• Stable revenues expected for 2026 – sideways movement, modest growth from 2027
• Sustainability strengthens resilience – driven by Europe and China
• Global footprint and partnerships are key success factors

June, 23, 2026 – Global plastics production has been growing steadily for decades, driven by increasing demand in packaging, mobility, medical technology, and electronics. Plastics have therefore become one of the most important industrial materials worldwide.

However, this development is not reflected in the machinery and equipment sector. While demand for plastics continues to rise, manufacturers of production equipment are coming under increasing pressure. Rising costs, declining margins, and intensifying global competition – especially from suppliers in China – are fundamentally changing the rules of the industry.

Stable revenues expected for 2026 – modest growth from 2027

The overall economic environment remains challenging for the plastics and rubber machinery sector, as companies are facing not only a cyclical slowdown but also structural pressure. The start to 2026 was difficult: in the first quarter, order intake declined by 5 per cent in real terms, while revenues were 3 per cent below the previous year’s level.

However, a stabilisation is expected 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 VDMA Plastics and Rubber Machinery Association 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 United States 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 centres of global plastics consumption, with positive effects on demand for machinery.

For plastics and rubber machinery manufacturers, it is essential to make use of the opportunities offered by a growing materials market. At the same time, 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 organised on a much more global basis. German and European technology providers need to adapt even more closely to local market conditions, customer needs, and business cultures in their respective regions. Only then can they offer what their customers require – and at competitive prices.

At the recent annual conference of the Plastics and Rubber Machinery Association, Sandra Füllsack, Chairwoman of the Board (photo), emphasised:

“Consistent action is essential if our industry is to remain competitive worldwide in the future. We stand for quality leadership and innovative technology. We are driving digitalisation and automation in production – more than ever, this is crucial for the future of our customers. At the same time, 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.”

Sustainability strengthens resilience – driven by Europe and China

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. This is complemented by a global network of VDMA offices supporting companies locally.

“The industry is operating in a challenging environment, but at the same time demonstrates strong adaptability and a global presence,” said Verena Thies (photo), Vice President of VDMA. “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.”

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