Packaging Automation Market Size

Packaging Automation Market Analysis

The Packaging Automation Market size is estimated at USD 74.52 billion in 2024, and is expected to reach USD 104.81 billion by 2029, growing at a CAGR of 7.06% during the forecast period (2024-2029).

Automation offers improved efficiency and productivity in secondary packaging operations. Automated systems can handle repetitive tasks, such as carton erecting, case packing, palletizing, and labeling, faster and more accurately than manual processes. It resulted in higher throughput and reduced labor requirements. 

• Companies focus on catering to customers' needs to offer them innovative and comprehensive packaging solutions. In line with the same, in May 2023, ULMA Packaging, a packaging machine manufacturer for the medical/pharmaceutical and food sectors, showcased its compact packaging equipment. It includes primary and secondary packaging, fully automated lines that handle the entire packaging process, product loading, and final palletizing for customers looking to introduce automatic packaging or optimize the footprint of their factories.
• Automation solutions in the packaging industry are steadily increasing, providing several benefits to businesses. Additionally, to promote packaging automation among end users industries, packaging machinery manufacturers are launching schemes with their machinery. 
• Automation and robotics can benefit wineries and other businesses in the consumer-packaged goods industry. While many CPG companies already embraced automation in their packaging and processing lines, wineries need to adopt these technologies faster. However, the potential advantages of automation in the winery industry include increased production efficiency, improved product quality and consistency, enhanced safety and hygiene, and data-driven insights, among others.
• The advantages of packaging automation systems are significant and drive the market. Still, the requirement of higher initial capital restricts smaller organizations from adopting it. Additionally, investors are looking at alternate manufacturing destinations with the rising cost of production in China and the strengthening of the Yuan against the Dollar. However, manufacturers need to focus on quality production and environment-friendly manufacturing regulations. With the growing technology, a fully automated facility takes years to adjust and evolve. Meanwhile, unfavorable or delayed initiatives on dynamic automation adaption include limited growth on a regional basis.
• The COVID-19 pandemic forced the players in the packaging industry to rethink their business models. The increased e-commerce does not put a strain on distribution companies but also manufacturers. Manufacturers also put their money and efforts into packaging that goes with their products. Additionally, COVID accelerated the adoption of robotic packaging automation processes like wraparound packaging.