Customer-centricity remains key focus of pulp moulding machines market
The pulp moulding machines market is set to expand at a CAGR of 4% from 2019-2019, according to a report by Future Market Insights.
06 Nov 2019 | By Aultrin Vijay
According to the report, increased adoption of sustainable materials in food and consumer goods packaging is expected to gain momentum for moulded pulp containers and allied products. Sales of advanced pulp moulding machines are set to increase with rising demand for single-use sustainable packaging products. The need for automation, efficiency, and lower energy consumption in the manufacturing of packaging products is leading end users to adopt more advanced pulp moulding machines.
The report stated that in order to satisfy the customer demand for better-performing machinery at reasonable prices, manufacturers have been adopting the strategy of up-gradation and optimisation. Machine manufacturers have been actively focusing on quality improvement of products and energy optimisation in production. European pulp moulding machine manufacturers are at the forefront in research and development activities, it stated.
The study found that rotary pulp moulding machines with automatic features are expected to attract more customers. As small- and medium-scale end-users adopt pulp moulding machines, sales of semi-automatic pulp moulding machines are estimated to grow during the forecast period. The pulp moulding machine with 1,501-3,500 units/hr capacity is likely to gain momentum in the global market, owing to affordability and efficiency. The rising demand for moulded pulp trays from the food and beverages industry is expected to boost the demand for the machines. Fruit and egg packaging is estimated to be the leading end-use application of pulp moulding machines in 2019, the report said.
According to the report, the food industry in South and East Asia has been offering a lucrative sales opportunity for moulded pulp packaging products. Additionally, factors such as rising consumer awareness of sustainable products, expansion of retail distribution, and global food chains entering the market are contributing to the pulp moulding machines market growth. The food delivery channels are gaining traction in the Asia Pacific region, which also provides high market growth to the food packaging industry. “The overall development of the food industry in the Asia Pacific region is expected to provide an impressive growth to the pulp moulding machines market during 2019-2029,” the report mentioned.
The study further stated that environmental, social, and economic concerns have resulted in a growing demand for sustainable packaging products including trays, containers, cups, bowls, plates, and others. Thus, the global moulded fibre packaging market is expected to grow.
Key players in the pulp moulding machines market are focusing on after-sales services and efficiency enhancement to gain popularity among end-users, the report stated. According to the report, manufacturers are also concentrating on the expansion of businesses in developing markets and partnering with new value chain participants to achieve sales growth.
Adoption of sustainable packaging
The growth of the food industry has been driving the growth of allied sub-sectors including the foodservice packaging sector. The increasing number of quick-service restaurants across the globe has been fuelling the demand for foodservice disposables. Such restaurants are minimising efforts to clean and maintain the used containers. Hence, the need for single-use, low-cost disposable containers have gained traction over the years. Most of the foodservice outlets in Western European countries prefer moulded fibre pulp packaging solutions. The packaging manufacturers are looking forward to differentiating themselves in the marketplace through new product development. The use of sustainable material in packaging product is one of the key efforts to stand out in the competition.
Competition in terms of price and quality
Different companies from the Chinese market are offering pulp moulding machines at competitive prices, which is beneficial for East and South Asian end-users, particularly SMEs. This is expected to affect the growth of the European pulp moulding machines market in the coming years.
Irrespective of the positive outlook, an increasing number of players in the pulp moulding machines market and instability of pulp moulding machines component prices are leading to a decrease in the profitability margins. In addition, the entry of new players, an increase in the manufacturing capability of existing players, and the demand for a higher margin by distributors continue to affect the profitability margin. Thus, according to the report, pulp moulding machines manufacturers need to establish strong relationships with customers and distributors to strategically position their products in terms of price, to hold up in the competition.
Pulp Moulding Machines Market: Regional Analysis
According to the report, increasing demand for eco-friendly packaging, significant growth of the food service industry, and rising disposable incomes in the East and South Asia regions are key factors for the pulp moulding machines market growth. China is expected to be dominant in terms of pulp moulding machines demand and production. The Asian countries opt for sustainable materials in consumer goods and food packaging, which is a critical factor for the growth of the market.
Although Europe remains in the vanguard in terms of market share, it is projected to witness a sluggish growth. The continuous expansion of the food service industry using eco-friendly packaging solutions is the key factor that is expected to drive the growth of the market, the report said.
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