Food Processing and Handling Equipment Market Size, Share & COVID-19 Impact Analysis, By Equipment (Processing Equipment, Packaging Equipment, and Service Equipment), By Application (Bakery and Confectionery Products, Meat and Poultry Products, Dairy Products, Beverages, and Others), and Regional Forecast, 2023-2030

The global food processing and handling equipment market size was valued at USD 106.89 billion in 2022. The market is projected to grow from USD 112.45 billion in 2023 to USD 163.23 billion by 2030, exhibiting a CAGR of 5.5% during the forecast period.

The food processing and handling equipment is primarily utilized for processing meat, seafood, bakery, dairy, and confectionery from their raw form into final products. Several companies are focusing on the integration of advanced concepts such as IoT to enhance the user experience. IoT-integrated companies to achieve the highest level of food safety, cut down wastage, improve traceability, and reduce costs and risks associated with various food processing and packaging processes, subsequently contributing to the growth of the global market.

COVID-19 IMPACT

Rising Food Safety Management Concerns across Food Industry during COVID-19 Impeded Growth

The recent COVID-19 pandemic has adversely affected the manufacturing and food industry, along with a decline in global trade. It is imperative for the food industry to emphasize personal hygiene rules and offer training to food industry workers. Governments worldwide are promoting hygienic design and engineering of food processing and packaging equipment through guidelines, educational programs, laboratory testing methods, and training materials for a clean environment and related topics. The Food Safety Management Systems (FSMS) implemented a few principles to manage food safety regulations based on the Hazard Analysis and Critical Control Point (HACCP) analysis.

A recent study by HACCP reported the survival of the coronavirus on different surfaces that remain viable for up to 72 hours on stainless steel and plastic, 24 hours on cardboard, and many more. This factor creates urgency among the food processing, servicing, and handling equipment manufacturers and operators to take personal preventive measures. To ensure resilience in the food industry, efficient staff hygienic practices are performed, thus creating moderate ongoing challenges with the COVID-19 situation.

LATEST TRENDS

Rising Investments in the Food Processing Industry to Aid Market Growth

Growing R&D investments in food processing technologies are likely to drive the food processing and handling equipment market growth. Investments in integrating IoT and AI and their amalgamation in food processing and packaging equipment depict lucrative market opportunities. The increasing investment of domestic as well as foreign companies in the food processing industry of Asia Pacific is attributed to the high product demand.

According to the National Investment Promotion & Facilitation Agency of India, the country's food processing industry is expected to attract USD 33 billion in investments by the end of 2024. As of 2019, about 40,000 food processing facilities are present in India. They are expected to increase significantly over the forecast timeline, providing lucrative opportunities to those companies that are active in the market landscape.

DRIVING FACTORS

Integration of High-end Automation and Robotics Technology in Manufacturing Facilities to Fortify Market Developments

The manufacturers operating in the market are trying to incorporate ultra-modern automation and are also striving to inculcate AI technologies and IoT to execute robotics in manufacturing facilities. These efforts are aimed at increasing food safety and strengthening the supply chain across geographies. The manufacturers are inclined toward performing product monitoring, remote maintenance, and self-diagnosis in manufacturing facilities to increase operational efficiency and improve food processing and handling operations. These automated processing technologies can now be performed seamlessly as the facilities comply with the techniques prescribed under Industry 4.0.

Equipment manufacturers focus on providing post-purchase smart services to their customers. For instance, I.M.A. Group proposes smart services such as a digital room (data sharing through Industry 4.0), a smart service suite (smart app with integrated virtual and augmented reality), technical services 24/7, and many more.

Increasing Demand for Hygienic Convenience Food Products to Drive Growth

Increasing urban populations across diverse geographies and adopting a fast-paced urban lifestyle induced the popularity, manufacturing, and consumption of ready-to-eat food products. As per the Food Drink Europe, the food industry confederation in the European Union, Europe has the highest consumption rate of ready meals (spent up to 6.7 billion in 2017), followed by North America, Asia Pacific, Latin America, and the Middle East & Africa. Therefore, the demand for convenience food products is also expected to grow in emerging economies.

RESTRAINING FACTORS

Unawareness of the Rules for Food Safety to Hamper Market Growth

Several governments & food organizations across the world are implementing strict laws & regulations about food processing and handling hygiene due to the rising number of foodborne diseases and the COVID-19 pandemic. Governments worldwide are offering several safety training facilities for food processing and handling machinery operators to minimize the threat of convenience food. It becomes a challenging task for a few emerging small and medium enterprises to implement government rules due to minimal capital funding in their business, restraining the global market growth.

SEGMENTATION

By Equipment Analysis

Processing Equipment Segment is anticipated to grow at a Higher CAGR Due to Considerable Introduction of Automation Technologies in the Sector

By equipment type, the market is classified into processing equipment, packaging equipment, service equipment. Processing equipment is further divided into processing equipment and pre-processing equipment. Packaging equipment is further divided into Filling, Bottling, Case Cartoning, Labelling, Palletizing, and service equipment is divided into Cooking & Preparation Equipment, Refrigeration Equipment, Ware washing Equipment, Storage & Handling Equipment, Others (Serving Equipment)

Among equipment, the food processing equipment segment is projected to grow exponentially in the near future, owing to its demand across the food and beverages industry. The processing equipment segment is leading as it is expected to generate a sufficient amount of processed food to cater to customer demand. Increasing sales of ready-to-consume foods and beverages are set to bolster sales of the aforementioned processing equipment over the slated period of time.

The service equipment segment is projected to have a remarkable market share owing to the growing demand for refrigerators and ovens. The equipment used in the food service industry, namely, commercial kitchens, hotels, and restaurants, is generating revenues from sales, post-purchase service, and equipment replacement.

The packaging equipment segment is anticipated to have considerable market revenue owing to increasing demand for perishable food products, health awareness, and dietary. Furthermore, in packaging equipment filling segment is holding prominent revenue. Labelling segment is also gaining popularity in the market due to the increasing use of labeling machine to attach brand names and other information on the packaged product.

By Application Analysis

Bakery and Confectionery Products Segment Hold a Dominant Share Due to Increasing Consumption of Bakery Products across Cafes in Urban Areas

Bakery and confectionery food products are witnessing growth in several European countries, including the U.K., Germany, and France, as bread and other related bakery products are consumed as a staple food across the region. As per the Federation of Bakers, the average bread consumption in the European Union (EU) is about 50 kg of bread per person every year. Several processing machines are used in commercial bakeries to produce bread of several applications and shapes in large quantities and in less time.

The expanding utilization of dairy items across the Asia Pacific is estimated to enhance market development over the forecast timeline. As per the data revealed by the NIPFA, the dairy industry in India is expected to reach around USD 140 billion by the end of 2020.

The global beverages industry is witnessing significant growth owing to the increasing consumption of alcoholic drinks, soft drinks, and fruit juices. The growing consumption of meat & poultry products across North America is expected to propel the market size. According to the North America Meat Institute, in 2017, the U.S.'s meat production totaled 52 billion pounds while poultry production totaled 48 billion pounds.

The others segment consists of grains, nuts, fruits, and vegetables, and it is likely to experience substantial growth, owing to moderate demand and limited requirements for their processing and packaging.

REGIONAL INSIGHTS

Asia Pacific is projected to show dynamic growth in the global market value. The rising disposable income and shifting consumer preference toward convenience food & instantly processed food are the major factors influencing the industry growth in APAC. Additionally, the rapidly developing food products manufacturing industry across India and China further enhance the market share.

China is the most populous country globally, making it the biggest contributor to the food and beverages industry. Additionally, the country stands as the number one importer of agricultural products. It is ranked fourth position for imports from the U.S. market in consumer-oriented foods. In 2019, the imports of agricultural products were pegged at USD 133.1 billion in the market in China. Moreover, with stringent regulations and restrictions, China effectively tackled the infection of COVID-19, reducing its effects on the economy and supply chain of the food and processing industry. This factor surged the development of food processing, servicing, and packaging equipment sales in China.

The demand for food processing, servicing, and packaging equipment is expected to have progressive market growth across North America. This factor was mainly due to the swiftly developing food & beverage industry and changing consumer preference for frozen food products. According to the Institute of Food Technologists, frozen food generated approximately USD 57 billion in U.S. retail sales. The rising numbers of food manufacturing plants in the U.S. are also expected to provide impetus to regional industry growth.

Europe is anticipated to witness significant cumulative market growth over the forecast period due to increasing investments in expanding production facilities across the region. Germany holds the position of the prominent country in the region. However, U.K. and France are following the growth trend of Germany during the forecast period owing to the availability of advanced machine manufacturing facilities in the country. It is due to the increasing food processing and restaurant industry in these countries.  

The extensive increment in the urban population across the region of Latin America, especially in Brazil and Mexico is expected to bolster market development prospects over the course of time. For instance, according to the statistics published by the Foreign Agriculture Service section of the U.S. Department of Agriculture, in 2018, the food processing industry of Brazil registered a revenue of USD 179 billion, which projected it as one of the prominent players in the global market. Moreover, robust infrastructure setup, substantial private sector and public sector investments, and decreased regional tariffs are some of the critical factors propelling the market in the Middle East and Africa region. For instance, the food processing sector of the UAE witnessed the participation of 568 players, which are essentially small and medium-size entities. These companies are capable of satisfying the requirement of the Middle East region and are also increasing exports in cross-border trade. The increasing operations of these aforementioned entities are spurring the regional market.

KEY INDUSTRY PLAYERS

GEA Focus on Forming Strategic Co-Operations with Processing and Packaging Solution Providers

Buhler AG, GEA, Alfa Laval, and JBT Corporation are prime players in this market. Due to the involvement of numerous participants in the competitive landscape, the market currently has a fragmented structure. These key players are striving to have mergers and acquisitions of smaller entities while simultaneously working on venturing into collaborations and joint ventures to operate more efficiently and have a diversified presence across the globe.

• For instance, in 2021, Duravant, which operates as an automation solutions and engineered equipment provider, finalized its acquisition of Foodmate, a poultry processing equipment company.

Similarly, Alfa Laval signed an agreement in 2018 with a Sweden-based innovative technology patented company for asymmetry heat exchangers, useful for boilers and water heaters in the food and beverages industry. Henceforth, the major market players are acquiring automated equipment providers with low maintenance costs. Additionally, prominent market players are investing heavily in the research and development division to introduce new product launches and elevate product diversity in the existing product portfolio.

LIST OF KEY COMPANIES PROFILED:

• Buhler Ag (Switzerland)


• JBT (U.S.)


• I.M.A. INDUSTRIA MACCHINE AUTOMATICHE S.p.A. (Italy)


• Tetra Pak International S.A. (Tetra Laval) (Switzerland)


• The Middleby Corporation (U.S.)


• Welbilt (U.S.)


• Krones AG (Germany)


• GEA Group Aktiengesellschaft (Germany)


• ALFA LAVAL (Sweden)


• Dover Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2022: QSR, which operates as a vegan quick-service restaurant chain across the market of Canada, has finalized its decision to establish a manufacturing facility that enables the company to increase its market reach in the retail sector and manage its existing supply needs. This move is expected to increase sales of food processing, servicing, and packaging equipment across the global market.


• July 2022: Diageo, which is known as the second largest liquor supplier across the globe, has announced its decision of acquiring Vivanda, which is an operator of FlavorPrint artificial intelligence technology. This decision will lead to the introduction of modern technologies in the food processing industry.


• January 2022: Ska Fabricating, engaged in the design and development of automated packaging line equipment, announced the acquisition of GR-X Manufacturing, which operates as a manufacturer of beverage packaging line solutions. The acquisition will help the company to elevate its product portfolio diversity and will also strengthen its position in the market.

• September 2021: GEA Group AG, which operates as a prominent manufacturer of components and systems in the food and beverages division, has recently launched an innovative solution called Batch2Flow. The novel solution is developed to enhance the security of the food production process, curtail the consumption of cleaning chemicals, and reduce the usage of water and power consumption to provide economic benefits to the customers.

• May 2021: Duravant LLC., one of the leading manufacturers of automation solutions and engineered products, has finalized the acquisition of Foodmate, engaged in developing poultry processing equipment. The acquisition is estimated to bolster the sales footprints of Duravant in the food processing, material handling, and packaging sector over the forecast period.

REPORT COVERAGE

Additionally, the scope of the study includes three major Applications of equipment: processing equipment, packaging, and service equipment. This research report encompasses an in-depth analysis of the global food processing and handling machinery market dynamics and competitive landscape. Additionally, it highlights the recent developments, including mergers and acquisitions and new product launches across countries that would help gauge the market scenario. The report also includes macro and microeconomic factors, SWOT analysis, and company profiles.

Report Scope & Segmentation