Food Packaging Machinery Growth Expected to be Above CAGR 6%

food packaging machinery growth | PBFY Packaging

Food Packaging Machinery Forecasted Growth – 4 minute read

The food processing sector has evolved over the years, prioritizing innovation and new ideas on how this sector can effectively grow and impact the entire population.

The hype for improvised food packaging and handling systems has been around for quite a while, and many different types of new machinery have been tried and tested. The benefits of the development of this new machinery will show positive growth that is over 6% the Compound Annual Growth Rate. What is the cause behind this growth? Which companies have caused this growth?

Historical Growth.

The historical growth of the Food Processing and Handing sector has shown to be slow as it has only produced 2.6% of average annual economic profit. From 2011 to 2016, this specific industry showed 4% growth in the Compound Annual Growth Rate.

This industry is one of the 13 sectors comprising this industrial group, and it is showing considerable growth compared to the historical growth mentioned above. Although the overall sector is doing quite well, not all companies are performing well. However, some key players are doing quite well and bringing this industry back to life.

Forecasted Growth.

The forecasted Compound Annual Growth Rate will move up to 6.2% in the timeframe ending in 2025. This growth may not seem like a considerable amount when looking at it in percentages, but once put into figures, you can see the growth expected is significant. In 2018 this market was valued at $129.2 Billion, and by 2025 it is projected to reach $196.6 billion which values at 6.2% of the CAGR.

What is Driving This Growth?

Various reasons are behind this growth, and all of them are useful and resolve issues that were a concern in the industry. The first reason is that there is a demand for product-specific machinery.

The use of generalized machinery is started to be outdated, and the use of customized products that satisfy the needs of customers is starting to be the model of this industry. Also, the innovation of packaging systems has made most food packagers realize the efficacy of using automatic systems over manual packaging systems.

Amended food safety regulations that are stricter have caused food packagers to look into packaging materials and methods that keep food fresh for more extended periods. Another cause of this growth is the changing dietary preferences of consumers.

For example, more and more people opt to consume natural and organic food, which affects the way food must be packaged. As a result, new machinery is needed that will satisfy the needs of these consumers. 

The use of lighter and thinner packaging has also caused this industry to work on better solutions. The increasing consumption of beverages has also called for more packaging lines that will fulfill the demand in that market.

Which Companies are the Key Players in this Development?

The key players in this industry facilitating growth are:


Buhler is a Swiss company that works in the production of food processing and handling machinery. This company is in a joint venture with Microsoft working on making food safer following the new regulations and standards set by most local food safety authorities.


GEA is a company focused on food processing and handling that uses the latest technologies to develop their products. For example, they have efficient refrigeration systems that keep food fresh for longer and have machines that cater to companies that manufacture food for people with special diets.


JBT from Chicago is a company that deals with liquid foods plus a wide range of solid foods that need to be specially packaged. This company is excellent for safe packaging and innovative solutions that are product specific.


This company based in Iceland is one of the industry-leaders in the food packaging sector. Their equipment doesn’t include only hardware, but they also develop software that makes food packaging and processing much more streamlined and seamless. Marel is working on advancing food processing, which is expected to take the company to greater heights.

Tetra Pak

Tetra Pak provides efficient solutions in packaging foods in sustainable packaging material and ensures the quality of their machinery. Their line of machinery can use any packaging material that is required by its customers.

These are the key players that are driving the growth in the food packaging sector but not limited to these. The developments done by these companies justify the forecasted growth and will change the level and standards of food packaging. The features of their machines also show that they are customized for each product and industry.

The Way Ahead!

The expected growth in this industry has a lot to do with how the products offered by different companies attend to the diverse needs and problems in this industry. After considering what goes into the packaging of food and the forever changing standards of food safety regulators, this growth is much deserved. This industry that seemed static for years will start getting some activity as the years go by because and hopefully, even after 2025.

The significant part of this growth is that food for people with special needs will also get noticed and get the packaging it requires. The safety of food is also one of the major problems solved by technologies developed that are driving this growth.

New food packaging machinery will have a direct impact on the duration of certain foods – which is great! Plus, the new machinery could also create a positive effect on the environment if the materials used become lighter and thinner. Companies who are willing to adapt to the needs of our fast-changing world are bound to find success and growth – which is an excellent thing for all involved!

The economic growth and employment opportunities derived from this will go a long way. The future seems bright for this industry, and hopefully, it will be the tip of the spear in the development of sustainable packaging that supports nature conservation.

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