CAGR: 6.5%Current Market Size: USD 56 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global food processing equipment market is expected to grow from USD 56 billion in 2022 to USD 98.7 billion by 2030, at a CAGR of 6.5% during the Projection period 2023-2030. The growth of the food processing equipment market is mainly driven by the rise in government initiatives.
Fresh foods are transformed into finished goods through the process of food processing. It is a method of transforming agricultural output or raw materials into instantly consumable food. It involves a variety of procedures, including fermenting, crystallizing, blending, washing, cutting, and pasteurization, among others. Distribution, preservation, the convenience of preparation, and reduced susceptibility to deterioration compared to fresh food are all advantages of food processing. Additionally, it enhances the flavor of food while lowering the prevalence of foodborne illness. Food processing equipment is divided into depositors, extruding machines, mixers, refrigerators, slicers and dicers, and others based on type. Beverages, dairy, meat and poultry, bakery, convenience foods and snacks, fruits and vegetables, confectionery, and others are only a few of the applications of food processing. Over the Projection period, the market is anticipated to be driven by advancements in food processing technologies and a rise in consumer demand for processed foods. Additionally, rising research and development in food processing machinery as well as the increasing implementation of automated technologies in this sector are expected to enhance the market in the upcoming years. Additionally, it is anticipated that growing dietary changes and health consciousness in both developed and emerging regions will fuel the market throughout the Projection period.
Sample Request: - Global Food Processing Equipment Market
Market Dynamics:
Drivers:
Increasing demand for meat and poultry as well as increased consumption of processed goods are anticipated as a result of population growth and rising per capita disposable income, which will enhance market growth over the Projection period. Due to their multiple favorable qualities, including quality control, durability, hygiene, and preservation, these systems are widely used in a variety of industries, including bakery and confectionery, meat, seafood, poultry, dairy, and grains. The product is increasingly used in end-use sectors, particularly in the Asia Pacific, where expanding domestic production and rising consumer income levels are fueling innovation in this industry.
Restraints:
Many essential components, including vitamins and minerals, are lost when raw food material is processed. For instance, when wheat is milled to make white flour (maida), 66% of the iron, 75% of the B vitamins (mostly thiamine and niacin), and 66% of the pantothenic acid are lost. The majority of the wheat grain's vitamin E is likewise lost during milling. Similarly to this, during milling and polishing, rice loses the majority of its iron and B vitamins. Therefore, compared to parboiled rice or brown rice, rice that has been milled and polished contains significantly less iron and B vitamins.
Opportunities:
It is anticipated that increased urbanization, rising disposable income, and population growth will boost product demand in Middle Eastern nations. Additionally, the governments of Middle Eastern nations are emphasizing efforts to lessen their dependency on the petroleum industry and to encourage investments in sectors including construction, the automobile industry, and the food and beverage industry. A practical remedy for the demand-supply imbalance had been offered by farmed fish for the marine industry. However, the industry has seen fresh and processed fish prices rise. Some of the key elements that guarantee the market's significant expansion throughout the Projection period are its favorable economic situation and its prospective client base.
Challenges:
For instance, between 28% to 37% of the grain's weight is lost during the milling of wheat into white flour (maida). It should be noted that with each phase of refining during food processing, the nutritional value and quantity of the food material diminish.
Segmentation Analysis:
The global food processing equipment market has been segmented based on the mode of operation, type, application, and region.
By Mode of Operation
The mode of operation segment is semi-automatic and automatic. The automatic segment led the largest share of the food processing equipment market with a market share of around 52.3% in 2022. Since there is a significant need for technical advancement, automation is being used more and more, and market participants have great capacities for research and development. The manufacturers preferred to have automated systems on the market since the demand for processed foods had grown. The manufacturers offer automated operational systems for producing food processing equipment since they must produce accurate, uniform, and high-quality products in order to distinguish themselves from rivals and achieve a competitive edge. The automated food processing equipment market is anticipated to have significant expansion throughout the Projection period as a result of the most recent industrial trend.
By Type
The type segment is processing equipment and pre-processing equipment. The processing equipment segment led the largest share of the food processing equipment market with a market share of around 60.3% in 2022. Due to the rising demand for processed goods and the growing acceptance of packaged and healthful foods. At the moment, more than 80% of people reside in urban regions where individuals frequently choose processed foods like frozen, bakery and confectionery, flavoured dairy, and other related items. Additionally, it is projected that improvements in packaging and processing technologies would drive up product demand in the upcoming years. The positioning of the shelves in supermarkets, hypermarkets, and online stores all have an impact on customers' purchasing decisions, which leads to an increase in product sales. Over the Projection period, producers of food processing equipment are anticipated to benefit from the rising demand for processed goods.
By Application
The application segment is grains, bakery & confectionaries, dairy, meat & seafood, fruit & vegetables, beverages, and others. The meat & seafood segment led the largest share of the food processing equipment market with a market share of around 40.3% in 2022. The demand for meat, poultry, and seafood goods has been sparked by changes in consumer behaviour, a rise in interest in nutrient-dense foods, and increased knowledge of the health advantages of marine products. Additionally, during the next few years, there should be chances for product producers due to the growing need for machinery that can perform numerous tasks, such as cleaning, skinning, and weighing, with just one piece of equipment.
Global Food Processing Equipment Market - Sales Analysis.
The sale of the food processing equipment market expanded at a CAGR of 5.2% from 2016 to 2022.
A practical remedy for the demand-supply imbalance had been offered by farmed fish for the marine industry. However, the industry has seen fresh and processed fish prices rise. Some of the key elements that guarantee the market's significant expansion throughout the Projection period are its favourable economic situation and its prospective client base. Despite a significant percent decline in the number of starving individuals worldwide, the situation of those who are undernourished is remains grave. Population growth, dietary changes, and increased purchasing power all have an impact on market expansion, which puts pressure on the business to meet the world's always rising demand.
Increased pollution control efforts and decreased food losses are required to increase global food security. These solutions are simply accomplished using both basic and cutting-edge processing machinery. Over the course of the Projection period, this is then anticipated to present chances for equipment producers.
Thus, owing to the aforementioned factors, the global food processing equipment market is expected to grow at a CAGR of 6.5% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the food processing equipment market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific region dominated the food processing equipment market and held a 38.2% share of the market revenue in 2022.
Global Food Processing Equipment Market - Country Analysis:
Germany's food processing equipment market size was valued at USD 0.75 billion in 2022 and is expected to reach USD 1.19 billion by 2030, at a CAGR of 6% from 2023 to 2030. Due to the demand for top-notch systems, Europe, one of the leading regions, is projected to have significant growth in the future. Germany is one of Europe's key nations.
China’s food processing equipment market size was valued at USD 0.78 billion in 2022 and is expected to reach USD 1.26 billion by 2030, at a CAGR of 6.2% from 2023 to 2030. The growth of the region is aided by China's strong economic performance and significant investments in science and technology. To address issues including economic inequality and rising urbanisation, China is anticipated to make significant changes in the food and beverage sector.
India's food processing equipment market size was valued at USD 0.60 billion in 2022 and is expected to reach USD 0.96 billion by 2030, at a CAGR of 6.1% from 2023 to 2030. Due to recent economic success and expanded market access to foreign goods, the food processing industry in countries like India has fundamentally changed. One of the most important effects of this is a rise in meat consumption. Equipment used in meat processing is among the industries with the highest growth, particularly in emerging countries.
Key Industry Players Analysis:
To increase their market position in the global food processing equipment market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
6.5% |
Market Size |
56 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Mode of Operation, By Type, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
GEA Group Aktiengesellschaft, Alfa Laval, BAADER Group, Marel, Bühler AG, Krones AG, Tetra Laval International S.A., JBT Corporation, The Middleby Corporation, and SPX Flow Inc. |
By Mode of Operation |
|
By Type |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Food Processing Equipment Market By Mode of Operation:
Global Food Processing Equipment Market By Type:
Global Food Processing Equipment Market By Application:
Global Food Processing Equipment Market By Region:
Global food processing equipment market is expected to reach USD 98.7 billion by 2030.
The food processing equipment market is projected to have a CAGR of 6.5%.
Increasing demand for meat and poultry as well as increased consumption of processed goods are anticipated as a result of population growth and rising per capita disposable income, which will enhance market growth over the Projection period. Due to their multiple favorable qualities, including quality control, durability, hygiene, and preservation, these systems are widely used in a variety of industries, including bakery and confectionery, meat, seafood, poultry, dairy, and grains.
Leading market players active in the global food processing equipment market are Buhler, Krones AG, AFE Group Ltd., Atlas Pacific Engineering Company Inc., B.K Engineers, National Refractories, Heat and Control, Inc., Meyer Industries, ZIEMANN HOLVRIEKA, and Tomra Systems among other
Based on the application, the global food processing equipment market has been segmented into grains, bakery & confectionaries, dairy, meat & seafood, fruit & vegetables, beverages, and others.
Political Factors- Because they are crucial to the development of laws, pressure groups, social and environmental campaigners, and labour unions should be closely studied by the food processing equipment market. Working closely with these organisations may improve the market's ability to engage the community and realise long-term corporate objectives. Strong governance and a democratic political climate also improve the commercial climate for multinational corporations, such as the market for food processing equipment. Frequent changes in government policy cause the environment to become more murky, which is negative for corporate growth.
Economic Factors- The effectiveness of the financial market has an impact on food processing equipment because it helps the market's global development strategy since operating in highly efficient financial markets improves a company's liquidity position and strengthens its capacity to join new markets. The ability of the market supporting food processing equipment to raise money at competitive rates will depend on how well-functioning and healthy the financial markets are. The current economic system, which also supports the market's commercial activity, has an effect on food processing equipment. One with an oligopolistic or monopolistic structure will not experience the same economic or regulatory climate as one with perfect or monopolistic competition.
Social Factors- The acceptance of hierarchy and income disparity in a culture is shown by the power distance. When entering markets with a high or low power distance, the food processing equipment industry must modify its business management practises. The power structure is changing as a result of the rising inequality in many nations, which has significant ramifications for multinational corporations like those in the market for food processing equipment. The market for food processing equipment has to undertake research on the generally accepted gender norms in order to change its marketing and communication strategies. The marketing and human resource methods used by traditional, patriarchal societies with well-defined gender roles will differ from those used by societies with fewer gender preconceptions.
Technological Factors- In order to understand how new technologies, affect the firm's value chain and current cost structure, the food processing equipment market must take into account both the micro and macro expenditures made by competitors. When creative disruption occurs frequently, research and development initiatives are crucial. In order to maximise revenues in this case, the market for food processing equipment should make investments in disruptive technologies and then reinvest the earnings in the development of new disruptive technologies. The time needed to develop new goods has decreased because to the adoption of new technology.
Environmental Factors- Utilization of green or environmentally friendly products is increasing. The possibility exists for the market for food processing equipment to use green business practises to attract stakeholders. Priorities for product innovation are shifting as a result of regulatory organisations' emphasis on ensuring conformance with environmental regulations. The promotion of the environmental friendliness of its products must take precedence over traditional value propositions in the market for food processing equipment. The media, environmental organisations, consumers, and the general public may criticise the food processing equipment business if it consistently depletes resources.
Legal Factors- Consumer concerns about their privacy and security have made data protection into a serious issue. To safeguard customer data, the food processing equipment market must look into data protection laws. Additionally, laws are in place to control costs, guarantee a particular level of quality, and shield customers from deceptive advertising promises. Several elements must be considered in the food processing equipment sector in order to abide with consumer protection regulations. The purpose of intellectual property laws is to safeguard the valuable ideas and patents that companies own. The market position of food processing equipment in relation to other market players may be harmed by losing a competitive edge as a result of failing to preserve intellectual property rights.
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