Demand for flashier packaging drives machinery market

Related tags Supply and demand Revenue North america

The demand for newer, flashier packaging, especially for
foodstuffs, has spurred the demand for the services of contract
packagers, said Frost & Sullivan in a new analysis of the North
American market.

Opportunities for contract packagers is being driven by the increasing preference of large retailers and club stores to offer novel packaging the research firm said, in an analysis of the $1.42bn North American packaging machinery market.

Another factor strongly influencing the market is the increasing demand for attractive packaging for foodstuffs, Frost & Sullivan said.

Contract packagers hold currently hold a 12 per cent market share in North American packaging market. They are in constant need of cost-effective machinery with the minimum switchover time, Frost& Sullivan​ said in a statement yesterday.

"Packaging machinery manufacturers that meet this demand can reap maximum benefits,"​ the research firm firm said.

Frost & Sullivan estimates that the North American packaging machinery market could generate revenues of $1.75bn in 2011, rising from $1.42bn achieved in 2004.

Another area for growth is in the food and beverage industry, which has a very large installed base of packaging machinery and is demanding visually attractive packaging for their products. The selection of packaging materialin the sector depends largely on the type of store -- grocery, specialty, or supermarket -- where stand-up pouches (SUPs) are beginning to dominate the supermarket shelves.

"Revenue growth in the North American packaging machinery markets will largely come from the continuing end-user need to upgrade and enhance packaging technology in order to remain competitive and cost effective in their respectivemarkets,"​ the firm said.

In specialty stores, shopping is more focused and the clientele is willing to spend on up-scale products and value-added packaging the firm said. The increasing use of catalogs and websites by companies, results in consumersreceiving packages directly from distribution centers. The opportunity for manufacturers lies in the increased demand for corrugated boxes with more interior packaging.

"Irrespective of the type of packing -- individual, group, or bulk -- packaging machinery should ensure convenience in terms of display, storage, transportation, and handling,"​Frost & Sullivan said. "Companies must focus on providing packaging equipment that ascertains product safety and prevents contamination as well as adulteration -- especially in the food and beverage andthe pharmaceuticals industry."

"Packagers need to ensure that the goods reaching end users are intact while simultaneously offering convenience by using void-fill packing materials such as recyclable paper and plastic air pouches that reduce wastage,"​Frost & Sullivan said.

Related topics Processing & packaging

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