Industrial machinery for the sweetener industry – Growth opportunities in the Polish market

The Italian industry of machinery for the sweet sector enjoys an important reputation of excellence and craftsmanship worldwide and are increasingly companies in the Meccano-Food sector eager to expand their presence abroad.

Among the most promising markets for the export of Made in Italy technologies, together with the United States, Spain and Germany, the Poland.

With a growing market, also encouraged by the large funding allocated by the Polish government for innovation and efficiency of the food industry, Poland has become an extremely interesting destination for industrial machinery manufacturers and offers remarkable business opportunities for all Italian companies interested in expanding their presence in the markets of the East.

In this article we will analyze the situation of export Made in Italy in the field of machinery for the sweet industry, the business opportunities of the Polish market and the main incentives allocated by the local government for the efficiency of the production chain.

Are you a company specializing in machinery for the sweet sector interested in expanding abroad? Read all the way and contact us to receive Mallei’s pre-analysis on industry companies in Poland.

SUMMARY

The figures of the export Made in Italy in the supply chain

In the first quarter of 2023, the exports of machinery for the food sector increased by 20% compared to the same period of the previous year, placing Italy to the 2nd place on a global scale after China.

According to the data of the Machinery Observatory of Nomisma, illustrated at the presentation of the Cibus Tech 2023 , fair dedicated to the meccano-food sector scheduled for this October in Parma, in 2022 the Italian export of machinery and equipment dedicated to the packaging has reached 4 billion euros, while the technologies of food processing 2,5 billion euros. A remarkable result taking into account the strong rise of the costs of energy and raw materials linked first to the pandemic and then to the Russian invasion of Ukraine.

Experts argue that despite the uncertain international macro-economic scenario, the opportunities for further expansion of Italian export of machinery for Food & Beverage in the coming years are likely to be among the most mature markets, such as United States, Canada and the United Kingdom, that among emerging ones, like the countries ofEastern EuropeAccording to estimates, at present, about 16% of exports are destined to the US market, while 39% to the European market.

This data reflects the excellence and prestige recognised to Made in Italy in industrial production, thanks to its ability to adapt and stay ahead with the demands of a market increasingly attentive to efficiency, to the containment of costs, to the origin of materials and to the sustainability of production processes.

The opportunities of the Polish market

With more than 37 million inhabitants, Poland is the largest market in Central and Eastern Europe. Thanks to the constant economic growth recorded in recent years, the purchasing power of citizens has risen strongly, leading to the birth of new models of consumption.

The expansion of the middle class, the increase in domestic demand and investments by the Polish government for the efficiency of industrial production have created a scenario that is increasingly favorable and interesting for Italian exports to Poland.

Over the last 3 decades, Italy has gained a prominent position in the country’s economy, claiming that it is 2nd trading partner between EU countries (behind only Germany), with a value of exports that in 2021 exceeded 28 billion Euro (+25.9% compared to the previous year).

To date, the export of machinery Made in Italy is already one of the main interchange entries between the two countries, but estimates indicate that numbers are destined to grow rapidly, with a strong increase in demand from companies of every size and an annual growth rate of 5% expected for the next 5 years.

In addition to the economic context, it is important to note that Poland is in an extremely strategic geographical position, at the centre of European business leaders. Thanks to the recent opening of the Polish government towards foreign investment and the peculiar characteristic of distribution hubs to other markets in the East, it is a strategic destination for international companies in the Meccano-Food sector interested in expanding their presence abroad.

But what are the factors that make the Polish market so attractive to Italian companies specializing in the production of machinery for food processing?

1. Government incentives for the food industry

Like many other European countries, Poland has also decided to invest in innovation in national production processes, providing important funds for the efficiency of plants in the food industry.

In 2022, the Polish government has allocated 10 billion zloty (about 2 billion Euro) in the form of tax exemptions, subsidies and loans at a reduced rate to encourage companies in the Food & Beverage sector to invest in new production technologies.

The incentives are available to small, medium and large enterprises in all sectors of the Polish food industry and are expected to be renewed in 2023 with a further allocation of 3 billion zloty (about 570 million Euro).

This strategic move has created thousands of jobs in Poland, providing a large contribution to the economic recovery of the country, especially after the difficult years of pandemic.

The opening of the Polish government to the efficiency of the food industry has already caught the attention of many foreign players, attracting large investments from many international companies, from the United States to China, from Europe to Brazil and is an opportunity not to underestimate for all Italian companies producing machinery in the mechan-food sector eager to export abroad.

2. Focus on innovation, sustainability and safety

As the government's incentives show, together with the EU funds for Cohesion Policy Poland was the main beneficiary country in the period 2014-2020, with economic growth the country’s focus on innovation, sustainability and safety issues for the efficiency of the national industry has also increased.

One of the main factors Poland is aiming at is the increase in theautomation of the food industry. In 2022 the Polish market for food processing machinery generated a turnover of 1 billion zloty (over €190 million) and, with the rapid progress of technologies, companies in the sweetener industry are increasingly looking for high quality machinery for food processing that can be easily integrated with automated systems.

In addition, in recent years the Polish food distribution chain has expanded rapidly, causing a strong increase in demand for plants capable of managing large volumes of products and meeting the high quality standards required by the large distribution.

Finally, in line with the EU’s objectives for member countries, Poland is called to reduce polluting emissions and to ensure greater energy security. The objective, which authorities are pursuing with the involvement of foreign companies, is a significant business opportunity for technology manufacturers destined for this market.

In conclusion, the slogans of the Polish mechan-food chain seem to be efficiency, innovation and sustainability. Concepts already strongly recognized and embraced by many Italian realities, such as Sacmi, a industry leader, who recently launched a new paperer compatible with the new ecological packaging materials capable of producing an output of 250 chocolate tablets per minute.

A unique business opportunity for all SMEs in the sector dedicated to innovation and export of Made in Italy excellence in the field of industrial technologies.

3. New trend in the sweet sector

As for the B2C sector of the Polish food chain, with the greater attention devoted to health and respect for the environment driven by the pandemic crisis and climate change, in recent years, a profound change in consumer purchasing habits, both in the sweet sector and throughout the food industry has been seen.

Today, Polish consumers are increasingly aware of the health of ingredients and the production and packaging processes of foods purchased.

As in many other parts of the world, in fact, the Polish sweet market has seen an exponential increase in the demand for variants without sugar and use of more environmentally friendly packaging.

This factor is contributing to the increase in demand for food processing machinery that can produce high quality sweets with a low environmental impact, favouring energy efficiency and the use of ecological packaging materials.

Pre-analysis of the sector for the identification of targeting companies

Internationalisation is a fundamental growth process for B2B companies that requires careful planning based on data and analysis of sector, in order to obtain the tools suitable for strategic choices and identify risks and opportunities in the markets of interest.

For this reason it is important to rely on experts who can guide your choices strategically thanks to in-depth analysis and study of strategies to transpose your personal corporate vision into the foreign reference market, working step-by-step together with you through consolidated processes and outlined according to the specific long-term goals of your business.

One of the first steps to assess entry into a foreign market is pre-analysis of sector, an initial research aimed at identifying the market size and potential targeting companies.

Thanks to our tools we have identified over 250 Polish companies in the sweetener industry that could become your new potential customers.