Coding And Marking Equipment Market is expected to continue dominating the market over the forecast period

Posted on 2022-09-23 by researchinsights in Industrial // 0 Comments

Coding And Marking Equipment Industry Overview

The global coding and marking equipment market size was valued at USD 14.5 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2028.

The growth of the market can be attributed to the growing demand for coding and marking equipment, particularly from the pharmaceutical and food and beverage industries. Incumbents of the pharmaceutical industry are putting a strong emphasis on countering counterfeiting and tampering by using flexible packs, such as forming films, top webs, chevron pouches, header bags, and strip bags with specific codes and marking, which bodes well for the growth of the market. Similarly, the growing preference among consumers for packaged and labeled food and beverages is encouraging food & beverage manufacturers to deploy coding and marking equipment.

Gather more insights about the market drivers, restrains and growth of the Global Coding And Marking Equipment Market

The outbreak of the COVID-19 pandemic took a severe toll on the coding and marking equipment market. Production activities at several manufacturing sites were suspended temporarily as part of the lockdowns and restrictions imposed as part of the efforts to arrest the spread of coronavirus. Restrictions on the movement of people and goods also affected the exports and imports of the equipment. The overall coding and marking equipment market may have plummeted in the wake of the pandemic; however, an uptick in the demand for coding and marking equipment from the pharmaceutical and healthcare industry was typically evident during Q1/2020 and Q2/2020, as the incumbents of the industry put a strong emphasis on appropriately coding and marking medical equipment, such as medical masks, and personal protective equipment (PPE) kits.

The quality of food can have a direct impact on consumers’ health. Hence, food safety is turning out to be a major concern for the incumbents of the food industry. Compromised quality, compliance failures, and subsequent product recalls can lead to severe monetary losses and leave food companies with a tarnished reputation along with a loss of customer loyalty and diminished brand value. As a result, food and beverage companies are putting a strong emphasis on implementing coding and marking equipment.

In the automotive industry, coding and marking equipment can play a vital role in countering counterfeit automobile parts by coding the automobile parts appropriately. The Automotive Aftermarket Suppliers Association (AASA) estimated that the automotive industry loses approximately USD 12 billion every year due to counterfeit products. Automotive manufacturers typically prefer invisible inks to print scannable, anti-counterfeiting barcodes to counter counterfeiting. The anti-counterfeiting efforts being pursued by the incumbents of the automotive industry are expected to drive the demand for coding and marking equipment.

However, coding and marking machines tend to be very expensive. Implementing coding and marking systems can be a highly capital-intensive task. All the participants of the supply chain, especially the smaller players, may not possess adequate financial resources to have the infrastructure in place required to implement coding and marking systems. Hence, the high prices associated with the coding and marking equipment are expected to restrain the growth of the market over the forecast period.

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