ID: MRFR/F-B & N/7116-HCR | February 2021 | Region: Global | 90 pages
The global food processing market growth rate is projected to be 7.60% until 2030. The global food processing market value was USD 99.68 billion in 2020. It should be USD 134.7 billion in 2030.
Many different types of perishable and raw foods are processed using food processing equipment. Some of these include meat, seafood, baked goods, dairy products, and various types of sweets.
COVID-19 is to the post-modern world what the Black Death was to the pre-modern world. Both the virus and the bacteria changed the destiny of the world. The Black Death pushed the world (and especially Europe) into the modern era. COVID-19 is poised to push the world further into the digital era with new norms like social distancing, remote working, online shopping, and contactless delivery.
Governments realized early on that the COVID-19 virus was not to be taken lightly. They imposed quarantines and lockdowns for this reason. The intention was to stop the global spread of the virus. However, these efforts were largely unsuccessful. Many businesses suffered immensely from these quarantines and lockdowns. They were forced to either dramatically scale back production or temporarily halt operations. Many companies were forced out of business because of bankruptcy.
The companies in the global food processing industry were no exception. Many of these companies were forced to scale back operations mainly because of the lockdowns and quarantines. These companies were forced to reconfigure their hygienic practices in the post-pandemic world. For example, they are required (by newly imposed legislation) to redo the hygienic design and engineering processes of the various foods that they work with.
Global food processing market growth is primarily being driven by the fact that the growing middle classes in developing nations around the world are increasingly becoming conscious about the sanitary conditions that the foods that they eat are processed. They also want to eat more processed foods. The same is occurring on a much larger scale in the developed world.
The global masses want to eat foods that are processed in safe and sanitary conditions, especially in the post-pandemic world. Companies in the global food processing market are responding by buying and developing technologically advanced and sanitary food processing equipment at their processing facilities.
Many people around the world are leading much busier lives than their parents did. Also, both the husband and wife work in most families around the world. This leaves much less time for cooking. Women may not want to cook but both they and their families still need to eat. Hence, demand for convenience meals is on the rise. This is a major factor that’s driving growth in the global food processing market.
Many companies in the global food processing industry are seeing that there’s real money to be made in this market. That’s why they’re investing heavily in newer and technologically advanced equipment which can process food in healthier and more hygienic conditions. The result is a more nutritious food that’s safer to eat.
Many companies in the food processing industry may not be completely aware of all of the new food processing rules and regulations that governments and various governing agencies are passing in response to COVID-19 and the attempt to try to stop or at least control its spread. It’s this ignorance that is holding back growth in the Food Processing Market.
Another factor that’s holding back growth in the market is the fact that the latest and most technologically advanced food processing equipment is expensive. Therefore, only larger firms can afford to purchase and use it.
Perhaps the greatest challenge that companies in the global food processing industry face lie in developing equipment that conforms to the latest in government rules and regulations regarding food safety.
Cumulative growth analysis
The global food processing market growth rate is projected to be 7.20% until 2025. The global food processing market value was USD 99.68 billion in 2020. It should be USD 122.8 billion in 2025.
JBT Corporation is a major American player in the global food processing market. It leads because it invested heavily in research and development. Thus is was able to create a sustainable competitive advantage by developing and using technologically advanced food processing equipment that could process food to have more nutrition (be fortified with vitamins and nutrients) and be safer to eat.
By equipment type
This segment is grouped into the following sub-segments:
The extrusion equipment is projected to enjoy the fastest food processing market growth rate for the time period that this report covers. There is growing demand throughout the food and drink industry for this type of equipment because it’s capable of producing nutritious and safe food and drinks that the world will pay a premium for.
Incidentally, the extrusion equipment is projected to enjoy the greatest food processing market share for the time period that this report covers. The reason is that it’s capable of generating safer food en masse for the rapidly growing global middle classes.
Extrusion equipment plays a vital role in food processing because it ensures that each item of food is uniform both in terms of shape and size. This is crucial when making dry cereals and refined bread.
Food service equipment is projected to enjoy a sizeable food processing market share for the time period that this report covers. The reason is that people want greater access to foods that are can be refrigerated or were baked ahead of time and can be easily reheated in a microwave oven. They like the fact that food processed in this manner tends to be fresher, healthier, and tastier!
The food packaging equipment sub-segment is expected to generate the largest revenue stream of all of the sub-segments in this segment. The reason is that more people around the world want to eat perishable foods that have been well packaged. They perceive that this food is healthier because it’s fresher.
This segment can be further grouped into the following sub-segments:
The fully automated sub-segment is expected to register the highest food processing market growth rate for the time period that this report covers. The reason is that more and more food processing companies are investing in more sophisticated and technologically advanced food processing equipment. Food processing equipment replaces human labor. Thus, it processes more food in less time. Companies save in terms of labor costs.
This segment can be further grouped into the following sub-segments:
The bakery and confectionery sub-segment is expected to enjoy the largest food processing market share for the time period that this report covers. The bakery and confectionery market is dominated by a large number of companies of all sizes. Thus, there are no dominant companies. Also, more and more people around the world want to eat healthier and fresher baked goods and sweets. These companies are therefore gravitating towards processing these foods on sophisticated and technologically advanced equipment.
The global food processing market can be grouped into the following regions:
The Asia-Pacific region is expected to register the highest food processing market growth rate for the time that this report covers. The reason is that most countries in this region are enjoying high economic growth rates. Their expanding economies translate into a rapidly expanding middle class that also happens to be well-educated. These middle classes are much more health-conscious than their parents were and want to eat processed foods that are healthier and more nutritious.
These nations (especially India and China) also have rapidly growing populations. Since these people need to eat, this presents companies in the global food processing industry with many opportunities to market processed foods to the masses.
The global food processing industry is fragmented and competitive. The industry has a high CAGR and is lucrative. Also, there are few barriers to entry into this industry. Thus, larger companies with bigger treasuries are enticed to enter.
Companies find that they must do research and development if they want to develop the newer, more sophisticated, and more technologically advanced equipment that will allow them to continue to produce healthier, fresher, and better-packaged food. They are also able to create the sustainable competitive advantage that they need to remain profitable and financially viable.
Companies are also resorting to strategic partnerships and mergers and acquisitions to access resources that will allow them to do the research and development that will allow them to remain competitive and profitable.
SPX-Flow is a major American player in the global food processing industry. It leads because it invested heavily in research and development. Thus, it was able to develop and use technologically advanced equipment that allowed it to process, package, and market healthier and fresher food that was also safer for human consumption. The company was also able to develop the sustainable competitive advantage that it needed to remain profitable and financially viable.
List of companies
|Market Size||USD 134.7 Billion 2030|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Equipment Type, Category, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Marel (Iceland), GEA Group AG (Germany), The Bühler, Holding AG (Switzerland), JBT Corporation (US), Alfa Laval AB (Sweden), TNA Solution, Pty Ltd (Australia), Bucher, Industries AG (Switzerland), quipamientos Cárnicos, S.L. (Spain), Clextral S.A.S (France), SPX Flow (US), Bigtem Makine A.S. (Turkey), FENCO Food Machinery s.r.l. (Italy), Krones AG (Germany), Paul Mueller Company (US), Anko Food Machine Co. Ltd. (Taiwan)|
|Key Market Opportunities||Growing demand for processed food|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Food Processing Market is projected to grow at a 7.60% CAGR between 2020-2030.
The APAC region is expected to lead the Food Processing Market.
Food Processing Market is predicted to touch USD 134.7 billion by 2030.
Bakery and confectionery will dominate the Food Processing Market.
Fully automated segment will lead the Food Processing Market.