Fresh from a candid exchange with international association leaders at Pack Expo International 2026 in Chicago, APPMA CEO Michael Moran and marketing & events manager Denni Egan have returned with a clear message for Australian industry: the challenges we face are not ours alone, and the opportunities lie in staying connected to the global conversation.
The International Associations Lunch, held alongside North America's largest packaging and processing trade show, brought together association representatives from the United States, Europe, the United Kingdom and Asia. What emerged was a picture of an industry still in motion, but one where caution has become the dominant mood. Pipelines are active. Opportunities exist. But converting interest into signed orders is taking longer, projects are being re-scoped, and uncertainty is shaping behaviour as much as any single economic factor.
It is a sentiment that resonates strongly with what APPMA is hearing from members here at home. The Australian market remains active, but decision-making has slowed.
Tariffs, trade and the waiting game
The American experience dominated much of the discussion, and it was sobering. Growth in shipments sat at a modest 2.4 per cent, with the middle of the year notably slow. Proposal activity was high and consistent throughout the year, but actual sales did not follow the same trajectory, with many orders pushed back. A stronger final quarter was what ended up helping level the result.
Tariffs loomed large. American members described a difficult balancing act: chasing reimbursement for illegal tariffs from the previous year while simultaneously paying new ones. Canadian companies face duties of 50 per cent to deliver products into the US, raising questions about whether such measures are as temporary as some hope. Interest rate increases are adding further pressure.
The expectation among US colleagues is that high tariffs will persist for another two years. The broader sentiment is a move toward fair trade and certainty, rather than free trade. At present, planning is difficult because the outlook is so unclear.
Asian competition: a present reality
One of the most consistent themes across regions was the increasing presence of Asian manufacturers in global markets. This is no longer an emerging trend; it is a current reality. Their competitiveness on price, combined with improving capability, is reshaping expectations across the board. China was described as a special case, with its approach to business making competition difficult at that level. Tariffs and protectionism from China in particular, across most global markets are expected to further develop and become the new norm.
At the same time, customers are changing how they approach projects. There is a growing expectation for globally aligned solutions rather than regionally delivered ones. For Australian businesses, this reinforces the importance of positioning within a global supply chain, not just a domestic one.
Resilience is the new productivity
Price is only part of the story. Across all regions, there is a clear shift in what end users are prioritising. Productivity and automation remain critical, but they are increasingly viewed through the lens of resilience. End users are asking how they can maintain operations in uncertain conditions, respond quickly to change, and protect output despite fluctuations in supply, cost or demand.
This shift presents opportunity. The ability to deliver flexible, adaptable solutions, supported by strong after-sales service, is becoming just as important as the initial equipment itself. After-sales capability is emerging globally as a key differentiator. In Italy, members reported that spare parts and services are increasing, a positive sign for the moment, though sales pipelines have reduced by two months compared with previous years.
Consumers are changing, and so are the machines
Market trends are feeding directly into machinery demand. In the United States, the impact of Ozempic and GLP-1 medications is being felt across food categories, with 10 to 20 per cent of Americans using these drugs and changing what they consume. Bakery and confectionery are among the sectors affected. The expectation is that this trend will extend as prices lower with patents being released.
Brand owners who enjoyed favourable conditions during Covid are now under significant pressure from store brands. Customer habits are shifting, with more cooking at home, including baking bread rather than buying it. Companies are expected to diversify their product ranges, adding protein, minerals, fibre and different formulations. But this creates a range of challenges for machinery.
AI, automation and the certification squeeze
AI is appearing everywhere and changing month by month. Knowledge management within operations is becoming cheaper to implement. Robotics continues to expand. Big companies are starting to release their own AI systems, backed by substantial investment, raising questions about how that affects automation companies.
Packaging and environmental trends, however, are inconsistent. Extended Producer Responsibility is being implemented state by state in the US, with seven states currently collecting fees. Buying machines optimised for one material, then facing a material change, means the machines must change too, potentially affecting processing speed and adding cost. Manufacturers are increasingly being asked how their equipment adapts to different materials over time.
In the UK, waste regulations and reporting requirements are creating demand for solutions. Significant food waste occurs before products reach shops, affecting the food poverty rate, currently around 10 per cent. As waste now costs companies money, they are looking at reducing it. Inspection and shelf-life performance are major concerns.
Sustainability certification is becoming a growing burden. Member companies are increasingly asked for certifications by end users, and the requirements vary by vertical market. Each certification costs time and money. There are more and more certifications emerging, and the call is growing to narrow their scope.
Cyber resilience: a shared concern
The Cyber Resilience Act was a major topic, particularly for European members, many of whose regulations are linked to it. Members are worried about how it will affect their machines and unsure whether they are approaching compliance correctly. There is significant room for liability issues, with at least 15 years of record-keeping required. Risk assessments are ongoing. Some members are running seminars to help others understand the issues, and companies are now receiving lengthy questionnaires about their practices from customers.
In Germany, we heard about how protectionism is increasing, particularly from China, and Europe is expected to see a level of protectionism it is not accustomed to, a shift attributed in part to the United States opening the door to such measures.
Why this matters for Australia
For APPMA, participation in these international meetings reinforces the value of global engagement. The challenges facing the industry are not isolated by geography; they are shared across markets.
Maintaining these connections ensures Australian industry remains informed, responsive and aligned with global developments. It also enables APPMA to contribute to the broader conversation, ensuring Australian perspectives are represented on the world stage.
Moran said APPMA's presence at Pack Expo was about strengthening the global partnerships that elevate the industry.
"We're there to build on our relationships with key international associations, gain international insights on the future of the industry, and build excitement for Appex 2027," he said. "It's about bringing the best of the world back to Australia, and showcasing the best of Australia to the world."
In a market defined by uncertainty, one constant remains: the importance of collaboration, adaptability and a global outlook.
