The order situation in the food processing and packaging machinery sector proved to be challenging in the first half of 2026. An eight percent decline in orders marks a clear departure from the positive developments of the previous year, in which production had still risen by five percent to just under 17 billion euros. This development is primarily attributable to global uncertainties and economic challenges.
While domestic demand for packaging machinery increased by 40 per cent, international demand was in decline. In particular, orders from euro area member states fell by 40 per cent, while orders from non-euro countries dropped by eight per cent. This discrepancy is partly due to base effects, but also to uncertainties surrounding the European Packaging and Packaging Waste Regulation (PPWR), which hindered investment decisions.
In contrast, the food machinery sector saw an 18 per cent drop in domestic orders, while overseas demand remained stable. A 14 per cent increase in orders from Eurozone countries offset the five per cent decline from non-Eurozone countries, resulting in an overall decrease of three per cent.
Global crises and economic conditions
The global economic situation continues to be characterised by uncertainties, which are being exacerbated by crises in various regions of the world. The ongoing conflict with Iran and US customs policy are having a negative impact on the willingness to invest in key markets. Added to this are high energy prices, which are driving up production costs in the food industry worldwide. As these costs can only be passed on to consumers to a limited extent, companies' margins and liquidity are coming under pressure, which is reducing their scope for investment.
Opportunities through energy efficiency and free trade agreements
Despite the challenges, opportunities are also arising. High energy prices are increasing the incentive for investment in energy-efficient and automated process and packaging machinery. Furthermore, companies in the sector expect medium-term positive momentum from free trade agreements, particularly with the Mercosur states and India. The food industries in emerging markets, which are showing high investment momentum, could also help to stimulate demand.
Source: VDMA
