PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1298131
PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1298131
The global coding and marking market is expected to grow at a CAGR of 8.74% from 2022-2028.
PACKAGING INDUSTRY POST COVID-19 SCENARIO
The post-pandemic packaging industry has witnessed a huge demand for packaging designs. Consumers shifted towards sustainability packaging with strong narratives. This is revamping the packaging sector. Earlier, people were price-conscious, but the focus shifted toward hygiene and safety. Government bodies may strengthen the requirements related to food packaging & processing to ensure safe food provides to consumers. Consumers are now willing to pay more for all-around packaging, which provides safety and hygiene.
Due to such factors post-Covid-19, consumers are increasingly interested in the information and data available on the products' packaging, quality, origin of the raw material, health claims, and about disposing of the packaging. A huge increase in e-commerce demand creates vast packaging industry opportunities. Buying groceries online is also a trend that is significantly booming the packaging sector, and after some time, buying everything online will be a preferred mode for consumers. Hence, this will boost the demand for packaging, increase the development of anti-counterfeit solutions in packaging, and contribute to the coding and marking market growth.
MARKET TRENDS & OPPORTUNITIES
Significant Rise In Flexible Packaging
One of the key drivers for the global coding and marking market is an increase in the flexible packaging of products. Flexible packaging is fast gaining popularity and has witnessed significant growth over the last few years. Several factors, including increased ready-to-eat items, the advent of flexible substrates and films, growth in the e-commerce industry, and a rise in retail stores, drive flexible packaging market growth. Flexible packaging is not an exception when it comes to coding and marking solutions that affect different types of packaging to meet the delivery requirements and cater to the fast delivery demand of consumers.
Innovative Consumable Offerings
The coding and marking solutions market is becoming more competitive, with several low-cost offerings being launched regularly. At the same time, vendors must stay up-to-date with the latest end-user industry changes and devise their offerings. Thus, coming up with new and advanced offerings based on the modern-day needs of customers remains crucial in this aspect. Several vendors catering to the industry have consistently focused on introducing new forms of ink or similar solutions for customers. Vendors, such as Domino Printing Sciences, Paul Leibinger Inkjet Systems, and Weber Marking Systems, have successfully guided this headwind to their advantage. Domino Printing Sciences, the leader in the coding and marking ink market, has launched a disappearing ink for track and trace solutions. The UV-activated ink for its TIJ range has been developed to enhance the security aspect of the internal trace and track process for products.
Increasing Counterfeiting of Products
A major hurdle in the global coding and marking market is the counterfeit of products. This is indeed a significant problem that has been affecting the coding & marking market. The industry is responsible for creating & printing unique codes and marking son products to enable their traceability & identification throughout the supply chain. However, counterfeiting activities make it difficult for vendors to ensure that their products are properly identified and tracked. Counterfeit products often need the proper codes and markings, making them difficult to trace and creating potential safety and quality risks for consumers. Counterfeiting can also harm legitimate businesses by decreasing consumer confidence in their products, leading to lost sales & revenue. In the coding and marking systems market, this can translate to decreased demand for coding & marking technologies. Companies may not see the value in investing in these solutions if they believe their products will still be counterfeited.
INSIGHTS BY TECHNOLOGY
The global coding and marking market comprise various technology coding printers, such as CIJ, Laser, VIJ, PIJ, TTO, TIJ, and PALM. In 2022, the CIJ segment accounted for around 39% of the global industry, followed by the laser segment. Continuous Inkjet Technology is one of the most widely used technologies in the industry. It is a non-contact printing technology that uses a continuous stream of ink droplets to create characters and codes on various substrates, including plastics, metals, and paper. The technology uses a high-pressure pump that targets the ink through a nozzle onto the surface of the product material as the ink is stored in a reservoir. One of the advantages of CIJ technology is its ability to print on various substrates, including curved and irregular surfaces. The laser and TIJ coding and marking technology segments are expected to gain market share during the forecast period. The laser system is free of consumables, such as ink; hence, it has low maintenance.
Segmentation by Technology
INSIGHTS BY END-USERS
The F&B industry was the largest end-user segment in the global coding and marking market in 2022, accounting for around half the market share. The growth in F&B and healthcare segments is attributed to the improving demographics across the globe, increasing investment, strict regulations by the government, and a shift towards urbanization. In addition, several other factors, such as changing consumer preferences regarding product consumption, increasing demand for sustainable packaging, rising demand for attractive packages, and many more, fuel the growth of end-user industries, eventually boosting the global coding and marking systems market.
Segmentation by End-Users
INSIGHTS BY PRODUCT MIX
The global coding and marking market by product mix is divided into equipment (printers, coders, and markers), consumables (ribbons, fluids, print heads, and filters), and spare parts & aftermarket. The consumables segment dominates the global coding and marking market. The consumables segment is expected to hold a significant market share as they are continuously used during printing. The increasing demand for laser toners, thermal transfer ribbons, inkjet fluids, and others is primarily driven by the growth of the packaging industry. The demand for consumables in the global coding and marking systems market increased during the COVID-19 pandemic owing to huge requirements for inks and other consumables from the F&B and healthcare industries.
Segmentation by Product Mix
The global coding and marking market is well-diversified across North America, APAC, Europe, Latin America, and MEA. In 2022, APAC dominated the global coding and marking market, accounting for over 31%. The APAC market is expected to grow rapidly due to the high demand for coding and marking tools in various end-user industries during the forecast period. The urbanization of developing countries in APAC is expected to bolster the demand for food and beverage products and healthcare provisions, thus driving the demand for coding and marking equipment during the forecast period. While Japan and China are the major codings and marking systems markets, countries like India are expected to witness high demand due to improved quality of life.
Segmentation by Geography
The coding and marking market is highly fragmented and competitive, with many players offering various products and solutions. Companies compete on product quality, innovation, customer service, and price to gain industry share and differentiate themselves from competitors. A few large players dominate the global coding and marking equipment market, including Danaher Corporation, Dover Corporation, Domino Printing Sciences, Hitachi Industrial Equipment Systems, and ID Technology. These companies have established themselves as leaders in the industry, with strong brand recognition, a wide range of products, and extensive distribution networks.
Key Company Profiles
Other Prominent Vendors
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