Market Trends of Shrink Wrap Equipment Industry
This section covers the major market trends shaping the Shrink Wrap Equipment Market according to our research experts:
Food Industry to Hold Significant Market Share
- The global demand for processed food and other manufactured food is increasing significantly. With the growing demand for processed food, the need for shrink wrap packaging is gaining traction in the industry as well. According to the European Food and Drinks Industry, three major regions are production hubs for the market studied: the European Union (44%), the United States (20%), and China (19%).
- Moreover, with the growing population, the demand for food is expected to increase even further. According to the United Nations, by 2050, the global population is expected to reach 9.3 billion, and to feed such large population, agriculture production needs to grow by 70%.
- Shrinkwrap packaging holds a prominent position in meat packaging in cold packaging and processed meat packaging. This form of packaging offers delivery of the product in the safest, most new, and cost-effective solution. Additionally, shrink wrap is one of the most eco-friendly options.
- Furthermore, shrink wrapping equipment is known to increase the throughput of production lines in the industry. For example, a producer of English cucumbers in Quebec was capable of packaging 38 packs per minute. Its machine was wasting film due to re-wraps and lowering productivity due to machine downtime. With the adoption of BVM Genius shrink wrap equipment, the client's machine rejects rate went from 10-12% to 2-3%. The client was able to wrap 65 packs per minute, a 71% increase than the previous process. Owing to such developments, the demand for shrink wrap equipment is on the rise in the industry.
- Various prominent food manufacturers use shrink wrap to increase shelf life better. Shrink wraps are common in food packaging and bundling a fixed number or quantity of food items. For instance, Nestle, one of the world's largest food manufacturers, uses shrink wrapping to bundle its products across the globe.
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Asia-Pacific is Expected to be the Fastest Growing Market
- The Asia Pacific region is expected to account for a significant share of the shrink wrap packaging system market due to the rapid expansion of end-user industries like food. There has been rapid growth in the food processing industry across the region, with countries like India concentrating on moving up the agri-value chain to derive higher profits from exports.
- As part of Beijing’s “Made in China 2025” industry plan, it has identified the pharmaceutical sector as one of the areas of focus for innovation and homegrown research and development. In the year 2017, the pharmaceuticals players in China obtained U.S. Food and Drug Administration approvals for more than 38 generic drugs. Going forward, China, along with India, is expected to drive the Pharmaceutical production of the globe. This shall propel the growth of shrink wrapping, of which pharmaceutical is one of the major end-users.
- The expansion of retail in the region in the form of brick and mortar and e-commerce is expected to aid the growth of the Shrink Wrapping. Recent investments point to the vibrant retail eco-system in the region. Alibaba, for instance, recently invested in the Southeast Asian e-commerce portal Lazada while JD.com, on the other hand, has invested in Vietnam-based Tiki.vn and Thai online fashion label Pomelo.
- The ability to shrink wraps to protect products from dirt, moisture, and other damages makes them ideal for e-commerce supply chains. Shrink wraps are being used to add shelf appeal to retail items like personal hygiene products, paper goods, toys and games, gift items, and many more.
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