2025 was a year of stagnation for Germany’s mechanical engineering sector. Unpredictable US trade policy decisions, geopolitical tensions, high energy prices and growing bureaucratic requirements weighed on companies. Against this backdrop, the industry had to settle for real zero growth in 2025, according to the VDMA.
Within mechanical engineering, packaging machinery has so far proven comparatively robust. However, the picture is mixed: performance depends heavily on the respective end-user industries and sub-sectors, which are developing very differently under the current conditions.
Alongside pharma, companies with a strong focus on food have also been better able to cope with the difficult framework conditions. Multivac, for example, reports “overall very positive demand development in 2025”. “Both the number of customer enquiries and incoming orders increased significantly. Growth was particularly strong in portioning and slicing. In addition, we saw high demand in our core segment of thermoforming packaging machines as well as in our line business,” says Dr Tobias Richter, Managing Director (CSO) of the Multivac Group. Customers are increasingly investing in intelligent, efficient and integrated line solutions to further boost productivity, flexibility and sustainability.
Buchwitz confirms this trend in automation: “Signals from automation engineering and the relevant association figures show an upward trend.” The decision by many German packaging machinery manufacturers to focus on intelligent, high value-added solutions for customers, while not ignoring the mid-range segment, appears to be paying off. “Alongside the machines German packaging machinery manufacturers are known for, the market is growing in the segment with a balanced price-performance ratio,” says Buchwitz, while also warning: “Companies in the sector must position themselves strategically in a far more market-specific way than they have in the past.”
Looking at international sales markets, Packaging Valley member companies say they remain well positioned. They continue to be successful in established markets such as the United States, Europe and Asia. Buchwitz also sees growth potential in South America and, depending on the segment of packaging machinery, in Africa.
In developing and emerging countries, impetus is coming from rising demand for modern packaging solutions that extend product shelf life and reduce food losses, as Dr Tobias Richter confirms. In South America and India, existing and newly negotiated free trade agreements are supportive, Richter says. “In our view, swift ratification of such agreements is a key lever for additional growth impetus,” Richter argues. New and negotiated agreements increase planning security, strengthen international value chains and facilitate access to strategically important markets. “Less bureaucracy, for example through mutual recognition of certifications, can create additional cost advantages,” Richter says.
Buchwitz shares this assessment: “Packaging Valley’s board has taken a very clear stance in favour of free trade in general and Mercosur in particular.”
Technology remains the central differentiating factor for German packaging machinery. “The incredible momentum of AI is giving development an additional boost,” Buchwitz says, “with the real challenge being to make the right decisions from an almost countless number of offerings and possibilities.”
While AI and automation are creating substantial potential and international trade agreements can generate additional growth impetus, the global environment remains complex. “Location factors, regulation and availability of skilled labour will be decisive in how strongly companies can leverage these opportunities,” Richter adds.
Packaging Valley also sees major opportunities in placing a much stronger focus on cooperation and partnerships. “The ‘lonesome cowboy’ will find it hard in the packaging machinery market in future,” Buchwitz warns. Particularly in Germany, as a country of machinery manufacturers and automation specialists, closer collaboration is an obvious step. “At Packaging Valley, we focus on innovation that is not limited to technology but runs across all areas of the business,” the Managing Director adds.
Packaging Valley’s member companies come from various fields around packaging machinery: mechanical engineering, automation technology, engineering and solutions across the value chain. Accordingly, forecasts also vary, Buchwitz says. Overall, however, the sector is currently showing cautious optimism. Global demand for packaging, and therefore for packaging machinery, continues to grow, and sustainable packaging is both a challenge and an opportunity.
At the same time, the global environment remains demanding. “We are cautiously optimistic mainly because global political, global economic and German economic policy developments are simply not predictable, and we are in a highly volatile and partly disruptive situation,” Buchwitz says, while Richter points out: “Weak domestic markets, for example in China or parts of Europe, are increasing competitive pressure on export-oriented manufacturers in dynamic regions such as Southeast Asia.” The international footprint of the Bavarian machinery manufacturer is proving to be a major advantage: “With local sites, regional value creation and direct proximity to customers, we can respond flexibly to market changes and make targeted use of opportunities even in a volatile environment,” Richter says.
Nevertheless, global events can only be influenced to a limited extent, if at all. “Our greatest leverage in this respect is the attractiveness of Germany as a business location, but even there there are limits,” Buchwitz stresses.
“High energy and labour costs, increasing regulatory requirements and lengthy approval and decision-making processes are slowing the pace of innovation and investment. For industrial companies, the environment is becoming increasingly challenging,” Richter adds. Germany remains a central location for the Multivac Group, with strong industrial expertise, excellent research structures and a high-performing network of customers, partners and suppliers. “What will be decisive is safeguarding these strengths through reliable framework conditions, investment-friendly policymaking and targeted reforms, for example measures to address the skilled labour shortage,” Richter says.
In summary, packaging machinery is facing a strategic turning point. Pharma, food and technological innovation strength are stabilising the business. International markets and trade agreements open up additional opportunities. The decisive factor will be how consistently companies combine technology, market knowledge and cooperation, and whether Germany can be made more competitive again as a business location.
Author: Alexander Stark, Editor FACHPACK360°
