China Investment Advisory Network News Demand for packaged food, beverages and pharmaceutical products is on the rise worldwide. The packaging machinery industry is benefiting from it.

The food and beverage industry is a strong economic sector in the world with high investment and is one of the largest buyers of packaging machinery with a 60% share. The pharmaceutical industry is also less affected by economic fluctuations because people need essential medicine supplies. This industry purchases account for 20% of all packaging machinery purchases.

Therefore, the world's packaging machinery industry trade has been increasing for many years, reaching 14.6 billion euros in 2008. The global economic and financial crisis has curbed demand and exports fell briefly in 2009. However, the industry expects that demand in 2010 will once again be strongly enhanced.

In 2009, exports were about 4 billion euros, a quarter of the previous year's decline, and Germany's share of world exports was 34%. From the development of the five major exporters of packaging machinery, these countries account for about 73% of the world's exports, and in 2009 Germany is still the world market leader. Germany and Italy share a dominant position in the export business. Italy's share of world exports is 27%.

Among the 15 markets in the 20 export markets of packaging machinery, Germany is the main supplier. Europe has a 51% share and is still the main sales area for packaging machinery produced in Germany. Western Europe’s share of exports was 34%, which was the same as in 2009. However, the decline in supply in Russia and Ukraine led to the second place in the sales region in Asia, with a share of 17.2%, which exceeded 17% in Eastern Europe. From 2005 to 2009, the share of German packaging machinery exports in Asia increased by 22%. The share of German packaging machinery in Asia's total exports rose from nearly 32% in 2005 to more than 34% in 2009. In the fourth place in the sales region is North America, with an 11% share. This is followed by Africa with 8%, Latin America with 6%, and Near East and Middle East with 5%. The United States and Russia remain the most important national markets for German packaging machinery. Among the top ten export markets, China ranks third.

The decline in demand for packaging machinery at the end of 2008/2009 was entirely due to the world economic climate and did not indicate market saturation. In contrast: the demand for packaged foods and beverages continues to thrive. The sales volume of packaged food reached 534 billion metric tons in 2009. Market research firm Euromonitor International predicts a total growth of 20% by 2014. In terms of beverages, Euromonitor expects the total growth rate to reach 19% in the next five years.

The expected growth is for demographic reasons: by 2050, more than 9 billion people will live in the world, an increase of about 30% over the current stage. With population and economic development, the size of the family is declining. In emerging markets and developing countries, more and more women work, and the “Western” lifestyle spreads in many countries. The change in household conditions will have a direct impact on the demand for packaging: the demand for small package sizes in smaller homes is increasing, which requires highly flexible packaging machinery to provide a variety of packaging formats and rapid packaging changes. Today, the batch size is shrinking. Under these conditions, a short conversion time will ensure high productivity.

Climate change, growing energy demand and limited supply of fossil fuels are major challenges in our time. In the food and beverage industry, sustainable development is already an important part of the brand. Today, more and more consumers decide to support or oppose a brand based on ecological standards. As the largest buyer of packaging machinery, the food and beverage industry is one of the driving forces behind the packaging machinery industry's development of sustainable concepts. However, these challenges are not limited to consumer goods manufacturers: even today, packaging and packaging machinery manufacturers are creatively looking for so-called solutions that deal with resources in an ecological and economical way. Reducing the energy consumption of packaging machinery by adopting state-of-the-art technology is a major contribution to the implementation of sustainable production. Resources are also protected through machine and equipment optimization and design measures.

Product variety, rapid innovation cycle, new functional packaging, the highest hygiene requirements for production and packaging, sustainable production and transportation – all the success factors for food, beverage and pharmaceutical producers. The International Processing and Packaging Machinery Exhibition, held in Düsseldorf from May 12th to 18th, 2011, will work with packaging manufacturers to develop new ideas and discuss new methods to provide an optimal platform.