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Packaging, process, marking and control equipment: market in decline but hope for recovery in 2021

Secimep, the international trade association for packaging, process, marking and control equipment, has announced a drop in sales of around 5 % in value in 2020 for all production line equipment. The trend was also downward for staff numbers (-1.5%) and orders.

This downturn can be explained by manufacturers' lack of visibility regarding business trends in a sector where investments are heavy and projects frozen until the health situation improves. As a result of the pandemic, the agri-food industry, in relation to the catering and cosmetics sectors, suffered the most, and investment was slowed down the most, whereas the pharmaceutical and e-commerce sectors fared well.

According to half-yearly statistics compiled by Secimep for its members of the "marking, traceability and labeling" group, which represents the seven main companies in this sector in France, equipment sales fell by 4 % in 2020. Sales of consumables and spare parts remained at their usual levels.

BETTER PROSPECTS FOR 2021

For 2021, companies in the Packaging, Process Marking and Control machinery sector are forecasting a rebound in business of 3 % thanks to the resumption of projects, subject to developments in the health situation. They expect to increase their workforce by 1.5 % and their order book by 6 %.

Some 61 % of companies surveyed by Secimep expect growth - often moderate - as the crisis recedes. A third expect a return to pre-Covid conditions in the 2nd half of 2021. Another third sees a return to the pre-Covid situation in a year or more. But the final third believes that the return to normal has already been achieved, or is planned for the first half of this year.Read more :secimep.com

External resources
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