Catering to Contract Packagers Key to Revenue Growth in Packing Machinery Markets.

PALO ALTO, Calif. -- Revenue growth in the North American packaging machinery markets will largely come from the continuing end-user need to upgrade and enhance packaging technology in order to remain competitive and cost effective in their respective markets. As packaging material trends change, packaging machinery manufacturers must adapt and meet the challenges posed by such developments.

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), North American Packaging Machinery Markets, reveals that this market generated revenue of $1.42 billion in 2004. Total market revenue expects to reach $1.75 billion in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the North American Packaging Machinery Markets, then send an e-mail to Trisha Bradley -- Corporate Communications at [e-mail] with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

The increasing preference of large retailers and club stores to offer novel packaging without incurring heavy capital expenditure has spurred the demand for services of contract packagers. Contract packagers -- responsible for about 12.0 percent of the total North American packaging market output are in constant need of cost-effective machinery with the minimum switchover time. Packaging machinery manufacturers that meet this demand can reap maximum benefits.

Another factor strongly influencing the market is the increasing demand for visually attractive packaging for foodstuffs. The food and beverage industry has a very large installed base of packaging machinery. Selection of packaging material depends largely on the type of store -- grocery, specialty, or supermarket. Stand-up pouches (SUPs) -- used extensively for both human and pet food -- dominate the supermarket shelves.

"In specialty stores, shopping is more focused and the clientele is willing to spend on up-scale products and value-added packaging," notes Frost & Sullivan Research Analyst Kallol Bagchi.

Further, the increasing use of catalogs and websites by companies, results in consumers receiving packages directly from distribution centers (DCs). The opportunity for manufacturers lies in the increased demand for corrugated boxes with more interior packaging.

"Packagers need to ensure that the goods reaching end users are intact while simultaneously offering convenience by using void-fill packing materials such as recyclable paper and plastic air pouches that reduce wastage," points out Bagchi.

Irrespective of the type of packing -- individual, group, or bulk -- packaging machinery should ensure convenience in terms of display, storage, transportation, and handling. Companies must focus on providing packaging equipment that ascertains product safety and prevents contamination as well as adulteration -- especially in the food and beverage and the pharmaceuticals industry.

The North American Packaging Machinery Markets, a part of the 9401-A5 subscription, provides an overview of and outlook for these markets detailing revenue forecasts by region and end user. The study looks into the major categories of packaging machinery based on machine functions -- filling, closing, filling and closing, form-fill-seal (FFS), wrapping, and palletizing. It enables companies to align their positioning strategies for benefiting from the changing markets and obtaining maximum return on investment. Analyst interviews and executive briefings are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

North American Packaging Machinery Markets

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Keywords in this Press Release: packaging machinery, North America, club stores, retailers, filling, closing, filling and closing, form-fill-seal, FFS, wrapping, palletizing, switchover time, stand-up pouches, SUPs, distribution centers, DC, research, information, market, trends, technology, service, forecast