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North America Packaging Automation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 120 Pages
  • October 2021
  • Region: North America
  • Mordor Intelligence
  • ID: 5459102

The North America Packaging Automation Market is expected to witness growth at a CAGR of 4.20 % over the forecast period (2021-2026). The global outbreak of COVID-19 significantly impacted North American Packaging Automation as the business saw a decrease in orders due primarily to decreases in the transportation systems and reconsideration of the capital expenditure plans by the organizations that happened in stagnation caused by the impact of COVID-19. However, the demand for automation solutions is expected to increase as organizations are now prioritizing digital transformation with a focus on automation.

Key Highlights

  • With the increasing globalization of production and the intensely competitive nature of the packaging industry, cost-cutting becomes imperative as companies are striving to maximize profits; but compromising on quality is not an option as the consumers are increasingly being aware and conscious of the products they use. This has created a great need for automation to be employed in packaging.
  • North America is among the leaders in packaging automation market. The growth in this region is attributed to factors like the culture of e-commerce and packaged food industry in North America. Furthermore, companies in this region are now adopting industry 4.0, and it is coupling with the rise in need for supply chain integration which is driving the manufacturers towards packaging automation solutions due to their ability to interact with the stakeholders and the optimization of complicated logistics schedules.
  • The manufacturing sector is amongst the highest contributor to the United States' GDP. In 2020, it contributed USD 2345.85 billion and drove 10.94% of the United States manufacturing output, according to the National Association of Manufacturers (NAM). As most of the U.S based manufacturing companies operate globally, the rising cost of labor, along with the pressure to meet deadlines, has resulted in the increased adoption of automation in factories.
  • The Surging demand for packaged food is a substantial opportunity for the manufacturers in this region to carve out greater market share. The majority of food production companies are trying to better engage consumers with revamped packaging. The manufacturers are likely to lag if they do not modify their products according to the latest packaging trends, as the economy of the countries in the North American region is flourishing which is expected to drive the growth of packaging automation market in this region during the forecast period.

Key Market Trends

Food and Beverage Industry to Show Significant Growth

  • Dynamic variations in food preferences, increasing number of restaurants, fast-food chains, and food delivery apps such as grub hub, caviar, and others enhance the availability to consumers, resulting in strong growth in the food and beverage industry in the North American region.
  • In order to accommodate these surging expectations, the packaging equipment industry is rapidly turning to technology to develop innovative solutions for future-ready packaging and to evolve processing, production, and supply chain model.
  • For instance, in 2020, PGP International's California plant implemented a new automated packaging line to make flour packing in valve bags quicker, safer and more power-efficient. The automated packaging equipment features a high-speed filling process, in-line ultrasonic sealing capacity, and automated palletization and stretch-wrapping facilities, to ensure stability and safety of the packaged product, even during transit.
  • According to the Robotic Industries Association and Association for Advancing Automation, orders of robotic systems by food and consumer goods manufacturers grew by 56% in 2020. Industry statistics–released by the Robotic Industries Association (RIA), part of the Association for Advancing Automation –show that North American companies ordered 31,044 robotic units, valued at USD 1.572 billion in 2020.
  • The increased adoption of automation in the packaging industry will not only boost the efficiency of packaging lines, but also open up new opportunities, paving the way to a more digitized future for packaging equipment during the forecast period.

United States to Hold a Significant Market Share

  • The United States is one of the fastest-growing packaging markets in North America. The presence of large packaging companies, such as Amcor Ltd, Mondi PLC, etc., drives investments for innovation and R&D activities in the country.
  • Historically, the United States has been among the early adopters of technology in the industrial sector. The current shift towards industry 4.0 is further driving the adoption of technologies such as automation, AI, and IoT in the manufacturing sector.
  • Furthermore, the United States boasts of a strong export base of packaging machinery, which has contributed to its growth. Companies, like Bosch Packaging Services, have expanded their businesses by investing in various packaging sectors, such as confectionery, bakery, fresh food, frozen food, and pharmaceutical.
  • Recently, the govt of the United States has announced several initiatives to strengthen the manufacturing sector which is in the midst of the worst economic downturn since the Great Depression which includes an investment worth USD 300 billion in R&D and advanced technology such as automation which has been the catalyst for the economic growth in the U.S.
  • All these initiatives combined with the willingness of the industrial sector in the United States towards increased adoption of technology is expected to drive the growth of packaging automation industry during the forecast period.

Competitive Landscape

The North American packaging Automationindustry is moderately competitive and consists of several major players. The changing trends and product innovations is the primary factor shaping the strategies of the North American packaging automation industry. Some of the major players operating in the region include JLS Automation, Mitsubishi Electric Corporation, Rockwell Automation, etc. Some of the recent developments are

March 2021 - ATS Automation Tooling Systems Inc. announced results for the voluntary public tender offer launched by ATS Automation Holdings Italy S.r.l., a limited liability company indirectly and wholly controlled by ATS, to acquire 100% of the outstanding shares and voting rights of CFT S.p.A, an established global supplier to the food and beverage equipment market.

July 2021 - JLS Automation announced that it has developed an end-of-arm tool (EOAT) to help CTI foods automate its hot to handle taco packaging line. Tacobots efficiently upgrade and automate production with a unique two-pick mechanical tool. The recent line integration project wins a 2021 Manufacturing Innovation Award from ProFood World.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of COVID-19 on the Market
5.1 Introduction to Market Drivers and Restraints
5.2 Market Drivers
5.2.1 Increasing Pressure on Manufacturers to Cut Down Operating Costs
5.2.2 Reduces Machine Downtime and Product Waste
5.2.3 Emerging Markets are Emerging as Low Cost Labor and Increased Competition
5.3 Market Restraints
5.3.1 High initial investment
6.1 By Businesses Type
6.1.1 B2B e-commerce retailers
6.1.2 B2C e-commerce retailers
6.1.3 Omni Channel Retailers
6.1.4 Wholesale Distributors
6.1.5 Manufacturers
6.1.6 Personal Document Shippers
6.1.7 Others
6.2 By End-user Vertical
6.2.1 Food
6.2.2 Pharmaceuticals
6.2.3 Cosmetics
6.2.4 Household
6.2.5 Beverages
6.2.6 Chemical
6.2.7 Confectionary
6.2.8 Warehouse
6.2.9 Others
6.3 By Product Type
6.3.1 Filling
6.3.2 Labelling
6.3.3 Horizontal/Vertical Pillow
6.3.4 Case Packaging
6.3.5 Bagging
6.3.6 Palletizing
6.3.7 Capping
6.3.8 Wrapping
6.4 By Country
6.4.1 United States
6.4.2 Canada
6.4.3 Rest of North America
7.1 JLS Automation
7.2 Mitsubishi Electric Corporation
7.3 Rockwell Automation
7.5 Swisslog Holdings AG
7.6 Emerson Industrial Automation
7.7 ULMA Packaging
7.8 ATS Automation Tooling Systems
7.9 ABB Ltd.
7.10 Massman Automation Designs, LLC
7.11 Schneider Electric
7.12 DENSO-Holding GmbH & Co. KG
7.13 Gerhard Schubert GmbH

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • JLS Automation
  • Mitsubishi Electric Corporation
  • Rockwell Automation
  • Swisslog Holdings AG
  • Emerson Industrial Automation
  • ULMA Packaging
  • ATS Automation Tooling Systems
  • ABB Ltd.
  • Massman Automation Designs, LLC
  • Schneider Electric
  • DENSO-Holding GmbH & Co. KG
  • Gerhard Schubert GmbH