The German food machinery and packaging machinery industry increased its exports by 4 percent in the first half of 2024. In 2023, exports rose by 9 percent to 9.9 billion euros - a new record. Whether this level will be reached in the current year depends heavily on the further development of incoming orders.
Mixed development in incoming orders
In July, incoming orders in the food processing and packaging machinery sector increased by 9 percent in real terms compared to the same month last year. Domestic demand rose by 73 percent, while foreign orders remained stable. Orders from euro partner countries increased by 5 percent, while orders from non-euro countries fell by 3 percent. In the period from January to July 2024, incoming orders for the food processing and packaging machinery sector fell by 7 percent.
“Incoming orders in our heterogeneous industry are split in two this year. For packaging machines (excluding beverage filling machines), we can report a stable growth of 13 percent in real terms in the first seven months, while order intake in the food machinery sector in the period from January to July is 9 percent below the previous year's level,” says Beatrix Fraese, expert for markets and the economy and Deputy Managing Director of the VDMA Food Processing and Packaging Machinery Association.
This development is the result of a subdued order intake for packaging machines in 2023. “The discussion surrounding the new EU packaging regulation led to uncertainty among customers last year. The regulation has now largely been finalized, which seems to be having a positive impact on investments,” explains Fraese.
There is currently an opposing trend in incoming orders for food processing machinery. “Order intake in 2022 was exceptionally dynamic and is still at a very high level in 2023. This means that we are seeing base effects in the year to date,” says Fraese.
Overall, companies in the fifth-largest mechanical engineering sector expect moderate growth in 2024. The year 2025 could once again provide strong momentum for the food processing and packaging machinery sector due to the world's leading trade fairs IFFA in May and drinktec in September and become the next year of growth.
