2025 Packaging State of the Industry: U.S. Expands, Canada Maintains Strong Base

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HERNDON, Va., Sept. 11, 2025 ~ In 2025, the packaging industry is experiencing a period of innovation and growth, driven by automated changeovers, servo-driven systems, and versatile machines for both traditional and new packaging formats. According to the 2025 Packaging State of the Industry infographic released by PMMI, The Association for Packaging and Processing Technologies, the U.S. packaging machinery market reached $11.3 billion in sales in 2024. However, the forecasted growth rate for 2025 is a modest 2.2%. Similarly, the Canadian packaging machinery market reached $1.2 billion in sales in 2024 and is expected to experience a nearly flat growth rate of .8% this year.

One of the main challenges facing packaging machinery makers is designing compact equipment that can fit into existing plant footprints while also being able to handle delicate materials without causing damage. Additionally, there is a growing demand for equipment that is easy to operate and maintain. Other factors influencing the industry include labor challenges, artificial intelligence (AI), sustainability, and changes in U.S. government policies.

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According to PMMI's infographic, hiring and retention challenges continue to be obstacles for both original equipment manufacturers (OEMs) and end users. While AI, automated systems, and data collection can help increase efficiency in light of labor challenges, many end users are more interested in practical applications that can solve real problems on the plant floor. One solution being explored is increasing corporate investment in workforce development programs.

Another tool with potential to address manufacturing challenges is predictive maintenance; however its adoption has been slow according to PMMI's 2025 State of the Industry report. Many end users are hesitant to move away from their existing preventative maintenance routines due to concerns about cost. However, some OEMs have reported success with integrating predictive systems into a human-machine interface (HMI) with simple alerts that can be easily acted upon. Additionally, preventative maintenance remains promising as it aligns with existing maintenance workflows and gives end users a sense of control over timing and cost.

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Sustainability is also a major consideration for end users looking to improve efficiency and profitability. However, priorities are shifting as companies strive to balance environmental goals with cost and operational realities. At the same time, market volatility caused by tariffs and changing U.S. policies is making planning difficult.

Jorge Izquierdo, vice president of market development at PMMI, states that end-user customers are facing challenges such as high SKU counts, innovative packaging formats, and the need to minimize downtime. He believes that solutions for these pressing challenges can be found at PACK EXPO Las Vegas 2025.

Scheduled for September 29th to October 1st at the Las Vegas Convention Center, PACK EXPO Las Vegas 2025 is the premier packaging and processing event of the year. With over 35,000 industry professionals from 40+ vertical markets expected to attend, this event will showcase cutting-edge solutions, offer over 100 educational sessions, and provide valuable networking opportunities.

2025 marks a significant milestone for PACK EXPO Las Vegas as it celebrates its 30th anniversary. Industry leaders are encouraged to register now in order to connect with peers, discover state-of-the-art innovations, and gain a competitive edge. For more information and registration details, visit packexpolasvegas.com.
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