Packaging Digest

Study: Food packagers' purchases driven by economy and sustainability

PMMI survey shows group's buying plans to meet or exceed original budgets

John Kalkowski -- Packaging Digest, 12/1/2010 2:44:34 PM

Arlington, VA — New research from PMMI indicates 50 percent of food manufacturers expect to make packaging machinery purchases in the coming 12 months. The study, "Trends and Advances in Food Packaging 2010," is based on interviews with 50 food manufacturers and 15 packaging experts who represent 20 of the top 75 food packaging companies. The combined revenues of those 20 comes to more than half (53 percent) of that industry's revenue.

Half of the food manufacturers surveyed say they expect to purchase new equipment - at the same (40 percent) or greater (34 percent) spending levels than originally budgeted - in the next 12 months. The remainder of the group (12 percent) is uncertain about the expenditures or expects to spend less than planned. Among the food manufacturers interviewed, 34 percent do not expect to make a packaging machinery investment in the coming 12 months.

The Wish List: Automation, Ease of Use, Energy Efficiency & Adaptability
For starters, food packagers want multi-functional equipment. They also want equipment that is more intelligent, is more automated and has a user-friendly interface.

"I want state-of-the-art equipment that's energy efficient and will reduce labor and increase capacity," says a private label manufacturer's plant manager, who was interviewed for the study. The plant manager adds, "Machine flexibility for easy pouch size changeover is important, as is machinery that does not cost a lot to repair and maintain."

• Easy: Packaging equipment must be user-friendly to operate, uncomplicated to maintain, and fast and easy to clean.

• Energy Efficient: Packaging machinery must be more energy efficient to comply with food packagers' evolving sustainability initiatives by reducing their carbon footprint. They're also more cost effective to operate.
• Adaptable: In another economy-driven trend, many food packagers are trying to stretch their operating budgets with solutions to extend the life of existing equipment or refurbish older equipment currently not in use. However, with new equipment, they are not willing to sacrifice throughput for the sake of flexibility.

Planning for the future
As food packagers add new products, introduce sustainability initiatives, shrink packaging sizes and plan for future labeling changes they are demanding more sophisticated packaging machinery from packaging machinery manufacturers. Flexibility, multi-purpose functionality at the push of a button, variable product line speeds, energy efficiency and equipment that fits the food packager's budget will be the key criteria in their purchasing decision.
A senior engineer for a food manufacturer interviewed for the study summed it up: "Flexible changeover, versatility to retrofit for changing up the line and multi-purpose equipment that meets several needs are what we envision in the next generation of packaging equipment."

While meeting those needs may be challenging, it also presents a tremendous opportunity for packaging machinery manufacturers. Innovation in food packages will require innovation in food packaging equipment and technology, and machinery manufacturers that design more versatile, feature-rich equipment, while also providing retrofit kits to modernize older machinery and integration services for new machinery, will successfully position themselves as solutions providers that can thrive for years to come.

For a copy of "Trends and Advances in Food Packaging - 2010," contact Paula Feldman, director of research and surveys, PMMI: pfeldman@pmmi.org or 703.243.8555 begin_of_the_skype_highlighting              703.243.8555      end_of_the_skype_highlighting. PMMI members may receive the report at no charge (non-members: $3,500). An executive summary is also available.