The German food machinery and packaging machinery industry did not have an easy time in 2023. Overall, the industry closed the year with a 4 per cent drop in incoming orders. This was due in particular to a decline in orders from abroad.
A detailed analysis shows that orders from abroad fell by 6 per cent in real terms compared to the previous year, with orders from countries outside the eurozone falling in particular. In 2023, they were at a Down 11 per cent in real terms significantly below the previous year.
In contrast Demand from the euro partner countries rose by 11 per cent in real terms Although this did not quite make up for the shortfall, orders from the eurozone ensured that manufacturers of food processing and packaging machinery were able to close 2023 with a moderate drop in incoming orders.
„Our industry made it through 2023 with only minor losses. Compared to the mechanical engineering sector as a whole, which recorded a 12 per cent decline in incoming orders, we fared better.“
Beatrix Fraese, expert for markets and the economy and Deputy Managing Director of the VDMA Food Processing and Packaging Machinery Association
According to preliminary data from the Federal Statistical Office, machine production in the sector grew by a nominal 6 per cent in 2023 based on the high order backlog, reaching almost 16 billion euros production value. For 2024, the VDMA Against the backdrop of last year's order intake trend and dwindling order backlogs, the German Food Processing and Packaging Machinery Association is expecting a lower increase in production. It is not currently possible to quantify the scale of this growth, especially as incoming orders may return to growth in the current year. This applies in particular to demand for packaging machines.
The discussions about the new EU Packaging Regulation caused a great deal of uncertainty in the market last year and weighed on incoming orders. This brake on investment could be released as early as this year if the draft regulation is adopted by the European Parliament and the European Council in April and then comes into force in 2025.
Source: VDMA
