Packaging State of the Industry: US expands while Canada maintains strong base
Machine buyers are focused on finding practical solutions to achieve efficiency goals, but remain challenged by workforce woes and higher price points in an era of market volatility that makes decision-making more difficult.
Automated changeovers, servo-driven systems, and versatile machines for legacy and novel packaging formats are propelling innovation in the packaging industry in 2025.
While the US packaging machinery market reached $11.3 billion in sales in 2024, the growth rate forecast for 2025 is a modest 2.2%, according to the 2025 Packaging State of the Industry infographic released by PMMI, The Association for Packaging and Processing Technologies. The Canadian packaging machinery market reached $1.2 billion in sales in 2024 and is predicted to experience a nearly flat growth rate of 0.8% this year.
Overall, packaging machinery makers are tasked with designing compact equipment to fit existing plant footprints, which can handle delicate materials without damage, and is easy to operate and maintain. Other factors affecting the industry include labor challenges, artificial intelligence, sustainability, and changes in US government policies.
PMMIHiring and retention challenges continue to be hurdles for original equipment manufacturers (OEMs) and end users alike, according to the infographic. While AI, automated systems and data collection can help increase efficiency as companies deal with labor challenges, many end users want to focus on practical applications that can help them solve real problems on the plant floor. One solution is increasing corporate investment in workforce development programs.
Predictive maintenance is another tool with the potential to solve manufacturing challenges, but its adoption has been slow, according to PMMI’s 2025 State of the Industry report. Many end users are concerned about its cost and are hesitant to move away from existing preventative maintenance routines.
However, some OEMs report progress in manufacturing efficiency when predictive systems are integrated into a human-machine interface with simple, actionable alerts. In addition, preventative maintenance still holds promise because it aligns more closely with existing maintenance workflows and often results in end users feeling more in control of timing and cost.
Sustainability also continues to play a huge role for end users seeking to boost efficiency and profitability. Still, priorities are shifting as these companies strive to balance environmental goals with cost and operational realities. At the same time, tariffs and changing US policies are causing market volatility, making planning difficult.
“End-user customers are also increasingly challenged by high SKU counts, innovative packaging formats, and the need to minimize downtime,” said Jorge Izquierdo, vice president of market development for PMMI. “Solutions for all the pressing challenges identified in the 2025 State of the Industry report can be found at Pack Expo Las Vegas.”
Scheduled for Sept. 29–Oct. 1 at the Las Vegas Convention Center, Pack Expo Las Vegas 2025 is bringing 35,000 industry professionals from 40+ vertical markets together to engage with cutting-edge solutions, participate in over 100 educational sessions and forge connections. The 2025 show marks 30 years of Pack Expo Las Vegas.
Source: PMMI
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