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The 2021 U.S. Packaging Machinery Industry Status Report stated that from 2015 to 2020, total U.S. packaging machinery production shipments grew 14.7%, packaging order backlog increased 22.3%, and conversion order backlog increased 12.2% during the same period. From technology to sustainability to e-commerce, several aspects are influencing the packaging machinery market:
Automation and Robotics
To achieve higher efficiency and productivity, more and more packaging machinery companies are adopting automation in their packaging lines and utilizing smart manufacturing to achieve these goals. Machine vision is a rapidly maturing technology in the packaging machinery market, though applications differ between small businesses and large organizations. With developments in Artificial Intelligence (AI), 5G, and an ever-expanding Internet of Things environment, robotics technology has also been penetrating the packaging machinery market. Collaborative robots or cobots emerge alongside the proliferation of Human-Machine Interfaces (HMI) on factory floors, designed to make humans safer when working in close proximity.
Internet of Things and Wireless Connectivity
Industrial Internet of Things (IIoT) continues to influence the product lifecycle in the packaging industry, including design, operations, maintenance, and supply chain.
Due to inability to maintain stable connections and latency, traditional wireless networks lagged progress in smart manufacturing. The innovative product from Israeli company CoreTigo (IO-Link Wireless) solves this problem, reportedly performing better than other wireless protocols such as Wi-Fi, Bluetooth, and Zigbee.
Cybersecurity
In June 2021, JBS, the world's largest meat processor, suffered a ransomware attack that temporarily shut down 9 beef plants and also affected the company's pork and poultry processing plants in the United States.
Other companies such as Cadbury, Target, and Equifax have also reported recent cyber attacks, further highlighting the vulnerability of critical infrastructure among manufacturers throughout the industrial supply chain to increasing cyber threats.
Sustainability and Flexible Packaging
Due to consumer demands, many food brands have invested in packaging innovation and implemented sustainability programs in their production and packaging lines. Machine modifications or adjustments are often needed to achieve sustainable packaging goals. Challenges CPG faces when transitioning to more sustainable packaging provide opportunities for OEMs to explore application details with customers:
Secondary packaging machines such as conveyors must be able to handle material reduction strategies, including lightweight corrugated board.
Machines need to run different box styles to accommodate sustainable development strategies, such as using right-sized boxes. Smaller footprint case packers can help achieve sustainability goals by reducing energy usage.
A more efficient process is needed to unpack pallet contents and repack them into different sizes or different packaging, focusing on reducing material usage.
The flexible packaging industry is also innovating to meet sustainable and recyclable packaging needs by creating compostable or sustainable components such as film and bag closures.
Material Innovation
Many food and beverage brands are increasingly using recyclable cardboard packaging, compostable packaging, and 100% recycled paper packaging. Material innovation is an area worth exploring in the coming years, with some companies even committing to long-term research in packaging material innovation. For example, Valio collaborates with Stora Enso to test biocomposites in food packaging as part of a larger goal to reset milk's carbon footprint to zero by 2035.
E-commerce
E-commerce has become an increasingly important factor in the industry, with packaging design needing to maximize packaging space. Trends in e-commerce packaging include using more bags and easily packaged pallets, and less glass. Shifts in purchasing habits will continue driving demand for packaging machinery, as e-commerce requires additional touchpoints to reach customers, increased packaging, and supply chain challenges.
