The global form-fill-seal machines market is expected to grow a CAGR of 5% during 2020-2027.
The consumer preference for plastic bottles as a convenient packaging solution for beverages and liquids has driven the bottles segments in the form-fill-seal machines market. The large pharmaceutical industry established in the U.S. is one of the most prominent drivers for the bottling lines demand. Also, the average selling price of bottling lines with pharmaceutical standards is relatively higher as compared to the price of vertical form-fill-seal machines. This has resulted into more than 80% market share of horizontal form-fill-seal machines segment in 2019 in the North America form-fill-seal machines market.
The production of form-fill-seal machines in European countries is significantly high, while the manufacturing sector of Europe has shown sluggish growth over the last five years. This has hampered the demand for form-fill-seal machines in the region. Germany is the most prominent market in the Europe form-fill-seal machines market, while Benelux is projected to experience relatively higher growth during the forecast period. Europe is the major exporter in the global pharmaceuticals trade, driving the demand for form-fill-seal machines. On the contrary, packaged food and beverage industries in the region have shown stagnant performance, restraining the form-fill-seal machines market growth.
In 2019, Asia Pacific is estimated to be the leading form-fill-seal machines market in the global market, which is further projected to grow 1.5 times by the end of 2027. Relatively unorganized manufacturing sector of Asia Pacific has high demand for economic form-fill-seal machines, specifically for the packaging of fast moving consumer goods (FMCG) and food products. To serve the large demand for form-fill-seal machines, excessive number of machinery manufacturers, based in China and India, are providing highly cost effective form-fill-seal machines to small and medium manufacturing firms. Japan is capable of providing low capacity, as well as technologically advanced high production form-fill-seal machines for large manufacturing firms.
China-manufactured low cost form-fill-seal machines have significant demand across the globe as North American and European form-fill-seal machine manufacturers are specialized in the production of relatively higher cost machinery with latest technology. Rapidly rising manufacturing sector and increasing urban population in the emerging economies of the Asia Pacific region are major drivers for the form-fill-seal machines market in the geography. China and Japan are estimated to account for around 2/3rd of the Asia Pacific form-fill-seal machines market in 2019, while India is projected to register a relatively higher growth rate by the end of the forecast period.
The consumer goods industry of Latin America has experienced sluggish growth over the last few years. Also, the manufacturing sector in the region is expected to perform at a stagnant pace during the forecast period. These factors has restraining the form-fill-seal machines market growth in Latin America. The gradually expanding beverage industry in the region, is propelling the form-fill-seal machines demand for bottle packaging.
Turkey, one of the largest economies in the MEA region has witnessed decline in the manufacturing sector revenue due to the avoidance of Turkish products by the European Union countries. The pharmaceutical industry of GCC countries is anticipated to register double digit growth rate for the next five years, driving the form-fill-seal machines market in the region.
In terms of technology, the market has been classified into vertical form-fill-seal (VFFS) and horizontal form-fill-seal (HFFS). Vertical form-fill-seal machines make packages from a large roll of film, fill them with the product, and then seal them; all the steps are performed in a vertical manner. Vertical form-fill-seal technology segment dominated the global market in 2019 and is projected to progress at a CAGR of 7.5% over the forecast period owing to its versatility, speed, smaller footprint, and lower operating cost. These machines are capable of producing a wide range of bag shapes by changing the forming tubes and forming shoulders. Products that are generally packed using Vertical form-fill-seal machines include chips, nuts, peanuts, cookies, sweets, coffee & milk powder, ketchup, milk, juices, and granular products as well as screws and nuts among others.
Horizontal form-fill-seal technology segment was valued at USD 3.2 billion in 2019 and is expected to witness significant growth over the forecast period owing to the wide range and volume of products that can be packed using this technology. Horizontal form-fill-seal machines, also known as flow wrapping machines, are used in applications where product orientation, stacking, or breakage is critical. Food & confectionery products, cereal bars, and medical items are among the commonly packed products using horizontal form-fill-seal machines. These machines are used for modified atmosphere packaging (MAP), wherein the internal atmosphere of the package is modified in order to improve the shelf life of the packed product. Blow-fill-seal and thermoform-fill-seal machines are also types of horizontal form-fill-seal machines.
Packaging Type Insights
In terms of packaging style, form-fill-seal machine market has been segmented into cups & trays, bags & pouches, bottles, blisters, and others. Bags & pouches packaging style segment dominated the market in 2019 and is expected to progress at a CAGR of 7.7% over the forecast period. Vertical form-fill-seal machines are widely utilized for producing these types of packaging formats, which are generally used to package free-flowing solids, liquids, and powders among others. Bottles packaging type segment is likely to ascend at the highest CAGR over the forecast period. This packaging type is produced using blow-fill-seal machines and is generally used for packaging pharmaceutical and related products such as injectables, oral supplements, and eye drops among others.
Cups & trays packaging type segment was valued at USD 1.8 billion in 2019 and is expected to witness significant growth over the forecast period owing to its widespread use in packaging various food products such as single-serve jams, yogurts, fresh, cooked, & frozen meats, bacon, and cheese among others. Blisters packaging type segment accounted for a revenue share of 15.9% in 2019. This packaging type is generally used for the packaging of pharmaceutical capsules, tablets, and pills among others.
In terms of end-use, the market has been segmented into food, beverages, pharmaceuticals, chemicals, personal care, and others. Food end-use segment dominated the global market and was valued at USD 1.7 billion in 2019. Growing trend of single-serve bag sizes and smaller portions coupled with increasing demand for convenience and ready-to-eat food items is likely to boost the growth of this segment. Beverages end-use segment is anticipated to progress at a CAGR of 7.7% over the forecast period. Factors contributing to the growth of this segment include rising consumption of healthy & organic beverages coupled with an increase in the availability of a variety of beverages.
Pharmaceuticals end-use segment accounted for a revenue share of 17.4% in 2019 in the market. Form-fill-seal machines are used for packaging various pharmaceutical products such as capsules, pills, and tablets as well as a range of sterile liquids. Factors such as growing aging population and rising consumer awareness regarding various diseases are anticipated to have a positive impact on the growth of this segment. Furthermore, personal care end-use segment is projected to be valued at USD 1.9 billion by 2025. Rising awareness with regards to personal grooming coupled with the introduction of a variety of packaging styles in personal care industry in order to gain a competitive advantage is anticipated to have a positive impact on the demand for form-fill-seal machines.
Asia Pacific dominated the global market with a revenue share of 41.4% in 2019 and this trend is projected to continue over the forecast period. The presence of several emerging economies such as China and India, growing population, rising disposable income, and expanding the food & beverage industry in the region are some of the factors contributing to the market growth. Ascending demand for versatile and smaller packaging machines owing to space constraints is also expected to drive the market over the forecast period.
North America market is likely to progress at the highest growth rate over the forecast period. Rising consumer preference for convenience packaging coupled with increasing demand for consumer-friendly & sustainable packaging is likely to propel market growth in this region. Europe market held a revenue share of 31.6% in 2019 owing to the ascending demand for highly automated and efficient packaging machinery from various end-use industries. Several major manufacturers of form-fill-seal machines are based in the European region, particularly in Germany and Italy.
Major companies functioning in the global form-fill-seal machines market are Tokyo Automatic Machinery Works Ltd, Uflex Ltd, Hunan Chinasun Pharmaceutical Machinery CO. Ltd., Bosch Packaging Technology GmbH, Serac Inc., GEA Group Aktiengesellschaft, SIPA S.p.A, Sidel S.A, Velteko S.R.O., and Arpac LLC.
Packaging Type Outlook
Cups & Trays
Bags & Pouches
End Use Outlook
Central & South America
Middle East and Africa
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