End-of-line Packaging Industry Analysis in the United States

United States End-of-Line Packaging Industry Outlook from 2023 to 2033

Sales of end-of-line packaging solutions in the United States are estimated to be valued at US$ 6.9 billion in 2023 and US$ 9.4 billion by 2033. Over the forecast period, demand for end-of-line packaging machines in the United States is expected to increase at a CAGR of 3.1%.

Key Factors Driving Growth in the United States End-of-line Packaging Industry

• Growing focus on improving productivity & efficiency and reducing labor costs is a key factor driving growth.
• The booming e-commerce sector is expected to drive demand for end-of-line packaging equipment in the United States.
• Burgeoning demand for packaged goods is a prominent factor impacting sales of end-of-line packaging equipment in the United States.
• Implementation of strict regulations and quality standards will likely create an opportunity for end-of-line packaging in the United States.

Attributes	Key Insights
Base Value (2022)	US$ 6.7 billion
Estimated United States End-of-line Packaging Industry Size (2023)	US$ 6.9 billion
Projected United States End-of-line Packaging Revenue (2033)	US$ 9.4 billion
Value-based CAGR (2023 to 2033)	3.1%

United States End-of-line Packaging Industry Trends

• Rising trend of customization
• Surging popularity of automatic and semi-automatic end-of-line packaging in the United States
• Growing interest in sustainable and eco-friendly packaging solutions
• High adoption of robotic packaging technology in the United States
• Integration of smart technologies and Industry 4.0 principles in end-of-line (EOL) packaging
• Increasing adoption of case packing and palletizing systems across the food, pharmaceutical, and electronics sectors
• Growing demand for high-tech wrappers and shrink film machines

The United States, a developed nation for packaging, observes a statewide diversity in consumer behavioral patterns and packaging trends. United States-based packaging companies are primarily focused on improving the end-user experience.

Reducing production costs and limiting design configurations are secondary measures for United States-based packaging manufacturers seeking to extend their businesses domestically. They are constantly introducing automatic end-of-line packaging machines to attract customers.

Demand for packaging machines used for wrapping the goods and making them delivery-ready continues to gain traction in the United States. The food sector is poised to dominate the target business in terms of consumption of end-of-line packaging across the United States. This is due to the rising demand for packaged food products and the increasing adoption of automatic packaging solutions in food companies.

Demand for packaged food & beverage products is increasing rapidly with the advent of ready-to-eat products. To meet this demand, food manufacturing companies are increasingly employing end-of-line packaging machines, especially automatic ones, thereby boosting sales.

Manufacturers are increasingly opting for customized orders since these cater to the industry-specific needs and challenges faced by producers. As a result, the customized segment is estimated to dominate the United States industry, accounting for about 90% of value share in 2023.

Historical Vs. Forecast Outlook for End-of-line Packaging in the United States

The end-of-line packaging industry in the United States witnessed a CAGR of 0.9% during the historical period. It attained a valuation of US$ 6.7 billion at the end of 2022. In the forecast period, sales of end-of-line packaging machines in the United States are projected to rise at a 3.1% CAGR.

Historical CAGR (2019 to 2023)	0.9%
Forecast CAGR (2024 to 2034)	3.1%

The past trends in the United States' end-of-line packaging industry reveal a story of change and progress. The United States end-of-line packaging industry has been undergoing change over time following technological evolution, changing demand, and industrial issues.

There has been a rapid shift from manual EOL practices toward more mechanized approaches. This is fueled by the high demand for efficiency and precision in operations and the need to satisfy customers in an ever-changing industry.

Today, more and more industries across the United States are incorporating automatic end-of-line packaging solutions to improve productivity & efficiency and reduce labor costs. This will play a key role in boosting the growth of the end-of-line packaging industry in the United States.

End users are investing in end-of-line packaging solutions that offer cost-effective operations, provide a positive return on investment (ROI), and reduce packaging waste. Similarly, automated end-of-line packaging machines are gaining immense traction across the United States.

Leading end-of-line packaging machine manufacturers are continuously introducing novel solutions to meet end-user demand. For instance, ROBOPAC USA introduced a complete range of end-of-line packaging solutions, including the new Robot Pick n Place palletizer, at Pack Expo 2019.

Semi-annual Update

Particular	Value CAGR
H1	2.2% (2022 to 2032)
H2	2.0% (2022 to 2032)
H1	4.1% (2023 to 2033)
H2	3.9% (2023 to 2033)

Key Dynamics in the United States End-of-line Packaging Industry

• EOL Machines Transforming Packaging Processes to Achieve Cost Savings

End-of-line machinery stands out as a highly efficient solution for United States-based manufacturers to mitigate superfluous labor and material expenditures. As a result, their demand is growing steadily in the nation.

The United States boasts one of the world’s top labor and machine operator wage structures, as underscored by a 2022 study conducted by the Reshoring Institute. According to this research, the United States ranks second globally, trailing Germany, with an average annual wage of around US$ 32,000 annually.

End-of-line machines are experiencing growing demand from a variety of enterprises across the United States. This is because these machines reduce labor costs while improving overall productivity.

The end-of-line machinery helps significantly bring down packaging costs since it optimizes the amount of packaging materials required and reduces wastage. These automated systems not only conserve resources but also reduce the cost of materials, directly impacting the bottom line.

The reduction of material waste is particularly critical in an era where responsible resource management is becoming central to business strategies. Hence, the adoption of end-of-line machines to reduce labor costs & material wastage and enhance productivity will continue to boost sales.

• Decentralized Procurement Challenges Impeding Packaging Efficiency

End-of-line packaging now uses a wide range of advanced technologies, such as automatic bagging systems and automated labeling techniques. Nonetheless, one of the issues that companies encounter is that they do not have centralized procurement.

The decentralization mainly arises as a result of diverse industries, which vary widely with respect to the needs for individually specialized machines at the end line of production lines. Although decentralization has a lot of advantages, there are certain issues involved with this approach.

A notable problem is the lack of uniformity, where different departments within organizations buy equipment from different manufacturers that are incompatible with each other. Decentralized purchase also tends to lead to low levels of bargaining strength because most independent departments lack the requisite bargaining strength. This can result in unfavorable pricing and higher costs.

The lack of centralized procurement can also hinder the possibility of economies of scale since distributed orders cannot guarantee low-cost savings. This can impact the target industry during the forecast period.

The corporation and concordance with a supplier, however, can lead to higher bargaining power, which translates to a more reasonable price tag as well as favorable contract conditions. This can improve overall value and translate into significant cost savings.

• Trade Shows Providing Platforms for Innovation, Visibility, and Insight

Manufacturers of end-of-line packaging machinery take advantage of trade shows that constitute prominent stages. In these trade shows, they can demonstrate their products, advanced functions, and attributes of modern machines.

The United States serves as a vibrant hub for packaging machinery trade shows. These platforms allow manufacturers to demonstrate the latest end-of-line packaging machines and engage with a diverse audience. Events such as Pack Expo Las Vegas, Pack Expo International, and Luxe Pack occur annually or annually.

Taking part in such trade shows greatly enhances a manufacturer's profile in the field. It provides a chance to create brand awareness and promote trust.

The exposure gained in these events is beneficial in several ways. It is not only helpful for building a brand image but also gives the opportunity to network with other manufacturers, distributors, and prospective clients. Hence, a handful of crucial contestants, including Syntegon, BW Packaging, and Krones AG, take part in such trade shows.

The trade shows constitute critical sources for innovations and industry research that inform manufacturers about emergent trends, opponents’ tactics, and the changing needs of customers. Such inputs are important when improving old products or creating novel options that match changing customer requirements.

Comparative View of Adjacent United States End-of-Line Packaging Industries

The United States end-of-line packaging industry is set to be impacted by the peer or tangential industries in the packaging division. These include the packaging machinery and the pharmaceutical packaging equipment industries. On analysis of these related industries, profound insights have been found that will be helpful for developing unique differentiating strategies to pursue growth and opportunity.

Demand for EOL packaging solutions in the United States is projected to expand at a 3.1% CAGR during the forecast period. The growing focus of industries on improving productivity and reducing labor costs is a key factor behind this surging demand.

On the contrary, the global packaging machinery industry is poised to thrive at a higher CAGR of 4.5% CAGR through 2033. This is attributable to the rising demand for packaging machinery from a wide range of sectors, including food & beverage and consumer appliances.

The global pharmaceutical packaging equipment industry is projected to expand at a CAGR of 4.1% from 2023 to 2033. The booming pharmaceutical sector and rising need for advanced packaging solutions are prominent factors expected to drive demand for pharmaceutical packaging equipment.

United States End-of-line Packaging Industry Analysis:

Attributes	Industry Analysis of End-of-line Packaging in the United States
CAGR (2023 to 2033)	3.1%
Estimated Value (2023)	US$ 6.9 billion
Growth Factor	Micro fulfillment centers fueling demand for efficient end-of-line packaging machinery in the growing e-commerce landscape.
Key Trend	EOL packaging manufacturers elevate offerings with value-added services and prioritize innovation and research & development.

Packaging Machinery Demand Outlook:

Attributes	Packaging Machinery Demand Outlook
CAGR (2023 to 2033)	4.5%
Estimated Value (2023)	US$ 59.4 billion
Growth Factor	Rising demand for packed products and expanding e-commerce are expected to boost the growth of the packaging machinery industry.
Key Trend	Integration of novel technologies such as AI into packaging machinery is a key trend impacting the industry.

Pharmaceutical Packaging Equipment Sales Forecast:

Attributes	Pharmaceutical Packaging Equipment Sales Forecast
CAGR (2023 to 2033)	4.1%
Estimated Value (2023)	US$ 5.6 billion
Growth Factor	The expanding pharmaceutical industry is expected to drive demand for pharmaceutical packaging equipment through 2033.
Key Trend	Adoption of automation & robotics is a prominent trend expected to augment the industry growth.

Category-wise Insights

The below section highlights the projected CAGR of key segments, including automation and machine type:

• Demand for automatic end-of-line packaging is projected to surge at a CAGR of 3.7% through 2033.
• The standalone segment is predicted to register a CAGR of 3.3% between 2023 and 2033.

Benefits of Automatic End-of-line Packaging Machines Fueling their Adoption

Automation	Value CAGR
Automatic	3.7%
Manual	1.7%

As per the latest analysis, the automatic end-of-line packaging segment is expected to witness a steady CAGR of 3.6% during the forecast period. This is attributable to the rising demand for automated end-of-line packaging machines across diverse sectors due to adaptability and precision.

Adopting automatic end-of-line packaging machines is a new trend in the industry that reveals how flexible and accurate it has become to modern manufacturers. This movement portrays an even bigger development where more companies focus on simplifying their systems and attaining efficiency.

Automatic end-of-line machines come with artificial intelligence and robotic technologies that give them exceptional precision and uniformity not matched by manual processes. These automated systems are designed with adaptability that enables easy integration in different production lines whose products have varied specifications or packaging.

As industries look to improve their productivity and reduce labor costs, they must incorporate automatic packaging solutions in their facilities. This is expected to drive demand for automatic end-of-line packaging machines in the United States during the assessment period.

Flexibility and Scalability of Standalone Machines, Making them Popular

End-use	Value CAGR
Standalone	3.3%
Case Packaging	2.3%

Standalone machines are poised to dominate the United States end-of-line packaging industry, with a significant share of 78% in 2023. The target segment will also thrive at a CAGR of 3.3% throughout the forecast period.

Industries across the United States prefer standalone end-of-line packaging machines as they offer flexibility and scalability. The incorporation of standalone machines in modern production lines is an affordable way of solving specific packaging problems.

The system integrations provide holistic solutions. Growing demand for wraparound case packers, palletizers, and cartooning machines from several industries is expected to boost the standalone segment through 2033.

Competitive Landscape

Key manufacturers of end-of-line packaging solutions are focusing on developing innovations and advancements to boost their sales and solidify their positions. They are also employing strategies such as acquisitions, mergers, partnerships, and facility expansions to strengthen their presence in the United States.

Recent Developments in the United States End-of-line Packaging Industry

• In February 2022, ProMach announced the acquisition of TechniBlend, a leading provider of engineered process systems in North America, for the liquid processing industry.
• In February 2023, Syntegon Technology GmbH announced the launch of the upgraded version of the Kliklok BEC. It is a popular end-load cartoner with digital service connectivity, a redesigned frame, and new controls.

Scope of the Report

Attribute	Details
Estimated Value (2023)	US$ 6.9 billion
Projected Value (2033)	US$ 9.4 billion
Anticipated Growth Rate (2023 to 2033)	3.1% CAGR
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in US$ billion, Volume in Units, and CAGR from 2023 to 2033
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	Automation Machine Type Purchase Order End-use Sub-region
Key Companies Profiled	ProMach, Inc. WestRock Company ADCO Manufacturing Duravant LLC Combi Packaging Systems, LLC BW Packaging Syntegon Technology GmbH Krones AG I.M.A. Industria Macchine Automatiche S.P.A Signode Industrial Group LLC Ishida co. Ltd Sidel Group

United States End-of-line Packaging Industry Segmentation

By Automation:

• Automatic
• Manual

By Machine Type:

• Standalone
  • Case Packaging
  • Cartoning Machines
  • Labelling & Strapping
  • Stretch Wrapping
  • Palletizers
  • Others
• Integrated

By Purchase Order:

• Customized Order
• Standard Order

By End-use:

• Food
• Healthcare & Pharmaceuticals
• Personal Care
• Agriculture & Allied Industries
• Electronics & Semi-conductor
• Automotive
• Building & Construction
• Others (Tobacco & Homecare)

By Sub-region:

• North East
• South West
• West
• South East
• Mid-West

Frequently Asked Questions

How big is the end-of-line packaging industry in the United States?

The United States industry is set to reach US$ 6.9 billion in 2023.

What is the forecast for the end-of-line packaging industry?

Demand in the United States is slated to expand at a 3.1% CAGR through 2033.

What is the outlook for the end-of-line packaging industry in the United States?

The target industry is set to reach US$ 9.4 billion in 2033.

What was the historical CAGR of the target industry?

The United States industry exhibited a 0.9% CAGR over the last four years.

Which end-use will garner significant value share by 2023?

The food end-use segment is expected to garner a significant value share by 2023.

What are the end-of-line packaging trends for 2023?

Growing demand for packaged food and integration of automation are key trends.