The Packaging Machinery Manufacturers Institute (PMMI), in collaboration with the Australian Packaging and Processing Machinery Association (APPMA), the Association of Mining and Exploration Companies (AMEC), and Processing and Packaging Machinery Association (PPMA), have released the 2024 Guide to Global Markets Report, which offers a view of the top packaging and processing markets in the world, highlighting market size, global trends, duties and tariffs, import and export statistics, as well as shifts in packaging materials and formats.
The report also includes detail on the top food and beverage products in absolute volume growth and compound annual growth, where opportunities for investment in packaging and processing are more likely to occur along with other insights about international market opportunities.
PMMI says that many of the trends and broader economic themes covered in the report resonate within the Australian and Asia-Pacific markets.
The report states that overall market for packaging machinery exhibited year-on-year growth of close to 13 per cent in 2022. It found that packaging producers made significant investment into supply chain and manufacturing operations, boosting demand for packaging equipment and machinery post-pandemic.
It also found that the first half or 2023 introduced some economic uncertainty for the packaging industry, as raw materials, logistics and labour costs continued to increase. This was demonstrated with a decline in new machinery orders, with the report projecting an impact on packaging market performance throughout 2023 and into 2024.
Jorge Izquierdo, PMMI’s vice-president of Market Development, who recently presented an insightful overview of the research process and key findings from the report to APPMA members, specific to the Australian market, said: "The report found that between 2023 and 2027 most of the growth in this space will come from the Asia-Pacific region - and this growth will be quite significant".
"In terms of packaging machinery type, we are finding that the fastest growth will likely come from filling and dosing, which will see about 20 per cent annual growth between 2023-2027. This is followed by labelling, decorating and coding, as well as case handling.
"As for packaging machinery by industry, it was really no surprise that food continues to have the largest share of the market (about 40%), followed by beverage (at about 27%). Pharmaceuticals on the other hand saw some of the fastest rate of growth due to the access to better health, prescriptions and social services in many markets, although food and beverage will continue to dominate."
The report says the longer-term outlook to 2027 remains positive, however, as packaging companies continue to prioritise investment in sustainability and digitalisation to meet consumer expectations, and to differentiate against competitors, digital technologies are expected to have a significant impact on packaging machinery OEMs.
The report highlighted three 'mega trends' - sustainability, digitalisation, and smart packaging.
The report said Sustainability is underpinned by changing consumer expectations and the shift in perception and willingness to pay for sustainable products. Packaging companies are increasingly developing products with circularity in mind. Regulation will also play a key role globally, increasingly pushing for circularity and the use of more environmentally-friendly solutions, such as plastic substitutes.
Digitalisation will become a key enabler for the packaging industry to deliver on growth and productivity ambitions, according to the report. Digitalisation refers not just to data and technology, but is also about creating measurable value through transforming the way the packaging industry operates - from the factory floor to customer interaction.
Digitalisation is also related to smart packaging, and technology developments will enable the increase in uptake of printed tags and codes that enable packaging to have a true digital identity and provide substantial added value.
It is estimated that the market for packaging machinery was close to $45.9 billion in 2022. The market is expected to exceed $58 billion in 2027, representing a CAGR of five per cent between 2023 and 2027. Currently, forecasted year-on-year growth for packaging machinery is at four per cent and 0.1 per cent in 2023 and 2024 respectively.
