Hot Runners for Packaging Market Size, Share & COVID-19 Impact Analysis, By Type (Open Gate, and Valve Gate), By Application (Buckets, Trays, Cups, Bottles, Coffee Pods & Capsules and Others), By End-users (Food & Beverages, Medical, Health & Skincare, Agricultural Products and Other Industrial Use) and Regional Forecast, 2021-2028

The global hot runners for packaging market size was USD 638.0 million in 2020. The market is projected to grow from USD 665.2 million in 2021 to USD 911.2 million in 2028 at a CAGR of 4.6% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with Hot Runners for Packaging witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 3.4% in 2020 as compared to the average year-on-year growth during 2017-2019.. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The hot runner system is an injection molding assembly that utilizes a heated manifold to possess plastic in a molten state. These heated plastics then travel from the molding machine nozzle through runners, i.e., internal channels. It is specifically utilized across food & beverage, agricultural products, health, medical & skincare industries and another industrial usage.

Key market participants are pushing product diversification and expanding into application size with production facilities across the globe. Additionally, with the growth of hot runners for packaging utilized in the packaging industry in emerging regions, the necessity for direct support at the local market has increased. This factor has fueled the global market growth. Additionally, technological development coupled with manufacturers’ strategic collaborations and the emergence of bulk packaging and thin-wall packaging concept is anticipated to maximize the shares.

COVID-19 Impact: Higher Consumption of Plastic Products to Boost Installation of Hot Runners for Packaging Market

The pandemic situation has rapidly evolved and is still impacting the supply chains. This situation  has paralyzed the economic activities across the regions. However, the global market observed moderate downfall attributed to lessening demand of plastic from customers and closed manufacturing facilities in the 1^st and 2^nd quarter of the year 2020.

It is probable to initiate resurgence in the future years as bottles, buckets, coffee pods, lids, cups (jars) have witnessed strong demand amidst the COVID-19 pandemic that in turn, has boosted the hot runners for packaging utilization across industries including, food & beverage, cosmetics, healthcare and others. Several organizations stated that the demand for plastic has risen for packaging groceries, healthcare & cosmetic products post COVID-19 pandemic effects. As a result, manufacturers are more focused on employee safety, raising the manufacturing capabilities in plastic injection molding. Thus, more these runners are installed across the countries.

Considering the aforesaid factors, hot runners' utilization for packaging provides robust opportunities for the manufacturers to manufacture modern systems.

LATEST TRENDS

Development across Thin-Wall and Rigid Bulk Packaging to Propel Market Growth

Currently, the packaging sector is experiencing a robust growth rate. It is attributed to improved lifestyles specifically followed across developed and developing countries. Therefore, it is generating new opportunities for packaging manufacturers to target customers and complimenting the global market growth.

Additionally, several leading manufacturers emphasize on creating innovative packaging to stand out from the competitors. Thus brightening the global market prospects. For instance, Milacron is offering a combination of hot runner, auxiliary equipment, part design, mold design and machine to cater to higher demand for thin-wall packaging, achieving the maximum production output across applications including, buckets, personal care products, dairy, water & juice packaging, cosmetics and others.

Therefore, the emergence of thin walls and rigid bulk packaging is projected to brighten the market prospects.

DRIVING FACTORS

Increased Demand for Plastic Products across Industries to Aid Market Growth

Currently, the enormous product variety of modern packaging technology makes plastics necessary. The demand for plastic is highly growing, coupled with modern plastic applications such as textile fibers, flexible packaging and others. The growing utilization of plastic trays, cups, PET bottles, and other products is gaining importance as a packaging solution for medicines, salad dressings, household cleaners and others across the U.S., India, China, Belgium and other countries. In accordance, manufacturers emphasize unique packaging and different-sized packs that stimulate the demand for plastics products with customized shapes and designs.

In the case of industrial utilization, plastics application is rising in industries including food & beverage, agricultural and medical, attributed to the number of benefits during the products’ shelf life. These industries are progressively utilizing plastic products that are molded in various product and packaging applications. This factor may propel the global hot runners for packaging market growth.

RESTRAINING FACTORS

High Maintainance Cost to Impede Market Growth

The utilization of these runners results in a complex injection molding process. More often than not, the manufacturers encounter the irregular maintenance of hot runners that degrade molded products’ quality, increasing the wastage. In accordance, part replacement requires precise measuring, reduced tolerances, patience and coordination amongst the experts. And owing to the limitations of manpower, it becomes a hefty task for the several manufacturers to provide high maintenance level and after-sale services.

Thus, these limitations are expected to challenge the market's growth in the forecast period. However, to overcome the same, companies are regularly maintaining the hot runners and increasing the temperature & applying shear favoring the temperature-sensitive polymers.

SEGMENTATION

By Type Analysis

Mass Production Ability to Portray Maximum Market Share for Open Gate Hot Runners

Based on the type, the global market is characterized into open gate and valve gate hot runners.

The open gate segment will lead the market share with maximum market share in 2020. The dominance is attributed to its ability of mass production with minimal cycle time, reduced defects and high material saving.

Whereas, customers are demanding customized plastic products resulting in the utilization of valve gate hot runner system to attain product cleanliness, part-to-part consistency, tight spaced configuration. However, valve gate hot runners are costlier than open gates thus, incurring substantial capital investment.

By Application Analysis

Bottles Segment is Capturing Highest Market Share as Recycling Process Gains Traction

By application, the market is categorized into trays, buckets, cups, bottles, coffee pods & capsules and others including lids & others.

The bottles segment is expected to grow with the highest market share. Plastic bottles recycling reduces manufacturing costs and, boosts usability. Additionally, PET bottles are gaining traction as a packaging solution for medicines, household cleaners, food & beverage dressings and others.

Growing utilization of square & rectangular boxes and containers to keep food and other related items in good condition has resulted in increased usage of plastic trays across the globe. The coffee pods & capsules segment is growing considerably as it is being utilized when safely carrying the beverages.

Buckets segment is witnessing a steady growth rate owing to the utilization of round buckets, pails, round containers across food & beverage, medical, agricultural applications. Whereas, the others segment will grow slowly as companies focus on manufacturing complete containers, bottles, rectangular/square boxes with lids and others.

By End-users Analysis

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Increased Packaged Food Consumption to Depict Highest Market Share for Food & Beverage Segment

Based on End-users, the market is segmented into food & beverage, agriculture products, medical, skincare and health and other industrial use.

The food & beverage segment is capturing the highest market share in 2020 owing to increased usage of coffee cups, plastic bottles, trays and jars. The increased packaged food consumption has shifted plastic mold companies’ focus towards cups, lids, coffee pods, plastic bottles. Thus, these factors are expected to boost hot runner’s installation across facilities.

The medical, health & skincare segment is capturing significant shares owing to the increased spending on personal care and healthcare products. In addition, several manufacturers are providing molding systems with low scrap rates and precise repeatability, resulting in catering to the demands for essential plastic products.

Agricultural products and other industrial use segment is anticipated to witness steady growth attributed to the usage of plastic bottles in carrying pesticides and other solutions.

REGIONAL INSIGHTS

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The global market are categorized into North America, South America, Europe, Asia Pacific and the Middle East and Africa and are further divided into countries.

Asia Pacific is dominating with the highest CAGR and market shares. It is attributed to factors such as faster technological adaptability and strong government support, availability of skilled and dedicated workers, assembling hot runners in Vietnam, India, China and others. Additionally, as per the United Nations Development Programme (UNDP), nearly half of all global plastics products produced originate from Asia. Moreover, PlasticsEurope also stated that in 2019, China produced 31.0% of the world’s plastic. These factors complement the dominance in the global market.

China to Capture Highest Market Share as Unorganized and Leading Manufacturers Expand their Presence

China is one of the prominent countries for hot runners system. The presence of authorized and unauthorized local players make it a strong market for plastic molding processes. In addition, key players including, Synventive Molding Solutions (Barnes Group) and Milacron (Hillenbrand, Inc.) and others, have direct offices that support their increased sales and, thus, serve the Asian market along with India, South Korea and other countries.

In addition, Chinese mold manufacturers offer a broad service portfolio including plastic bottles, cups, buckets, lids and others during the series production process that helps create customer value, thus, increasing sales.

Europe is anticipated to witness a moderate growth rate in the forecast period. The higher plastic production pushes hot runner manufacturers to expand their production facilities and sales channel throughout the region. Additionally, European Parliament in October 2020 stated that ~40.0% of plastic produced is utilized for packaging. It is, therefore, anticipated to boost the demand for these runners for packaging across the region.

North America is one of the developed regions for the global market. The focus on technological developments, extensive presence of leading manufacturers and rising utilization of recycled plastic compliments the growth.

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The Middle East and Africa, and South America are growing steadily as multiple manufacturers are expanding their businesses for packaging applications across UAE, South Africa and other countries. Rising consumers spending is anticipated to drive growth.

KEY INDUSTRY PLAYERS

Key Players Emphasize on Technology Development and Customized Products’ Offering to Boost Capital Inflow

Key market participants are focusing on developing the technologies to increase the profit margin. They prioritize customized and on-demand manufacturing to pacify the right product manufacturing at the right time with reduced cost. It compliments their brand image for sales and manufacturing capabilities. For instance, several players including Mold Hotrunner Solutions Inc., Mold-Masters, and others are providing custom hot runners optimized for a specific application.

Mold-Masters is Actively Participating in Exhibitions to Attract More Customers and Improve Brand Image

Mold-Masters, an operating company of Hillenbrand, Inc.) is actively participating in trade shows, events to display its hot runner systems for packaging, automotive, food & beverage and applications. It is positively impacting its manufacturing capabilities and subsequent selling of hot runners. For instance, in September 2020, the company displayed hot runner solutions for the medical industry at ‘PT Techdays Interactive Webinar Series’.

LIST OF KEY COMPANIES PROFILED:

• Inglass S.p.A. (OC Oerlikon Management AG) (Treviso, Italy)


• Barnes Group Inc. (Connecticut, U.S.)


• Hillenbrand, Inc. (Indiana, U.S.)


• Husky Injection Molding Systems Ltd. (Caledon, Canada)


• Mastip Technology Limited (Auckland, New Zealand)


• Top Grade Molds (Mississauga, Canada)


• Mold Hotrunner Solutions Inc. (Westfall Technik) (Ontario, Canada)


• J-Tech Hot Runner (Ontario, Canada)


• Wellmade IND. Manufacturing(HK) Limited (HongKong, China)


• INCOE Corporation (Michigan, U.S.)


• SEIKI CORPORATION (KISCO LTD.) (Yonezawa-city, Japan)


• YUDO (SUZHOU) HOT RUNNER SYSTEMS CO., LTD (Gyeonggi-do, Korea)


• Zhejiang Snake Hot Runner Technology Co., Ltd. (Zhejiang, China)


• MasterFlow AB (Västervik, Sweden)


• EWIKON Heißkanalsysteme GmbH. (Frankenberg, Germany)


• HEITEC Heisskanaltechnik GmbH (Bottendorf, Germany)


• Hot Techs Hot runner technologies (Mumbai, India)


• Meusburger Georg GmbH & Co KG (Bangalore, India)

KEY INDUSTRY DEVELOPMENTS:

• January 2021: - Husky Injection Molding Systems Ltd. introduced ‘UltraShot Injection System’, a technology of injection molding to improve design freedom and mold the perfect part with supreme quality. Matched to orthodox hot runners, melt in ‘UltraShot Injection System’ practices less high-pressure injection cycles thus, conserving the original resin properties.

• July 2020: Thermoplay S.p.A, a business of Barnes Group, unveiled a new thermal hot runner solution, which can directly inject from the side. The new open side gate nozzle is available for linear and radial layouts.

REPORT COVERAGE

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The global hot runners for packaging market report provides detailed information regarding various insights into the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.

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