U.S. packaging machinery shipments grew 5.8% in 2023 to $10.9 billion, according to 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.

While the growth rate is projected to slow to 2.5% in 2024, the 2025 forecast calls for an upturn in growth rates to reach a high of 8.0% in 2027. This slowdown in 2024 is expected to be the next low point in the industry’s usual peak-to-trough sales cycle, typically lasting three to five years.

Factors influencing machinery investments include substantial investments in new plants and line upgrades in many industry segments, lower interest rates, and changes in consumer preferences like 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 are encouraging end users to transition away from single-use plastics to more renewable and/or recyclable packaging materials and set goals to reduce carbon emissions.

Labor shortages also continue to influence machinery purchases, driving interest in automation and orders for easier-to-use machines.

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. 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.