Coding and Marking Market - Global Outlook & Forecast 2023-2028

MARKET INSIGHTS

The global coding and marking market was valued at USD 5.98 billion in 2022 and is expected to reach USD 9.88 billion by 2028, growing at a CAGR of 8.74%. The global market witnessed a significant transformation over the last decade, largely due to various innovations, standard regulatory modifications, growth of end-user industries, integration of automation in production, and the influx of several vendors across geographies. Coding and marking solutions are handy for several reasons, such as product tracking and traceability, identification, and tackling counterfeiting. APAC is the fastest-growing region in the global coding and marking market; the popularity of innovative packaging designs in China and India positively impacted the markets in these countries. Moreover, the retail sector in APAC nations is enhancing the production of the manufacturing industries, which, in turn, is leading to the growth of the coding and marking equipment market in many countries, such as India.

Coding and marking tools print product-specific details on the outer covering of products. These details aim at providing end-users and manufacturers with authentic information about products. Coding includes printing manufacturing dates, expiry dates, and the size of the packaged lot, among other details. Printing codes or marks on products helps manufacturers reduce risks of counterfeiting and protect the brand image among end-users. Coding or marking is essential to establish the authenticity of products. It helps the supply chain with product information and its destination. It sets a unique identity for the product and enhances its traceability. Previously, the coding procedure was manual, labor-intensive, and prone to errors. However, the advent of reliable coding and marking machinery has enabled companies across industries to adopt and leverage these advances. Hence, the global coding and marking market is expected to witness a boom in the future.

PACKAGING INDUSTRY POST COVID-19 SCENARIO

The post-pandemic packaging industry has witnessed a huge demand for packaging designs. Consumers shifted towards sustainability packaging with strong narratives. This is revamping the packaging sector. Earlier, people were price-conscious, but the focus shifted toward hygiene and safety. Government bodies may strengthen the requirements related to food packaging & processing to ensure safe food provides to consumers. Consumers are now willing to pay more for all-around packaging, which provides safety and hygiene. 

Due to such factors post-Covid-19, consumers are increasingly interested in the information and data available on the products' packaging, quality, origin of the raw material, health claims, and about disposing of the packaging. A huge increase in demand for e-commerce creates vast opportunities for the packaging industry. Buying groceries online is also a trend that is significantly booming the packaging sector, and after some time, buying everything online will be a preferred mode for consumers. Hence, this will boost the demand for packaging, increase the development of anti-counterfeit solutions in packaging, and contribute to the coding and marking market growth.

MARKET TRENDS & OPPORTUNITIES

Significant Rise In Flexible Packaging
One of the key drivers for the global coding and marking market is an increase in the flexible packaging of products. Flexible packaging is fast gaining popularity and has witnessed significant growth over the last few years. Several factors, including increased ready-to-eat items, the advent of flexible substrates and films, growth in the e-commerce industry, and a rise in retail stores, drive flexible packaging market growth. Flexible packaging is not an exception when it comes to coding and marking solutions that affect different types of packaging to meet the delivery requirements and cater to the fast delivery demand of consumers.

Innovative Consumable Offerings
The coding and marking solutions market is becoming more competitive, with several low-cost offerings being launched regularly. At the same time, vendors must stay up-to-date with the latest end-user industry changes and devise their offerings. Thus, coming up with new and advanced offerings based on the modern-day needs of customers remains crucial in this aspect. Several vendors catering to the industry have consistently focused on introducing new forms of ink or similar solutions for customers. Vendors, such as Domino Printing Sciences, Paul Leibinger Inkjet Systems, and Weber Marking Systems, have successfully guided this headwind to their advantage. Domino Printing Sciences, the leader in the coding and marking ink market, has launched a disappearing ink for track and trace solutions. The UV-activated ink for its TIJ range has been developed to enhance the security aspect of the internal trace and track process for products.

INDUSTRY RESTRAINTS

Increasing Counterfeiting of Products
A major hurdle in the global coding and marking market is the counterfeit of products. This is indeed a significant problem that has been affecting the coding & marking market. The industry is responsible for creating & printing unique codes and marking son products to enable their traceability & identification throughout the supply chain. However, counterfeiting activities make it difficult for vendors to ensure that their products are properly identified and tracked. Counterfeit products often lack the proper codes and markings, making them difficult to trace and creating potential safety and quality risks for consumers. Counterfeiting can also harm legitimate businesses by decreasing consumer confidence in their products, leading to lost sales & revenue. In the coding and marking systems market, this can translate to decreased demand for coding & marking technologies. Companies may not see the value in investing in these solutions if they believe their products will still be counterfeited.

SEGMENTATION INSIGHTS

INSIGHTS BY TECHNOLOGY
The global coding and marking market comprises various technology coding printers, such as CIJ, Laser, VIJ, PIJ, TTO, TIJ, and PALM. In 2022, the CIJ segment accounted for around 39% of the global industry, followed by the laser segment. Continuous Inkjet Technology is one of the most widely used technologies in the industry. It is a non-contact printing technology that uses a continuous stream of ink droplets to create characters and codes on various substrates, including plastics, metals, and paper. The technology uses a high-pressure pump that targets the ink through a nozzle onto the surface of the product material as the ink is stored in a reservoir. One of the advantages of CIJ technology is its ability to print on various substrates, including curved and irregular surfaces. The laser and TIJ coding and marking technology segments are expected to gain market share during the forecast period. The laser system is free of consumables, such as ink; hence, it has low maintenance.

INSIGHTS BY END-USERS
The F&B industry was the largest end-user segment in the global coding and marking market in 2022, accounting for around half the market share. The growth in F&B and healthcare segments is attributed to the improving demographics across the globe, increasing investment, strict regulations by the government, and a shift towards urbanization. In addition, several other factors, such as changing consumer preferences regarding product consumption, increasing demand for sustainable packaging, rising demand for attractive packages, and many more, fuel the growth of end-user industries, eventually boosting the global coding and marking systems market.

Further, coding and marking in the food & beverages market are vital as it has strengthened the demand for appropriate coding and marking solutions. The emergence of new potential markets across geographies and the multiplication of stock-keeping units (SKUs) further drive the segment, backed by higher consumer spending. Moreover, the Gen Z and millennial population consistently facilitate the launch of organic and healthy foods. The emerging trend of eating healthy and staying fit, especially among Gen Z and millennials, pushes F&B companies to launch innovative ready-to-eat food products. For instance, over 65% of Americans prioritize socially conscious and healthy food products.

INSIGHTS BY PRODUCT MIX
The global coding and marking market by product mix is divided into equipment (printers, coders, and markers), consumables (ribbons, fluids, print heads, and filters), and spare parts & aftermarket. The consumables segment dominates the global coding and marking market. The consumables segment is expected to hold a significant market share as they are continuously used during printing. The increasing demand for laser toners, thermal transfer ribbons, inkjet fluids, and others is primarily driven by the growth of the packaging industry. The demand for consumables in the global coding and marking systems market increased during the COVID-19 pandemic owing to huge requirements for inks and other consumables from the F&B and healthcare industries.

GEOGRAPHICAL ANALYSIS

The global coding and marking market is well-diversified across North America, APAC, Europe, Latin America, and MEA. In 2022, APAC dominated the global coding and marking market, accounting for over 31%. The APAC market is expected to grow rapidly due to the high demand for coding and marking tools in various end-user industries during the forecast period. The urbanization of developing countries in APAC is expected to bolster the demand for food and beverage products and healthcare provisions, thus driving the demand for coding and marking equipment during the forecast period. While Japan and China are the major codings and marking systems markets, countries like India are expected to witness high demand due to improved quality of life.

North America is a significant market with various applications in various industries such as F&B, pharmaceutical, and packaging. The North American market is highly developed and has many large multinational manufacturing companies operating in industries like F&B and pharmaceutical. PepsiCo, Nestle, and Quaker are large F&B companies in North America. Pfizer and Novartis are examples of pharmaceutical companies operating in North America. These industries have coding and marking requirements to label their manufactured products. The coding and marking equipment market’s steady growth is due to the importance of providing product information, print specifications, and standards, such as ISI in India, FDA in the US, and Directive 2011/62/EU of the European Union. Many companies in the past decade have realized the importance of traceability by printing information, such as manufacture date, expiry, shift numbers, batch numbers, counterfeit prevention, real-time data, and operational quality control information. The growth of the industry drives the expansion of the overall packaging industry.

COMPETITIVE LANDSCAPE

The coding and marking market is highly fragmented and competitive, with many players offering various products and solutions. Companies compete on product quality, innovation, customer service, and price to gain industry share and differentiate themselves from competitors. A few large players dominate the global coding and marking equipment market, including Danaher Corporation, Dover Corporation, Domino Printing Sciences, Hitachi Industrial Equipment Systems, and ID Technology. These companies have established themselves as leaders in the industry, with strong brand recognition, a wide range of products, and extensive distribution networks.

The competitive scenario in the global coding and marking market is currently intensifying. The competition in the industry is also influenced by technological advancements, changing customer needs, and industry regulations. Companies that can stay ahead of these trends and adapt quickly to changing industry conditions are likely to be successful in the long run. Further, vendors with an international presence dominate the global coding and marking systems market. However, several regional players operate at the country level and have a significant industry share. For instance, Control Print, a prominent Indian supplier of coding and marking equipment, has about an 18% share in the Indian coding and marking equipment market.