Redding, Calif.-based Meticulous Research published a report in May on the packaging automation market.

The report predicts the market to be worth $118.8 billion by 2031 at a CAGR of 10.1% from 2024 to 2031.

“Packaging automation is the process of packaging products using automated technologies which require minimal or no manual intervention,” Meticulous Research said. “Automated packaging systems have transitioned from singular machines that automate one step in the packaging process to integrating all steps seamlessly into the entire packaging process. Packaging automation helps improve production speeds and efficiency and ensures high quality control and standardization.”

According to the report, the three primary source of growth for the packaging automation market are the following:

• Rapid growth of the e-commerce sector
• Increasing adoption of automated systems across industries
• Stringent food safety regulations

The report also said market growth is hindered by the high costs of initially installing the automated systems and that labor continues to be a challenge for the industry.

“The high demand for packaging automation in the logistics industry and the increasing demand for sustainable and eco-friendly packaging are expected to create market growth opportunities,” Meticulous Research said. “However, the shortage of skilled operators is a major challenge for the players in this market. Integration of advanced technologies and smart packaging are major trends in the packaging automation market.”

The report divides the market research into categories such as offering, type and end-use industry. Within offering, the market is split between solutions and services.

Solutions include things like case sealers and erectors, sleevers and cartoners, palletizers and depalletizers, strappers, markers and labelers, automated mailer systems, and case packers. Services include consulting, installation and training, and support and maintenance. According to the report, the solutions segment is expected to be worth $51.2 billion in 2024, making up the larger share of the global packaging automation market. This is attributed to the need for increased manufacturing speed, along with ensuring products and workers’ safety.

However, the solutions segment is expected to have the highest CAGR during the forecast period, due to “growing demand for packaging automation to speed up production, optimize warehouse space, and reduce reliance on labor to provide more value-added services to their customers,” the report said.

Within the type category, the packaging automation market is segmented into robotic pick and place, secondary packaging, and tertiary and palletizing.

The robotic pick and place segment is predicted to make up the largest share (41.5%) of the market, which is due to rising demand in the food industry, among others, the report said.

Within the end-use industry category, the food and beverage segment leads the market in 2024.

“In 2024, the food and beverage segment is expected to account for the largest share of 44% of the packaging automation market,” Meticulous Research said. “The segment’s large market share is mainly attributed to shifting consumer tastes, high competition in the packaged food market, and a surge in demand for packaged food. However, the e-commerce and logistics segment is projected to record the highest CAGR during the forecast period.”