Growth in worldwide demand for packaging machinery is expected to climb at a 4.6% annual pace through 2017 to $41.8 billion, forecasts Freedonia Group's latest report, "World Packaging Machinery to 2017".

Growth is expected to climb at a faster pace through 2017 than it did during the 2007-2012 period. An improved business climate, which will be reflected in expanding fixed investment spending, manufacturing output, and packaging demand, will drive increases in equipment sales through 2017.

Of the major markets for packaging machinery, the chemicals and pharmaceuticals/personal care products industries will register the fastest sales gains in percentage terms, according to Freedonia. Purchases of packaged pharmaceuticals and consumer goods and associated equipment will be boosted by rising living standards in developing nations.

Consumption of packaging machinery utilized in food applications will grow the most in dollar terms, stimulated by climbing demand for packaged foods in both developed and developing countries. As a result, food manufacturing will remain the largest market through 2017.

The increasing need for pharmaceutical, food and beverage manufacturers to ensure the safety of their products throughout the supply chain will result in labeling and coding equipment being the fastest growing of any major product type in value terms, the report says. However, filling and form/fill/seal machines will remain the most widely used type of packaging equipment through 2017, with demand bolstered by their extensive usage in the large food processing market.

China and India to account for over 40% of global market

Developing markets will provide the best growth opportunities for suppliers of packaging equipment through 2017. The Asia Pacific region will register the most rapid rate of advance, led by the sizable national markets of India and China. Freedonia forecasts that these two countries together will account for over 40% of global packaging machinery consumption in that year.

Central and South America will also record a strong sales performance through 2017, though from a much smaller existing market base. Rising personal incomes in these regions, leading to increased consumption of packaged goods, will provide the greatest impetus to equipment sales. Healthy gains in manufacturing output and fixed investment spending will also support growth.

The US is currently the largest national market for packaging equipment globally. Although it will be surpassed in size by the much more rapidly expanding Chinese market by 2017, the US will continue to account for about one-sixth of worldwide demand.

Packaging machinery shipments will climb the fastest in the Asia Pacific region through 2017. Not only will smaller firms headquartered in the area increase production, but foreign multi-nationals will continue to build manufacturing facilities in the region to be nearer to their customers.

Nevertheless, West European production will increase the most in dollar terms, spurred by strong demand for the technologically sophisticated equipment that these countries produce. The region, led by Germany and Italy, will remain the largest packaging equipment supplier, accounting for nearly one-half of world output in 2017, predicts the report.

Growth in worldwide demand for packaging machinery is expected to climb at a 4.6% annual pace through 2017 to $41.8 billion, forecasts Freedonia Group's latest report, "World Packaging Machinery to 2017".

Growth is expected to climb at a faster pace through 2017 than it did during the 2007-2012 period. An improved business climate, which will be reflected in expanding fixed investment spending, manufacturing output, and packaging demand, will drive increases in equipment sales through 2017.

Of the major markets for packaging machinery, the chemicals and pharmaceuticals/personal care products industries will register the fastest sales gains in percentage terms, according to Freedonia. Purchases of packaged pharmaceuticals and consumer goods and associated equipment will be boosted by rising living standards in developing nations.

Consumption of packaging machinery utilized in food applications will grow the most in dollar terms, stimulated by climbing demand for packaged foods in both developed and developing countries. As a result, food manufacturing will remain the largest market through 2017.

The increasing need for pharmaceutical, food and beverage manufacturers to ensure the safety of their products throughout the supply chain will result in labeling and coding equipment being the fastest growing of any major product type in value terms, the report says. However, filling and form/fill/seal machines will remain the most widely used type of packaging equipment through 2017, with demand bolstered by their extensive usage in the large food processing market.

China and India to account for over 40% of global market

Developing markets will provide the best growth opportunities for suppliers of packaging equipment through 2017. The Asia Pacific region will register the most rapid rate of advance, led by the sizable national markets of India and China. Freedonia forecasts that these two countries together will account for over 40% of global packaging machinery consumption in that year.

Central and South America will also record a strong sales performance through 2017, though from a much smaller existing market base. Rising personal incomes in these regions, leading to increased consumption of packaged goods, will provide the greatest impetus to equipment sales. Healthy gains in manufacturing output and fixed investment spending will also support growth.

The US is currently the largest national market for packaging equipment globally. Although it will be surpassed in size by the much more rapidly expanding Chinese market by 2017, the US will continue to account for about one-sixth of worldwide demand.

Packaging machinery shipments will climb the fastest in the Asia Pacific region through 2017. Not only will smaller firms headquartered in the area increase production, but foreign multi-nationals will continue to build manufacturing facilities in the region to be nearer to their customers.

Nevertheless, West European production will increase the most in dollar terms, spurred by strong demand for the technologically sophisticated equipment that these countries produce. The region, led by Germany and Italy, will remain the largest packaging equipment supplier, accounting for nearly one-half of world output in 2017, predicts the report.