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Packaging Industry in Germany Expects Upturn
The results of a market survey of German packaging industry associations in the immediate run-up to FACHPACK reveal many fundamental similarities for the individual packaging materials, but also clear differences. Concerns still predominate, even if there is light at the end of the tunnel in many places.
Turnover development in the German packaging machinery industry: Turnover increased by 10.2 percent in 2023 compared to 2022, reaching 7.97 billion euros.Packaging Machinery
According to the VDMA Food Processing and Packaging Machinery Association, incoming orders for packaging machinery in the first four months of 2024 rose by 16 percent in real terms compared to the weak same period of the previous year. For the second half of 2024, “an overall positive trend in order intake” is expected, as there are likely to be catch-up effects, particularly for packaging machinery. “The adoption of the Packaging Ordinance in April 2024 is not only viewed positively due to some critical points, but will create a level playing field for EU mechanical engineering and more planning security for investors,” reports Beatrix Fraese, economic expert and Deputy Managing Director of the VDMA Food Processing and Packaging Machinery Association.
The approximately 250 companies based in Germany in the packaging machinery sector produced products worth 7.97 billion euros in 2023. This was an increase of 10.2 percent compared to the 7.24 billion euros in 2022, with the largest growth recorded in the area of beverage packaging machines, which increased by 18 percent to 2.8 billion euros. German exports of packaging machinery reached a value of 6.33 billion euros in 2023, an increase of 9.8 percent compared to 5.77 billion euros in 2022.
Packaging films suffered the greatest losses, while the closures segment remained the most stable. Plastic Packaging
After a severe recession and an economically weak year in 2023, manufacturers of plastic packaging are cautiously optimistic about the second half of 2024 According to Mara Hancker, Managing Director of Communications at the Industrievereinigung Kunststoffverpackungen (IK), there are signs of a slight economic recovery, supported by positive developments in turnover, earnings and exportsThe 240 manufacturers organised in the association employ around 90,000 people and generated a turnover of 16.8 billion euros in 2023 This is a drop of around 7.7 percent compared to the 18.2 billion euros in 2022. Packaging films (-14.4 percent) and bags, carrier bags and sacks (-8.9 percent) were the hardest hit segments The closures segment was the most stable, with a decline of just 0.4 percent In foreign trade with films and plastic packaging materials, the companies organised in the IK recorded a turnover of 9.3 billion euros in 2023, down 10.7 percent on 2022 (10.4 billion)
Exports of corrugated board fell by around 8.9 percent.Corrugated Board
Corrugated board remains the most important transport packaging in Germany, strongly linked to the economy as a whole. After a massive slump in the previous year, the first signs of recovery are emerging. Corrugated board sales rose by 1.6 percent between January and May 2024.
Companies in the corrugated board industry generated sales of around 7 billion euros in 2023. Compared to the previous year's figure of EUR 8.17 billion, turnover fell by around 14 percent. Sales in tonnes fell by 8.4 percent from 5.7 billion to 5.23 billion. The proportion of recycled paper used in corrugated board packaging by VDW member companies in 2023 was 81.2 percent, as in the previous year. The export ratio remained almost identical to 2022 at 20.8 percent, although exports in tonnes fell by around 8.9 percent from 1.26 billion to 1.15 billion.
Folding Cartons
The folding carton industry is still feeling the effects of the coronavirus pandemic. Full stocks and inflation-induced consumer restraint are leading to underutilised production capacities. Christian Schiffers, Managing Director of the FFI Fachverband Faltschachtel-Industrie e.V., also sees challenges in the recruitment of trainees and the shortage of skilled labour.
The 101 German folding carton companies reporting to the Federal Statistical Office produced around 884,000 tonnes in 2023, which represents a decrease of 6.2 percent compared to around 943,000 tonnes in 2022. In terms of the value produced, however, the decline was much smaller at -1.3 percent, from around 2.2 billion euros in 2022 to 2.16 billion euros in 2023. According to the European Carton Makers Association (ECMA), Germany accounts for 17.9 per cent of folding cartons produced in Europe.
Flexible Packaging
Business for manufacturers of flexible packaging made of paper and film suffered from the weak economy in the first half of 2024. The total market for flexible packaging made of paper and film in Germany totalled around 2.2 billion euros in 2023. This represents an increase of 14.6 percent on the €1.92 billion recorded in the first year of coronavirus in 2020. According to FPE figures, prices for almost all flexible packaging materials rose slightly in the first quarter of 2024 compared to the end of 2023. However, they are still consistently well below the level at the beginning of 2023.
While production volumes in the German container glass industry fell, turnover increased significantly. Glass
The glass industry recorded a 15.5 percent decline in sales in 2023, although there were signs of a slight recovery in the second quarter of 2024. Decarbonisation remains one of the biggest challenges for the industry, as climate-neutral production processes must be achieved by 2045.
The 31 companies in the German container glassware industry closed 2023 with mixed results compared to 2022. While the production volume fell by 9.6 percent from 4.35 million tonnes in 2022 to 3.93 million tonnes in the following year, turnover increased by 19.1 percent from €2.47 billion to €2.94 billion in 2023. 67.9 percent of turnover was generated by the almost 10,000 employees in Germany, which represents an increase of 3.7 percent compared to the previous year. 32.1 percent of total turnover was generated abroad. Here, the industry was able to record a substantial increase of 13.5 percent. At 45.7 percent, the export ratio was slightly higher than in 2022, when 42.9 percent was achieved.
