While the production of food machinery declined in 2024, packaging machinery manufacturing increased. This was reported by the VDMA Food Processing and Packaging Machinery Association. The upcoming IFFA should now serve as an investment stimulus - also in the export business, which is burdened by tariffs.
On the occasion of IFFA 2025, the VDMA Food Processing and Packaging Machinery Association reports a mixed review of the year 2024. Although total production in the sector fell by just under two per cent to 16.1 billion euros, exports grew by six per cent to 10.6 billion euros. Food machinery manufacturing was particularly affected, while packaging machinery manufacturing achieved an increase in production of two per cent to 8.3 billion euros.
„Investment activity in Germany was significantly weaker than expected in 2024, meaning that even the increase in foreign trade was unable to compensate for the decline.“
Klaus Schröter, Chairman of the VDMA Process Technology Division for Meat and Protein Processing
Meat processing under pressure - hope for trade fair impetus
Within food machinery manufacturing, a decline was recorded in all sub-sectors in 2024. Process technology for meat and protein processing was particularly affected - traditionally the strongest exhibitor area at IFFA. Production there fell by six per cent to 1.3 billion euros. After ten years of growth, this is a turning point, said Schröter. The industry has high hopes for IFFA as an international marketplace and investment incentive.
Exports drive the industry - USA remains the most important market
With an average export share of 86 per cent the sector is one of the strongest export industries in mechanical engineering. In 2024, 10.6 billion euros in machines were delivered abroad - 47 per cent of this to Europe, 18 per cent to North America and 15 per cent to Asia. The USA remains the most important single market: German exports there rose by seven per cent to 1.8 billion euros.
Despite positive figures US tariff policy causes uncertainty. Machines with a high steel content - such as those used in meat processing - are subject to customs duties of up to 25 per cent. „The topic of customs duties will certainly be on the table at IFFA,“ says Schröter. The industry is hoping for negotiations between the EU Commission and the USA in order to reduce bureaucracy and avoid competitive disadvantages.
Europe remains world export champion - high capacity utilisation
Europe continues to dominate global trade in food and packaging machinery: 70 per cent of the global trade volume of 54 billion euros comes from Europe. Germany and Italy lead the way with around 20 per cent of global trade each, followed by the Netherlands, Switzerland, France and Spain.
According to the VDMA economic survey from April 2025, the Capacity utilisation in the industry at 91 per cent - a peak value in the German mechanical engineering sector. Around 90 per cent of companies rate the current business situation as good or satisfactory, and many expect demand to remain stable or increase over the course of the year.
Source: VDMA
