Industry to up specialised packaging lines and multi-functional machinery as demand changes

10-Jun-2013 - Last updated on 18-Jun-2013 at 07:55 GMT

Intense competition created by the economic downturn has forced industries across Europe including that of cosmetics, to optimise their production processes and decrease operational costs by dealing in more specialised lines and machinery, according to analyst Frost & Sullivan.

According to the report, revenues from sales of packaging machinery in Europe reached nearly 10 billion Euro in 2012 due to an ageing population and the increasing number of small households in Europe driving the need for single-portion packaging, leading end-user sectors to turn to specialised packaging lines and machinery.

"Sales will likely increase going forward, approaching €12 billion in the next few years as the need for packaging solutions for products of different shapes and sizes, along with manufacturer focus on automation to enhance process efficiency across industries, will sustain investments in the market."

Demand for more convenient/on-the-go products

The market researcher goes on to reveal that sale volumes have gone up further with the advent of multi-functional packaging equipment that reduce costs and provide better space management while integrated systems also feature greater operational flexibility and can adjust to new production specifications.

"Automation packaging machinery that eliminates labour, generates less waste, and enhances productivity is, therefore, becoming widely accepted."

In terms of the best markets offering the highest scope in this area, Frost & Sullivan's industrial automation and process control research manager Sivakumar Narayanaswamy warns that machine suppliers need to concentrate on regions that have not been affected by the economic downturn.

In this instance he points to the downturn in the economies in southern Europe; "The downturn has affected process and discrete industries. End users are looking to trim operating and maintenance costs, and are unwilling to invest in non-crucial automation processes."

Meanwhile Scandinavia, Central and Eastern Europe, and the United Kingdom are reported to be the most adoptable due to their stable economy and end-user growth.

However markets such as Germany, France and Italy are already reported to be well-equipped, and, likely to generate limited orders for these advanced packaging machines. "High taxation and labour costs in these countries also dissuade foreign investors and limit green field projects, curbing new equipment uptake," Narayanaswamy concludes.