Packaging Automation Market Size to Set USD 136.47 Bn by 2032

Packaging Automation Market Size, Growth and Industry Trends (2023 - 2032)

The global packaging automation market size is estimated to grow from USD 64.70 billion in 2022 to reach an estimated USD 136.47 billion by 2032, registered at a 7.8% CAGR between 2023 and 2032.

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Report Highlights: Important Revelations

• Global packaging automation sector is poised for growth, starting at a value of USD 64.70 billion in 2022.
• The market is expected to surge, reaching an estimated value of USD 136.47 billion by 2032.
• This expansion is registered at a consistent CAGR of 7.8% over the period from 2023 to 2032
• Unveiling North America's leadership in packaging automation across industries.
• Asia Pacific emerging as a force in the regional packaging automation industry.
• Utilizing filling machines' potential in packaging automation.
• Examining the impact of packaging automation in the food and beverage sector.
• Factors driving the growth of packaging automation in retail.

The packaging automation market is undergoing a fundamental revolution fueled by technology breakthroughs, shifting customer preferences, and rising demand for efficiency and sustainability. With the worldwide packaging business proliferating, automation has emerged as a critical solution for streamlining processes, increasing productivity, and meeting changing market needs. Automation technologies comprise many solutions, including robotic packaging equipment and advanced software platforms for optimizing production workflows. These technologies enable faster and more accurate packing operations, with advantages such as lower labour costs, fewer errors, and higher product quality.

The packaging automation market landscape is being shaped by a growing emphasis on sustainability, with manufacturers increasingly embracing eco-friendly packaging solutions and automating processes to optimize resource utilization and reduce waste.

As enterprises prioritize efficiency and sustainability, the packaging automation market is expected to develop significantly. Key businesses are investing in R&D to provide solutions adapted to the changing demands of various industries, resulting in ongoing expansion and innovation in the sector.

For Instance,

• In November 2023, SEE introduced the CRYOVAC Brand Vertical Form-Fill-Seal System, a novel automated liquid packaging system.

Packaging Automation Market Trends

• The advent of Industry 4.0 principles and smart manufacturing technology is driving the integration of automation solutions into packaging processes.
• Manufacturers are increasingly using automation to improve packing efficiency and productivity.
• Artificial intelligence and machine learning technologies are rapidly used in packaging automation systems to improve decision-making, process optimization, and quality control.
• Flexibility and adaptability are essential in packaging automation because producers want to respond rapidly to changing market demands and product variants.

Unpacking North America's Dominance in Packaging Automation Across Sectors

North America dominates the packaging automation market for numerous important reasons. For starters, the region is home to many well-known manufacturers from various industries, including food and beverage, medicines, consumer products, and e-commerce. These industries strongly demand packaging automation solutions, driven by the need to improve productivity, minimize costs, and meet rising consumer expectations for quick delivery and high-quality products. In 2022, installations in the Americas increased by 8% to 56,053 units, with the United States dominating the regional market, accounting for 71% of installations. Robot installations increased by 10% to a total of 39,576 units. Notably, the automobile sector's share has recovered to 37%, trailing only the metal and machinery industry (3,900 units) and the electrical/electronics industry (3,732 units).

North America has innovative technology infrastructure and widespread usage of automation across multiple industries.  The region benefits from top-tier automation technology providers, prestigious research institutes, and a trained workforce, strengthening its position in the packaging automation market. North America's steadfast dedication to innovation and continuous improvement drives significant investments in next-generation automation technologies such as robotics, artificial intelligence, and machine learning, which propels market growth.

For Instance,

• In August 2021, the introduction of AutoFill in North America was announced by Ranpak Holdings Corp., a leading global provider of paper-based packaging solutions that are environmentally sustainable and suitable for e-commerce and industry supply chains.

Asia Pacific Powerhouse Exploring the Packaging Automation Industry's Regional

The Asia Pacific dominates the packaging automation industry due to several important factors. Electronics, automotive, food and beverage, and pharmaceuticals are just a few businesses part of its rapidly expanding manufacturing sector. The demand for packaging automation systems has increased due to the rapid industrialization and economic expansion in China, India, Japan, and South Korea. This need drives the need to maintain competitiveness in the global market, raise consumer expectations, and improve production efficiency. The largest market in the world, China, will have 290,258 units installed annually by 2022. Domestic and foreign robot suppliers have increased their production capabilities in China to fulfill this demand.

Robot installations in Japan increased by 9% to 50,413 units, surpassing pre-pandemic levels. China leads the world market for industrial robots, with Japan coming in second. With 46% of the world's robot production, Japan is the global leader in robot manufacturing. In 2022, the market in the Republic of Korea witnessed a slight increase of 1%, amounting to 31,716 installations. After four years of dropping numbers, this year represents the second straight year of marginal gain. Despite this, the US, Japan, and China continue to lead the world's robot markets, with the Republic of Korea coming in fourth.

The Asia Pacific region has a significant presence in the packaging automation market, supported by its growing economy, strong manufacturing sector, and rising automation technology adoption, especially in nations like China, Japan, and the Republic of Korea.

For Instance,

• In January 2022, SIG announced the company has agreed to purchase Pactiv Evergreen Inc.'s Asia Pacific Fresh business ("Evergreen Asia") for $335 million.

Packaging Automation Market, DRO

Demand:

• One of the key goals of packaging automation is to increase efficiency and productivity in packaging operations. Automation systems promote faster throughput, less downtime, and higher output, allowing manufacturers to meet growing demand while lowering labor costs.

Restraint:

• The initial cost of packaging automation systems, which includes equipment, software, and integration, might be prohibitive for specific organizations and small and medium-sized enterprises (SMEs).

Opportunity:

• Automation technology advancements such as robots, machine vision, artificial intelligence (AI), and the Internet of Things (IoT) provide potential for innovation and differentiation in the packaging automation market.

Harnessing the Power of Filling Machines in Packaging Automation

The filling machine is the main product in the packaging automation market. Filling machines are widely used in various industries, including food and beverage, pharmaceuticals, cosmetics, and chemicals, to fill containers with liquid, powder, granules, or other items. These devices automate the filling process, ensuring precision, uniformity, and speed while increasing productivity and decreasing labor costs. Leading filling machines can handle various products and containers, precise volumetric or weight-based filling mechanisms, and integration with other packaging automation systems such as capping, sealing, and labeling.

Modern filling machines frequently combine innovative technology such as servo motors, PLC controllers, and touch-screen interfaces to ensure optimal efficiency and ease of use. Increasing production quantities increases the necessity for filling equipment, strict quality standards, and efficient packaging solutions to suit consumer demands. As a result, filling machines are critical to packaging processes' overall productivity and competitiveness across various sectors.

For Instance,

• In December 2023, TurboFil Packaging Machines, a company that designs and develops liquid filling and assembly machines, introduced a completely automatic system that uses its well-known TipFil syringe filling technology.

Exploring the Role of Packaging Automation in the Food Industry

Packaging automation is an advanced technology that uses machinery, robotics, and complex systems to improve different parts of the packaging process. Its importance is evident in the food business, where precision, efficiency, and adherence to quality standards are critical. This automation includes filling, labeling, sealing, and palletizing, formerly done manually. Automated systems accelerate and precisely execute these procedures, regularly outperforming human capabilities. Packaging automation is not a one-size-fits-all solution; it involves customizing solutions to match the unique needs of various products and packaging formats. Automation systems can be tailored to solve a wide range of issues, including packaging perishable goods and preserving the integrity of sensitive objects.

Innovation and efficiency are essential in the ever-changing food sector market. Packaging automation is ideal for meeting consumer needs, industry sustainability, and production goals. The fundamental motivation for implementing packaging automation is to increase productivity, cost-effectiveness, and overall quality.

The food automation and robotics market are expected to grow by around 5.5 billion units by 2030, showing that the seamless integration of AI and robots will impact the future of the food sector. This integration is predicted to drive innovation, efficiency, and sustainability, resulting in increased growth in the packaging automation market.

Food and beverage industries are dealing with labor shortages, increased demand as e-commerce grows, and shifting consumer preferences towards fresher, healthier, more artisanal products. Small and medium-sized firms (SMEs) have demonstrated agility in satisfying niche demands, outpacing more prominent manufacturers in growth rates. As a result, packaging automation is critical for all firms to maintain competitiveness and fulfill changing customer expectations.

For Instance,

• Coca-Cola uses AI and ML algorithms to improve its distribution and supply chain processes. These techniques aid in accurate demand forecasting, assuring timely product availability while reducing stockouts and surplus inventories.

Starbucks uses AI-driven personalisation tools in its mobile app to provide individualised recommendations to customers. The app analyses previous orders, preferences, and location data to provide personalised food and beverage recommendations based on each user's interests and preferences.

Forces Behind the Expansion of Packaging Automation in Retail

A number of factors are driving the expansion of the packaging automation market through the retail distribution channel. As consumers shift towards online shopping and e-commerce platforms, there is a greater need for efficient and automated packing solutions to accommodate the increasing number of orders. Retailers invest in packing automation solutions to simplify their fulfilment processes, shorten shipment times, and boost customer happiness. Packaging automation enables businesses to personalize packaging for particular products, ensuring maximum protection throughout transit and increasing brand awareness and presentation. This customization potential is significant in retail, where packaging is essential for marketing and branding initiatives.

Packaging automation improves inventory management by reducing packaging waste and the demand for surplus packaging materials. This results in cost savings and environmental benefits, making packaging automation a compelling investment for merchants wishing to improve their sustainability policies. The packaging automation market is expanding through the retail distribution channel because of the demand for efficiency, cost-effectiveness, and improved customer experience in a fast-changing retail landscape.

For Instance,

• In July 2023, EndFlex Packaging Machinery, based in the United States, introduced a new turnkey system for picking, placing, and sealing bottles in cartons.

Key Players and Competitive Dynamics in the Packaging Automation Market

The competitive landscape of the packaging automation market is dominated by established industry giants such include ABB Ltd, Automated Packaging Systems, BEUMER Group GmbH & Co., Coesia Spa, Emerson Electric Co., Kollmorgen Corporation., Linkx Packaging, Mitsubishi Electric Corp., Multivac Group, Rockwell Automation, SATO Holdings, Schneider Electric SE, Siemens AG, Swisslog Holding AG, Syntegon Technology and ULMA Packaging. These giants compete with upstart direct-to-consumer firms that use digital platforms to gain market share. Key competitive characteristics include product innovation, sustainable practices, and the ability to respond to changing consumer tastes.

ABB Ltd.'s Process Automation business provides many solutions for process and hybrid industries, including specific sectors incorporating automation, digitalization, electronic control technologies, software, advanced services, measurement and analytics, and maritime options. Process Automation is ranked second in the global market.

For Instance,

• In January 2024, ABB agreed to purchase a controlling stake in software service provider Meshmind to extend its research and development expertise in AI, Industrial IoT, and machine vision.

Coesia's on-demand packaging equipment includes wrapping, carton erecting, box forming, box filling, and inline printing solutions, all of which are intended to create customised, fit-to-size packaging that enhances the consumer experience. Its process automation capabilities, such as conveying equipment and sorting equipment, are suitable for improving operational efficiency and productivity in e-commerce businesses of all sizes.

• In January 2024, Coesia acquired Automation & Modular Components' entire share capital through its FlexLink subsidiary.

Industries Investing Heavily in Robotics and Automation

Companies in the industrial sector are investing heavily in robotics and automation. Over the next five years, many plan to spend 25% of their capital on these technologies.

Executives believe that automation will improve the quality of their products, increase efficiency, and reduce downtime. However, they are concerned about the high cost of equipment and a lack of in-house expertise.

Retail and consumer goods companies are expected to invest the most in automation, with 23% of them planning to spend over $500 million. In comparison, 15% of companies in the food and beverage sector and 8% in the automotive sector have similar plans. Logistics and fulfillment companies will invest the largest portion of their capital in automation, with it making up 30% or more of their spending over the next five years.

Packaging Automation Market Player

Packaging automation leading market players include ABB Ltd, Automated Packaging Systems, BEUMER Group GmbH & Co., Coesia Spa, Emerson Electric Co., Kollmorgen Corporation., Linkx Packaging, Mitsubishi Electric Corp., Multivac Group, Rockwell Automation, SATO Holdings, Schneider Electric SE, Siemens AG, Swisslog Holding AG, Syntegon Technology and ULMA Packaging.

Market Segments

By Product Type

• Filling Machine
• Labelling
• Palletizing
• Wrapping
• Others

By End Use

• Food & Beverages
• Healthcare
• Personal Care
• Industrial

By Distribution

• Retail
• E-commerce

By Region

• North America
• Asia Pacific
• Europe
• LAMEA