Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
End-of-line Packaging Market 2017–2027
The end-of-line solution is advanced machinery used in the overall production of the product. They can be fully automated or semi-automated. The fully automated system includes safety controls, machine vision, and even remote monitoring in turn contributing production of quality products. They reduce the need for labor as they are fully automated and reduce the chances of the human error thus increase efficiency in the overall process. They are widely used across automotive, packaging, electronics & semiconductor, food & beverages, and pharmaceutical industry.
The global end-of-line packaging market is projected to surpass US$ 6.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 4.2% during the forecast period (2019 to 2027).
The rising adoption of automation in the packaging industry is expected to fuel the market growth of the end-of-line solution. Packaging is very important across various manufacturing industries due to the high demand for enhanced productivity and operation. Automation helps increasing overall productivity and reducing the degree of manual operation. Thus, rising adoption of the automation in the end-of-line solution is expected to propel the market growth.
Growing need to reduce the workforce and production cost is expected to augment the market growth of the end-of-line solution. End-of-line packaging solutions reduce the requirement of constantly training a new workforce and enable emphasize more on value-adding tasks, which in turn reduce the chances of risk due to human error and enhanced the overall production process. This is expected to fuel the market growth of the end-of-line solution.
Regionally, Europe dominated the global end-of-line packaging market in 2018, reporting 34% market share in terms of revenue, followed by North America and Asia-pacific, respectively.
Figure 1. Global End-of-Line Packaging Market, Revenue Share (%), By Regions, 2018
Ensuring automation performance aligns as per the consumer demand is expected to be major challenges and this is expected to hamper the market growth. Evolving consumer preferences for the quality and cost-effective products has been significantly increased in the recent past years. Hence, ensuring the automation performance aligns in the manufacturing could be a challenge for the market of the end-of-line solution
The large initial investment in the automated end-of-line solution as it is one of the most costly operating cost of the company is expected to hinder the market growth of the end-of-line solution over the forecast period.
Growth in the food and beverage industry is expected to offer lucrative growth opportunity to the market of end-of-line solution over the forecast period. In the food industry, it is used to packaged beverage and other food products as this required casing, labeling, proper retail display packaging, and cartooning for sales. It also improves product safety during transportation and storage. This is expected to augment the market growth of the end-of-line solution over the forecast period.
Increasing implementation of strict regulations across pharmaceutical companies in order to enhance the traceability of the product through the supply chain will favor the market growth in the near future. Vendors are adopting advanced end-of-line solution as this can print labels along with lot numbers, batch numbers, global trade identification numbers, and product codes on both tertiary and secondary packaging.
Figure 2. Global End-of-Line Packaging Market – Opportunity Analysis
Advancement in the end-of-line packaging solution such as the introduction of robotic palletizing and de-palletizing system is expected to accelerate the market growth. In September 2019, ABB showcased the company’s latest robotic innovations that help packagers manage high mix, low volume production at Pack Expo Las Vegas. This innovation will enhance the efficiency to package more products on the same lines, switch between products with minimal downtime, and quickly ramp up to full-production speed for new products.
Expanding the retail market in the Asia Pacific region is expected to propel the market growth of the end-of-line solution. According to the India Brand Equity Foundation, the retail industry reached US$ 950 billion in 2018 at CAGR of 13% and expected to reach US$ 1.1 trillion by 2020. Thus, expanding the retail industry is expected to stimulate market growth over the forecast period.
Figure 3. Global End-of-Line Packaging Market, Revenue Share (%), By Wall Material, in 2018
On the basis of end-user industry, food dominated the global End-of-line Packaging market in 2018 with around 34% of market share in terms of revenue, followed others and pharmaceuticals , respectively.
Figure 4. Global End-of-Line Packaging Market – Value Chain Analysis
Key players operating in the end-of-line packaging market are Krones AG, IMA S.p.A, Bosch Packaging Technology, DS Smith plc., Pro Mach, Inc., Combi Packaging Systems LLC, Festo Group, Schneider Packaging Equipment Co. Inc., and Gebo Cermex
Few Recent Developments
- In April 2015, the company acquired Gernep Group, Germany – a packaging machinery manufacturer
- In March 2015, the company acquired Schaefer Förderanlagen- und Maschinen GmbH, Unterföhring, Germany, which is focused only on aftersales service and engineering related to pallet handling solutions
- At FachPack 2015, the company received the German Packaging Award for innovating the BEVkeg packaging idea for beverage packaging