Coding and Marking in Food & Beverages Market - Global Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

Growing product counterfeiting and increasing government regulations are fueling the demand for coding and marking services

The coding and marking in food & beverages market size will reach USD 3.8 billion by 2024, growing at a CAGR of 8% during the forecast period. The global coding and marking market is growing steadily. The CIJ technology segment dominated the market in 2018. Nevertheless, the increased popularity of PALM and laser technologies is offering a tough competition to CIJ technology. The market growth is highly correlated with the growth of the global packaging industry. Since the global packaging industry is growing at a steady rate of approximately 5% annually, the market is also experiencing steady growth. Furthermore, increasing instances of product recalls, counterfeiting, and government regulations that mandate printing of the product-specific information on packets are fueling the demand in the global market.

Millennials and the Gen Z population considerably drive the food & beverage industry growth. With modern-era consumers becoming smarter in terms of purchase decisions, the market for packaged food products with information is becoming highly popular. Also, the Gen Z and millennial population are consistently aiding the launch of organic and healthy foods. The emerging trend of eating healthy and staying fit, especially by the Gen Z and millennial population, is pushing F&B companies to launch innovative ready-to-eat food products. For instance, more than 65% of Americans tend to prioritize socially conscious and healthy food products.

Adherence to regulatory standards plays a vital role in coding and marking solutions in the food and beverage market. Regions have their own set of standards with regard to the regulatory environment for coding and marking. For instance, EU countries have their set standards to follow while marking up of food products. Similarly, the US follows guidelines set by the USFDA. Hence, stringent government regulations are driving the use of specific solutions. Besides, these regulations help end-users to identify authentic products and reduce the penetration of counterfeits in the market. Thus, the formulation of stringent regulations and standards is driving manufacturers to adopt coding and marking services, which is expected to boost the overall market growth during the forecast period significantly.

CODING AND MARKING IN FOOD AND BEVERAGE MARKET SEGMENTATION

The market research report includes detailed market segmentation by

• Technology
• Product Mix
• Geography

INSIGHTS BY TECHNOLOGY  

The market by PALM technology is projected to grow at a CAGR of over 7%.

The global coding and marking in the food and beverage market comprises several technology printers such as CIJ, Laser, VIJ, PIJ, TTO, TIJ, and PALM. In 2018, the CIJ segment accounted for over 40% share of the global market, followed by laser, PALM, TTO, PIJ, VIJ, and TIJ segments. The laser and CIJ technology segments are expected to increase their market shares during the forecast period. Lasers systems are free of consumables such as ink; hence, they have low maintenance. Also, the TTO segment will witness high CAGR as TTO systems do not require solvents or ink bottles, ensuring a standard printing process that is cost-effective. The PIJ segment is likely to grow at a reasonable CAGR during the forecast period due to high technical aspects.

CIJ is the most commonly used technique given its user-friendly installation procedure. The technique is widely used as it offers high-speed printing with a “quick-dry" nature, which is a significant driver for its high market share. The printing technique is easily available and has a high penetration in the market. However, the method faces several drawbacks, such as overlapping coding.

The laser coding and marking market has the second-highest growth rate due to the advantage, such as code permanence and clear codes. The laser technology have a high uptime due to low maintenance. Also, they help to maintain a clean production environment. Laser technology offers low maintenance with high-quality output. Coding and marking via laser technology lasts longer than other printing technologies. However, this technology is not appropriate for coding and marking all types of surfaces or materials. The cost of ownership is still high, which further affects its acceptance among end-users.

The global coding and marking in the food and beverage market by PALM technology is projected to grow at a CAGR of over 7%. The technology automatically prints and applies labels on products as they move along the production line or any logistics facility. PALM is capable of printing all types of text, numbers, graphics, barcodes, and logos on products and packages. This technology is mostly used in the beverages industry because of its rapid and straightforward integration with types of machinery. Hence, the ability of this technology to print on any surface is a major factor driving the growth of the segment.

TTO technology is growing at a steady rate worldwide. It is established for coding on flexible packaging films and labels and is versatile and easy to install. The technology has become affordable and is gaining recognition as a replacement to old and non-digital technologies such as roller coders and hot stamps. TTO technology is widely used in the food & beverages industry. It is a high-resolution coding solution mainly used for flexible packaging and labeling. As this technology requires less operational work than older technology such as hot stamp printer, the segment is expected to drive the market during the forecast period.

INSIGHTS BY PRODUCT MIX

Adherence to industry standards and regulations remains highly crucial for coding and marking ink manufacturers catering to the food and beverage industry

The consumables segment dominates the global coding and marking in the food and beverage market. Food and beverages are highly dependent on the usage of coding and marking applications. The growth in the food and beverage industry has fueled the need for better quality inks in the market, thereby driving the market. However, there have been several innovations that are driving the growth. Adherence to industry standards, policies, and regulations remains highly crucial for coding and marking ink manufacturers catering to the food and beverage industry. Hence, stringency in regulations is expected to drive the market.

INSIGHTS BY GEOGRAPHY

The APAC market is expected to witness rapid growth

The market is diversified in APAC, Europe, North America, Latin America, and MEA. In 2018, APAC dominated the market and followed by Europe and North America. Latin America and Middle East & Africa accounted for small market shares in 2018.

Urbanization in the APAC region is expected to bolster demand for food & beverage products, thereby driving the demand for coding and marking in the food and beverage market during the forecast period. While Japan and China are the major markets, countries such as India are expected to witness high demand due to improving the quality of life. There is an onset of innovative, flexible packaging designs in Japan, South Korea, China, Indonesia, and India. This is directly leading to the growth of the coding and marking market. APAC is witnessing high growth in the number of middle-income families. These families are increasingly improving their lifestyles and adopting new lifestyles. Further, the consumer market in APAC, particularly in Southeast Asian countries, is poised to grow at a tremendous rate because of the higher spending power of buyers in various countries.

The market in Europe is mature. Hence, the growth rate is comparatively less than the global market. The food & beverage processing industry is the largest manufacturing industry in Eastern & Central Europe. The sale of beverage grew by 9.1% during the period 2012–2017, while the demand for beverage packaging increased by 8% during the same period.

The North American market is highly developed and has several large multinational manufacturing companies operating in the food & beverage industry. The food & beverage industry has coding and marking requirements to label manufactured products. Key factors that are increasing the market growth include regulations and industry mandates. The Food Safety Modernization Act, which was introduced in the US in 2011, ensures that food products are coded with product traceability and authentication systems. Several government regulations in the US mandate the printing or marking of product information on packages of food and beverages. Further, the packaging market in the region is developing at a steady pace. Thus, the coding and marking in the food and beverage market will witness positive growth in demand during the period.

The market in Latin America is growing at a slower rate than other regions, mainly because of the additional logistics cost required to import raw materials to these regions. The low availability of raw materials in Latin America necessitates its import, thereby increasing manufacturing costs for vendors in this region. The raw materials price inflation is not being translated to customers as their purchasing power is comparatively lower than other regions. Also, the lack of trained professionals in this industry results in operational difficulty for these devices. The management team of vendors in this region faces difficulty in speeding up the process to match up to their competitors in developed countries.

The market in MEA is witnessing high growth, particularly in African countries, where the demand for consumer durables is increasing rapidly. Africa is one of the emerging and fastest-growing economies globally. Western Africa has been growing rapidly than the southern countries of Africa. The presence of certain prominent players in the food sector, such as Nestle, Savola, and Fonterra, is further boosting the growth of the sector in recent years in the region. Thus, considering the strong growth of the food & beverage industry across the country, the demand for effective coding and marking in food and beverage market can be expected to remain strong in times to come.

KEY VENDOR ANALYSIS

The global coding and marking in food and beverage market is highly fragmented. On the one hand, there are global players providing coding and marking devices with high functionalities and designs. All key companies have a global presence in three major geographical regions such as North America, APAC, and Europe. However, there are local vendors providing products with similar specifications at lower prices. CIJ systems provided by local vendors are priced 6–7% less than by global vendors. However, products of local vendors would deliver low performance than global vendors. This has intensified price wars among vendors. The market is facing the threat of infiltration with low-quality products. This is countered by innovative efforts taken by few companies to provide authentic solutions. The adoption rate of coding and marking services in the food and beverages industry has been impressive. As a result of increased demand, the market has witnessed the entry of many vendors that provide equipment at a low price. The competition has intensified, leading to the introduction of many innovative and advanced solutions in the market.

The coding and marking in food and beverage market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Segmentation by Product Mix

• Equipment
• Consumables
• Spare parts and Aftermarkets

By Technology Type

• CIJ
• Laser
• TTO
• TIJ
• PIJ
• VIJ
• PALM

By Geography

• North America
  • US
  • Canada
• APAC
  • China
  • Japan
  • India
  • Australia
  • Singapore 

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Turkey
  • Poland
  • Benelux
  • Scandinavia 

• Middle East & Africa
  • South Africa
  • Iran
  • Nigeria
  • Saudi Arabia
  • UAE
• Latin America
  • Brazil
  • Argentina
  • Mexico