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Segment Insights: Packaging Machinery

The numerous transactions in recent years also paint a largely successful picture, contributing to industry consolidation and, in many cases, increased professionalism. However, each packaging technology and application is unique and must be evaluated separately in terms of its attractiveness. This creates both opportunities and risks for financial investors, which we have summarized in our Segment Insights.

Key insights

The packaging machinery industry offers institutional investors continuous growth opportunities by serving various fast-growing target industries.

1. Primary packaging machines are highly process-adapted and provide the initial wrapping and protection of the product. They often require precise, specialized equipment tailored to product characteristics.

2. Secondary packaging machines are more versatile in handling products since processes like cartoning are largely standardized. This enables flexible, efficient, and cost-effective packaging of different products.

3. End-of-line packaging machines handle the final packaging steps by grouping, stacking, sealing, and preparing products for shipment. They must process large volumes quickly and accurately to meet production demands.

The market is global and offers sufficient volume across all segments for both organic growth and buy & build strategies.

In 2023, the global packaging machinery market was valued at approximately €49.7 billion.
The secondary packaging market is almost as large as the primary packaging market. Both segments – particularly primary packaging – are strongly influenced by end markets such as pharmaceuticals and FMCG. Sustainability trends, regulatory requirements, and changing consumer preferences play a major role. Packaging machines must therefore become increasingly flexible, allowing for quick and easy format or material changes.
The end-of-line packaging market is smaller and less dependent on specific industries. However, it presents interesting opportunities for further automation and the integration of packaging lines.
Experts anticipate a positive trend over the next five years, with increasing investments in packaging machinery for consumer goods.

Key market trends

Sustainability & Regulation: New regulations and the growing demand for sustainable packaging are driving retrofits and replacement investments in production lines to meet new packaging requirements. Machines must be compatible with new materials, particularly monomaterials. At the same time, hygienic design is becoming increasingly important.

Automation: The global labor shortage and skills gap are boosting demand for automated production lines to ensure continuous supply while maintaining cost efficiency.

Robotics & Cobotics: Heavy and demanding tasks are increasingly being replaced by robots, improving production efficiency and maximizing profits as manufacturing processes become more interconnected and automated.

Flexibility: Manufacturers are increasingly demanding flexible packaging machines that can be easily adapted and handle a wide range of products. This trend is mainly driven by the increasing diversity of SKUs (Stock Keeping Units), requiring a broader range of packaging formats.

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With Munich Strategy’s Segment Insights, we provide investors with impulses and strategic considerations for the packaging machinery segment. If you would like to order a copy, please send us an email with your billing and shipping address.

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