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The global food processing and handling equipment market size was USD 96.29 billion in 2019 and is projected to reach USD 133.39 billion by 2027, exhibiting a CAGR of 4.1% during the forecast period.
Food processing and handling equipment are primarily utilized for processing of meat, seafood, bakery, dairy, and confectionery from their raw form into final products. Several companies are focusing on integration of advanced concepts such as IoT to enhance the user experience. Integration of IoT has helped companies achieve the highest level of food safety, cut down wastage, improve traceability, and reduce cost as well as risks associated with various food processing and packaging processes. This, in turn, will contribute to the growth of the global market in the coming years.
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 on personal hygiene rules and offer training to the food industry workers. Governments across the world are promoting hygienic design and engineering of the food equipment through its documents, guidelines, educational programs, laboratory testing methods, and training materials for clean environment and related topics. The Food Safety Management Systems (FSMS) has implemented a few principles to manage food safety regulations based on the Hazard Analysis and Critical Control Point (HACCP) analysis.
A recent study by the HACCP indicated that the survival of COVID-19 virus on different surfaces remains viable for up to 72 hours on stainless steel and plastic, 24 hours on cardboard. This has created urgency among food processing equipment manufacturers and operators to take personal preventive measures. To ensure the resilience in the food industry, efficient staff hygienic practices have been adopted rapidly, thus creating a few growth opportunities during the COVID-19 pandemic.
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Rising Investments in Food Processing Industry to Aid Market Growth
The growing R&D investments in food processing technologies are likely to aid the food processing and handling equipment market growth. Investments for integrating IoT and AI and their amalgamation in the food processing and handling equipment have created several growth opportunities. The increasing investment by domestic as well as global companies in the regional food processing industry in Asia Pacific region is attributable to the high product demand.
According to the National Investment Promotion & Facilitation Agency of India, the food processing industry of the country is expected to attract USD 33 billion investments by the end of 2024. As of 2019, around 40,000 food processing facilities were present in India and this number is expected to increase significantly over the forecast period, thus creating a massive platform for driving the growth for the companies that are active in the market landscape.
Incorporation of Robotics and Automated Technologies in Manufacturing Plants to Propel Growth
The food processing and handling equipment manufacturers are aiming to track food all over the value chain to improve food safety. In the era of Industry 4.0 and smart products, it has become easy to monitor the potential status of any product. This helps perform seamless operations such as self-diagnosis and remote maintenance by making the installed base interconnected and smart for operations, to recognize issues with the processing and packaging equipment.
Equipment manufacturers focus on providing post-purchase smart services to their customers. For instance, the I.M.A. Group proposes smart services, such as digital room (data sharing through Industry 4.0), 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 Aid Growth
Convenience meals are expected to witness a massive demand in the near future owing to the dual-income households that are opting for fast urban lifestyle. As per the Food Drink Europe, 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 and Africa. Therefore, the demand for convenience food products is expected to grow in emerging economies as well.
Less Awareness about the Rules for Food Safety to Hamper the Market Growth
Several governments & food organizations across the world are implementing strict laws & regulations about food processing equipment hygiene due to the rising number of foodborne diseases and the COVID-19 pandemic. Governments across the world are offering several safety training facilities for the food processing and handling equipment operators, to minimize the threat for convenience food. This has become a challenging task for emerging SMEs (small and medium enterprise) mainly due to minimal capital funding in their business, which in turn will restrain the market growth.
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Food Processing Equipment Segment is Anticipated to Rise at a Higher CAGR
Among all types of equipment, the food processing equipment segment is projected to grow exponentially in the near future, owing to the increasing product demand across the food and beverage industry. Food processing equipment segment is leading as it is expected to generate sufficient amounts of processed food to cater to the customer demand.
Food service equipment segment is projected to hold a considerable market share owing to the growing demand for refrigerators and ovens. This equipment is widely used in the food service industry, namely, commercial kitchens, hotels, and restaurants, generating revenues from sales, post-purchase service, and replacement of the equipment.
Food packaging equipment segment is anticipated to account for a considerable food processing and handling equipment market share owing to the increasing demand for perishable food products, health awareness, and changing dietary habits.
Bakery and Confectionery Products Segment to Hold a Dominant Share During the Forecast Period
The bakery and confectionery food products are witnessing a massive demand in several European countries including the U.K., Germany, and France, as bread and other related bakery products are consumed as 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 the commercial bakeries to produce breads of several types and shapes in large quantities and in less time.
The expanding utilization of dairy items across Asia Pacific is estimated to enhance the 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 beverage industry across the globe 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 American Meat Institute, in 2017, the meat production in the U.S. totaled at 52 billion pounds, while poultry production totaled for 48 billion pounds.
The other segment consists of grains, nuts, fruits and vegetables and it is likely to experience substantial growth, owing to moderate demand and limited requirement of their processing and packaging.
Asia Pacific Food Processing and Handling Equipment Market Size, 2019 (USD Billion)
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Asia Pacific is projected to witness considerable growth in the coming years. The rising disposable income, coupled with the shifting consumer preference towards 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 is further supporting the increasing the market opportunities.
The demand for food processing and handling equipment is expected to rise across North America. This is mainly due to the rapidly 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 the regional industry growth. According to the Census Bureau’s County Business Patterns, in 2016, California had about 5,640 food & beverage manufacturing plants.
Europe is anticipated to witness significant cumulative market growth over the forecast period due to the increasing investments in expansion of production facilities across the region. For instance, in November 2019, Kellogg’s announced the investment of approximately USD 121.5 million to expand its Pringles plant in Poland. The new manufacturing plant will help the company cater to the demand for Pringles across Europe.
The increasing population and rapid urbanization across Brazil and Mexico may surge the market demand in Latin America. In 2018, the Brazilian food industry accounted for around USD 179 billion, comprising approximately 35,800 food processing companies. Moreover, the U.A.E. government announced its new FDI law in 2018, allowing 100 percent foreign ownership in the food industry. In August 2019, Mars, a worldwide confectionery food chain acquired 100% of its Dubai subsidiary, allowing them to expand their presence in the country.
GEA Focusses on Forming Strategic Co-Operations with Processing and Packaging Solution Providers
Buhler AG, GEA, Alfa Laval, and JBT Corporation are the prominent market players focusing on merging and acquiring small and mid-size processing and packaging solutions providers. For instance, GEA signed an agreement in 2017 to acquire VIPOLL, a manufacturer of filling technologies for beverages and fresh milk products to strengthen its market position in the beverage processing industry. 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 beverage industry. Henceforth, the major market players are indulging in acquiring automated equipment providers with low maintenance costs.
An Infographic Representation of Food Processing and Handling Equipment Market
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Additionally, the scope of the study includes three major types of equipment, namely, processing equipment, packaging, and service equipment. This market research report encompasses an in-depth analysis of the global market dynamics and competitive landscape. Additionally, it highlights the recent developments, including mergers and acquisitions, new product launches across the developing countries that would help to gauge the market scenario. The report also includes macro and microeconomic factors, SWOT analysis, and company profiles.
Value (USD Billion)
By Equipment Type
Fortune Business Insights says that the global market was valued at USD 96.29 billion in 2019
In 2027, the market is expected to be worth USD 133.39 billion.
Robust growth of 4.1% CAGR will be observed in the forecast period (2020-2027)
Asia Pacific is anticipated to be the dominant region in the market and it was valued at USD 28.01 billion in 2019
Within the equipment type criterion, food processing equipment segment is expected to be the leading segment in the market during the forecast period
Incorporation of robotics and automated technologies in manufacturing plants and increasing demand for hygienic convenience food products is expected to drive the growth of the market
Buhler AG, GEA, Alfa Laval, and JBT Corporation are the key industry players in the market.
The bakery and confectionery food products segment is expected to hold the highest share of the market.
Rising investments in food processing industry is the latest market trend
The major players in the market hold approximately 30% of the market owing to their well-established brand image and product portfolio
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