End-of-Line Packaging Market Forecasts to 2028 – Global Analysis By Type (Integrated, Standalone), Technology (Automatic, Semi-Automatic), Order Type (Customized Order, Standard Order), Function, End User, and By Geography
According to Stratistics MRC, the Global End-of-Line Packaging Market is accounted for $5.10 billion in 2022 and is expected to reach $7.03 billion by 2028 growing at a CAGR of 5.5% during the forecast period. End-of-line packaging is the assortment of machinery and equipment that are utilized to complete the shipping package before the shipments or final transportation of the goods. This equipment involves carton erectors, packers and sealers, palletizers, stretch wrappers, along with the addition of other accessory equipment needed to complete the packaging ready for transport. The growth in automated solution today caters to a wide range of sectors in manufacturing including food and beverage, pharma & biotech, cosmetics, nonwovens, and even chemicals.
According to United States Environmental Protection Agency (USEPA), corrugated paperboard boxes represented the largest single category of recycled product with 1.9 million tons landfilled in 2015 and overall paper and paperboard packaging containers recycling rate was 78.2% in United States of America. The recovery of waste paper in India is 25–27% as against 70–80% in developed nation. Overlooking this fact further 12% goods and services tax (GST) had been imposed on waste paper in India (Mukundan 2018).
Market Dynamics:
Driver:
Rising demand for automation among manufacturing industries
Increasing demand for automation among manufacturing industries is one of the major factor anticipated to drive growth of the target market. Packaging is very important across various manufacturing industries due to the high demand for enhanced productivity and operation. Automation helps increasing overall productivity and reducing the degree of manual operation. In addition, automation of the production process aids to transform the business by utilizing existing workforce in order to increase the manufacturing abilities. This is one more key factor expected to support the revenue growth of the global market.
Restraint:
Increase in the initial investment
One of the downfalls of limiting to a single vendor for packaging material and machinery is that chances are, not getting the best price for ordering every item. Now a days, enterprises with profitable businesses are planning to reduce costs to achieve better efficiency. Even if the consumer buys from a distributor with multiple brand offerings, there still may be better deals on the materials and machinery the users use for packaging department elsewhere. Hence, the high production cost is a major restraint for the market.
Opportunity:
Rising need to reduce production cost
Growing need to reduce the workforce and production cost is expected to augment the market growth of the end-of-line solution. End-of-line packaging solutions reduce the requirement of constantly training a new workforce and enable emphasize more on value-adding tasks, which in turn reduce the chances of risk due to human error and enhanced the overall production process. It also improves product safety during transportation and storage. This is expected to fuel the market growth of the end-of-line solution.
Threat:
Redundancy issues
Automated packaging equipment is expensive, so the consumer may be reluctant to keep spare equipment. The money lost on the resulting delays could be far more expensive than the price of the spare piece of equipment. But that doesn't include every machine: those aspects that could not be handled manually is a candidate for backup. For example, if a case sealer stopped working, it could be taped by hand, even though it would be much slower. But, if a label printer was not working, one could not replace that with manual labor. The extra machine can keep the line moving while the other is undergoing maintenance or consumables are being refilled.
Covid-19 Impact
COVID-19 is a global public health emergency which has affected almost every sector and this long-term effects are expected to impact the growth of the industry during the forecast period. But, the end of line packaging industry has been a positive impact on their market growth during and post COVID-19 period. The growing consumption of packaged food and beverages is especially driving the end-of-line packaging market growth, although factors such as fluctuating price of raw material prices may obstruct the market growth during pandemic.
The standalone segment is expected to be the largest during the forecast period
The standalone segment is estimated to have a lucrative growth. Standalone end-of-line packaging machines account for the highest share. Standalone are either automatic or semi-automatic machines, which form a packaging line without dependency on other machinery. New entrants in the market who want to conserve their cash flows usually opt for standalone end-of-line packaging machines. Stand-alone machines, like automated equipment, can be constructed to handle a wide range of end-line automation. Some packagers might need help in only one step of the packaging: stand-alone capping, labeling, filling, or packing. For example, in capping, which may range from cork to crack and pop seals, stand-alone machines may be handheld or tabletop.
The automotive segment is expected to have the highest CAGR during the forecast period
The automotive segment is anticipated to witness the fastest CAGR growth during the forecast period. Big automotive players are seeing a huge potential in this vision and are investing in dedicated resources to bring this science into automotive packaging. Automotive Industry has a pedigree of being early adopters of technology and efficient processes, it is just a matter of time for it to spread beyond OEMs to Tier 1 and Tier 2 suppliers. For finished automotive product transiting in the domestic market, enough engineering has gone in to have minimalist packaging by redesigning and custom fabricating rolling stocks. Both OEMs & logistics service providers have seen great potential in reengineering the export packaging of finished automotive products by integrating the packaging & logistics with a holistic supply chain vision.
Region with largest share:
Europe is projected to hold the largest market share during the forecast period due to the increasing demand for greater level of productivity, functionality, and safer handling. Consumers in Europe look for more diverse choices in terms of price, convenience, and quality. The automated end-of-line packaging machinery industry in developed countries such as Italy, Germany, France, and U.K is matured, and is expected to witness low to moderate growth during the forecast period. Furthermore, the machine builders are integrating automation to help the end users raise the quantity by decreasing the degree of operability of end-of-line packaging machines and manual operation which will further boost the growth end-of-line packaging market in the region during the forecast period.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period owing to the industrialization and urbanization. This has attracted many manufacturers and brand owners to establish their market in the emerging countries of Asia such as India, Malaysia, and China. Companies from countries such as China, India, and Japan, are growing in key sectors pertaining to raw material extraction, manufacturing, and services. China has been the focal point for the production for electronics and high-volume food & pharmaceutical products segments. Major end-of-line packaging machine manufacturers and brand owners are looking to move their manufacturing sites to emerging locations due to raw material supply and cost optimization. Companies in Asia Pacific are engaged in providing end-of-line packaging and are focusing on packaging equipment which lowers footprint, costs, and labour. The region currently accounts for over 50% demand for technologies like robotics, and remains the home to global manufacturing.
Key players in the market
Some of the key players profiled in the End-of-Line Packaging Market include Combi Packaging Systems, LLC, DS Smith, Duravant Group, Festo, FlexLink, Henkel Adhesive Technologies, IMASidel, Krones AG, Massman Automation Designs, LLC, OPTIMA packaging group GmbH, Pacteon Company, ProMach, RADPAK, Robert Bosch GmbH, Schneider Packaging Equipment Company, Inc, and Synerlink S.A.
Key Developments:
In August 2021, Henkel Adhesive Technologies has partnered with Metsa, a fresh fibre paperboard producer. The partnership is aimed at developing sustainable packaging solutions, amidst a growing pressure for reaching net zero emissions. The growing demand for sustainability also remains a notable trend in the end of line packaging solutions, with increased consumer awareness, and growing availability of alternatives to conventional packaging.
In April 2021, Pacteon Company announced that it acquired Quebec-based Phoenix Wrappers Company. Main aim of the acquisition was to expand their packaging line integration capabilities and to bring high-tech stretch wrapping technology into Pacteon Company's portfolio.
In February 2021, ProMach acquired Serpa Packaging, a leading provider of cartoning and end of line solutions. The addition of Serpa brings automated cartoning systems into ProMach’s portfolio and significantly expands ProMach’s specialized secondary packaging machinery and line integration capabilities for the rapidly growing pharmaceutical industry.
In December 2020, Duravant Group acquires Cloud Packaging Solutions. Duravant also announced that as a result of the synergies connecting Cloud’s product offerings with Duravant operating company Mespack’s portfolio of highly engineered equipment, Cloud Packaging Solutions will be re-branded to Mespack-Cloud, a Duravant Company.
Types Covered:
• Integrated
• Standalone
Technologies Covered:
• Automatic
• Semi-Automatic
Order Types Covered:
• Customized Order
• Standard Order
Functions Covered:
• Palletizing
• Carton Erecting Packing & Sealing
• Stretch Wrapping
• Labelling
End Users Covered
• Food and Beverages
• Pharmaceutical
• Electronics and Semiconductor
• Automotive
• Chemical Products
• Consumer Products
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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