Italy is not only synonymous with fine wines and fashion but also home to one of the most advanced and high-performing packaging machinery sectors in the world. For international businesses seeking entry into the European market, Italy presents a rare mix of engineering innovation, supportive incentives, and market growth—making it a prime destination for investment and collaboration.

Italy stands as Europe’s second-largest manufacturing hub, particularly strong in machinery, fashion, automotive parts, and pharmaceuticals. Its globally recognized food exports—such as wine, cheese, pasta, and olive oil—continue to drive international demand. This demand, along with a growing interest in organic, functional, and low-fat foods, is boosting the country’s need for advanced packaging solutions.

A Market on the Rise: Forecasted Growth and Industry Impact

Italy’s packaging market is poised for significant expansion. According to the United States Department of Agriculture (USDA) the sector is expected to grow from USD 3.44 billion in 2025 to USD 4.04 billion by 2030, driven by a 3.28% compound annual growth rate (CAGR). This growth is largely powered by rising consumer demand, better living standards, and increased disposable income—factors that are expanding packaging needs across food, cosmetics, pharmaceuticals, and more.

With its core function of protecting products, packaging has become indispensable in Italy’s domestic economy. The increasing shift toward lightweight and sustainable materials, such as plastics with strong barrier properties, underscores Italy’s dual commitment to innovation and environmental responsibility.

Home of Innovation: Leading the Future of Packaging Machinery

Italy’s packaging machinery sector reached a turnover of €9.229 billion in 2023, with exports making up nearly 79% of that revenue. The region of Emilia-Romagna, home to the so-called “Packaging Valley,” continues to lead the sector, housing world-class manufacturers like IMA and Marchesini Group.

These firms are integrating automation, robotics, and AI technologies into their systems, catering to the increasing demand for smart packaging—particularly within the fast-moving consumer goods (FMCG) and pharmaceutical sectors.

According to United States Department of Agriculture (USDA) data, Italy’s food-processing sector is undergoing consolidation, with smaller companies merging to stay competitive. This shift, coupled with a strong export market and the enduring appeal of “Made in Italy” goods, is significantly increasing demand for food ingredients—and, in turn, packaging materials

Italian consumers are showing a strong preference for health-conscious options such as vegan, vegetarian, flexitarian diets, and “free-from” products. There’s also a rising interest in superfoods and international cuisines, further elevating the need for innovative packaging formats like resealable pouches, bottles, jars, and bags.

Environmental Edge: Lightweight, Minimalist, and Smart

Today’s Italian packaging trends are closely aligned with sustainability goals. There is a shift toward minimalist and lightweight packaging, particularly plastics like polyethylene (PE), polypropylene (PP), and polyethylene terephthalate (PET). These materials are gaining popularity due to their strength, barrier properties, and recyclability.

Major manufacturers such as Tetra Pak International SA are offering premium, environmentally conscious packaging solutions. Italy’s demand for flexible and rigid plastic packaging is growing, especially in sectors like food delivery, beauty products, and personal healthcare.

Strategic Location Meets Digital Transformation

Italy’s geographic advantage of locating in the heart of Europe gives it access to over 400 million consumers and a robust distribution network through seaports, railways, and highways. As e-commerce flourishes—particularly in food and beverages—the need for reliable, adaptive packaging is growing. This makes Italy a valuable launching pad for businesses interested in reaching broader EU markets.

Fueling Growth Through Investment Incentives

The packaging sector’s growth is in parallel with the high demand for Italian food industry for its fine quality and authenticity of “Made in Italy” products requiring a packaging that is not only of high quality and safety but also balancing between sustainability and feasibility. Accordingly, Italy offers foreign businesses through an array of fiscal benefits:

• Patent Box Scheme: Reduces taxation on income derived from intellectual property by up to 50%.
• R&D Tax Credits: Allows for tax deductions up to 20% on eligible research and development costs.
• Southern Italy Tax Breaks: Offers corporate tax reductions between 10% and 30% in regions like Sicily and Campania.
• Special Economic Zones (SEZs): Provide streamlined administrative processes and further tax advantages in key regions.

Plastic Packaging: The Rising Demands

According to Plastics Europe, Italy produced 3,672 kilotons of plastic in 2022, with projections to reach 3,785 kilotons by 2023. This production surge is directly tied to the packaging sector’s growth, especially as consumers demand more durable, sustainable, and customized packaging options.

The country’s food and beverage industry, bolstered by e-commerce, has amplified the need for specialized packaging that ensures freshness and protects quality throughout distribution. Similarly, Italy’s expanding pharmaceutical industry—backed by growing investments in research and development—is elevating the demand for advanced plastic-based packaging solutions which are environmentally friendly and sustainable biodegradable packaging.

Future of the Sustainable Packaging

Italy’s packaging industry is more than a manufacturing marvel—it’s a strategic platform for global business. With its growing domestic market, strong export infrastructure, and commitment to both technological innovation and sustainability, Italy offers a gateway for Thai and international companies to scale in Europe. Italy’s packaging market is full of opportunity but navigating it successfully requires strategic legal insight in order to ensuring smooth entry into this thriving market. For further information or inquiry on business opportunities in Italy’s, contact ALLEGAL