VDMA: New impetus for the beverage industry
At drinktec, the VDMA and its co-operation partners will be presenting a selection of innovative processes and systems for the beverage and liquid food industry.
Read more " 
As the global population continues to grow, demand for food processing and packaging machinery remains high. Even in the difficult year 2022, companies in the sector recorded production growth of seven per cent to 15.8 billion euros in Germany.
This means that the fourth-largest sector of mechanical and plant engineering in Germany exceeded its pre-crisis level of EUR 15.3 billion in 2019. Packaging machines accounted for just under half of sales - the largest exhibitor group at the world's leading trade fair interpack.
"Even in the difficult year 2022, demand for our machines remained high. This is primarily due to the fact that food and packaging machines make a decisive contribution to the safe supply of food, beverages and pharmaceutical products to a growing world population."
Christian TraumannChairman of the VDMA Food Processing and Packaging Machinery Association
According to the VDMA, growth would have Association of Food Processing and Packaging Machinery could have been even greater, but the economic recovery was slowed by the continuing difficulties in the supply chains and the Russian war of aggression in Ukraine.
"The war in Ukraine, with all its consequences - rising energy prices, inflation and the associated interest rate policy - caused uncertainty, especially in Europe, which was reflected in a reluctance to invest", explained Traumann, looking back on the sharp fluctuations in incoming orders in 2022 from March onwards.
Exports slightly down - strong growth in China
The industry's foreign deliveries fell by 1.7 per cent to just under nine billion euros in 2022. Exports to the EU-27 fell by four per cent and to the Rest of Europe region by eight per cent. A total of 49 per cent of German deliveries went to European countries, of which 34 per cent went to the EU. More than half of exports were delivered to countries outside of Europe, with a focus on North America and Asia. For many years the USA is by far the most important market. Food processing and packaging machinery worth €1.4 billion was also delivered to the USA in 2022, which corresponds to 16 per cent of total exports.
Conversely, Germany is the most important supplier of food processing and packaging machinery for the USA - ahead of Italy, Canada and China.
Exports to China, the second most important market, rose by eleven per cent to a record EUR 605 million despite the zero Covid strategy and the associated travel restrictions there.
"This shows that our products are still in high demand in the Chinese market. High-performance machines and process engineering expertise secure our market position here," says Traumann at the VDMA press conference on the occasion of interpack. He emphasised the importance of China for the German and European mechanical engineering industry. Overall, demand from abroad remained high with strong impetus from individual markets, including Japan, India, Mexico, Egypt, South Africa and Nigeria.
In international trade, 65 per cent of all food processing and packaging machinery exports come from EU-27 countries (2021). This makes this specialised sector the export champion of European mechanical engineering. Germany and Italy lead the way, each with a 20 per cent share of global machinery trade.
Prospects and challenges
The market continues to provide a tailwind for companies in the food and packaging machinery industry, if only due to the growing global population. In 2022, incoming orders also rose by five per cent in real terms, driven primarily by non-European countries. "Our order books are still well filled and we are also expecting strong impetus from interpack. However, we cannot estimate how geopolitical risks, inflation and the associated interest rate policy in the individual countries will affect investments and thus our business development," says Traumann. Another challenge is the shortage of skilled labour, which represents a major bottleneck for a good two thirds of companies in the industry according to the VDMA survey from March 2023.
The Sales forecast For the current year, the German Association of Food Processing and Packaging Machinery to a plus of eight to ten per cent - also due to the high order backlog.
Mechanical engineering needs less bureaucracy and open markets
Christian Traumann appealed to politicians to do more to reduce bureaucracy and open markets. "If a transformation of the manufacturing industry is to succeed, we must not be overwhelmed with regulations, but must be supported by policies that promote industry and SMEs. Innovation needs entrepreneurial freedom and competition," he says, referring to the slow approval process in Germany and the current and upcoming EU regulations.
Traumann emphasised the immense importance of open markets for the international success of mechanical engineering. In an increasingly protectionist environment, the EU must focus on free trade agreements with its most important trading partners. This is the only way to prevent new barriers being erected for European industry. The VDMA trade association chairman appealed to politicians and the industry to continue to utilise the potential of the Chinese market: "We need China as a sales market and we also need products from China. And China needs the EU market. We should not forget this and represent our own industrial and location policy interests to a greater extent than before."
Source: VDMA
VDMA - More news
VDMA forecast: robotics and automation industry expects decline in sales
The German robotics and automation industry is facing a significant decline in sales in 2025. A reluctance to invest and international competitive pressure are hitting the industry hard - with consequences for automation solutions in packaging machine construction.
Read more " 
Production in packaging machine construction grows
Despite the economic slowdown, the packaging machinery industry is proving to be robust and capable of growth.
Read more " 
VDMA elects new board members
The Robotics, Automated Solutions and Machine Vision divisions of the VDMA Robotics + Automation Association have elected new board members.
Read more " 
ifo Institute: Germany must prepare for Trump tariffs
Following the presidential election in the USA, the ifo Institute and VDMA assume that Donald Trump's economic policy will pose considerable problems for Germany and the European Union.
Read more " 
What is the mood in the industry?
The European packaging industry is meeting again at Fachpack in Nuremberg. We asked the industry associations how they assess the current economic situation shortly before the Nuremberg trade fair, what their member companies are currently most concerned about and whether there are any rays of hope for the future.
Read more "