Cohesive Automated Equipment Market

Market Outlook for Cohesive Automated Equipment

According to Fact.MR, the global market for cohesive automated equipment is anticipated to surpass an impressive valuation of around US$ 300 Bn and is likely to register nearly 7% CAGR through 2031. 

Extensive applications to manufacture packaging materials such as cohesive paper, cohesive corrugated sheets, cohesive films and cohesive linear boards are expected to sustain demand in forthcoming years. Growing demand for cohesive packaging that sticks to itself has resulted in a significant uptake of cohesive automated equipment.

Key Points Covered in Cohesive Automated Equipment Industry Survey:

• Market Estimates and Forecasts (2017-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• Assessment by Product Grade / Purity / Formulation Standards
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Certifications and Compliance Requirements
• COVID-19 Impact on the Cohesive Automated Equipment Industry and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Cohesive Automated Equipment from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – a market research and competitive intelligence provider, over the last 5 years, the global market for cohesive automated equipment expanded at a high CAGR, reaching US$ 155 Bn.

The automotive machines can either be purchased or taken on a lease depending upon the packaging company’s demand criteria and their capital investment. 

Moreover, e-commerce merchants are trying to provide a highly positive packaging experience to their end-users to boost their brand loyalty. This is another factor increasing the demand for cohesive automated equipment. It is also a great way to generate more revenue.

Thus, considering these factors, the market for cohesive automated equipment is projected to witness immense growth, surpassing the valuation of US$ 300 Bn, registering nearly 7% CAGR through 2031.

How is E-commerce contributing to Cohesive Automated Equipment Demand?

End users are increasingly reliant on e-commerce platforms to avail supplies of their inventory. This trend has also pervaded the cohesive automated equipment industry. Increasing demand for safe and secure shipment of goods has spurred its sales via online channels.

Amidst the COVID-19 pandemic, demand for various products surged exponentially across major end use industries. This subsequently led to a call for deploying highly safe and secure packaging solutions. Hence, automated system applications to manufacture packaging boxes, envelopes and other formats increased, generating demand for cohesive automated equipment.

According to estimates in a UNCTAD report published in May 2021, there was a dramatic rise in e-commerce amid movement restrictions induced by COVID-19 increased online retail sales’ share of total retail sales from 16% to 19% in 2020. Manufacturers are focusing on launching customized and smart packaging solutions and automated packaging equipment that can integrate with warehouse management systems (WMS).

For instance, Pregis announced the launch of, the IntelliPack® SmartBagger™ which creates customized foam protective packaging for order fulfillment operations dealing with high-value, fragile merchandise. Operators can use it to mix two components together in a bag that immediately begins to expand into foam.

The foam can be molded around products and conform to the shape of parcels for universal cushioning and tight blocking and bracing. The machine is equipped with the Maxwell Intelligent Interface, which can track metrics such as material use, throughput, and other valuable KPIs.

How is Cold Seal Cohesive Coated Protective Packaging Driving Demand?

Cohesive automated equipment encapsulates the product that is supposed to be packed in a cold seal cohesive coated protective packaging, by locking in the product at the right place and only using the required amount of raw materials to packing that specific product. 

This machine dramatically reduces the time period to pack one product, labor costs, operational costs, increases order consistency and increases operational performance. Increasing uptake of cold seal cohesive protective packaging is due to its heat insulation and aroma retention properties. Moreover, the rises in per capita income and growing health concerns in developed economies are some of the other trends driving the demand in the market.

In addition, manufacturers are emphasizing on sustainability as the major factor to launch a new range of packaging equipment. In December 2020, Henkel announced the expansion of its RE range, which is “designed for recycling,” to include both hot- and cold-sealable coatings for paper. According to Henkel, the products are certified as paper-recycling compatible and allow a new range of packaging designs.

Country-Wise Analysis

Why is North America an Opportunistic Market?

North America is projected to be the largest revenue contributor to the global market for cohesive automated equipment through 2031, accounting for 60% of total revenue. North America is a developed region investing in emerging technologies with the help of companies, governments, and universities. This gives a competitive edge in the global economy. The U.S has a strong base of export of packaging machinery which has contributed to its growth.

Moreover, demand will be heavily influenced by broader developments in the U.S chemicals sector. The Chemical Activity Barometer is indicative of ascendancy in the U.S chemicals sector. However, the US chemicals sector growth will depend to a large extent on how end-use industries fare.

What is the Demand Outlook for Cohesive Automated Equipment in India?

India is expected to remain lucrative during the forecast period owing to the retail e-commerce packaging market as the region has seen robust internet penetration rates along with various retailer sectors. A CAGR of 6% is projected for the Indian market.

According to the Indian Brand Equity Foundation, the Indian textile and apparel industry is expected to grow to US$ 190 billion by FY26. The apparel and soft goods segment are one of the major segments driving the market. Hence, sales of cohesive automated equipment to package fabrics is gaining significant traction.

The country is currently working on the Prime Minister’s Make in India initiative with the objective of facilitating investment, fostering innovation, building best-in-class manufacturing infrastructure, making it easy to do business, and enhancing skill development. This is projected to boost the market in the region. 

Category-Wise Analysis

Which is the Primary Application Area for Cohesive Automated Equipment?

On the basis of application, the market will continue to gain traction in the FMCG sector, capturing nearly 70% of total demand.

While the food and beverages sector is expected to be the largest consumer throughout the forecast period, E-commerce has been recognized as the most opportunistic application area for stakeholders in the industry.

Competitive Landscape 

The global cohesive automated equipment market is highly competitive in nature. Amid the growing competition in the cohesive automated equipment market, leading players are focusing on strengthening their market position and gaining traction in the competitive global market. 

• For instance, BDL announced its partnership with Surface Guard with the aim to install the machinery and raw material to allow various parts and equipment pieces to be run in a cohesive cold seal.
• Cohesive packaging equipment can run a wide range of products of varying sizes. Automated cohesive packaging can achieve 20-35 packages per minute, which greatly increases output. 

Report Scope

Report Attribute	Details
Market size value in 2020	USD 155 Billion
Market forecast value in 2031	USD 300 Billion
Growth Rate	CAGR of 7% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	U.S. Canada Germany U.K. France Spain Italy Russia China Japan South Korea India Australia Brazil Mexico Argentina GCC South Africa
Key Market Segments Covered	Machine Type Application Regions
Key Companies Profiled	Accutech Packaging Inc. American Packaging Capital IPS Packaging & Automation Pregis Innovative Packaging Inc. Marsh Automation Pvt. Ltd. Huges Enterprise Sealed Air Packaging Vibgyor Technplus Westrock Company TPC Packaging Solutions
Pricing	Available upon Request

Key Segments Covered

• By Machine Type

  • Tabletop Cohesive Automated Equipment
  • Mini Cold Sealing Machines Cohesive Automated Equipment
  • System Packaging Model 200 (for low volume)
  • System Packaging Model 4500 (for high volume)

• By Application

  • Cohesive Packaging Equipment for Books & Media
  • Cohesive Packaging Equipment for Apparel & Soft Goods
  • Cohesive Packaging Equipment for E-commerce packaging
  • Cohesive Packaging Equipment for Consumer durables
  • Cohesive Packaging Equipment for FMCG/ Retail