Packaging machinery sector is poised for growth in 2025

The packaging machinery sector is demonstrating remarkable resilience and a strong growth trajectory, setting it apart from other areas of mechanical engineering that are facing declines. With an anticipated growth of 3% in 2025, the industry is looking towards the future with optimism, driven by its ability to rapidly adapt to evolving market demands, embrace advanced digitalisation, and prioritise sustainable manufacturing practices.

Richard Clemens, the managing director of the process plant and equipment association within the German Engineering Federation VDMA, a key industry voice representing around 3,600 German companies, highlighted the "enormous future potential" within the packaging industry. He noted that despite a projected overall decline of 7% in mechanical engineering, the packaging sector's positive outlook remains strong.

Germany continues to be a dominant force in the international packaging machinery trade, with a global export volume exceeding USD 32.5-billion in 2024. However, international market dynamics are undergoing a significant shift. While the European market is experiencing stagnation, regions such as Asia, Africa, Latin America, and the Middle East are gaining increasing prominence as dynamic growth markets. India is at the forefront of this transition.

This evolving landscape necessitates that packaging machinery manufacturers strategically adapt their international growth approaches to new geopolitical realities and changing customer requirements. The increasing demand for sustainable packaging solutions and advanced automation technologies in these burgeoning regions presents substantial opportunities for innovation-driven companies seeking to expand their global reach and proactively address local market needs.

The industry is also undergoing a fundamental transformation, moving beyond being mere suppliers of packing, sealing, and wrapping machinery to becoming comprehensive solution providers.

Successful companies are increasingly focusing on: Digital business models that leverage intelligent data utilisation; modular machine concepts designed for flexible and scalable production; establishing regional service hubs to enhance on-site customer support; and cultivating application know-how that delivers tangible added value to both customers and consumers.

This shift represents more than just technological advancement; it reflects a new mindset centred on a systemic approach. As Clemens explained, the focus is not on selling individual machines but on providing complete systems that include digital services. This encompasses the crucial ability to analyse process data and present it to customers in a user-friendly format, recognizing that while "Collecting data is easy; interpreting it is the real challenge."

The message is clear: the packaging machinery industry, both in Germany and globally, is future-ready and prepared to innovate in terms of productivity, innovation, and sustainability. Through robust export performance, digital transformation, and customer-focused innovation, it is establishing new benchmarks worldwide. Technological advancements, including automation and artificial intelligence, are empowering manufacturers to achieve greater efficiency and agility across production lines. Consequently, companies within the sector are not only responding to current customer demands but are actively shaping the future of packaging by developing sustainable solutions and smarter machinery.

Furthermore, a strategic emphasis on sustainable materials and equipment, flexible manufacturing, rapid customization of packaging operations, and value-added services for consumers is creating a significant competitive advantage on both regional and global scales. As international markets continue to mature, the capacity of packaging machinery providers to adapt and innovate will remain a critical determinant of securing long-term growth and leadership within the industry.

Data Source: Interpack