13/06/2024 | Industry

VDMA: Production at record level in 2023

In 2023, the production of food processing and packaging machinery increased by 5 percent to 16.5 billion euros. This means that the fifth-largest mechanical engineering sector exceeded the 16 billion euro mark for the first time, setting a new record hereby. Within the German mechanical engineering industry, the companies in this sector account for 6 % of the total production value and employ more than 62,000 people in Germany. With an average export turnover of 86 % and a global trade share of 22 %, the food processing and packaging machinery sector is one of the strongest export industries. Packaging machines account for around half of the production value. In 2023, companies increased their production by 10 % to just under 8 billion euros. The beverage packaging machinery sector grew in particular, increasing by 18 % to 2.8 billion euros. The production of so-called other packaging machines rose by 6 % to 5.2 billion euros. A large part of the turnover was based on orders from 2022, as incoming orders remained rather subdued in 2023. One of the reasons for this was the discussion in respect to the new EU packaging regulation, which led to uncertainty and restraint among customer industries. ‘The adoption of the packaging regulation in April 2024 is not only considered as positive due to some critical points, but it creates standardized conditions for the EU mechanical engineering industry and more planning security for investors,’ says Beatrix Fraese, economic expert and deputy managing director of the VDMA Food Processing and Packaging Machinery Association.