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The global food packaging equipment market size was USD 16.60 billion in 2018 and is projected to reach USD 22.78 billion by 2026, exhibiting a CAGR of 4.1% during the forecast period.
In the food packaging industry, food packaging machinery is primarily used for labeling, sealing, palletizing, and combining operations. These machines are used across bakery, beverage, and meat processing industries. The rise in demand for automated machinery, deployed with advance technologies, namely IoT and Industry 4.0 is driving the market potential.
Companies operating in the industry are developing products with these advanced technologies to enhance user experience. For instance, in April 2019, Tetra Pak announced the launch of its new connected packaging platform, which transforms milk & juice cartons into interactive information channels and full-scale carriers. Similarly, in March 2019, Bosch introduced fully-automated wrapping machine, pack 403, which is ideal for wrapping bars & biscuits, chocolate, cookies, crackers, and others.
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The food industry abides by the to the stringent government rules to maintain a safe and hygienic atmosphere in the food packaging process. Furthermore, governments across different countries are implementing various laws & regulations about food equipment hygiene due to the rising concerns about foodborne diseases. For instance, in 2011, the Food and Drug Administration (FDA) enacted Food Safety Modernization Act (FSMA). This new regulation allows the FDA to recall, suspend production, and audit foodservice providers. Similarly, the ‘food contact materials’ safety concept was introduced by European Union (EU), which states that any materials that come in contact with food such as packaging & processing machines, cutlery, and dishes, must ensure basic requirements established by the EU government. For instance, all substances used in the production of plastic food packaging have to undergo a safety assessment by the (European Food Safety Authority) EFSA before they are authorized in the EU. This will encourage food manufacturing companies to design and install food equipment keeping food hygiene in mind.
“Incorporation of Automated Technologies and Machinery Flexibility to Drive the Market”
The rapidly developing food & beverage industry across the globe will drive the food packaging technology and equipment market growth. These machines are majorly used for packaging and labeling purposes in the food & beverage industry. Modern technologies in the food packaging equipment are IoT and Big Data that depicts a lucrative growth potential. IoT aids to achieve highest level of food safety by allowing food manufacturing companies to track food from the facility to store. The introduction of Industry 4.0 and the rising number of smart factories will help to increase the demand for food packaging machineries.
Smart packaging is implemented in smart factories, enabling companies to embed sensors for tracking environmental conditions throughout the supply chain, in order to ensure maximum food quality & safety. Moreover, the advancements in interactive packaging will also aid to enhance food protection. These technologies can improve safety and detect counterfeit products. Machinery flexibility pacts with efforts and varying packaging materials, requiring smart machinery that adds more individualization to packaging process.
“Food Filling Equipment is Projected to Grow at a Higher Rate During the Forecast Period”
Based on equipment type, the scope of the study is classified into filling, bottling, case cartoning, labeling and palletizing.
The filling equipment segment is expected to grow at a higher pace in the near future due to the need to convert food products into desirable packaging for maintaining the food quality and accessibility. Filling machines are designed for handling solid foods, liquid foods, or powder. For instance, tea bag filling equipment is used in the tea production line to achieve high-speed packaging, in order to reach economic throughput. The demand for filling equipment is also increasing in the beverage industry for bottle filling operations. Bottle filling equipment is also useful in dairy and beverage industry for packaging of the aerated/ carbonated drinks and pasteurized dairy products.
The food labeling equipment segment is projected to witness remarkable food packaging machinery market growth owing to the requirement for providing nutrition fact label about the product, it's manufacturing, and expiry date, offering detailed information about the product safety. Food case cartoning equipment is a packaging machine that is used to form cartons, including close cartons, folded cartons, or sealed cartons, etc. Such equipment are primarily used in meat & poultry, and the bakery industry to pack food products, including pizzas, cakes, and raw meat, etc.
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The food palletizing equipment is anticipated to witness considerable growth owing to their usage for automatically stacking food products into a pallet. Manually placing boxes on pallets consumes a significant amount of time, thus getting replaced by automatic machines to perform the operation. These systems are majorly used in the bakery, meat, and beverage industry for final packaging products.
“Bakery and Confectionery Products are Expected to Generate Highest Revenue
Based on application, the market includes bakery and confectionery products, meat and poultry products, dairy products, beverages, and others (grains, nuts, fruits, and vegetables, etc.). Here, the bakery and confectionery food products segment holds the highest food packaging technology and equipment market share.
Food packaging equipment market is witnessing high growth rate from the bakery industry worldwide. These machines are used in the sector for several applications, including wrapping, cartoning, and palletizing, and others. The appropriate packaging of bakery products aid in protection against moisture loss/gain, retain the taste and enhance hygiene.
The automatic food packaging equipment is gaining popularity and witnessing high food packaging equipment market growth from the milk & dairy industry. These systems are used by milk processing companies for packing milk in tetra packs of multiple shapes & sizes. Additionally, this equipment is used in dairy industry for packaging purposes in terms of cheese, butter, and yogurt.
The demand for food packaging equipment is rising from the beverage industry to perform labeling, palletizing, etc. These machines are majorly used in water bottling lines, as well as carbonated beverage production lines. Moreover, the growing consumption of liquor will provide ample opportunities for market development.
The rapidly developing meat & poultry industry across the globe will help earn high food packaging technology and equipment market revenue. These machines are used in the industry for several applications, including heat-shrinking packaging or vacuum packaging. Heat-shrinking packaging is majorly used to improve the overall shelf life of meat products.
The other segments consist of grains, nuts, fruits, and vegetables that are likely to witness moderate growth, wherein the companies are deploying this equipment for preparing required quantity of packages.
The global food packaging equipment market is segmented into North America, Europe, Asia Pacific, Middle-East & Africa, and Latin America.
Asia Pacific holds the highest share and is expected to witness cumulative growth over the forecast timeline in this market. Rapid growth in foreign direct investments by food packaging companies to expand their product portfolio across the region is the key driver for the market. The rising household disposable income, coupled with the growing middle-class population in several countries, including China, India, and Japan. These circumstances has led to the increasing demand for packaged food, attributing to the food packaging equipment market growth in Asia Pacific. Additionally, the rapidly growing food packaging industry in India will support the regional market growth. According to the National Investment Promotion & Facilitation Agency of India, the country’s processed food industry is expected to reach around USD 543.0 billion by the end of 2020, providing ample opportunities to the players operating in the market.
Europe is projected to show dynamic growth in food packaging market value across the globe. The implementation of stringent government regulations about the food processing & packaging safety in Europe is compelling the demand for advanced food packaging systems having a hygienic design. The government has taken several initiatives for packaging waste and recycling issues. For instance, European Union (EU) has introduced the Packaging and Packaging Waste Directive 94/62/EC (a.27) with the aim to minimize the environmental impact of packaging and packaging waste. The government has also restricted the use of recycled material for packaging purposes, as it may release toxic substances in food products.
Asia Pacific Food Packaging Equipment Market Size, 2018 (USD Billion)
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The increasing rate of consumer expenditure on food outside homes in North America is driving the regional food packaging industry growth, thus supporting the food packaging technology and equipment market growth. Moreover, the rising demand for ready-to-eat and convenience food in the U.S. will drive market demand over the forecast timeline. The increasing numbers of food packaging facilities in North America is further expected to provide lucrative opportunities to the players operating the food packaging technology and equipment market.
Increasing urbanization in Latin American countries, including Brazil and Mexico, is augmenting the food packaging machinery market size. Consumers in urban areas of Latin America are shifting preference towards packaged food due to their improved lifestyle and rising income levels. The market is expected to witness growth in the Middle East and Africa region due to the increasing consumer expenditure on premium food products. Companies operating in premium food products manufacturing are using advanced packaging equipment to enhance the aesthetics of the packaged food products.
“Major Market Players are Intended Towards Offering Cost-Effective Packaging Machinery”
MULTIVAC Group, IMA Group, Krones AG, and Tetra Pak are the top players in food packaging technology and equipment market, as they offer wide range of food packaging equipment, enhancing the market growth. These players plan to offer cost-effective material such as recyclable packages used in food packaging machineries. For instance, Tetra Pak is the first company to offer fully traceable plant-based polymer for packaging purposes in the food and beverage industry. The polymer is derived from the remains of sugarcane bioethanol, a plant-based solution, leading to the establishment of supply chain transparency.
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The report offers an elaborative analysis of numerous factors affecting the global food packaging equipment market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analysing, segmenting, and defining the market based on different segments such as equipment type, and applications. It strategically analyses several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry along with other food packaging machinery market trends.
Value (USD billion)
By Equipment Type
Fortune Business Insights says that the food packaging equipment market was valued at USD 16.60 billion in 2018
In 2026, the food packaging equipment are expected to be valued at USD 22.78 billion
Growth of 4.1% CAGR is been observed in the food packaging equipment in the forecast period (2019-2026)
Asia Pacific is anticipated to be the dominant region for the global food packaging equipment market and is valued at USD 5.42 billion in 2018
Within the food packaging equipment market, equipment type is expected to be the leading segment during the forecast period
Incorporation of automated technologies and machinery flexibility is surging the current food packaging equipment market scenario
MULTIVAC, I.M.A. INDUSTRIA MACCHINE AUTOMATICHE S.P.A., Krones AG and Tetra Pak International S.A. are the top players in food packaging equipment market, as they offer wide range of food packaging equipment, enhancing the market growth. The major market players are intended towards offering cost-effective material such as recyclable packages used in food packaging machineries
The bakery and confectionery food products segment is expected to hold the highest share for the food packaging equipment market owing to the increasing demand of the packaged food worldwide
Filling equipment segment is expected to grow significantly at the highest CAGR owing to the efficiency, and format packaging of food products.
The major players in the food packaging equipment market hold approximately 40% of the market owing to their brand image and product portfolio across the world