Market Trends of Coding And Marking Solutions Industry
The Food and Beverage Segment is Expected to Hold the Highest Share in the Market
- Food packaging is increasingly using coding and marking methods to label the products. Food manufacturers are utilizing high-resolution coding and marking to identify the necessary information on packaged food goods as the demand for food quality and safety has risen across the world.
- Regulatory requirements regarding information display and labeling in the food and beverage industry present a valuable potential for coding and marking system manufacturers. The acceptance and awareness of such high-quality codes and marks to quickly and efficiently print food-good information propels the market's growth.
- Manufacturers in the high-speed and high-output beverage business deal with changing customer behavior, which influences operational efficiency. PET bottles are being phased out in favor of containers made of different materials, such as recyclable aluminum. Beverage companies respond by modernizing their packaging processes and coding and labeling systems.
- In 2023, retail food and beverage stores in the United States raked in sales of around USD 83,691 million, as per the US Census Bureau's estimates. To ensure consumers' safety and product information transparency, the food and beverage sector is governed by several rules and labeling requirements.
- The growth in sales is leading to a need for coding and marking solutions that can meet the required standards, driven by manufacturers' compliance with these regulations.
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Asia-Pacific is Expected to Register the Fastest Growth Rate
- Innovations in food, particularly in terms of packaging and safety, are crucial in Asia because it has one of the fastest-changing food markets in the world. Every aspect of the food industry in the area, including packaging, is constantly evolving because of the rapidly shifting consumer demands, the challenges posed by climate change, and the region's continually growing population.
- Smart packaging, including QR codes and RFID tags, allows consumers and businesses to track the origin, quality, and freshness of food products. This increases the demand for sophisticated coding and marking solutions for these advanced technologies.
- Europe is one of the significant markets for coding and marking systems due to the existence of some of the world's stringent regulatory agencies for the food and beverage industry and the presence of some of the world's largest pharmaceutical firms. Additionally, Asia-Pacific is expected to register the fastest growth during the forecast period due to the region's rising need for coding and marking systems.
- Asia-Pacific dominates the coding and marking systems market, with China leading the way in terms of R&D spending and adoption of high-technology systems.
- The primary objective of the Chinese State Food and Drug Administration's (SFDA) regulations is to safeguard people from counterfeit pharmaceuticals and traditional Chinese medicines. This regulation also mandates the assignment of unique product identifiers known as 'eCodes' at various packaging units and a level of combination and verification through the drug electronic supervision system.
- 'eCodes' require high-resolution printing to ensure the codes are clear and readable for verification purposes. This pushes the need for high-quality printers and marking solutions that offer superior print resolution and durability.
- South Korea has also mandated labeling and marking requirements for certain products, such as pharmaceuticals, organic food, functional food, and food produced through biotechnology, according to the Korean Customs Service (KCS). The coding and marking solutions market expanded by increasing the consumption of packaged meals in food and beverage.
- In December 2023, China's retail trade in medicine generated USD 9.64 billion, marking a significant increase from USD 7.41 billion recorded in April 2023, as reported by the National Bureau of Statistics of China. With the rise in pharmaceutical sales, there is a corresponding need for enhanced product traceability to ensure the authenticity and safety of medications. Coding and marking solutions provide the necessary technology to track products through the supply chain, preventing counterfeiting and ensuring compliance with regulatory standards.
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