Corrugated Equipment Market Size will exceed $282.3 million by 2027
Published Date: February 12, 2021 Authors: Kunal Ahuja, Hemant Pandey
According to a new research report by Global Market Insights, Inc., the Corrugated Equipment Market size will exceed USD 282.3 million by 2027. Steady growth of industrialization in APAC will lead to an increased demand for corrugated equipment in the near future.
Growing need for sustainable packaging in the e-commerce industry will influence market growth
The global e-commerce business is booming at a rapid pace owing to increasing online shopping and shifting consumer preferences. The growing working-class population, especially in developing nations is a major factor driving the e-commerce industry. The rapid surge in consumers’ disposable income has fueled the industry growth as it offers a faster buying process and flexibility with a large product portfolio. With strong growth in urbanization, the demand for leisure products will increase substantially during the assessment period.
The covid-19 pandemic has forced millions of people to shift their shopping preferences from brick-and-mortar retail to e-commerce. The crisis has led people in many countries to significantly limit physical interactions, which has led to more online shopping records than ever before. Paperboard packaging products are high in demand from the e-commerce industry due to their flexibility, eco-friendliness, lower cost, and ease of availability. Moreover, increasing demand for packaging in the medical & pharma sector will escalate the corrugated equipment market revenue growth by 2027.
The Asia Pacific manufacturing sector turns out to be the largest in the world. This has occurred in tandem with the continent’s increasing share in global trade, rapid economic development, and urbanization. The region has a lot to offer including low cost labor, abundant availability of raw materials, and lenient tax and regulatory environment. Many international firms are relocating their production plants and are focusing on their capabilities to register their presence in the Asia market. A high influx of foreign investments and regional government efforts to boost manufacturing will create lucrative opportunities for corrugated equipment market manufacturers.
Browse key industry insights spread across 365 pages with 494 market data tables & 42 figures & charts from the report, “Corrugated Equipment Market By Equipment (Non-HQ Flexo (Flat Bed Die Cutter, RDC [Rotary Die Cutter], FG [Folding Gluing]), HQ Flexo (Flat Bed Die Cutter, RDC [Rotary Die Cutter], FG [Folding Gluing], Sheet-to-sheet Litho-laminators, web-to-web Litho-laminators [Inline, Offline], Web-to-sheet litho-laminators [Inline, Offline]), By Industry (Food & Beverages, Electrical & Electronics, Home & Personal Care, Textile, Paper & pulp, Pharmaceuticals), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The global manufacturing industry has a complex supply chain network with stakeholders scattered across the world. Due to the ongoing COVID-19 crisis, the world’s supply chain completely broke down and businesses around the world struggled to keep up with the changing dynamics of the manufacturing industry. The decline in production capacity has severely affected the entire value chain of the corrugated equipment market share during the period.
Furthermore, export bans and tariffs have delayed trade in addition to the increasing prices. Supply chains of manufacturing industries are struggling on a global-scale to keep pace due to the rapid spread of COVID-19. The production of various intermediate components & parts significantly declined during the period. The disruptive effects of the pandemic have placed an enormous strain on the global supply of corrugated equipment due to the shortage of raw materials.
Sheet-to-sheet litho-laminators to acquire a high growth rate in the equipment segment
The sheet-to-sheet litho-laminators segment will hold a revenue of over USD 51.6 million in the overall market by 2027. A sheet-to-sheet litho-laminator uses sheets of corrugated pre-printed paper to create a high-quality laminated board. The introduction of IoT devices along with automation will change the production dynamics in the paperboard industry. A high appealing decorative packaging is achieved using these machines. The growth in corrugated paperboard packaging from food & beverage and electronics industries will propel the corrugated equipment market demand in the coming years.
Pharmaceutical industry will generate promising revenue growth
The pharmaceutical application segment held a market share of close to 9.0% in the corrugated equipment market in 2020 and will grow at a stable growth rate of 3.5%. The global pharmaceutical industry is witnessing a swift growth owing to a paradigm shift in the drug discovery process.
The healthcare sector has become one of the key priorities around the world. The covid-19 pandemic has pushed the pharmaceuticals industry to the edge as the world hoped for a speedy development of the vaccine. Nations around the world are trying to become self-sufficient in the medical industry. This has created tremendous opportunities for paperboard packaging in the pharma sector.
Proliferating e-commerce industry will create growth opportunities for North America
North America is anticipated to account for a market share of 19.0% by 2027. The presence of major e-commerce players, such as Alibaba, Amazon, and eBay, is expected to offer lucrative opportunities for industry expansion. Further, the entry of new players in the region is supporting the corrugated equipment market growth.
The region is witnessing a strong demand for sustainable packaging such as paperboards and containerboards. The expansion of established food processing facilities along with the planning of food processing manufacturers to establish new processing facilities in the region will further support the regional growth over the study timeframe. Many end-user industries are re-evaluating their packaging needs and prefer more eco-friendly options compared to conventional plastic packaging; thus, escalating product demand.
New product development and research will escalate market competitiveness
The competitive landscape of the corrugated equipment industry is moderately consolidated with the major players contributing close to a share of 48% in the overall market. Strategic partnerships and new product launches are the key strategies adopted by market players. In January 2021, BW Papersystems, a subsidiary of Barry-Wehmiller Companies, launched the ServoPro rotary die cutter machine. It is a twofold machine without intermediary gearboxes that enhances control over machines with a reduction in parts and maintenance costs. This strategy enabled the company to expand its product offerings for the corrugated industry.
In June 2018, BW Papersystems, a subsidiary of Barry-Wehmiller Companies, acquired Dongguan K&H Machinery Co., Ltd. This strategy enabled the company to enhance its product offerings for the corrugated industry along with strengthening its presence in the Asia Pacific region.