Forecast Calls for Rising Packaging Machinery Sales

The growing popularity of individually packaged single servings is one of the factors influencing machine purchases and line upgrades. © Adriana – stock.adobe.com

PMMI report projects higher growth rates through 2027.

By Jorge Izquierdo,  Vice President of Market Development at PMMI

Shipments of U.S. packaging machinery will grow 2.5% to $11.2 billion in 2024, according to projections in the 2024 State of the Industry report published by PMMI, The Association for Packaging and Processing Technologies, the producer of the PACK EXPO portfolio of trade shows.

Based on data drawn from surveys and in-depth interviews with machine builders, the report noted that the anticipated 2.5% growth rate is slower than the 5.8% growth rate recorded in 2023. However, 2024 is expected to be the low point in the industry’s usual peak-to-trough sales cycle, typically lasting three to five years. As a result, sales growth is expected to strengthen in 2025 and increase each year to reach a high of 8.0% in 2027. Beyond machine sales, industry revenue will benefit from the further development of secondary income streams from machine modifications and servicing, areas that experienced growth in 2024.

Factors Influencing Machinery Purchases

Factors influencing machinery purchases include substantial investments in new plants and line upgrades in many industry segments, lower interest rates, and changes in consumer preferences, such as the growing popularity of individually packaged single servings.

The report notes that consumer and regulatory demands for more sustainable packaging remain a major influence. These demands encourage end users to transition from single-use plastics and plastics in general to more renewable and/or recyclable packaging materials. The interest in sustainable practices also prompts brand owners to set goals to reduce carbon emissions. As more states adopt Extended Producer Responsibility regulations, which typically specify waste management and recycling requirements, end users must consider these factors when making packaging decisions.

Labor and skills shortages continue to influence machinery purchases, driving interest in automation and orders for more accessible and easier-to-use machines with simpler, often multilingual human/machine interfaces (HMIs) with mistake-proofing capabilities, which prevent data entry errors. Increasingly, HMIs also are moveable to different positions on the machine or even portable and tablet-like. Features that support faster training are viewed as highly desirable, as are services that shift machine maintenance from the end user to the OEM.

The effort to recruit and retain personnel has prompted the adoption of flexible work arrangements and competitive benefits packages, training and apprenticeship programs for area residents, career advancement and internal training programs, and efforts to improve company culture.

Other factors garnering attention in the machinery purchasing process include concerns about product quality and safety and the potential benefits of Big Data. A dramatic jump in product recalls is accelerating interest in hygienic features and strengthening demand for advanced clean-in-place and clean-out-of-place designs along with automated systems that document cleaning times and temperatures and aid in compliance. Utilization of Big Data offers an opportunity to optimize machinery performance via preventative maintenance, predictive maintenance, AI-supported operator interfaces, and AI-based data analysis, which could enable continual improvement of overall equipment effectiveness.

3 PACK EXPO Shows Serve Industry Needs in 2025

Photo by Vicki McDonald Kastory

Brand owners can find what they need to upgrade lines or install new systems at three PACK EXPO shows in 2025: PACK EXPO Southeast, EXPO PACK Guadalajara, and PACK EXPO Las Vegas. Produced by PMMI, The Association for Packaging and Processing Technologies, the shows also provide an unmatched opportunity for networking and free educational experiences.

First up is the inaugural edition of PACK EXPO Southeast (March 10–12, 2025; Georgia World Congress Center, Atlanta). The convenient, easily-accessible Atlanta location makes it easy for teams to attend, assess the latest technologies, learn from leading industry experts, and make valuable connections to address current or upcoming projects. As the most comprehensive packaging and processing event in the Southeast region in 2025, the show will offer crossover solutions for 40+ vertical markets from 400 exhibitors across 100,000 net square feet. Highlights include the Reusable Packaging Pavilion, Innovation Stage and Industry Speaks educational sessions, networking events such as the Opening Reception, the Young Professionals Networking Reception, and the Packaging & Processing Women’s Leadership Network (PPWLN) Reception, plus opportunities for students aimed at generating interest in careers in packaging and processing.

EXPO PACK Guadalajara 2025 (June 10–12, 2025; Expo Guadalajara, Guadalajara, Jalisco, Mexico) is expected to be the largest edition of the show to date and the premier packaging and processing show in Latin America in 2025. More than 16,000 buyers and decision-makers are expected to tour the expanded show floor with 700 exhibitors. New features include The Containers and Materials Pavilion and The Digital Transformation Pavilion. A world-class educational program will feature daily keynotes and show floor education sessions where key players and suppliers in the packaging and processing industry will discuss a wide range of industry topics.

PMMI expects PACK EXPO Las Vegas (Sept. 29–Oct 1, 2025, Las Vegas Convention Center, Las Vegas) to break records with a forecast of 35,0000 attendees, 2,300 exhibitors, and nearly 1 million square feet of floor space, which includes six pavilions: The Processing Zone, The Container and Materials Pavilion, The Logistics Pavilion, The Healthcare Packaging Pavilion, The Confectionery Pavilion, and The Reusable Packaging Pavilion. There also will be more than 100 free educational sessions, networking events such as the PPWLN Breakfast, and many activities for students.

For more information, visit packexposoutheast.com, expopackguadalajara.com.mx, and packexpolasvegas.com.

Industry Segments Driving Growth

Organized by industry segment and machine type, PMMI’s State of the Industry report predicts that Food, with a 43% market share in 2023, will maintain its position as the largest industry segment, but the Pharmaceuticals segment (11% share in 2023) will grow faster. Beverage, the second largest sector at 15% in 2023, is highly resilient and growing due to a diversification in drink sizes and the rising popularity of non-alcoholic drinks such as mocktails and beverages infused with cannabidiol (often referred to as CBD). The report notes, that the segment is experiencing a shift in packaging materials, from plastic to more recyclable glass and cans.

The report also breaks out forecasts for the Household, Industrial, and Agricultural Chemicals; Personal Care, Toiletries, Cosmetics; and Other End-User segments.

Machinery Segments Experiencing Growth

To enhance clarity and usability, machinery categories in this report have been adjusted to match the naming conventions used in PMMI’s ProSource database. For 2023, the four best-selling categories were:

• Conveying, Feeding, and Handling
• Cartoning, Multipacking, and Case Packing
• Bagging, Pouching, and Wrapping
• Filling, Capping, and Closing.

Sales in all machinery segments are projected to grow with the fastest growth expected in four sub-segments. The largest sub-segment, Product and Package Handling, is poised for the strongest growth due to the ubiquity of this type of equipment on lines in new and existing plants.

The second-largest sub-segment, Palletizing, Pallet Conveying, Dispensers, and Slip Sheets, is rapidly expanding due to workforce constraints and the need to reduce manual labor.

Growth in the Food segment, particularly the proliferation of individually packaged items, drives rising sales in the third-largest machinery sub-category, Form/Fill/Seal, Horizontal Machines. The need for product quality and safety, especially for food and pharmaceutical products, is spurring purchases of Packaging Inspection Equipment, the fourth-largest machinery sub-category.

Growth in the Canadian Market

The report also includes an overview of the Canadian market. It recorded a 4.4% growth rate in 2023, generated $922 million in revenue, and will experience growth patterns similar to the U.S. market through 2028. A law targeting single-use plastics and specifying increased use of recycled content will make machines capable of handling a variety of recyclable and biodegradable materials even more important in Canada than in the U.S.

Other report highlights include a list of major end users’ pledges and goals to reduce carbon emissions and an overview of packaging materials regulations.

About the Author

Jorge Izquierdo is vice president of market development for PMMI, The Association for Packaging and Processing Technologies. Learn more at https://www.pmmi.org