones and Robert Bosch, Illinois Tool Works located in the
United States, Coesia of Italy, the Tetra Pak and Sidel subsidiaries of
Tetra Laval in Switzerland and the Industria Macchine Automatiche, which
is headquartered in Italy.
"The industry as a whole is quite
fragmented, especially in developing countries, where a great deal of
the production capacity consists of small companies that each make a few
types of basic units and aftermarket parts. Developing markets will
provide the best growth opportunities for suppliers of packaging
equipment through 2017," the report added.
Another factor that
should be considered and was not included in the report is menu
labeling. Many states and cities are imposing calorie menu labeling,
which would consist of nutrition content information placed on boards
and in menus. This would require additional investment by restaurants to
adapt to the standards instituted by their respective governments.
Article Source: http://EzineArticles.com