India Coding and Marking Systems Market Overview
The Indian coding and marking systems market was valued at $42.0 million in 2017 and is projected to reach $70.6 million by 2023, witnessing a CAGR of 9.0% during the forecast period. The growth in the manufacturing and packaging industries and the increasing use of coding and marking systems in various industries are expected to drive the market growth in the coming years.
INDIA CODING AND MARKING SYSTEMS MARKET, BY TECHNOLOGY, UNITS (2013–2023)
Coding and marking systems help provide product-related details on the packaging, such as batch number, price, manufacturing and expiry dates, and other related information, for the end users. Coding and labeling allow the identification and tracking of components through the different phases of the production process.
Based on technology, the Indian coding and marking systems market is categorized into continuous inkjet, thermal transfer overprinting (TTO), thermal ink jet, drop on demand (DoD), print and apply labelers, laser coding and marking, and others.
Among all these, the fastest growth in the market during the forecast period is expected from the continuous inkjet technology, with 9.0% CAGR. This can be attributed to the several advantages offered by the technology. It enables the system to run for many hours, thus reducing the costs related to early services. It also facilitates faster drying process, which makes it ideal for fast-moving production lines. Besides, the technology can be used for marking and coding almost all material types.
On the basis of end user, the Indian coding and marking systems market is categorized into food and beverage, electrical and electronics, automotive and aerospace, chemical, healthcare, and others. The food and beverage industry was the largest end-user category in the market in 2017, with volume and value contributions of more than 55.0% and 45.0% shares, respectively. This can be attributed to the growing consumer awareness on the importance of having product knowledge (in terms of ingredients and manufacturing and expiry dates) for ensuring safety.
The Indian coding and marking systems market is expected to witness robust growth in the coming years, owing to the growing food and beverage industry. According to a leading industry player, coding and marking have become a legal requirement in the current scenario, owing to their traceability factor. For instance, printed batch numbers help identify batches in case of a product recall. Also, the usage of these systems has increased in India in recent years.
India Coding and Marking Systems Market Dynamics
The major trend identified in the Indian coding and marking systems market is the increasing need for traceability solutions, which is driven by quality control.
Traceability is important for risk prevention and quality control. An effective traceability system helps in isolating counterfeited products from the genuine ones. It is highly important for the manufacturer to trace the products throughout the supply chain. Traceability helps track production and recall the product as and when required. Food manufacturing is a classic example of an industry where traceability is highly demanded, especially in the case of product recall resulting from food contamination.
The major drivers for the Indian coding and marking systems market are growth in the manufacturing and packaging industries and the increasing use of these systems in various industries.
The Indian manufacturing and packaging industries are registering significant growth, which is playing a major role in driving the Indian coding and marking systems market. The country’s packaging industry is rapidly growing because of the increasing use of innovative packaging solutions and the growing flexible packaging market. The key demand determinant for packaging is the consumer preference for long-shelf-life products and lightweight packaging solutions. Additionally, boom in the e-commerce industry is offering a huge growth potential for retailing, which is further giving a boost to the packaging industry.
India is a highly price-sensitive market. This can be viewed as a major factor restraining the growth of the Indian coding and marking systems market.
Indian consumers are more demanding and value-conscious. On average, prices in India for similar products are 10–30% lower as compared to other markets, which results in a relative low throughput for Indian retailers as compared to global peers. Systems for coding and marking are generally high-priced owing to factors such as the level of technology integration, applications, and the size and nature of consumables used. The overall cost of printing and marking systems gets significantly increased when fixed and variable costs are added. Hence, the high price of coding and marking systems acts as a major factor refraining industrial users from adopting these systems.
India Coding and Marking Systems Market Competitive Landscape
Some of the major players in the Indian coding and marking systems market are Danaher Corporation, Dover Corporation, Domino Printing Sciences plc, Control Print Limited, and Hitachi Ltd.