Automatic Labeling Machine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The automatic labeling machine market is expected to register a CAGR of 3.32% over the forecast period. The necessity of labeling has significantly increased over time due to technological improvements and the digital transition. Cosmetics and home essentials come in a variety of packaging and material options. The need for more rapid and automated labeling equipment has grown due to the shifting environment.

Key Highlights

• The market is primarily driven by the growing demand for high-speed and accurate labeling solutions and automation in the food and beverage industry. While the labeling machine market is expanding quickly, top manufacturers are working to improve their product features by incorporating cutting-edge technological trends. The demand for RFID (radio frequency identification) labeling solutions among end customers is growing at a healthy rate, accounting for close to one-fourth of the revenue share of the market for labeling machines, according to Packaging World News.
• The tracking and anti-counterfeiting functions on labels make it simple for product manufacturers to keep track of shipments. Labels also protect against tampering by guaranteeing that products are delivered to clients without disruption. The growing demand for security labeling to prevent fraud and theft is also expected to increase the demand for this equipment.
• The rising customer demand for increased product diversity is a major factor driving the market expansion for labeling machines. More products are produced and introduced to the market daily to cater to consumer demand. To ensure revenue and keep products relevant, smart and effective labeling is becoming increasingly popular. Manufacturers of consumer goods are increasingly in need of adaptable labeling machines that can work with a variety of materials and support various technologies to solve these challenges.
• To address product variability, engineering companies have developed labelers with different capabilities that address various packages. Labeling machine installation in small-scale businesses is not affordable, as it requires significant investment costs and trained professionals to operate the machine. The demand for all-in-one solutions in one machine, like packaging, labeling, and other operations, has raised the cost of machines, which can impact the market's growth.
• The emergence of the COVID-19 pandemic has boosted market growth, particularly for food and beverage packaging and pharmaceutical packaging machinery, due to increased demand for various foods and medicines through online and offline channels.

Automatic Labeling Machine Market Trends

Increasing Demand for Automation in Food and Beverage Packaging to Witness Growth

• Demand for automation in the food and beverage industry is driving the market studied. As consumers become more conscious about product details, labels play a crucial role in providing information about the product and boosting sales. Manufacturers are now shifting to automated labeling systems to meet the growing food and beverage industry demand.
• Food and beverage manufacturers face several issues, including labor shortages, increased demand, and persistent supply chain disruptions. Food packaging automation can be critical for these organizations since it increases manufacturing productivity without the need for additional labor. Packaging automation will likely become more important as demand rises over the next few years and manpower shortages persist. Thus, manufacturers are turning to technology. Developments in Industry 4.0 technologies may transform food manufacturing in the coming decade.
• Packaging automation can also improve the consistency and safety of food and beverage items for workers and consumers. Quality control procedures are frequently time-consuming or repetitive. Workers allocated to these jobs tend to slow down and make mistakes throughout a shift, potentially allowing defective or unsafe products to progress further along the manufacturing line.
• Despite the COVID-19 pandemic-related labor scarcity, investments in automation are increasing. Technology allows food enterprises to be more agile and adaptable to change. With the advancement of technology, new machines are being used in all industries where everything is done manually simultaneously. Food packaging is one of the most recognized businesses fully embracing today's scientific evolution.

Asia-Pacific is Expected to Have a High Growth Rate

• Asia-Pacific is home to the largest population in the world. With increasing consumer awareness regarding packaging, the demand for packaging in the food industry and high-speed and high-quality labeling solutions is increasing. China and Taiwan are the major exporters in the Asia-Pacific region for automatic labeling machines.
• Increasing demand for productivity improvements across industries like food and beverage, pharmaceutical, and chemical, as well as technological advancements, are some of the main factors driving labeling machine demand in China. Chinese regulators require imported and exported (but not domestic) food items such as candy, wine, nuts, canned food, and cheese to have labels verified and products tested for quality before goods can be imported or exported.
• In India, labeling machinery witnessed significant growth in recent years. In June 2022, Printgraph Converting Machinery, a Mumbai-based company, along with Macrt and Perfect Printgraph Engineers, launched a digital label printer at the 15th Printpack India. The machine, known as TruWo, will meet the printing and packaging industry demand, which is looking for complementing technology to add to its existing print capabilities.
• The rising popularity of Japanese whisky over the past two decades has increased the spirit being exported worldwide. It has been observed that the Japanese regulations and traditions of whisky-making do not necessarily line up with that of other countries.

Automatic Labeling Machine Industry Overview

The automatic labeling machine market has many companies and moderate profitability (CAGR), creating strong market share competition. Overall, the intensity of competitive rivalry is expected to be high during the forecast period. ​The key players in the market are Accutek Packaging Equipment, SIDEL (Tetra Laval Group), Barry-Wehmiller Group, and Krones AG.

• July 2022 - To offer traceability for drums carrying chemicals, German tight-head drum specialist Duttenhofer invested in an integrated solution from Herma comprising the labels for QR codes and a print-and-apply system. It has been utilizing Herma’s labeling solution for some time and is pleased with both using the technology and the label material, which was created following VPA 9 regulations.
• In June 2022, BOBST Group announced the launch of the first subscription plan of BOBST Connect. This user-centric platform links converter and brand owners to an automated and digital workflow and grants them full access and control of the manufacturing process. BOBST Connect assists customers in making the most of the quantity of data their equipment generates by offering insights and various solutions to improve productivity, quality, and efficiency.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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