Market Trends of Flexographic Printing Machine Industry
This section covers the major market trends shaping the Flexographic Printing Machine Market according to our research experts:
Food & Beverages is Expected to Hold the Largest Market Share
- The food and beverage industry is one of the significant consumers of flexible packaging products such as films, pouches and many more that are printed using flexographic printing machines. The increasing consumption of such packaging is expected to bolster the market demand for such machines over the forecast period.
- In February 2018, Constantia Flexibles announced its plans to construct a flexible packaging plant, by investing INR 1 billion. The plant would be equipped with a state-of-the-art Flexo printing press and laminators that can produce recyclable high-barrier laminates.
- The food and beverage industry is governed by stringent regulations pertaining to the usage of inks on the packaging and the labeling. As the flexographic printing involves usage of quick-drying and non-toxic inks, it is desirable in the printing of food & beverage packaging and is expected to boost the adoption of the flexographic printing machines over the forecast period.
- In March 2018 China's National People's Congress (NPC) passed a major cabinet reshuffle plan that impacts China’s food regulatory regime, including food-contact materials and established three new regulatory agencies, namely State Market Regulatory Administration (SMRA), National Health Commission (NHC), Ministry of Agriculture and Rural Affairs (MARA). Such instances are indicative of the fact that the market is poised to grow.
- The increasing consumption of alcoholic drinks such as wine is driving the players to up their production capacity thereby enabling them to meet growing demand. This is expected to boost the adoption of flexographic printing machines as these machines enable the players to not only increase production speeds but also provide them the scalability For instance, according to Vinexpo, them per capita Wine consumption in Italy increased from 45 liters in 2014 to 48.1 liters in 2018.
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Asia Pacific is Expected to Register the Highest Growth Rate
- The e-commerce industry in the region is growing rapidly which is one of the significant factors that would fuel the adoption of flexographic printing machines over the forecast period as flexographic printing plays an essential role in the printing of labels, corrugated cardboard which are widely adopted across the industry. For instance according to Invest India the E-commerce market in India is also set to grow at a CAGR of 30% for gross merchandise value to reach USD 200 billion by 2026 and have a market penetration of 12% compared to 2% currently.
- The growth of the logistics industry in the region which is one of the biggest consumers of packaging and print labels is expected to boost the market growth over the forecast period. For instance, according to the National Development and Reform Commission (NDRC), the total value of social logistics in the January-July(2019) period grew 5.9 percent year-on-year incomparable prices to 163.8 trillion yuan (about USD 23.1 trillion).
- Also, the growing initiatives by the government to boost the manufacturing industry in the region is also one of the prominent factors that would boost the adoption of flexographic printing machines over the forecast period. For instance, In June 2019, Flipkart, in order to reduce costs and comply with the government's Make in India norms, relocated a significant portion of manufacturing and sourcing for private labels to India from China, Malaysia.
- Some of the prominent players in the market through strategic partnerships are entering the region in order to boost the market footprint. Such partnerships are expected to expose the region with new and innovative product offerings thereby fueling the adoption of the flexographic printing machines over the forecast period.
- In April 2018, DKSH Business Unit Technology, and SOMA Engineering, signed an exclusive distribution contract to provide sales and technical services for its center impression (CI) flexographic printing presses.
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