At a press conference with the daily and business press on the world's leading trade fair IFFA 2025, the VDMA reported a decline in production in the food processing and packaging machinery sector of just under 2 percent to 16.1 billion euros, accompanied by a 6 percent increase in exports to 10.6 billion euros.
“the investment activity in Germany was significantly weaker than expected in 2024, meaning that even the increase in foreign trade was unable to compensate for the decline,” says Klaus Schröter, Chairman of the VDMA Process Engineering Department for Meat and Protein Processing.
Only packaging machinery saw an overall increase in machine production of 2 percent to 8.3 billion euros. In contrast, the heterogeneous food machinery sector recorded negative growth rates in all sub-sectors in 2024. Manufacturers of process technology for meat and protein processing – the strongest exhibitor segment at IFFA – constitute the largest sub-sector within the food machinery industry. “In 2024, after a 10-year growth phase, we recorded a 6 percent decline in machine production to 1.3 billion euros,” says Klaus Schröter. The industry expects significant impetus and a growth spurt for 2025 from the world's leading trade fair, IFFA.
According to Schröter, the announcement of the new federal government for measures to promote the economy, such as special depreciation allowances for investments, would create more incentives particularly in Germany.
Exports up – US remains most important market
With average export sales of 86 percent and a 21 percent share of world trade, the food processing and packaging machinery sector is one of the strongest export industries. In 2024, it was one of the few sectors in mechanical engineering that did not experience a decline in foreign trade. In total, German machinery exports fell by 5 percent last year.
Of the food processing and packaging machinery exported at a value of 10.6 billion euros, 47 percent was sold in Europe, 33 percent of which went to EU countries. Overall, the deliveries to Europe increased by 3 percent. North America was the second most important region in 2024 with 18 percent, ahead of Asia with 15 percent. This was followed by Latin America with 9 percent, Africa and the Middle East with 5 percent each, and finally Australia-Oceania with 2 percent.
The USA have been by far the most important market for German manufacturers of food processing and packaging machinery for many years. In 2024, machinery worth 1.8 billion euros was shipped from Germany to the United States – which corresponds to an increase of 7 percent over the previous year. In view of the tariff announcements, companies in the sector expect a temporary slowdown in investment in 2025, but growth to resume in the medium term.
Customs policy causes uncertainty – hope for negotiations
With over 1.5 million employees, the American food industry is the strongest sector in the US manufacturing industry. Automation and capacity expansion are considered the strongest drivers for investment.
American food producers cannot meet their technology needs locally. Every year, companies import process and packaging technology worth 5 billion euros from Europe alone, with Germany as the most important trading partner, followed by Italy.
“We are expecting many American trade visitors and long-standing customers at IFFA. Some of the major exhibitors at the trade fair are also from the USA. Innovations and investments will certainly be the focus of discussions, but the customs issue will also be on the table,” says Klaus Schröter.
For mechanical engineering companies, the existing tariffs on aluminum and steel are causing uncertainty, as a tariff of 25 percent is levied on the steel content of machinery, and this proportion is particularly high in food processing machinery. “There is currently a lot of uncertainty, including with regard to how the US customs authorities will handle the situation. The bureaucratic effort involved is considerable. We hope that negotiations with the EU Commission will take place, as high tariffs or even a tariff war with the European Union will ultimately only lead to a lose-lose situation for everyone,” says Schröter.
Europe leads the world in machinery trade
Europe is still the clear leader in international trade in food processing and packaging machinery. Almost 70 percent of global trade, which amounted to just under 54 billion euros in 2024, comes from Europe. Italy and Germany are at the top of the list, each with a global market share of around 20 percent. Other European suppliers of food processing and packaging machinery include the Netherlands with 7 percent, Switzerland with 4 percent, France and Spain with 3 percent each, and Denmark, Turkey, the United Kingdom, Austria, and Poland with 1 to 2 percent each.
Due to its high level of specialization, performance, and innovative strength, the food processing and packaging machinery industry is the most successful export sector in European mechanical engineering. “To ensure this leadership position and to make sure that companies remain competitive, it is immensely important that the EU Commission engages in constructive negotiations with the US on the issue of tariffs, bureaucracy reduction, improved framework and location conditions for companies, as well as in tax incentives for research,” emphasizes Schröter.
Industry expects momentum from IFFA
Despite the difficult conditions, the industry is generally optimistic in the run-up to IFFA. This was also confirmed by the VDMA economic survey conducted in April 2025. According to the survey, manufacturers of food processing and packaging machinery are currently among the sectors with the highest capacity utilization within the German mechanical engineering industry, at 91 percent. Half of the companies in the industry rate the current economic situation as good, with a further 40 percent rating it as satisfactory. The majority of companies expect machine demand to remain stable or to increase in 2025. “As a catalyst for investment, IFFA will make a significant contribution to positive business development this year and beyond,” concludes Klaus Schröter.