U.S. Domestic Shipments of Packaging Machinery: $8.5 Billion by 2020
The value of domestic shipments of packaging machinery is projected to grow at a CAGR of 2.4 percent, reaching $8.5 billion in 2020, according to PMMI. More than half of this growth is expected to come from the food and beverage sector.
The value of domestic shipments of U.S. produced machinery rose 0.3 percent to $7.51 billion in 2015. Exports of packaging machinery in 2015 increased by 3.2 percent compared to 2014, and are now $1.1 billion. Backlog orders of packaging machinery grew by 14.1 percent compared to backlog orders at the end of 2014.
PMMI produces the State of the Industry study based on U.S. Census Bureau reports and shipments data provided by association members who manufacture packaging machinery. The report, which analyzes 28 packaging machinery categories, describes trends and the outlook for packaging machinery shipments through 2020.
According to the report, the labeling, decorating, and coding and case handling machinery groups are forecast to increase the fastest of all machinery types through 2020, at CAGRs of 3.9 percent and 2.5 percent, respectively. The pharmaceutical sector is forecast to grow the fastest of all sectors through 2020, at a CAGR of 2.8 percent. This is followed by the beverage sector, which is forecast to grow at a CAGR of 2.4 percent.
“The forecast for the packaging machinery market is strong. We continue to anticipate growth in major market segments such as pharmaceuticals as well as beverages. Factors such as changing consumer habits, new regulations as well as general economic development are fueling this,” says Jorge Izquierdo, VP, market development, PMMI.
In regard to machinery categories, the rapid growth anticipated in the labeling, decorating and case handling segment is largely a result of new legislation demanding increased labeling and coding, continuing developments in printing technologies and the proliferation of SKUs.