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The 2021 US Packaging Machinery Industry report states that total US packaging machinery shipments grew 14.7% from 2015 to 2020, packaging orders outstanding increased 22.3% during the same period, and accumulated backlogged orders increased 12.2% in the corresponding period.
Currently seven areas are influencing the packaging machinery market, from technology to sustainability to e-commerce:
Automation and Robotics
To achieve higher efficiency and productivity, an increasing number of 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, although applications vary between small businesses and large organizations. As artificial intelligence (AI), 5G, and Internet of Things environments develop, robotics has also been penetrating the packaging machinery market. As human-machine interfaces (HMI) become common in factory workshops, collaborative robots or cobots have emerged, designed to make working safely with humans at close range possible.
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 issues, traditional wireless networks have lagged in progress toward smart manufacturing. Innovative products from Israeli company CoreTigo (IO-Link Wireless) solve this problem, reportedly performing better than other wireless protocols such as Wi-Fi, Bluetooth, and Zigbee.
Cybersecurity
In June 2021, a ransomware attack against the world's largest meat processor JBS temporarily shut down 9 beef processing 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 cyberattacks, further highlighting the vulnerability of critical infrastructure for manufacturers throughout the industrial supply chain to increasing levels of cyberattacks.
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. Machines often need modification or adjustment to achieve sustainable packaging goals. Challenges CPG faces when transitioning to more sustainable packaging provide OEMs opportunities to discuss application details with customers:
· Secondary packaging machines such as conveyors must be able to handle material reduction strategies, including lightweight corrugated cardboard.
· Machines need to run different box styles to accommodate sustainability strategies, such as using right-sized boxes. Smaller footprint case packers can help achieve sustainability goals by reducing energy consumption.
· A more efficient process is needed to open pallet contents and repackage them into different sizes or different packaging, focusing on reducing material usage.
The flexible packaging industry is also continuously innovating by manufacturing compostable or sustainable components such as films and pouch seals to meet sustainable and recyclable packaging needs.
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, to reset milk's carbon footprint to zero by 2035, Valio has partnered with Stora Enso to test the use of biocomposites in food packaging.
Waste Reduction Legislation
In June 2020, US Representatives introduced the Plastic Waste Reduction and Recycling Act. If passed, the bill would direct the Director of the Office of Science and Technology Policy to establish a plastic waste reduction and recycling program to enhance the global competitiveness of the US recycling industry. The bill further aims to reduce plastic waste, encourage research and technology for recycling infrastructure, and ensure US leadership in national and international standards development.
E-commerce
E-commerce has become an increasingly important factor in the industry, particularly in US packaging design where maximizing packaging space is essential. E-commerce packaging uses more pouches and easily packaged pallets and less glass is a trend.
Shifts in purchasing habits will continue to drive demand for packaging machinery, as e-commerce requires more touchpoints to reach customers, increased packaging, and supply chain challenges.
