Italy’s packaging machinery sector maintained positive momentum in the first half of 2026, posting a 2.3% rise in turnover, according to the latest UCIMA‑MECS economic monitoring. But the association cautions that slowing order intake and escalating production costs are beginning to weigh on the industry’s outlook.

Turnover rises, powered by domestic demand

The sector’s turnover grew steadily across the first six months, with Q2 alone up 2.8% year‑on‑year. The standout driver was the Italian market, which surged 12.5% over the period (+6.3% in Q2).

International sales were more muted, increasing 0.9% overall (+2.2% in Q2), reflecting more cautious investment sentiment abroad.

Orders show signs of fatigue

Despite a still‑solid 7.7‑month order backlog, UCIMA reports a clear softening in order intake:

Orders down 2.5% in H1 2026 vs H1 2025

• Italy: +3.3%
• Abroad: ‑3.0%

Q2 offered a brief improvement (+1.1%), but June’s year‑on‑year comparison confirmed the slowdown, with overall orders slipping 0.8%.
Domestic orders fell sharply (‑7.4%), while international markets saw a milder decline (‑0.6%).

Costs climb again, led by plastics and energy

Manufacturers continue to face rising raw material and component costs, particularly plastics and energy. UCIMA links these increases to the ongoing instability in the Middle East, which has disrupted supply chains and pushed up input prices.

UCIMA president Maurizio Bertocco described the sector as “in good health” but flagged growing concerns: “The slowdown in order intake clearly reflects reduced investment by our international customers, driven by uncertainty around tariff policies and unresolved conflicts. At the same time, rising production costs are placing further pressure on companies’ margins.”

Bertocco noted that the Italian market remains a bright spot, buoyed by government incentives such as the Transition 5.0 Plan and enhanced capital allowances.

Outlook

The sector enters the second half of 2026 with solid turnover but weakening forward visibility. Domestic demand and policy support continue to provide resilience, yet global uncertainty and cost inflation are shaping a more cautious investment climate.