European insights: Trends in the plastics machinery sector
As the plastics machinery sector looks toward 2025, Show Daily spoke with Thorsten Kuehmann, Managing Director of the VDMA Plastics and Rubber Machinery Association, and Mario Maggiani, General Manager of AMAPLAST, Italian Plastics and Rubber Processing Machinery and Moulds Manufacturers’ Association. They shared their insights on market and technology trends, as well as the opportunities and challenges faced by the sector.
Optimism for 2025: A long-term perspective
As the global economic landscape evolves, the European plastics machinery sector remains cautiously optimistic about the market outlook for 2025, while maintaining a belief in the long-term prosperity.
Thorsten Kuehmann remarked, “Our optimism is currently being put to the test, which is related to many general developments and conflicts. Nevertheless, I fundamentally believe in a plastics industry that will continue to prosper in the long term.”
Thorsten Kuehmann, Managing Director of the VDMA Plastics and Rubber Machinery Association.
Over the past three decades, plastics have seen an average annual growth rate of 4-5%. This growth is largely attributed to the multi-functionality and cost-effectiveness of plastics, which have become indispensable across nearly every economic sector, Kuehmann explained.
“After the demand for plastics technologies has been rather weak in the past 2-3 years, I think it is likely that it will pick up again in the course of the year. This also means that the rising sales will not be noticeable until next year, making 2025 a transformative year,” he said.
While caution prevails, a recent sentiment survey conducted by AMAPLAST reveals that manufacturers expect an increase in order intake in the coming months, including on the domestic front.
This optimism persists despite a sluggish domestic market, primarily due to delays in the implementation of the Transition 5.0 plan, which has stalled investments by Italian customers, according to Mario Maggiani.
On packaging and automotive sectors
As the plastics and rubber industries navigate complex dynamics, the potential for growth in automotive and packaging sectors remains a topic of discussion.
Mario Maggiani noted that the packaging industry, after experiencing fluctuations since 2022 following a post-pandemic rebound, is showing recent signs of improvement. This has led to a more optimistic outlook for the coming months.
In contrast, the situation in the plastic and rubber automotive components sector remains complex. Maggiani remarked, “For some time now, the sector has certainly not been showing a brilliant performance, and the most recent challenges are primarily related to the green transition, obviously affecting the entire supply chain.”
While environmental sustainability remains a priority, he emphasized the importance of European industrial policies supporting companies in this transition without jeopardizing their competitiveness.
Thorsten Kuehmann expressed a more positive perspective on the automotive sector, suggesting that it may have reached its sales bottom and is starting to regain momentum. He anticipates stable long-term demand for both electric and combustion vehicles.
Kuehmann also highlighted that the construction sector is likely to experience a gradual rebound after years of restraint due to high interest rates. Additionally, he holds an optimistic view on the medical sector and expects stable growth in packaging.
On Asian and Chinese markets
The Asian and Chinese markets are emerging as significant growth areas in manufacturing. Mario Maggiani commented that while China's manufacturing strength continues to grow—aiming to reach the technological sophistication of European competitors—several other Asian nations are also becoming vibrant manufacturing hubs, and therefore important buyers of processing technologies.
Mario Maggiani, General Manager of AMAPLAST, the Italian Plastics and Rubber Processing Machinery and Moulds Manufacturers’ Association.
Vietnam exemplifies this trend, with a remarkable surge in imports of plastics machinery over the past two decades, skyrocketing from just over €162 million in 2003 to more than €1.24 billion in 2023. Maggiani also mentioned that Cambodia has also seen a notable rise in imports of plastics and rubber technology over the past decade.
Chinese manufacturers are making significant strides in expanding their presence in overseas markets, reflecting a pronounced shift in their export orientation. This trend is reminiscent of historical patterns observed in other countries.
“This is understandable for us from our own history, since after the German so-called economic miracle years came the time of the big export,” said Thorsten Kuehmann. “This means that in addition to Europe and Japan, we now also have Chinese competitors in the major sales markets. In my view, there is enough room for diverse competition in the dynamic plastics industry.”
Kuehmann emphasized the need for European machine builders to enhance their local presence if regional barriers such as tariffs persist. This will likely require establishing more branches and production facilities, which could lead to increased production costs.
Growing roles of circular economy and AI in production
The circular economy in the plastics industry is essentially irreversible. Thorsten Kuehmann hailed the progress in Europe, driven by regulations like the Packaging and Packaging Waste Regulation (PPWR).
However, the European chemical industry is facing high energy costs that have increased production expenses. Mario Maggiani said that these costs are largely passed on to processors, who find it especially burdensome to purchase recycled materials, which remain more expensive than virgin materials due to the energy-intensive recycling process. He anticipates that processors may seek more affordable recycled materials from regions like Asia and China.
Kuehmann also highlighted the growing significance of integrating artificial intelligence (AI) into production processes to address the global skilled labor shortage and enhance sustainability while reducing costs. European machine manufacturers are actively developing strategies to implement AI effectively, including standardizing data flows using protocols like OPC UA and organizing data obtained in new data rooms for easy and secure customer sharing.
Maggianni agreed on AI's transformative impact, stating, “The pace of development is so rapid that what seems revolutionary today may be outdated tomorrow.” Together with other associations, AMAPLAST is exploring the feasibility of implementing a Chat GPT-like tool for the machine industry to create a common language.
Tools such as digital twins, predictive maintenance, Internet of things (IoT), and diagnostic reporting are helping customers optimize machine use and prevent issues. Maggiani added that the plastics machinery sector is increasingly benefiting from servitization, which combines digital applications to facilitate complex machinery use, servicing, and longevity.
