Recently unveiled at Pack Expo in Chicago, the value of domestic shipments of packaging machinery is projected to grow at a compounded annual growth rate of 2.4 percent - reaching $8.5 billion by 2020. The numbers come from PMMI, The Association for Packaging and Processing Technologies.
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 U.S.-produced machinery rose 0.3 percent to $7.51 billion in 2015. Exports of packaging machinery in 2015 increased by 3.2 percent, compared to 2014 and are now $1.1B. Backlog orders of packaging machinery grew by 14.1 percent compared to backlog orders at the end of 2014.
PMMI released the findings of its 2016 State of the Industry U.S. Packaging Machinery Report using Census Bureau reports and shipments data provided by association members who manufacture packaging machinery. The report, which analyzes 28 packaging machinery categories, describes trends and the outlook for packaging machinery shipments through 2020.
According to the report, the labeling, decorating and coding and case handling machinery groups are forecast to increase the fastest of all machinery types through 2020, at CAGRs of 3.9 percent and 2.5 percent respectively.
The pharmaceutical sector is forecast to grow the fastest of all sectors through 2020, at a CAGR of 2.8 percent. This is followed by the beverage sector, which is forecast to grow at a CAGR of 2.4 percent.