High domestic demand for packaging machinery in Italy

Turnover in the Italian packaging machinery sector rose by 2.3 percent in the first half of 2026, but rising production costs are weighing on companies.
(Image: Shutterstock/Itsanan)

The Italian packaging machinery sector recorded revenue growth of 2.3 percent in the first half of 2026 compared to the previous year. However, this positive development is overshadowed by a slowdown in orders and rising production costs, as noted by the UCIMA-MECS Research Centre in its latest report.

MECS (Manufacturing EConomic Studies) is the new name of the research centre founded almost thirty years ago by the Acimac and Ucima associations. It produces systematic and comprehensive market analyses, economic forecasts, and statistical surveys for the machinery manufacturing industry, as well as the upstream and downstream supply chains of the manufacturing sector.

Revenue growth through domestic demand

Revenue growth was primarily driven by strong demand in the Italian market, which increased by 12.5 percent. In contrast, revenue in international markets rose by only 0.9 percent. This discrepancy suggests differing market developments, with the Italian industry benefiting from government incentives such as the Transition 5.0 Plan.

Orders are slowing down

The current order backlog stands at 7.7 months, but the trend points to a slowdown. Between January and June 2026, the order index fell by a total of 2.5 per cent compared with the first half of 2025 (+3.3 % in Italy and -3.0 % abroad). Particularly striking is the year-on-year decline in June 2026. This reflects a reluctance to invest internationally, influenced by uncertainty in global economic policy and unresolved conflicts.

Rising production costs

Another burden for the sector is the rising cost of raw materials and components, particularly in the plastics and energy sectors. These cost increases are closely linked to the economic impact of conflicts in the Middle East. UCIMA President Maurizio Bertocco expressed his concern about the impact of rising production costs on companies' profit margins.

Despite these challenges, the packaging machinery sector remains a dynamic segment of Italian industry. However, sustained demand and support from government programmes could continue to stabilise the sector and offer growth potential.

Source: UCIMA