Germany’s Food Processing and Packaging Machinery Industry: Stability with Structural Challenges

Germany’s food processing and packaging machinery sector remains robust despite geopolitical tensions and economic uncertainties. A slight increase in production, stable incoming orders, and generally positive industry sentiment characterize the current situation. At the same time, competitiveness and location-related factors are increasingly coming into focus.

Germany continues to be one of the world’s leading suppliers of machinery for processing and packaging food. However, competition is intensifying. According to preliminary figures from the Federal Statistical Office, the sector is expected to achieve production growth of between two and three percent in 2025, bringing total production value to around €16.5 billion.

This growth, however, is largely based on the high order backlogs with which many companies entered the year. Incoming orders themselves fluctuated over the course of the year and, adjusted for price changes, remained almost at the previous year’s level, declining slightly by 0.5 percent.

Despite global uncertainties, the sector remains comparatively optimistic. In the VDMA economic survey conducted in January 2026, 40 percent of manufacturers of food processing, pharmaceutical, and packaging machinery rated their current business situation as good to very good. Only six percent described their situation as poor, and just ten percent expect business conditions to deteriorate over the next six months. For the current year, the association expects moderate revenue growth of three percent. The sector is therefore proving more resilient than many other branches of mechanical engineering.

Germany continues to rank among the world’s largest exporters of food processing and packaging machinery. In 2024, German exports reached €10.625 billion, placing the country just behind Italy, which leads with €10.914 billion. Together, the two countries each account for roughly one-fifth of global trade.

Overall, global trade in food processing and packaging machinery reached a record level of €54.963 billion in 2024. Europe remains the most important sales region, accounting for 42 percent of global exports.

Developments in the German food market also provide a solid foundation for the sector. In 2024, Germany was the largest single market for packaged food in Western Europe, with a total volume of 30 million tons. Dairy products and baked goods account for the largest share of this volume. By 2029, packaged food consumption in Germany is expected to rise moderately to 30.6 million tons.

Demand therefore remains stable—an important prerequisite for continued investment in production and packaging technology.

Despite stable market indicators, the sector faces growing challenges. In many international markets, competitive pressure is increasing, particularly from Chinese suppliers.

At the same time, structural disadvantages at the German business location are weighing on companies. High energy and labor costs as well as bureaucratic requirements are increasingly affecting international competitiveness. To maintain technological leadership, the industry is therefore calling for reliable political frameworks and structural reforms.

Efficiency, flexibility, and sustainability remain key requirements for modern machinery concepts. Looking ahead to interpack 2026, three topics in particular are coming into focus: Smart Manufacturing, Innovative Materials, and Future Skills.

They represent key challenges for the sector—from digital connectivity and new material concepts to workforce qualification. At the same time, they also offer opportunities to further strengthen the technological leadership of German manufacturers.

So far, Germany’s food processing and packaging machinery industry has held its ground in a demanding environment. Production growth, strong exports, and a positive industry outlook demonstrate the sector’s resilience.

However, long-term competitiveness will depend not only on global demand. The decisive factor will be whether business conditions can be improved and technological innovation can continue to advance consistently.