Packaging Market Italy: Recovery, Trends and New Risks

Following a year of uncertainty and decline in 2023, the Italian packaging industry returned with renewed strength in 2024 – not with a big bang, but in a quiet but steady manner. The recovery is noticeable, but it is proceeding more cautiously than hoped. The industry is caught between change and adaptation, between export-driven momentum and regulatory obligations, between technological advantage and consumer behaviour that no longer sees packaging as a mere shell but as an expression of values.

The change is happening on several levels: while the mechanical engineering industry is enjoying record sales of 9.5 billion euros and setting standards worldwide, the classic packaging market has proven to be more robust but susceptible to import-side influences. At the same time, pressure is growing from consumers, who are increasingly demanding ecological, recyclable and transparent solutions, thus accelerating the innovation curve of suppliers.

Between Recovery and Reality: Production Situation 2024

Compared to the previous year, packaging production in Italy in 2024 was on the rise again: with an increase of around 1.6%, the total volume in 2024 is estimated at around 17.6 million tonnes. The packaging industry's turnover is also approaching the 40-billion-euro mark again – an important psychological threshold for a sector that suffered a decline of 5.5% in 2023.

But there are limits to the optimism: the increase in production largely parallels the sluggish recovery of the manufacturing industry, which is expected to end the year down 0.9%, according to analysts at the consulting firm Prometeia. 

Demand from Key Sectors: Those Who Package Because Things Are Picking Up

Not every industry is contributing equally to the recovery. The main drivers are those industries that are performing well on the international market. Growth is being led by the cosmetics industry, driven primarily by exports but also by solid domestic market momentum. According to preliminary data, the cosmetics industry's total sales in 2024 will exceed €16.5 billion, an increase of +9.1% over the previous year. A further positive trend is also expected for 2025 (+6.9%), which will raise sales to €17.7 billion.

The pharmaceutical industry and the FMCG sector are also driving demand for packaging. The traditionally most important sector, food and beverages, is more restrained with an increase of 0.8%, but remains stable. By contrast, sectors such as fashion (-5.5%), furniture (-1.5%) and household appliances (-0.6%) are dampening the overall balance – there is stagnation or even decline.

Exports Remain a Strong Driver, Despite Some Dents

International packaging trade remains a double-edged sword for the Italian market. Although exports are growing slightly by 2.1 % according to preliminary data, imports are growing much faster at +7.9 %. The resulting trade deficit is almost 290,000 tonnes – a historic high. Imports of plastic packaging (+14.9 %) and glass (+1 %) rose particularly sharply, but paper and steel were also affected.

The increased import volumes are squeezing the margins of Italian packaging manufacturers – the imports are increasing in volume and thus making it more difficult for domestic manufacturers to secure market share.

Mechanical Engineering: The Driving Force Behind the Industry

The Italian packaging technology sector ended 2024 with excellent results, according to industry association Ucima. Preliminary figures indicate a total turnover of 9.5 billion euros, an increase of 3.5 % over 2023. This is the fourth consecutive record year for packaging machinery manufacturing, confirming the strategic importance of the sector for the national industry.

Exports continue to be the engine of growth for the industry, reaching 7.5 billion euros, an increase of 3.8 % over the previous year and accounting for about 80 % of total sales. The strongest performances were achieved in key markets such as Africa and Oceania (+10.3 %), Asia (+3.3 %) and the European Union (+6.1 %). Strong growth was also recorded in individual countries, particularly Mexico (+18.8 %) and Spain (+11.1 %). The Italian domestic market also ended the year on a positive note, with sales of 2 billion euros and an increase of 2.5 %.

With 7.6 months of production already secured for the coming year, the sector is looking confidently to the future, but is also aware of the geopolitical and regulatory challenges ahead. Forecasts for 2025 predict further growth, with revenues expected to reach €9.6 billion, cementing Italy's position as a global leader in the industry.

Consumer Trends: Sustainability as a Decision Factor

Today's Italian consumer is informed, critical and consistent. Environmental aspects play a decisive role for 79 % of consumers when shopping for food. When it comes to healthy food, 73 % expect sustainable packaging, and for environmentally certified products, the figure is as high as 76 %.

Above all, there is demand for packaging solutions that can be recycled, are made of renewable materials, use as little material as possible and have a low carbon footprint. Retailers are also responding – many companies are increasingly investing in sustainable packaging for their own brands, despite rising raw material prices and a complex regulatory environment.

Legal Framework: Growing Pressure to Adapt

As part of the increasing implementation of sustainability initiatives and waste prevention programmes across Europe, Italy has also introduced strict packaging regulations in order to achieve the goals of environmental protection and a circular economy. The Environmental Code (Decreto Legislativo No. 152/2006) and Decree No. 116/2020 on extended producer responsibility lay down comprehensive obligations for all market participants – from producers to importers. These include, among other things, registration with CONAI, the obligation to label products, recycling-dependent levies and detailed volume reporting.

In addition, the new EU Packaging and Packaging Waste Regulation (PPWR) will come into force in 2026, introducing binding requirements for recyclability, reusability and labelling. These rules are directly and mandatorily applicable – and that includes Italian companies. 

US Tariffs Create Geopolitical Tension

The import duties on European products announced by the USA also affect parts of the Italian packaging industry – in particular, machinery and plastic components. Although the immediate effect is currently limited, there is a risk of competitive disadvantages in the important US market if the measures are extended. The uncertain geopolitical situation is increasing the pressure to adapt – and is once again bringing stable trade relations into sharper focus for industry.