Germany Packaging Machinery Market Research Report - PMMI

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2. EXECUTIVE SUMMARY
2.1 THE GERMAN MARKET FOR PACKAGING MACHINERY
The most important industry sectors using packaging machinery are food, beverages, and chemicals
(including pharmaceuticals, personal care, detergents, and paints). In these sectors, an increasing
demand for both packaging and packaging machinery is expected, especially in:
a) the beverage industry due to stricter regulations about recycling and environmental issues in
general;
b) the cosmetic industry due to the increasing significance of packaging as a marketing tool;
c) the food industry due to a strong trend toward convenience food and smaller packaging sizes.
The German market for packaging machinery is dominated by German suppliers. Bosch, Klöckner
Packaging (mainly Klöckner Hänsel and Klöckner Tevopharm), Schubert, Rovema, and SIG
(Switzerland) were mentioned most frequently by the companies interviewed. This is not surprising,
given that German packaging machinery manufacturers hold a world market share (in 20 of the most
important packaging machinery markets) of almost 30%, a fact that can be clearly seen as an indicator
of the high quality of the machinery. After Germany, the main secondary suppliers are Switzerland,
Italy, the United States, and the Netherlands. On a European level, Krones, SIG, Klöckner Packaging,
Tetra Pak, SASIB, and GEI are market leaders with a combined market share (in terms of turnover) of
about 40%.
Even though America represents the third most important supplying country for packaging machinery,
most companies interviewed said that they had no experience with American packaging machinery.
Machinery from the United States is criticized for various reasons: insufficient knowledge of the
German market, differences between the American and the metric systems, the fact that American
technology with regard to packaging machinery is considered old-fashioned, excessively long delivery
times, and slow after-sales service owing to the long distance.
2.2 FACTORS IN THE PURCHASING DECISION
A key factor in purchasing decisions is the performance of both the machinery itself and the
manufacturer. This includes reliability, flexibility, and innovative ability; a thorough knowledge of the
specific requirements of the food, beverage, or chemical industries; machinery that is user-friendly and
environmentally friendly; quick after-sales service; and of course good value for the money.
Companies purchase packaging machinery according to either their current specific requirements or
requirements determined by market trends. Market requirements are changing rapidly, reflecting
shorter product lifespans, more single households, more elderly people, and the possible introduction of
a compulsory deposit on nonreturnable beverage containers.
Budgeting is done when a new machinery purchase is due. Companies’ requirements are generally
determined by the technical department, sometimes in cooperation with the engineering or production
department. The final purchasing decision for bigger investments is usually made by the purchasing
department.
90% of new packaging machinery purchasing is done directly from the manufacturer.