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The Freedonia Group Forecasts World
Packaging Machinery Demand to 2010 and 2015 A recent
Freedonia Group report outlines the future of world
packaging machine demand for 34 countries.
GLOBAL DEMAND TO EXPAND 5% ANNUALLY UNTIL 2010
Global demand for packaging machinery is projected to
expand 5% a year through 2010 to $33bn, accelerating from
the 2000-2005 period.
Developing parts of the world will provide suppliers with
some of the best sales opportunities going forward.
Industrialisation-related fixed-investment activity,
rising per-capita incomes and growth in packaged goods
production will all contribute to increases in equipment
demand in these areas, most notably in the Asia / Pacific
and Eastern Europe regions.
"Plastic packaging growth is expected to outpace that of
paper packaging through 2010." Pharmaceutical and personal
care products will represent the fastest growing market
for packaging machinery to 2010. However, the food
industry will remain by far the largest single end user,
accounting for more than two-fifths of all product demand
in 2010.
CHINA, INDIA, RUSSIA AMONG THE FASTEST GROWING MARKETS
China will record the largest gains of any national market
in dollar terms. Annual packaging machinery demand in the
country will climb by more than $1.7bn from 2005 to 2010,
and China will surpass Japan to become the second largest
market in the world behind the US.
Sales conditions are also expected to be strong in India,
Russia, Mexico and South Korea, as well as in lower-volume
markets such as Indonesia, Malaysia, Thailand and Turkey.
Packaging equipment demand in the US and Japan will be
less robust yet show renewed strength following a period
of relatively sluggish gains, and market advances in
Western Europe will also accelerate through 2010.
Increases will be fuelled by generally favourable economic
conditions and higher income levels, leading to a rise in
packaged goods consumption and manufacturing production,
boosting packaging machinery sales as fixed investment
expenditures climb.
LABELLING AND CODING EQUIPMENT TO LEAD GAINS BY PRODUCT
Labelling and coding equipment is expected to register the
strongest gains of any major product category through
2010, stimulated by rising consumption of label-intensive
non-durable goods, by mandated use of radio frequency
identification (RFID) tags by suppliers to large buyers
like the US Department of Defense and Wal-Mart, and by a
growing need for shippers to accurately track items for
safety and security reasons, as well as to help combat
counterfeiting.
Demand for filling and form / fill / seal machinery, the
most widely used type of packaging equipment, will also
expand at an above-average pace, spurred by technological
advances that are improving the efficiency and flexibility
of new generations of machinery, boosting replacement
sales, as well as the number of applications for this
equipment.
PAPER VERSUS PLASTIC IN PACKAGING TO 2010
In 18 selected markets where plastic and paper compete as
packaging materials, plastic is expected to increase its
share of the market to 53% in 2010. This percentage
understates plastic's share, since less plastic is
required than paper in most applications due to its
lighter weight. Plastic's share of the market will expand
at a slower pace than in the past decade, as a number of
packaging applications are now fairly mature in terms of
the share controlled by plastic.
Nonetheless, material improvements that enable extended
shelf life and increased durability, along with reduced
material requirements and convenience features like
resealability, will fuel continued opportunities for
plastic packaging.
BEVERAGES, FOOD AND DETERGENTS AMONG TOP PROSPECTS FOR
PLASTIC PACKAGING
Plastic packaging growth is expected to outpace that of
paper packaging through 2010 in all competitive markets
covered in this study and is forecast to expand 2.9% a
year through 2010."Global demand for packaging machinery
is projected to expand 5% a year through 2010."
Advances will result from plastic's competitive cost and
performance advantages over paper, as well as improved
outlooks for disposable personal income levels and
manufacturing activity. The most rapid gains in market
share are anticipated in soy and other non-dairy beverages
and pet food applications, with the frozen food, fruit
beverages and detergent markets also expected to see
favourable increases.
Robust growth is also expected for single-serving plastic
milk bottles, driven by conversions from half-pint
gabletop cartons to plastic bottles in quick service
restaurants and school lunch programs.
Paper packaging will post marginal advances or continue to
decline in most competitive markets through 2010 due to
inroads from plastic.
However, above-average opportunities are expected in
foodservice, dairy and soy milk applications, with organic
milk also a growth niche. Foodservice opportunities will
be fuelled by favourable revenue growth and widespread
demand for products such as paperboard boxes and cartons,
paperboard buckets and pails, wraps and bags.
While most dairy applications for paper are mature,
heightened demand for ice cream novelties, especially
reduced-fat and bite-sized varieties, will support folding
carton opportunities. Solid prospects for paper in soy
beverage packaging will result from the ongoing movement
of soy beverages into the mainstream marketplace and the
general preference for paperboard containers in promoting
a natural image. |
