The production of food and packaging machinery exceeded the 16 billion euro mark for the first time, increasing by five per cent in 2023. The VDMA figures thus show a new peak value for the mechanical engineering sector. Expectations for developments in 2024 are also positive.
Within the German mechanical engineering industry, the companies in this sector account for 6 per cent of the total production value and employ more than 62,000 people in Germany. With an average export turnover of 86 per cent and a global trade share of 22 per cent, the specialist sector Food processing machines and packaging machines are among the strongest export sectors. Packaging machines account for around half of the production value.
The companies increased production by 10 per cent in 2023 to just under 8 billion euros. Growth was particularly strong in the area of beverage packaging machines, which increased by 18 per cent to 2.8 billion euros. Production of so-called other packaging machines rose by 6 per cent to 5.2 billion euros. A large part of the turnover was based on orders from 2022, because Incoming orders remained rather subdued in 2023. One of the reasons was the discussion about the new EU packaging regulation, which led to uncertainty and restraint in the customer industries.
„The adoption of the Packaging Ordinance in April 2024 is not only viewed positively due to some critical points, but creates a level playing field for EU mechanical engineering and more planning security for investors.“
Beatrix Fraese, economic expert and deputy managing director of the VDMA Food Processing and Packaging Machinery Association
Whether stagnation, growth or decline - everything was possible in the heterogeneous food machinery industry in 2023. The German manufacturers of Process technology for meat and protein processing is the largest sub-sector within the food machinery industry, making us the global leader. Production has grown rapidly in recent years without any setbacks in the coronavirus years. In 2022, growth of 8 per cent to 1.3 billion euros was achieved. This high level was maintained in 2023. Manufacturers of bakery machines also achieved the record figure of 688 million euros in 2023, exactly the same as in 2022.
The highly specialised confectionery machinery industry was severely affected by declining sales during the coronavirus years and as a result of the war in Ukraine. For the above-average export-oriented industry - some companies export well over 90 per cent of their machines - deliveries to major markets fell significantly. This was exacerbated by a temporary reluctance to invest on the part of global multinationals, which represent an important customer group for confectionery machine manufacturers. Both developments had a corresponding impact on machine production. In the year In 2023, production increased significantly again by 23 per cent to 354 million euros. In addition, there are thermal processing plants with an estimated value of 120 million euros. A further recovery is expected due to catch-up effects.
The production of Beverage production machinery, on the other hand, fell by 6 per cent in 2023 to 535 million euros, falling short of the record figure of 570 million euros set in 2022. In this sub-sector, the focus is on brewing machinery. Due to the global measures taken during the coronavirus pandemic and the associated decline in consumption, production fell by 11% to 451 million euros in 2020. In the two subsequent years, production increased by a total of 32 per cent. The decline in 2023 is therefore also due to the high reference value of the previous year.
The general outlook for manufacturers of food processing and packaging machinery is good, as they are generally able to benefit from a favourable economic environment. rising global demand for food, beverages and pharmaceutical products will benefit. Following strong export growth of 9 per cent in 2023, foreign deliveries of food processing and packaging machinery also rose by 5 per cent in the first quarter of 2024.
However, incoming orders in the food processing and packaging machinery sector were lower than in the previous year. first 4 months of 2024 still 6 per cent below the previous year's level on a price-adjusted basis. Developments in the two sub-sectors differed significantly: order intake for packaging machinery rose by 16 per cent in real terms in the first four months compared to the weak same period of the previous year. In contrast, orders for food processing machinery fell by 12 per cent in real terms in the same period, also influenced by base effects.
„We can expect to see an overall positive trend in incoming orders in the coming months, as there are likely to be catch-up effects, particularly for packaging machines.“
Beatrix Fraese
According to the VDMA economic survey from April 2024, the current demand situation from the markets is rated as good to very good by over 40 per cent of companies in the sector. Over 50 per cent of manufacturers of food processing and packaging machinery are satisfied with the demand situation. The other On balance, most companies are positive about the prospects for 2024 a. In view of the persistently difficult conditions and also against the backdrop of the high level achieved individually in the previous year, the majority of companies expect moderate growth for 2024.
Source: VDMA
