Although global plastics production has been growing steadily for decades, this growth is not reflected in the plastics machinery and equipment sector.

While demand for plastics continues to rise, manufacturers of production equipment are facing challenges, including rising costs, declining margins, and intensifying global competition. These are fundamentally changing the rules of the industry.

Stable revenues expected for 2026 and modest growth from 2027

The overall economic environment remains challenging for the Germa plastics and rubber machinery sector. The start to 2026 was difficult. According to VDMA, in the first quarter, order intake declined by 5% in real terms, while revenues were 3% below the previous year’s level.

However, the organization expects a stabilisation over the course of the year. In particular, demand from Asia and the Americas is likely to provide new momentum and partly offset the weak start. The organization therefore expects a sideways movement for 2026, with revenues likely to remain at around ±0 per cent.

Overall, there are signs of a continued positive trend in the Americas and Asia, which could lead to modest growth for the plastics and rubber machinery sector from 2027 onwards.

Despite challenges such as tariffs, the US remains a stable anchor market, with solid demand from packaging and medical technology. China, supported by a growing middle class, remains one of the key centers of global plastics consumption, with positive effects on demand for machinery.

High technology innovations along value chain are essential

For plastics and rubber machinery manufacturers, they must set the course for the future in order to remain competitive in a highly competitive and margin-sensitive environment.

High technology and quality leadership remain essential. Digitalisation, artificial intelligence, and automation are key drivers. Connectivity and data flows across the entire value chain are creating new business models and added value. However, without structural adjustments, price pressure cannot be managed.

International production and sales structures are decisive

Production and sales structures must be rethought and organized on a much more global basis.

VDMA pointed out that German and European technology providers need to adapt even more closely to local market conditions, customer needs, and business cultures in their respective regions, as well as at competitive prices.

“We must ensure a sensible allocation of production capacity within our companies. This means adjusting capacities in Europe, while strengthening our presence in growth markets and following local market dynamics. This applies in particular to Asia and the United States,” emphasized Sandra Füllsack, Chairwoman of the Board at VDMA.

Sustainability strengthens resilience

Europe and China are driving the transformation towards more sustainable production and material cycles.

Sustainability is no longer only an environmental issue. Plastics recycling is becoming a key lever for resilience, as it reduces dependence on fossil raw materials and strengthens long-term security of supply.

Regulatory requirements in both regions will further accelerate this development and are expected to provide important momentum for the still weak economic situation in plastics recycling.

Global footprint and partnerships are key success factors

The industry’s international presence remains a decisive competitive advantage. VDMA member companies operate more than 2,600 international locations – in many cases including production facilities – in key markets such as China, India, and the United States. 

“The industry demonstrates strong adaptability and a global presence. VDMA member companies and the Association form a strong global network that pools expertise and helps companies to address regional markets in a targeted way,” Verena Thies, Vice President of VDMA, concluded.