Despite growth uncertainty in 2025, optimism abounds at PELV 2025

Packaging and processing growth slowed in 2024 and uncertainty in 2025 remains as customers adopt a ‘wait and see’ attitude, according to a new PMMI report. Despite the dubious findings, optimism filled the busy halls of the Las Vegas Convention Center during PACK EXPO Las Vegas 2025.

Produced by PMMI, The Association for Packaging and Processing Technologies, PACK EXPO Las Vegas (September 30-October 1), brought together over 30,000 attendees and 20,000 exhibitor personnel for a total of 50,000 packaging and processing professionals in attendance. With over 2,300 exhibitors displaying the latest innovations across 1 million net square feet of space, it was the biggest show floor in its 30-year history. PMMI officials noted that the difference in the square footage between PACK EXPO Las Vegas and (PELV) and PACK EXPO International continues to shrink. For the first time, PELV expanded to the West Hall of the Las Vegas Convention Center, in addition to the North and South Halls (PMMI provided free shuttle buses for attendees to go back and forth between the halls throughout the three-day show).

According to PMMI, the United States packaging machinery market will reach USD $11.2 billion this year. Industry growth is expected to peak in 2027. At a media briefing on the opening day of the show, Jorge Izquierdo, PMMI’s vice president of market development, shared findings from the association’s newest State of the Industry Report. He explained that growth in 2024 was slower than in previous years, largely due to persistent economic uncertainty. As interest rates remained high, many companies delayed placing orders. In the second half of the year, the US Federal Reserve announced an interest rate reduction, which led to a modest uptick in activity. Additionally, as the US election approached and talk of tariffs gained traction, some companies rushed to place orders ahead of potential policy changes. Izquierdo said that overall uncertainty weighed on the market, resulting in a growth rate of just 2.7% over 2023.

He added that heading into 2025, many expected the ‘wait and see’ mentality to ease as the Fed had signaled further rate cuts, and the election outcome was expected to bring additional clarity to the macroeconomic future. Unfortunately, the first half of the year brought more turbulence than anticipated. [Tariff announcements were issued, withdrawn, and reinstated across multiple countries.] Faced with these unpredictable trade conditions, Izquierdo said many companies chose to pause capital investments in new machinery and equipment.

Looking to the second half of 2025, Izquierdo shared that uncertainty is expected to persist. Equipment orders remain delayed or on hold as companies reassess their plans in this unstable environment. “While a contraction is not expected, 2025 is projected to be a low-growth year, with a modest 2.2% increase over 2024.”

Expressing optimism, Jim Pittas, president and CEO, PMMI, at the media briefing, commented, “Despite current economic uncertainty, the industry’s commitment to automation, sustainability, and operational excellence remains powerful.”

According to PMMI, the food industry continues to be the largest sector, constituting 43.5% of the value of packaging machinery shipped in 2024. Plant investment activity in the food sector moderated slightly in 2024 compared to 2023, with just under $200 million directed toward pet food alone. Major players such as Nestlé and Campbell Soup Co announced more than $575 million in combined investment across six facilities.

Beverage is the second-largest end market at 15%. The association revealed that the beverage sector experienced a slight dip in large scale investment activity in 2024, following a strong rebound in 2023. Per the report, construction remains underway on several multi-million-dollar facilities announced last year, and early indicators from 2025 point to renewed momentum. While investment has slowed, experimentation has not as brands continue testing new drink formats and shift away from plastic.

In terms of categories and growth, PMMI reports:

• Conveying, feeding, and handling equipment represents the highest value of packaging machinery shipped in the US for 2024, with an estimated revenue of $2.4 billion. The sector has remained robust over the years and is projected to grow to nearly $3.2 billion by 2030.
• Cartoning, multipacking, and case-packing machinery is the second largest in terms of the value of US machinery shipped in 2024, with an estimated revenue of $2.0 billion. Revenue from these machines is expected to experience significant growth, increasing by $725 million from 2024 to 2030, bringing the sector’s value to nearly $2.8 billion.
• Palletising and load stabilisation equipment has the highest CAGR in the forecast for the US, at 7.2% for the 2024–2030 period. It is expected to have an anticipated value of $1.3 billion by 2030.
• Inspection and testing equipment has the highest growth rate in 2024 for the US, at 4.6%. Currently estimated at $932 million, this sector is projected to grow to nearly $1.3 billion by 2030.

Sustainability across all categories and technologies remains a priority and permeated every packaging and processing category at PELV. As one presenter noted, “Today, if sustainability is not an inherent business practice [by a packaging or processing company], it’s not a company you want to be in business with.”