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According to the latest forecast from the Association for Packaging and Processing Technologies (PMMI), the US packaging machinery market will experience its slowest growth since the COVID-19 pandemic in 2020 in 2024, but will accelerate growth in the coming years.
The latest report from PMMI Business Intelligence, "State of the Industry 2024," indicates that despite the US packaging machinery market growth expected to reach a low point of 2.5% in 2024, which appears slower compared to the strong performance of previous years, this growth rate remains commendable against the current global economic backdrop. Compared to many other machinery markets, the US market has shown certain resilience, maintaining positive growth.
Growth in the first half of 2023 benefited from the clearing of remaining backlogs from the COVID-19 period, as well as continued adoption of automation solutions and demand for new packaging styles. Over time, backlog orders largely depleted, and new orders began to decline. Reduced demand in the second half of 2023 continued into 2024. The decrease in backlog orders, combined with the Federal Reserve's policy of maintaining high interest rates and uncertainties brought by the US election, collectively contributed to the market growth slowdown.
Despite short-term market challenges, researchers from PMMI Business Intelligence remain optimistic about the future. They predict that as the market's "wait-and-see" sentiment gradually dissipates, US packaging machinery sales will resume upward momentum in the second half of 2024. This prediction is based on several positive factors: first, as the global economy gradually recovers, consumer confidence and purchasing power will be restored, driving merchandise sales and subsequently increasing demand for packaging machinery; second, companies will pay more attention to automation and intelligent upgrades of production lines to enhance competitiveness. In the coming years, the US packaging machinery market is expected to experience a rebound. Researchers predict that by 2027, market growth will reach a new peak, aligning with the typical three-year peak-to-trough cycle of this market.
