The global wrapping machine market size was estimated at USD 2.5 billion in 2018. The food industry is among the prominent sectors that is projected to propel the demand for packaging equipment and allied equipment. Rapid industrialization, growing infrastructural developments, and increasing investments, especially in the food and beverage industry, are some of the factors expected to augment the demand for wrapping machine over the forecast period.
Growing food and beverage industry, on account of factors like increasing population, rising household income, and increasing spending capacity, has increased the demand for a wide range of packaged food and beverage products. This is augmenting the demand for wrapping machine. Moreover, the growing focus on differentiating various products in the marketplace through packaging is likely to propel market growth.
The U.S. accounted for the largest market share in North America in 2018. The stretch machine segment held the leading revenue share in the U.S. market for wrapping machines and is projected to maintain its dominance over the forecast period. The shrink machine segment is likely to report a CAGR of 13.8% from 2019 to 2025.
Increasing demand for ready-to-eat, dairy, and other perishable products, along with growing demand for convenience food items, is likely to favor market growth. In addition, factors such as the shift in consumer lifestyle and food habits, coupled with changing food preferences, are expected to augment the demand for wrapping machines over the forecast period.
Critical and temperature-sensitive pharmaceutical products, including vaccines, drugs, and other medicines, need to have adequate packaging in order to avoid contamination. This factor is further likely to contribute toward market growth. Owing to the aforementioned factors, the pharmaceuticals segment is expected to grow significantly over the forecast period.
Industry 4.0, industrialization, and other automation in the operational process of packaging are expected to drive the market. Moreover, challenges like labor cost, space availability in the workshop, maintenance, and associated cost tend to boost demand for integrated packaging systems. This factor is likely to have a positive impact on the market for wrapping machines.
In terms of machine type, the market has been segmented into stretch, shrink, and others. These machines are used in several industries like pharmaceutical, food, beverage, cosmetics, and chemicals for packaging various products based on their nature. Growing demand from these industries for a stretch as well as shrink wrapping machine is projected to stimulate market growth over the forecast period.
The demand for stretch wrapping machines has witnessed significant growth as compared to the shrink machine segment. Stretch wrapping machines use stretchable plastic film to wrap around a product to hold it tightly. They are mainly used for load unitization. Features, characteristics, and growing demand for machine from a varied range of applications are factors projected to propel the growth of the segment over the forecast period.
Strong R & D capabilities, rise in foreign investment, product innovation, and market competition are expected to significantly boost market growth. Stretch machines are anticipated to dominate the market with a considerable share by 2025. Stretch wrapping machines offer convenience and ease in wrapping parcels, containers, boxes, and other packages for storage and transportation.
Shrink wrapping is a process in which a product or a number of products are wrapped in an envelope of plastic film or loose sleeve post which, heat is applied. The film tightly conforms to the shape of the desired enclosed content. The shrink machine type segment occupied a revenue share of 28.8% in the global market for wrapping machine in 2018.
Based on mode of operation, the market is segmented into automatic and semi-automatic. Automatic mode of operation accounted for a revenue share of 48.6% in 2018 and is expected to dominate the market for wrapping machine by 2025. Growing demand for automation from several application industries is anticipated to favor the growth of this segment.
The semi-automatic segment is anticipated to exhibit a CAGR of 7.8% over the forecast period. In earlier years, owing to availability of labor, limitations in financial budget, and low cost, manufacturers opted for semi-automated wrapping machine. However, increasing demand for a wide range of food, beverage, and personal care products has prompted consumer packaged goods (CPG) manufacturers to opt for automated machine.
Automation in wrapping machine offers several advantages like minimum human intervention, time reduction, faster packaging process, and efficient wrapping of several products, thereby improving overall productivity. Growing focus of consumer packaged goods (CPG) manufacturers on improving their productivity in order to gain competitive advantage, maintain market position, and enhance their customer base tend to opt for innovative and advanced automated wrapping machine.
Developing countries like China and India and developed countries such as Germany and the U.S. invest heavily in industrial automation. These trends continue downstream too. Thus, the market is expected to witness heavy automation over the forecast period. Moreover, implementation of technological concepts such as industry 4.0 is likely to augment demand for automatic wrapping machine over the forecast period.
In terms of application, the wrapping machine market has been segmented into beverages, food, chemicals, personal care, pharmaceuticals, and others. The food industry dominated the market in 2018, accounting for a 23.5% share. Wrapping machine is widely used in the food industry for wrapping numerous food products like chocolates, confectioneries, snacks, bakery products, and fruits.
Perishable food products with short shelf life, such as bakery, dairy, and allied products make them exposed to pollution, contamination, and climatic changes. This, in turn, is likely to enhance the demand for wrapping machine, especially in the food application industry. Stringent government regulations and policies for food packaging in order to avoid food degradation and contamination is further expected to augment market growth.
The beverage segment is projected to witness a CAGR of 9.2% over the forecast period. The beverage industry mainly deals with alcoholic and non-alcoholic beverages that are packed in various types of containers such as cans and bottles. Wrapping machine is commonly used for individual wrapping as well as unitizing as it offers ease and convenience in handling as well as storing various beverage products.
The chemical segment was valued at USD 299.7 million in 2018 and is anticipated to grow significantly over the forecast period. Chemicals require adequate packaging especially while handling, transportation, and storage. They can be hazardous and affect individuals who come in contact with such chemicals. Moreover, several regulations pertaining to chemical packaging are likely to benefit market growth.
Asia Pacific dominated the global market for wrapping machine with a revenue share of 42.1% in 2018. Expansion of food and beverage as well as pharmaceutical industries in the region is anticipated to drive demand for wrapping machine. In addition, emerging economies in the region, such as China and India, have showcased a significant rise in manufacturing activities, which is further likely to benefit the market growth.
The North America market is anticipated to grow at a CAGR of 11.9% over the forecast period. Factors like technological advancements, favorable government policies, and infrastructural developments offering strong distribution channels are likely to trigger regional growth.
Europe occupied the second-largest revenue share in the market for wrapping machine in 2018. Russia accounted for the largest revenue share in this regional market. Growing demand for on-the-go food products, coupled with rising household income and rapid urbanization, is projected to favor the market in Russia.
The market in Central and South America is majorly driven by countries such as Brazil. During the economic and political crises in the region, the food and beverage industry was also affected to a major extent, which has started recovering at a considerable pace. GDP growth, industrial development, and inclination toward automation are some of the factors likely to favor the Central and South America market for wrapping machine.
Multinational companies concentrated in North America, Europe, and other developed regions occupy a significant share in the global market. Major manufacturers are projected to shift their manufacturing facilities in developing regions such as Asia Pacific, Central and South America, and Middle East and Africa. This move is aimed at improving their sales and service network in these regions in order gain market share.
In addition, companies are investing significantly for improving their R & D capabilities as well as are focusing on getting relevant market insights and consumer trends that contribute to building business strategies. Such steps can offer companies a competitive advantage over others. Major players in the market include Duravant LLC; Robert Bosch GmbH; Aetnagroup S.p.A.; Lantech; ProMach, Inc.; Maillis Group; Coesia S.p.A.; and IMA Group.
Base year for estimation
2014 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa
U.S., Canada, Mexico, U.K., Germany, Russia, Spain, Italy, China, India, Japan, South Korea, Australia, Saudi Arabia, UAE, and Brazil
Revenue forecast, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global wrapping machine market report based on machine type, mode of operation, application, and region.
Machine Type Outlook (Revenue, USD Million, 2014 - 2025)
Mode of Operation Outlook (Revenue, USD Million, 2014 - 2025)
Application Outlook (Revenue, USD Million, 2014 - 2025)
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
Central & South America
The Middle East and Africa
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FDA, in particular, has relaxed the nutrition labeling of products which is expected to aid in increasing the distribution of packaged foods by restaurant operators leading to the optimum supply chain of products to consumers. Furthermore, food safety testing and processing industries are expected to function at full capacity owing to consumers stock-piling goods during the COVID-19 lockdown. The report will account for Covid19 as a key market contributor.