According to the latest VDMA economic survey, the packaging machinery sector is cautiously optimistic at the start of 2026. According to preliminary data from the Federal Statistical Office, the food processing and packaging machinery sector achieved a slight increase in production in 2025, which is primarily based on the high order backlog with which companies started 2025.
According to preliminary data from the Federal Statistical Office, the food processing and packaging machinery sector will realise a slight increase in production of between two and three percent in 2025 and achieve a production value of around 16.5 billion euros. Despite the positive production figures, the price-adjusted order intake in 2025 remained almost at the previous year's level, with a slight decline of 0.5 per cent. This is due to the difficult global conditions such as trade conflicts and geopolitical uncertainties.
Nevertheless, the VDMA economic survey from January 2026 - based on the fourth quarter of 2025 - shows a predominantly positive mood. 40 per cent of the manufacturers of food processing machines, pharmaceutical machines and packaging machines surveyed rated their situation as good to very good. Only six per cent of companies rated their situation as poor and only ten per cent expect the business situation to deteriorate over the next six months.
Market potential and growth prospects
In contrast to many specialised branches of mechanical engineering, the sector is less affected by structural problems in its customer industries. Although the food, beverage and pharmaceutical industries have to deal with numerous challenges, in particular high raw material and energy prices, sales of end products in these industries are very robust in many countries.
The broad international positioning of mechanical engineering companies also leads to risk diversification; regional differences in demand can be largely offset. Many emerging economies are experiencing continuous growth in the food and beverage industry, which is leading to additional investment in processing and packaging technology. Accordingly, the regional business opportunities in South and Central America, Africa and the Middle East as well as Central and South Asia were predominantly rated positively in the VDMA economic survey.
Against this backdrop, the German Association of Food Processing and Packaging Machinery is forecasting moderate sales growth of three per cent for 2026.
Location conditions burden competitiveness
In many foreign markets, companies are facing increasing competitive pressure from China. The technological lead and the associated competitiveness of German and European manufacturers can only be maintained if the structural locational disadvantages in Germany and Europe - in particular bureaucracy, energy and labour costs - are reduced. The companies expect corresponding reforms from politicians.
Source: VDMA
