The global coding and marking systems market was valued at $3,832.4 million in 2019, and it is predicted to progress at a CAGR of 6.4% from 2020 to 2030 (forecast period). The market is being propelled by the increasing use of coding and marking systems in the pharmaceutical and food and beverage industries and surging need for these systems in the automotive industry, on account of the mushrooming deployment of electric vehicles all over the world.
The burgeoning need for coding and marking systems in the pharmaceutical, cosmetic, and food and beverage industries is one of the major coding and marking systems market growth drivers. With the ballooning demand for bottled water, dairy products, fruit juices, and packaged foods, the food and beverage industry is exhibiting rapid expansion. This is subsequently pushing up the requirement for coding and marking systems. Likewise, the surging need for pharmaceutical products, on account of the growing incidence of chronic diseases, is also positively impacting the sales of coding and marking systems.
These systems are used for citing drug information and other details on the package containing pharmaceutical products. Depending on technology, the coding and marking systems market is divided into thermal transfer overprinting, laser coding and marking, continuous inkjet, thermal inkjet, print and apply labeling, and drop-on demand categories. Out of these, the continuous inkjet category is predicted to hold the largest share in the market in the forthcoming years. This is credited to the beneficial traits of this technology, such as its ability to print on nearly all materials and minimum servicing requirements.
The market is also categorized, on the basis of material, into plastic, metal, and paper and cardboard. Amongst thee, the paper and cardboard category is predicted to exhibit the highest growth rate in the coming years. This is credited to the expansion of the e-commerce sector, owing to the abundant product availability and convenience offered by online shopping platforms. Paper and cardboard are the main materials of choice in the e-commerce industry for packaging purposes.
Coding and marking systems are used for paper and cardboard materials in order to enable shipment tracking. Across the globe, the Asia-Pacific coding and marking systems market is predicted to demonstrate the fastest growth in the coming years. This will be because of the implementation of stringent government regulations, rising export of packaged foods, and the increasing prevalence of piracy and counterfeiting in the region. For example, the China Food and Drug Administration (CFDA) laid down labeling guidelines for pre-packaged food items in 2011, as per which, manufacturers are required to cite information related to ingredients, product name, storage condition, and batch identification on packages.
Thus, it can be safely said that the sales of coding and marking systems will surge sharply in the upcoming years, primarily because of the growing popularity of packaged foods and beverages and expansion of the e-commerce industry all over the world.