“According to the SNS Insider report, the Packaging Automation Market is projected to reach USD 133 billion by 2031 and grow at a CAGR of 7.8% over the forecast period of 2024-2031. The base value in 2023 was USD 73 billion”
The packaging automation market is experiencing an intense growth in overall demand landscape.
Labor shortages are a major concern, with a global trend of fewer people available for manual packaging tasks. To address this, a 2023 study by SNS Insider anticipates the solutions segment within packaging automation to boast the highest growth rate. This segment encompasses software and services that optimize equipment performance, minimize downtime, and enhance overall efficiency. Furthermore, the booming e-commerce industry, projected to reach a USD 8.1 trillion by 2026, necessitates faster and more consistent packaging processes.
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Major Players Listed in this Report are:
- Rockwell Automation,
- Mitsubishi Electric Corporation
- Automated Packaging Systems
- Emerson Electric Company
- Linkx Packaging
- SATO Holdings
- Multivac Group
- ULMA Packaging
- ABB Limited
- Ranpak
Automation not only fulfils this need but also reduces errors and waste, leading to cost savings. For instance, a recent study found that automation can lower expenses by minimizing labor and material waste. The food and beverage sector exemplifies this perfectly. With a growing global population demanding constant food supplies, automation in tasks like filling, sealing, and palletizing ensures faster production cycles and higher output. As a result, the packaging automation market is poised for significant growth in the coming years.
The initial investment cost is a major barrier, with sophisticated systems reaching upwards of $1 million.
This can be a tough pill to swallow for small and medium-sized businesses, especially when compared to the lower upfront costs of manual labor. Additionally, complex machinery requires skilled personnel for operation and maintenance, a challenge considering the global shortage of qualified technicians in this field. The integration of automation can also disrupt existing workflows, requiring retraining for employees and potentially leading to temporary production slowdowns. For instance, a beverage company that transitions from a manual bottling line to a robotic system might experience a dip in output during the initial adjustment phase.
Packaging Automation Market Key Segments:
By Automation Type
- Packaging Robots
- Tertiary & Palletizing Automation
- Secondary Packaging Automation
- Automated Conveyer & Sorting Systems
By Offering
- Solution
- Services
By Function
- Labelling
- Capping
- Bagging
- Filling
- Palletizing
- Others
By Industry Application
- Healthcare
- Food & Beverages
- Personal Care & Cosmetics
- Aerospace & Defence
- Automotive
- Others
Packaging robots estimated at 40% of the market, offering versatility for various tasks like filling, palletizing, and labeling. This dominance stems from their ability to ensure product safety and quality while minimizing environmental impact. Following closely behind is secondary packaging automation around 35%, which tackles tasks like case packing and cartoning. This segment thrives due to its efficiency boost in high-volume production lines. Tertiary and palletizing automation roughly 15% takes over the final steps, ensuring secure and organized product stacking on pallets for transport. Bringing up the rear is automated conveyor and sorting systems holds approximately 10%, which handle the critical flow of materials throughout the packaging process.
North America holds the maximum share in packaging automation market, projected to grow at a CAGR of 6.9% over 2024-2031.
This dominance stems from a strong e-commerce culture and a thriving packaged food industry, both demanding efficient and high-volume packaging solutions. Government initiatives promoting digital transformation, particularly Industry 4.0, are fuelling automation adoption. This synchronizes with the growing need for supply chain integration, where packaging automation excels by enabling seamless communication between stakeholders and optimizing complex logistics schedules.
The United States takes center stage within North America, accounting for a 71% of robotic installations in the Americas in 2022. This signifies a clear preference for automation as a way to enhance productivity, minimize labour costs, and meet the ever-increasing consumer expectations for swift delivery and top-notch product quality.
During the 2023 downturn, the American Forest & Paper Association (AF&PA) reported a 6% dip in boxboard operating rates, mirroring a wider industry trend.
This echoes the 13% shipment decline experienced by North American containerboard producer Packaging Corp. However, SNS Insider predicts there can be several other challenges. Faced with tighter budgets, companies may prioritize automation that delivers clear cost benefits. Governments can also play a role. In 2023, for instance, China announced a series of tax breaks and subsidies specifically for the packaging automation sector, aiming to mitigate the slowdown’s impact and encourage continued investment in efficiency-boosting technologies.
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Key Takeaways
- Manufacturers are increasingly turning to packaging automation solutions for tasks like filling, labeling, and palletizing. This not only frees up human labor for more specialized roles, but also ensures consistent quality and minimizes errors.
- Asia Pacific remains the frontrunner in adopting packaging automation, but the trend is undeniable across the globe.
- Robotics, particularly pick-and-place systems, are a hot area with advantages in flexibility and product handling.
- While the upfront investment can be significant, companies are finding that automation ultimately leads to faster production speeds, lower costs, and a competitive edge.
Table of Contents – Key Points
1 Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2 Research Methodology
3 Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4 Impact Analysis
4.1 Impact of the Russia-Ukraine War
4.2 Impact of Ongoing Recession
4.2.1 Introduction
4.2.2 Impact on major economies
4.2.2.1 US
4.2.2.2 Canada
4.2.2.3 Germany
4.2.2.4 France
4.2.2.5 United Kingdom
4.2.2.6 China
4.2.2.7 Japan
4.2.2.8 South Korea
4.2.2.9 Rest of the World
4.3 Supply Demand Gap Analysis
5 Value Chain Analysis
6 Porter’s 5 forces model
7 PEST Analysis
8 Packaging Automation Market Segmentation, by Automation Type
8.1 Packaging Robots
8.2 Tertiary & Palletizing Automation
8.3 Secondary Packaging Automation
8.4 Automated Conveyer & Sorting Systems
9 Packaging Automation Market Segmentation, by Offering
9.1 Solution
9.2 Services
10 Packaging Automation Market Segmentation, by Function
10.1 Labelling
10.2 Capping
10.3 Bagging
10.4 Filling
10.5 Palletizing
10.6 Others
11 Packaging Automation Market Segmentation, by Industry Application
11.1 Healthcare
11.2 Food & Beverages
11.3 Personal Care & Cosmetics
11.4 Aerospace & Defence
11.5 Automotive
11.6 Others
12 Regional Analysis
13 Company Profile
14 Competitive Landscape
14.1 Competitive Benchmarking
14.2 Market Share Analysis
14.3 Recent Developments
14.3.1 Industry News
14.3.2 Company News
14.3.3 Mergers & Acquisitions
15 USE Cases and Best Practices
16 Conclusion
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