HERNDON, VA — According to the 2024 State of the Industry report published by PMMI, the association for packaging and processing technologies and producer of Pack Expo portfolio of trade shows, the US packaging machinery shipments grew 5.8% in 2023, reaching $10.9 billion in revenue.
However, while the growth rate is projected to slow to 2.5% in 2024, the forecast for 2025 is expected to see an uptick in growth rates and even reach a high of 8.0% in 2027. The stagnant 2024 growth is expected to be the next low point in the industry’s typical peak-to-trough sales cycle, which typically lasts three to five years.
Machinery investments have been heavily influenced by new facilities and line upgrades in industrial segments, lower interest rates, and changes in consumer preferences such as a growing demand for individually packaged single servings.
The report also highlights the major impact of regulatory demand for more sustainable packaging. Consumers are increasingly encouraged to purchase products with a known and clear sustainable impact, which influences end users to transition away from single-use plastics to more renewable, recyclable packaging materials and take active measures to reduce carbon emissions.
The industry-wide labor shortages also remain a factor in machinery purchases with the surge in automation and easy-to-use machines driving manufacturing companies.
Other factors quickly gaining ground in the industry include concerns about product quality and safety and the potential benefits of Big Data. A dramatic increase in product recalls is boosting interest in hygienic features and strengthening demand for advanced cleaning process designs. By using Big Data, suppliers can optimize machinery performance with preventative and predictive maintenance, AI-supported operator interfaces, and AI-based data analysis.
PMMI’s State of the Industry report also predicts that food will maintain its position as the most significant industry segment; however, the pharmaceuticals segment will grow faster. Machinery categories in the report have been adjusted to match the naming conventions used in PMMI’s ProSource database. For 2023, the four best-selling categories were:
- Conveying, feeding and handling
- Cartoning, multi packing and case packing
- Bagging, pouching and wrapping
- Filling, capping and closing
The sales in all machinery segments are projected to experience yearly growth and peak in 2027 with a slight stall in 2028. The fastest growth is expected in four sub-segments:
- Product and package handling
- Palletizing, pallet conveying, dispensers and slip sheets
- Form/fill/seal, horizontal machines
- Packaging inspection equipment
The projected market growth coincides with the increased demand for the latest solutions to meet manufacturers’ needs. Answering this call, PMMI will host Pack Expo Southeast, set for March 10-12 in Atlanta, to bring packaging and processing machinery, materials, and technology together to serve this growing manufacturing corridor of the US.
Visit the Pack Expo Southeast website for more information on registration or exhibitor booth space.
