Despite economic uncertainty and geopolitical headwinds, the outlook for the global food processing and packaging machinery sector remains positive, with exports and investment on the rise.
On the eve of drinktec 2025 in Munich (taking place 15-19 September), the VDMA Food Processing and Packaging Machinery Association reported that exports in the first half of the year were up by 6 per cent, continuing a growth trend that saw foreign deliveries increase by the same margin in 2024. The sector, long one of Germany’s strongest exporting industries, is proving resilient even as other areas of mechanical engineering struggle.
Global demand boosts confidence
Europe continues to lead the international trade in food and packaging machinery, accounting for almost 70 per cent of global exports. Germany and Italy remain the most important supplier countries, together holding 40 per cent of market share.
According to Richard Clemens, managing director of the VDMA, the drivers are clear: automation, efficiency, and sustainability. “The mood in our industry is mostly good. We expect an increase in turnover this year, but it is currently difficult to forecast a growth rate,” Clemens said.
VDMA says exports to the United States – the single largest market – remain strong, supported by the scale of the American food industry and ongoing investment in automation. By contrast, exports to China are down, reflecting economic weakness and a strong “buy local” policy. Yet, new opportunities are emerging in other parts of the world.
Double-digit growth outside Europe
More than half of German machinery exports now head to markets outside Europe, with Asia, the Middle East, Africa and Latin America showing double-digit growth. Countries such as Brazil, Mexico, Vietnam, Egypt and Nigeria are fuelling strong demand, supported by rising consumption of packaged food and beverages.
[Ed's note: Australia is among the Asia-Pacific economies experiencing robust growth in demand for advanced processing and packaging machinery, as local manufacturers invest in automation to improve productivity, expand capacity and deliver sustainable solutions. Two notable big beverage plant investments include Suntory Oceania's new $400m beverage manufacturing and packaging hub and CCEP's $75m flagship canning line, both sporting equipment sourced from European suppliers.]
Future shaped by sustainability and innovation
According to Euromonitor International, global sales of packaged beverages reached 1.1 trillion litres in 2024 and are expected to grow by 14 per cent by 2028, with the sharpest increases in Asia-Pacific and Africa/Middle East. The proliferation of new beverage products – more than 13,000 launched in 2024 – underlines the pressure on manufacturers to remain agile and innovative.
This translates directly into opportunities for machinery providers. At drinktec 2025, exhibitors will highlight advances in digitalisation, resource efficiency, intelligent recycling systems and sustainable packaging solutions – all key areas for investment as the industry adapts to shifting consumer expectations and tighter regulations.
For Australian processing and packaging machinery manufacturers, the message is clear: despite near-term challenges, the medium-term outlook is relatively positive. Demand for automation, ongoing innovation, and a global focus on sustainability place the machinery sector in a leading role in shaping the future of food and beverage production.
