The global capping applicators market, similar to its parent industry of packaging machinery, is highly fragmented. However, the market is witnessing the rise of the trend of consolidation as key companies are increasingly following the course of strategic mergers and acquisitions with an aim of expanding their global footprint, observes a recent report by Transparency Market Research. A large number of mergers and acquisitions are taking place across the globe, such as the September 2015 acquisition of Kliklok Woodman, a US based packaging machinery manufacturer by Bosch Packaging Technology.
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The global cap applicators market is expected to exhibit a 6.4% CAGR in terms of revenue over the period between 2016 and 2024. As a result, the market is expected to rise from US$1,133.8 mn in 2016 and to US$1,866.7 mn by 2024. In terms of machine type, automatic capping machines are expected to remain the most lucrative ones, with the segment accounting for over 87% of the global market by 2024. In terms of geography, the market in Asia Pacific is expected to retain its position as the dominant contributor to the global market’s revenue throughout the forecast period. In 2016, the regional market is expected to account for a share of 34.6% in the global market.
Flourishing Food and Beverages Industry to Drive Demand for Cap Applicators
The global food and beverages industry has shown an exponential growth over the last few years. The industry accounts for nearly 55% of the packaging industry and thus plays a major role in aiding many changes in the way the packaging industry develops or adopts a new technology. The food and beverages industry has also been a key driver of the recent technological advancements observed in packaging machinery such as combo-machines of rinsing, liquid fillers, and capping. Backed with vast growth prospects, which assure of a good run in the near future as well, the food and beverages industry will be a key determinant of the global capping applicators market over the forecast period.
The ongoing trend of product manufacturers to launch new configurations and versions of caps and closures in packaging of their products is also expected to stimulate the demand for new cap applicators capable of accommodating the changes. While many existing capping machines are able to handle the newly adopted cap and closure designs with only minor amendments, a vast number and variety of older models fail to adhere to the changes and therefore require replacement. Consistent with the pattern of recent years, the packaging industry will be willing to change according to the shifting preferences of their clients, leading to a significant rise in demand for new capping machineries across the globe.
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Rising Demand for Refurbished/Used Capping Machines to Affect Market Negatively
Realization of the fact that used or refurbished capping machines are a plausible alternative to purchasing new machines has shifted the inclination of small scale industry manufacturers and packaging companies towards refurbished or used machines lately. Naturally, this factor is negatively affecting the volume of sales of new capping machines in the global market.
Adding to the concerns of the global cap applicators market is the fact that cap applicator machines have a long workable life cycle. Although this is an added benefit for the end-users of these machines, it also poses a threat for cap applicator machine manufacturers. The long workable lifecycle of cap applicators can affect the overall profitability by resulting in lower sales volumes. This scenario is expected to significantly hinder the overall growth prospects of the cap applicators market in the long run.
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.