Cautiously optimistic: slight recovery for plastic packaging

Manufacturers of plastic packaging and films in Germany expect their situation to stabilise cautiously in the third quarter of 2025. This is shown by the latest economic survey by the IK Industrievereinigung Kunststoffverpackungen. After a weak start to the year, industry sentiment is improving - but the challenges remain great.

Manufacturers of plastic packaging and films in Germany expect their situation to stabilise cautiously in the third quarter of 2025. This is shown by the latest economic survey by the IK Industrievereinigung Kunststoffverpackungen. After a weak start to the year, industry sentiment is improving - but the challenges remain great.

The situation in the plastic packaging industry is gradually brightening. The so-called balance index, which indicates the difference between positive and negative assessments, has risen since the beginning of the year from -66 points in the first quarter to -40 points in the third quarter of 2025. However, despite this continuous improvement, 43 per cent of the companies surveyed still rate their economic situation as poor, while only 3 per cent see it as good.

Expectations remain subdued, particularly with regard to summer business: only 14 per cent of companies are hoping for an upturn, while a third anticipate a deterioration. Reasons for this include the seasonal „summer slump“ in key customer sectors and holiday-related production cutbacks.

Sales stagnate, exports remain weak

There is also no clear upward trend in sales. 59 per cent of companies expect demand to remain the same, 22 per cent anticipate a decline and only 19 per cent expect an increase. The picture is similar for exports: two thirds of companies expect stable figures, 26 per cent expect a decline.

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Slight upturn in employment

A slightly more positive trend can be seen in employment expectations: The index value rose from -17 points in the first quarter to -4 points in the third quarter. 73 per cent of companies expect the number of employees to remain the same, 11 per cent even expect an increase.

Dr Laura Müller, Economic Affairs Officer at the IK Industrievereinigung, sees the development as a cautious signal of hope: "The positive trend in our industry reflects the beginning of an overall economic stabilisation, as has also been forecast by leading economic research institutes. Nevertheless, according to Müller, it is still too early to speak of a fundamental recovery. Only when announced fiscal measures take effect and geopolitical uncertainties, such as the US trade conflict, are resolved could the recovery be reflected in the sector's figures.

Industry remains vigilant

The plastics packaging industry remains vigilant in the face of global uncertainties, weak demand and regulatory burdens. The slight upturn in sentiment is seen as a glimmer of hope - but nothing more.

 

Source: IK Industrial Association for Plastic Packaging