70% of cohesive automated equipment demand driven by retail
The global cohesive automated equipment market is projected to grow at a healthy CAGR of over 7% till 2031, touching an impressive valuation of over US$ 300 Bn.
Historically, from 2016 to 2020, the market expanded at around 6% CAGR, reaching US$155bn by the end of that period. The market has been experiencing a significant demand from the e-commerce sector especially after the Covid-19 pandemic hit the world and restricted movement. Mandatory imposition of lockdowns confined consumers to their homes, leading to an increase in the number of e-commerce transactions in the past year alone.
Cohesive packaging creates wraps around any product. Rising demand for cohesive packaging which sticks to itself and does not require any latex or adhesive has resulted in a significant increase in the deployment of cohesive automated equipment.
Key takeaways from the market study:
- E-commerce will account for the highest demand, yielding nearly 80% of total demand.
- The largest application is found in the retail and FMCG segment, accounting for seven out of 10 sales.
- North America is to remain a lucrative market, expected to register three out of five sales
- India to remain a major contributor through 2031, expanding at a CAGR of around 6%
- Global market for cohesive automated equipment to add nearly twice the value by 2031.
“Widespread packaging technology advancements with the intention of improving safety and security of the goods transported has majorly augmented demand for cohesive products, which in turn has spurred demand for cohesive automated equipment,” said a senior research analyst at Fact.MR.
Companies leverage strategic collaborative initiatives to increase their market share and profitability. They are also acquiring start-ups working on technologies to strengthen their product capabilities.
Some of the major players in the market include Accutech Packaging Inc., American Packaging Capital, IPS Packaging & Automation, Pregis Innovative Packaging Inc, Marsh Automation Pvt ltd, Huges Enterprise, Sealed Air Packaging, Vibgyor Technplus, Westrock Company, TPC Packaging Solutions, and others.
Leading market players are focusing their efforts on developing innovative products to strengthen their position in the global market.
For instance, BDL announced its partnership with Surface Guard with the aim to install the machinery and raw material to allow various parts and equipment pieces to be run in a cohesive cold seal. Cohesive packaging equipment can run a wide range of products of varying sizes. Automated cohesive packaging can achieve 20-35 packages per minute, which greatly increases output.
The full report can be found at Cohesive Automated Equipment Market.