On the occasion of the start of the world’s leading trade fair drinktec, the VDMA Food Processing and Packaging Machinery Association sees the industry in good shape despite major challenges. “The mood in our industry is mostly good. Contrary to the trend in the overall mechanical engineering sector, exports of food processing and packaging machinery continued to grow in the first half of 2025.We expect an increase in turnover this year, but it is currently difficult to forecast a growth rate” states Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association.

German exports continue to rise

With an average of 84 percent in export sales, the food processing and packaging machinery industry is one of the strongest exporting sectors in German mechanical engineering. In 2024, foreign deliveries increased by 6 percent to 10.6 billion euros, followed by another growth of 6 percednt in the first half of 2025. The EU-27 markets, which account for 34 percent of exports, are proving very robust and grew by a total of 10.2 percent during the period under review.

For many years, the USA has been by far the most important market for German manufacturers of food processing and packaging machinery. Exports have risen steadily, reaching a peak of €1.8 billion in 2024. In the first half of 2025, German deliveries were 0.4 percent below the previous year’s record level.

Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association, expects many visitors from the US to come to drinktec despite the tariff issue. “With over 1.5 million employees, the American food industry is the strongest sector in the US manufacturing industry. Automation and capacity expansion are considered the strongest drivers for investment. American companies are unable to meet their technology needs locally” says Clemens, pointing to EU imports of food processing and packaging machinery, which amounted to €5 billion in 2024.

China is also one of the important markets for mechanical engineering companies. German exports of food processing and packaging machinery to the People’s Republic have been declining since 2023 and fell by 29 percent in the first half of 2025 compared to the previous year. In addition to the ongoing economic weakness, China’s “buy local” strategy is also leaving its mark. “China still offers business potential for German companies – especially in the high-performance sector. However, this requires companies to make strategic decisions in favour of localisation in order to be competitive in the market,” comments Clemens.

More than half of the exports are delivered to countries outside Europe. Strong momentum with double-digit growth rates came in the first half of 2025 from nearly 40 countries in Asia, the Middle East, Africa, and Latin America, including Brazil, Mexico, Saudi Arabia, Iraq, Vietnam, Egypt, Algeria, Ghana, Nigeria, and Tanzania. “The industry is very broadly positioned worldwide, which basically ensures good market opportunities,” summarises Clemens.

Europe leads the global machinery trade

The global food and beverage industry is one of the most dynamic growth sectors and is the most important industrial sector in many countries. As a result, not only the German exports are rising, but the global trade volume of food and packaging machinery has also been growing steadily for many years, reaching a preliminary peak of almost €54.5 billion in 2024.

European companies are clear leaders in the international trade of food and packaging machinery. Almost 70 percent of global trade comes from Europe. “This makes food and packaging machinery manufacturing the most successful export industry in the entire European mechanical engineering sector due to its high level of specialisation, performance, and innovative strength,” states Clemens. Italy and Germany are at the top of the list of the most important supplier countries, each with a 20 percent share of global trade. Germany is even stronger in some sub-sectors: in 2024, one in three internationally traded beverage packaging machines and one in two brewery machines came from Germany.

Positive market outlook – global beverage consumption and varieties on the rise

The future outlook for technology providers is positive, as the global beverage industry is growing. According to Euromonitor International, around 1.1 trillion liters of bottled and packaged beverages were sold worldwide in 2024. According to forecasts by the British market research company, sales will increase by around 14 percent by 2028. Euromonitor continues to predict double-digit growth in the Africa/Middle East and Asia/Pacific regions during this period, while beverage sales in saturated markets will increase only slightly. Here, the focus is on qualitative growth and product innovation.

According to Euromonitor, 7,000 new non-alcoholic beverage products were launched worldwide in 2024 alone, with just under 6,300 new alcoholic beverage products. The largest share of innovations came from the US, Canada, and European countries.

drinktec 2025 addresses important topics and trends

Demographic developments, health and nutrition trends, and ever-shorter product life cycles are shaping the development of the global beverage and liquid food industry. In addition, this industry is particularly concerned with high food safety and quality requirements, as well as efficient and sustainable production processes and packaging concepts, which are being taken to the next level through the use of data and digital tools.

The beverage and liquid food industry is focusing on intelligent recycling systems and sustainable resource management in both the production and packaging processes. “We see our industry as an important part of the solution here. After all, who else but the mechanical engineering industry can make a decisive contribution through innovation to making the processes in manufacturing companies economical, efficient, and sustainable at the same time,” Clemens states. In this context, digitalisation plays a key role in identifying potential for savings, optimisation, and improvement along the value chain.

When it comes to trends, Clemens sees drinktec as a clear source of inspiration. Growing health awareness, the desire for self-optimisation, new recipes, functional ingredients, and the increasing importance of proteins in beverages offer new business potential.

Alfa Laval is teaming up with some of the EU’s most innovative technological solution finders in a bid at the forefront of Europe’s water challenges. Alfa Laval is drawing on its vast experience from a wide range of industries and both private and public sectors – such as Food & Beverage, Pharmaceutical, Energy, Mining and Marine industries as well as wastewater treatment in municipalities and onboard ships.

The EU’s European Institute of Innovation and Technology (EIT) is seeking a consortium to run its latest Knowledge & Innovation Community (KIC) around Water, joining the 9 KICs already in operation that tackle themes such as digitalisation, energy, food and health.

The concept of the KICs was developed and launched by the EIT 15 years ago to boost Europe’s competitiveness against its global peers. That challenge was starkly illustrated by the Draghi Report of September last year, which outlined recommendations for boosting the competitiveness and productivity of the EU – such as boosting entrepreneurship and enabling speedier commercialisation and upscaling of innovative solutions. Europe is cited by The Economist to be 80 % less competitive than the US.

Consortium bids to form the new Water KIC were filed on June 17. Alfa Laval has signed up to the One Water bid, which bears testimony to its dedication to transition leadership in the water sector. Alfa Laval’s Water Industry Manager, Eline Suijlen, is excited by the challenges and opportunities ahead.

“This is the first time that we have been involved in a KIC bid, and it touches on all we do at Alfa Laval,” says Eline Suijlen. “We are committed to our purpose to pioneer positive impact, and this cannot be done without addressing water. This is the currency of the planet.”

The name of One Water consortium reflects the understanding that there is one water body only across freshwater and maritime waters. The holistic approach is reflected in the partners in the consortium, many of whom are from the public sector such as universities and research centres. They are looking for companies like Alfa Laval to provide the private sector context and vision of water stewardship and maritime water management based on decades of global experience finding innovative commercial and sustainable solutions for customers.

As outlined by the EIT, the Water KIC will be looking at three core challenges:

• Scarcity, drought and floods
• Marine and freshwater ecosystem degradation
• Developing a circular and sustainable blue economy

Within each of those themes, the EIT is looking for a consortium who will form a KIC that boosts innovation, business creation and education, themes that are in Alfa Laval’s DNA and where Eline Suijlen believes it can add huge value to the bid.

The consortium is a forum that benefits the dialogue Alfa Laval has in discussion around water across freshwater and maritime waters in the whole value chain across academia, research institutes, and of course private and public companies, says Eline Suijlen.

“It is a very powerful combination, and we benefit from engaging as part of this process with parties we would not normally engage with as part of our normal business. For example, we see great potential in having access to cutting-edge research and technology development at a European scale, which will benefit our own R&D and future development,” says Eline Suijlen.

It is crucial for Alfa Laval that the Water KIC will offer various educational programs. “By co-creating these programs within the consortia today, we will be able to upskill our employees and partners and attract new talent,” says Eline Suijlen. “The launch of this KIC is making a big statement that smart water management is a key milestone for building water resilient societies. Without water there is no life and in the current geopolitical situation it is important that Europe is competitive, and for us it is a source of pride that Alfa Laval is part of this.”

Market summary

According to DataIntelo, in 2023, the global frozen fruits market size is estimated to be valued at approximately USD 5.7 billion and is projected to reach USD 9.8 billion by 2032, reflecting a compound annual growth rate (CAGR) of 6.2 % from 2024 to 2032. The growth of this market is driven by increasing consumer demand for convenient and healthy food options, alongside advancements in freezing technology that preserve the nutritional content and taste of fruits.

The frozen fruits market has gained remarkable traction over the past decade, emerging as a convenient and nutritious alternative to fresh fruits. With changing consumer lifestyles, a growing preference for ready-to-use food products, and the increasing awareness of food wastage, frozen fruits have become a staple in many households and food service establishments worldwide. This market includes a wide variety of fruit products that are preserved through freezing techniques to maintain taste, texture, and nutritional value over time.

Market drivers

Several factors are contributing to the growth of the frozen fruits market. Chief among them is the rising demand for convenience food driven by urbanisation and hectic lifestyles. Consumers, particularly in developed and emerging economies, are leaning toward time-saving meal solutions that do not compromise on health. Frozen fruits offer year-round availability, consistent quality, and longer shelf life, making them highly desirable.

Moreover, the expanding popularity of smoothies, yogurts, desserts, and health-focused snacks has further propelled demand. Foodservice industries and fast-food chains increasingly rely on frozen fruits to streamline their operations without compromising flavour or freshness.

Technological advancements

The adoption of advanced freezing technologies, such as IQF (Individual Quick Freezing), has revolutionised the market by preserving fruit quality more effectively. These innovations ensure minimal nutrient loss and better texture retention, which appeal to health-conscious consumers. Furthermore, improved packaging solutions have enhanced product visibility and extended product shelf life, helping manufacturers minimise waste and improve logistics.
Regional insights

North America and Europe currently lead the global frozen fruits market, driven by high consumer awareness and well-established cold chain infrastructures. However, the Asia-Pacific region is poised for significant growth, thanks to increasing disposable incomes, changing dietary patterns, and growing urban populations in countries like China and India. Governments and private sectors in these regions are investing in better refrigeration and distribution networks, further supporting market expansion.

Challenges and constraints

Despite the optimistic outlook, the market faces challenges such as seasonal availability of raw materials, high storage and transportation costs, and consumer perception regarding preservatives and freshness. Additionally, fluctuations in agricultural yield due to climate change can impact the supply chain and pricing.

Future outlook

The frozen fruits market is expected to grow robustly in the coming years, driven by innovation, greater health awareness, and expanding retail distribution. Sustainable sourcing practices and eco-friendly packaging are anticipated to become more important, with companies focusing on reducing environmental impact while meeting consumer demand.

Competitive landscape

Major key players in the market are:

• Dole Food Company, Inc.
• Ardo NV
• Hain Celestial Group, Inc.
• Kerry Group plc
• SunOpta Inc.
• AGRANA Beteiligungs-AG
• Welch Foods, Inc.
• Del Monte Foods, Inc.
• SICOLY Cooperative
• Titan Frozen Fruits
• J.R. Simplot Company
• Wawona Frozen Foods
• Nature’s Touch Frozen Foods

International research into sustainable packaging carried out by global packaging, product, and material test and inspection company Industrial Physics has found that almost half of the 255 global packaging professionals (49 %) surveyed said meeting testing standards was one the biggest challenges they faced in wider adoption of sustainable packaging materials.

The research goes on to reveal that almost three quarters of those surveyed (71 %) reported that they found quality control processes ‘significantly’ or ‘somewhat more difficult’ with sustainable packaging materials.

69 % of respondents cited ‘cost’ as the main supply chain challenge they face in the move to sustainable packaging. Global supply obstacles caused by the pandemic made sourcing more difficult and legacy issues remain, meaning numerous suppliers are often needed rather than one trusted provider. This places additional pressure on quality control processes and greater need for packaging integrity testing.

Full results are revealed in the Industrial Physics Sustainable Packaging Research Report just released.

Jim Neville, CEO at Industrial Physics, said: “Insights from our global network of technical experts provide manufacturers guidance to create innovative and sustainable packaging while ensuring the integrity of their brands and products by proper testing and inspection.”

He added: “Our research highlighted manufacturers face a range of risks. However, these risks can be identified and mitigated by partnering with a packaging testing and integrity solutions partner.”

The Sustainable Packaging Research Survey also revealed that respondents think that new standards (52.5 %) and new legislation/regulatory requirements (41.6 %) will have the most impact on sustainable packaging innovation over the next five years.

These findings come as no surprise to Industrial Physics, as Greg Wright, Global Vice President of Sales & Marketing, explains: “Sustainable packaging involves using completely new materials where there may not be test methods already established. Processes are constantly evolving and our expertise in packaging, product and material integrity testing means we can guide manufacturers through the transition to more sustainable packaging.”

The Survey found that most companies are actively seeking sustainable packaging solutions but, in doing so, they experience a range of additional challenges. These include optimizing material performance to protect goods (53 %), passing increased material costs onto the consumer (50 %), and ability to meet safety and testing standards (49 %).

“Our customers are trying to find the right standards and how to test for those standards,” says Joshua Miller a Product Manager at Industrial Physics. “We can really help customers shape their testing, such as giving them a better way to test a product that gives them better data and still meets internal standards.”

The research offers an insight into the future of sustainable packaging and explores adaptations that manufacturers, and the industry as a whole, will need to make in order to deliver innovation and implementation around sustainable packaging materials.

Sean Kohl, Global Line Product Director for Industrial Physics, adds: “This is what testing is for and why manufacturers must test. It all centers around the idea of being able to confirm that the physical properties, whether it be strength, puncture resistance, life prediction, recyclability, or whatever can meet the performance and durability standards.”

Findings show that paper, paperboard and fiberboard plant-based biodegradable flexible packaging, along with synthetic biodegradable packaging, are the most common materials being used to replace less sustainable alternatives like plastic, paper and foil packaging.

“A lot of new materials mean that we are dealing with limited established test methods,” says Nico Frankhuizen, Manager of Product Management at Industrial Physics. “So, if a customer comes to us thinking they may need a certain type of equipment or test, we may end up advising them that a different tool might be better.”

Results of the in-depth research involved organizations around the world, ranging in size to over £1bn turnover, and follows on the back of Extended Producer Responsibility (EPR) and other legislation in UK, Europe and USA that imposes a tax on plastic packaging items manufactured, imported or imported filled, containing less than 30 % recycled plastic.

Industrial Physics offers a range of packaging, product, and material integrity testing solutions to food and beverage, flexible packaging, medical, pharmaceutical, and coatings markets. The company adopts a collaborative approach with customers to help them work through the challenges of moving to sustainable packaging.