Machine production is falling: For the first time in ten years, manufacturers of packaging and food machinery recorded a decline last year. According to the VDMA, a return to the 2019 level is not very likely in 2021.
Since the financial and economic crisis, there has only ever been one direction for the food processing and packaging machinery sector - upwards. Last year marked the end of a ten-year growth phase for the time being. In 2020, machine production fell by nine per cent to 13.9 billion euros.
„The drop in production comes as no surprise, as 2019 was an exceptionally strong year for our industry. We would probably have only just exceeded this high level even without the coronavirus pandemic.“ Richard Clemens, Managing Director of the VDMA Association of Food Processing and Packaging Machinery
In the Packaging machine construction production fell by a total of eight per cent to 6.7 billion euros. In the Food processing machinery the rates of change in the individual sub-sectors varied. The production of meat processing machines increased slightly and reached a value of over 1.2 billion euros. Demand also remained stable among manufacturers of bakery machinery. Both sub-sectors recorded good domestic business, which more than compensated for the decline in exports.
Machine production declines differently in sub-sectors
Production of confectionery machinery fell 18 per cent below the very high level of the previous year. Production of beverage production machines also fell by double digits. „This Both sectors are very active in countries outside Europe and are among the victims of the coronavirus pandemic. Their customers also include many multinational corporations that have simply frozen their investment projects,“ says Clemens, explaining the various developments.
Corona pandemic weakens export business
Exports of food processing and packaging machinery fell by a total of eight per cent to 8.5 billion euros in 2020. In the process, the Negative rates vary greatly in the sub-sectors out. Manufacturers of packaging machines, meat processing machines and bakery machines recorded declines of five to six per cent.
The decline in confectionery machinery was 24 per cent and brewery machinery exports fell by 38 per cent. However, the reference values of the previous year were also extraordinarily high in these two sectors. The Strong impact on the brewing machinery industry is also to be seen in direct connection with the coronavirus-related restriction or complete cessation of business activities in the hotel and catering industry.
From a regional perspective, foreign deliveries of food processing and packaging machinery in 2020 are as follows collapsed in almost all economic regions. North America was an exception with positive development. German deliveries to the USA in particular rose by eight per cent to over 1.2 billion euros. There was also positive momentum from important individual markets such as Russia, Mexico and China.
However, deliveries to the EU-27, the most important sales region, fell by 15 per cent. Exports to Asia also saw a significant double-digit decline overall.
Further prospects
According to the current assessment of the VDMA a return to the 2019 level is not very likely. „Although we expect production growth this year, it is unlikely to be in double digits,“ says Clemens. The general The Managing Director of the trade association is positive about the prospects for the industry, This is because companies in the sector are well positioned internationally and continue to benefit from the growing global demand for processed and packaged food, beverages, cosmetics and pharmaceuticals.
SourceVDMA
