What is the Packaging & Labeling Services Industry?
The 2016 Market Research Report on the Packaging & Labeling Services Industry includes operators in this industry that primarily package client-owned materials on a contract or outsource basis. The industry also provides labeling and imprinting package services.
Companies include those involved with apparel folding and packaging services; mounting merchandise on cards; kit assembling and packaging services; textile folding and packaging services; labeling services; product sterilization and packaging services; shrink wrapping services; gift wrapping services; blister packaging services; packaging services (except packing and crating for transportation); folding and packaging services; textile and apparel; cosmetic kit assembling and packaging services; skin blister packaging services etc.
Industry Statistics & Market Size
There are approximately eleven thousand businesses working in the packaging & labeling services industry, employing more than fifty-six thousand individuals. Demand for industry services will increase as consumer spending continues to grow, though there are currently no companies with a dominant market share in the industry.
In November 2016 the Association for Packaging and Processing Technologies reported on the current state of the US packaging & labeling services industry. The study is based on US Census Bureau reports and shipments data provided by association members who manufacture packaging machinery. The report, which analyzes twenty-eight packaging categories, describes trends and the outlook for packaging & labeling services through 2020.
According to the research report, the US packaging & labeling services market has an estimated value of 10 billion as at 2015. Food is the largest industry sector representing 37 percent, followed by the beverage industry at 21.7 percent
Market Size Statistics
The value of US domestic packaging & labeling services is projected to grow at a CAGR of 2.4 percent reaching 8.5 billion dollars in 2020. More than half of this growth is expected to come from the food and beverage sector.
The report also notes the value of domestic shipments of US produced machinery rose 0.3 percent to 7.51 billion dollars in 2015. Exports of packaging machinery in 2015 increased by 3.2 percent, compared to 2014 and are now 1.1 billion dollars Backlog orders of packaging machinery grew by 14.1 percent compared to backlog orders at the end of 2014.
Analysis & Industry Trends
According to the research report, the pharmaceutical sector is forecast to grow the fastest of all sectors through 2020, at a CAGR (compound annual growth rate) of 2.8 percent. This is followed by the beverage sector, which is forecast to grow at a CAGR of 2.4 percent.
Demand for healthcare products as well as developments in medical practices will determine the growth of the market. In addition, demographics changes, macroeconomic indicators, growth in emerging markets, new regulations and changes in the healthcare sector will play a pivotal role in determining the global healthcare packaging market.
The forecast for the packaging machinery market is strong as changing consumer habits, new regulations as well as general economic development fuel growth. The growth anticipated in the labeling, decorating and case handling segment is largely a result of new legislation demanding increased labeling and coding, continuing developments in printing technologies and the proliferation of stock keeping units (SKUs).
DuPont invested about 1.9 billion dollars in research and development in 2015. Their core technologies, from polymer synthesis, to protein engineering, to biotechnology, provide a base for sustainable innovation worldwide.
Management briefings show the global packaged food industry continues to face challenging market trends that will shape the future of the packaged food industry as they deal with consumer calls for healthier food, market fragmentation and commodity-cost volatility.
The DuPont Awards for Packaging Innovation program is known worldwide as the leading packaging awards program. The 2016 Dupont awards have benefited winners with the recognition of leading industry experts to increase visibility in the media and with other packaging industry innovators.