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As one of the fastest growing markets for packaging machinery worldwide, equipment demand in China will climb 8.6% annually through 2009 to 35.9 billion yuan (approximately $4.4 billion). This growth will put China ahead of Japan, making it the second-largest market in the world behind the U.S., says a new study, Packaging Machinery in China, published by The Freedonia Group Inc., a Cleveland-based industrial market research firm.

Growth in manufacturing, packaging materials use, and associated fixed investment activity will drive product sales as industrialization efforts continue.

In short, the study estimates that labeling and coding equipment demand will outpace sales of other types of machinery. This growth will be spurred by the need for shipping companies to accurately identify and track items. Demand for radio frequency identification tags, filling, and form/fill/seal equipment will also climb.

In addition, the food industry will continue to be the largest market for packaging machinery in China as population and employment continue to rise. Equipment used in packaging medical, pharmaceutical, and personal-care products should also climb to an above-average rate through 2009.

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