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 U.S. 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 .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 (AI), sustainability, and changes in U.S. government policies.

Hiring and retention challenges continue to be hurdles for original equipment manufacturers (OEMs) and end users alike. 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 (HMI) 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 U.S. 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,” states Jorge Izquierdo, vice president, market development, 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 the leading packaging and processing event of the year, where 35,000 industry professionals from 40+ vertical markets will engage with cutting-edge solutions, participate in over 100 educational sessions, and forge valuable connections.

2025 marks 30 years of PACK EXPO Las Vegas — a major milestone for one of North America’s most comprehensive packaging and processing events.

About PMMI
PMMI, The Association for Packaging and Processing Technologies, represents more than 1,100 manufacturers and suppliers of equipment, components, and materials as well as providers of related equipment and services to the packaging and processing industry. We work to advance a variety of industries by connecting consumer goods companies with manufacturing solutions through the world-class PACK EXPO portfolio of trade shows, leading trade media, and a wide range of resources to empower our members. The PACK EXPO trade shows unite the world of packaging and processing to advance the industries they serve: PACK EXPO International, PACK EXPO Las Vegas, PACK EXPO East, PACK EXPO Southeast, EXPO PACK México, and EXPO PACK Guadalajara. PMMI Media Group connects manufacturers to the latest solutions, trends and innovations in packaging and processing year-round through brands including Packaging World, ProFood World, Healthcare Packaging, OEM, Contract Manufacturing and Packaging, and Mundo EXPO PACK. PMMI Business Drivers assist members in pursuing operational excellence through workforce development initiatives, deliver actionable business intelligence on economic, market, and industry trends to support members’ growth strategies, and actively connect the supply chain throughout the year.