PMMI STATE OF THE INDUSTRY US PACKAGING MACHINERY REPORT EXECUTIVE SUMMARY 11911 Freedom Drive | Suite 600 | Reston, VA 20190 USA Findings of an in-depth market research study providing analyses for twenty-eight packaging machinery categories

2016 PMMI State of the Industry | US Packaging Machinery Report Reston, VA 20190 VA Reston, | pmmi.org/research | State of the Industry the of State August 2016 August Vice President, Market Development Market President, Vice Director, Business Intelligence, PMMI Intelligence, Business Director, The Association for Packaging and Processing Technologies Processing and Packaging for Association The © PMMI, The Association for Packaging and Processing Technologies 2016. All rights reserved. The information contained herein shall not be not shall herein contained information The reserved. rights All 2016. Technologies Processing and Packaging for Association The PMMI, © PMMI. of permission written express the without reproduced be may document this of part No recipient. the by shared or distributed IHS. No© portion2016 of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent,or with reproduced Content IHS. and client between agreement license the in permitted be may as distribution client internal any of exception the redistributed with IHS permission must display IHS legal noticesThe information and attributions contained of authorship. herein is from are based upon which nor are the opinions and analyses sources considered reliable but its accuracy and completeness are not warranted, reliance by incurred expense or damage loss, any or omissions or errors any for liable be not shall IHS law, by permitted extent the to and it, appearing marks other or names company products, All America). on information or North any statement contained herein.outside For more information,(from 300 please contact328 IHS at [email protected],1344 (0) +1 800+44 IHS or CARE locations), American North (from owners. respective their or IHS of property and trademarks the are publication this in Phone: (571) 612-3200 612-3200 (571) Phone: Date: Publication PMMI 600 Suite Drive, Freedom 11911 Izquierdo, Jorge Paula Feldman, Paula EXECUTIVE SUMMARY EXECUTIVE 2016 Report Machinery Packaging US

2016 State of the Industry US Packaging Machinery Report CONTENTS

1 • EXECUTIVE SUMMARY 1.1 Summary of the US packaging machinery industry gather insights 1.2 Segmentation of the Packaging Machinery Market 6 learn developments

US Shipments of Packaging Machinery Value

$7.51 Billion in 2015

Factors influencing the growth in demand of packaging machinery as well as technology trends affecting packaging machinery can be found in PMMI's Trends in Packaging and Processing Operations {}Report at pmmi.org/research

EXECUTIVE SUMMARY

SECTION ONE EXECUTIVE SUMMARY

FIGURE ES.1 Summary of the US Packaging Machinery Industry

ORDER BACKLOGS

$7.51bn PO: +0.3% +14.1% 3 $2.6 bn The value of domestic shipments - US produced Backlog orders of packaging machinery dollar machinery rose 0.3% to 7.51 Billion in 2015. shipments in 2015 increased by 14.1% compared to backlog orders at the end of 2014.

The Value of Domestic Shipments — US-produced machinery rose 0.3% to 7.51 b in 2015 1.1 2016

EXPORTS IMPORTS PMMI State of the Industry | | Industry the of State PMMI Exports of packaging machinery -4.3% Imports decreased in dollar shipments in 2015 2015 and are now 2.5 +3.2% increased by 3.2% compared billion. This represents a to 2014 and are now 1.0 billion 4.3 decrease from 2014. $1.1 bn $2.5 bn

TABLE 3.1 Summary of the US Packaging Machinery Industry Results, 2013, 2014 and 2015 (Millions of Dollars)

2013 2014 2015 Change% US Packaging Machinery Report Report Machinery Packaging US

US Packaging Machinery Production – Domestic Shipments $7,172 $7,489 $7,513 0.3% US Packaging Machinery Production – Total Shipments* $8,216 $8,571 $8,630 0.7%

The US Packaging Machinery Market* $9,643 $10,114 $10,026 -0.9% Exports** $1,044 $1,082 $1,117 3.2% Imports** $2,471 $2,625 $2,513 -4.3%

Order Backlog as of December 31* $2,441 $2,284 $2,605 14.1%

* 2014 and 2015 data as shown in previous PMMI State of the Industry Studies **Source: US Census Bureau, Packaging Machinery (NAICS 333993) EXECUTIVE SUMMARY

SEGMENTATION OF THE PACKAGING MACHINERY MARKET FIGURE ES.2 US Domestic The 28 machinery categories defined later in the report Shipments of Machinery Groups are presented in 10 consolidated machinery groups listed below. The value of US shipments of packaging machinery Machinery Groups and Machinery Categories 2015 2020 % Bottling Line Machinery $7.51b 2.4 $8.5b Accumulating / Collating Machines Cleaning, Sterilizing, Cooling and Drying Machines The value of US domestic shipments Feeding Machines of packaging machinery is estimated to Orienting and Unscrambling Machines have been worth 7.51 billion in 2015. IHS forecasts this to grow at a CAGR of 2.4% Cartoning Machinery to 8.5 billion in 2020. Cartoning Machines 2,000 Case / Tray Handling Machinery Revenues ($M) Case / Tray Sealing Machines Case / Tray Loading / Unloading Machines 2015 Case Erecting / Tray Forming Machines 2020 Case Group / Load and Close / Seal Machines 1,500 Closing Machinery Capping, Overcapping and Lidding Machines Closing, Seaming and Sealing Machines

Filling and Dosing Machinery 1,000 Filling and Closing Machines Filling – Dry / Powder / Solid Product Machines Filling – Liquid / Gas / Viscous Product Machines 1.2 Form / Fill / Seal Machinery Form / Fill / Seal – Horizontal Machines 500 Form / Fill / Seal – Vertical Machines

Labeling, Decorating and Coding Machinery Coding Machines Dating, Printing, Marking, Stamping and Imprinting Machines Labeling Machines (Product Identification,

Decorating) Other Closing & Coding Cartoning Palletizing Machinery Palletizing

Pallet Unitizing Machines Line Bottling US Packaging Machinery Report Case Handling

Palletizing – Ancillary Machines Filling & Dosing Form, Fill & Seal Form, Palletizing – Depalletizing Machiners Labeling, Decorating Wrapping & Bundling Wrapping Wrapping and Bundling Machinery Wrapping / Banding / Bundling Machines

Other Machinery The labeling, decorating and Blister Skin / Vacuum Packaging Machines coding and case handling machinery groups are forecast to Conveying Machines grow the fastest of all machinery Inspecting, Detecting and Checkweighing Machines types to 2020, at CAGRs of 3.9% PMMI State of the Industry | Converting Machines and 2.5%, respectively. Specialty Machines

2016 Other Machines EXECUTIVE SUMMARY

ES.3 US Packaging Machinery Shipments by Machinery Type, 2015

Accumulating / Collating Blister, Skin / Vacuum Packaging Capping, Over-Capping, Lidding Cartoning Case / Tray Sealing Case / Tray, Loading / Unloading Case Erecting / Tray Forming Case Group / Load and Close / Seal Cleaning, Sterilizing, Cooling and Drying Closing, Seaming and Sealing Coding Converting Conveying Coding, Dating, Printing... Feeding Filling and Closing Filling – Dry / Powder / Solid Product Filling – Liquid / Gas / Viscous Product Form / Fill / Seal – Horizontal Form / Fill / Seal – Vertical Inspecting, Detecting, Checkweighing Labeling Orienting, Unscrambling Pallet Unitizing Palletizing – Ancillary Palletizing / Depalletizing Specialty Packaging 1.3 Wrapping / Banding / Bundling 2016 Revenues ($M) 0 100 200 300 400 500 600 700 800 PMMI State of the Industry | | Industry the of State PMMI

ES.4 US Packaging Machinery Shipments by Industry Sector, 2015 and 2020

The pharmaceuticals sector is forecast to grow the fastest of all sectors to 2020, at a CAGR of 2.8%. This is followed by the beverages sector, which is forecast to grow at a CAGR of 2.4%.

2015 Beverages 2020 Food Report Machinery Packaging US (including nutraceuticals) Household, Industrial & Agricultural Chemicals Personal Care, Toiletries & Cosmetics Pharmaceuticals

Other End-User Sectors

Revenues ($M) 0 500 1,000 1,500 2,000 2,500 3,000 3,500