Plastics and rubber machinery VDMA expects stable 2026 for plastics machinery sector

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German plastics and rubber machinery manufacturers expect revenues to stabilise in 2026 after a weak start to the year. According to the VDMA, global production networks, partnerships, automation and sustainability technologies will be key to remaining competitive amid rising cost pressure and stronger international competition.

At the annual conference of the German Plastics and Rubber Machinery Association, representatives emphasized that the industry can secure its future role through global presence, partnerships and technological strength despite the current difficult conditions.

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, according to the VDMA: “While demand for plastics continues to rise, German 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 percent in real terms, while revenues were 3 percent below the previous year’s level.

The association nevertheless expects stabilisation over the course of the year. Demand from Asia and the Americas is likely to provide new momentum and partly offset the weak start. For 2026, the VDMA Plastics and Rubber Machinery Association expects revenues to move sideways, remaining at 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.

The association said manufacturers would have to adapt to a more price-sensitive and competitive environment. Technology and quality leadership remain important, but digitalisation, artificial intelligence, automation and connected production processes are becoming increasingly relevant. At the same time, the VDMA warned that price pressure could not be managed without structural adjustments.

A stronger international set-up is one of the main issues facing the sector. According to the association, German and European technology providers need to align production and sales structures more closely with local market conditions, customer requirements and regional business cultures.

At the annual conference of the Plastics and Rubber Machinery Association, Sandra Füllsack, Chairwoman of the Board, said: “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

Sustainability is another factor expected to shape demand. The VDMA said Europe and China are driving the shift towards more sustainable production and material cycles. Plastics recycling is increasingly seen not only as an environmental issue, but also as a way to reduce dependence on fossil raw materials and improve supply security.

Regulatory requirements in Europe and China are expected to support this trend and could provide momentum for the currently weak plastics recycling market.

The association also pointed to the industry’s international footprint as a competitive advantage. VDMA member companies operate more than 2,600 international locations, many of them with production facilities, in markets including China, India and the United States.

“The industry is operating in a challenging environment, but at the same time demonstrates strong adaptability and a global presence,” said Verena Thies, 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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