The incessantly increasing consumption of processed and ready-to-eat food products coupled with the dire need to produce significant amounts of processed food to cater to the demand is considered to be the prime dynamics for the growth of the food and beverage processing equipment market size. The growth of developing countries, globalization and rapid industrialization across the world has resulted in growth in urban population. The urban population in 2018 was accounted for 55% of the total population, and it is projected to reach 68% by 2050. The people in urban areas are highly engrossed in hectic lifestyles and have little time for household chores such as cooking regular meals.
This has led to the spike in demand and consumption of for processed, convenience, and ready-to-eat food products. For instance, owing to the increasing consumption of processed food in India, the country’s food processing industry, which ranks fifth in the world in terms of production, consumption, and exports is growing at 8%, annually, for the last five years from 2014-18. The perpetually growing demand for the aforementioned food products has further instigated the food manufacturing companies to consistently deploy innovative equipment such as food machines, bakery equipment, packing machines, and food emulsifiers in the food processing line to mitigate the supply-demand gap in the processed food market. Thus, the propensity towards the processed and convenience food products is expected to be the eminent factor fortifying the food and beverage processing equipment market size.
The food and beverage processing equipment market share was valued at $57 billion in 2018. Furthermore, the growing demand for processed food products is poised to propel the growth of the market at a standard CAGR of 6% during the forecast period 2019-2025.
Food & Beverage Processing Equipment Market Leveraging Industry 4.0—
With the emergence of Industry 4.0 revolution, there is an increase in the adoption of technologies such as automation, Internet of Things (IoT), and machine learning to improve the existing processing equipment. The technological advancements increased the efficiency and quality of the production and assist in reducing the carbon footprint and overall production cost. These beneficial factors are instigating the food manufacturers to replace their traditional processing equipment with the technologically innovative energy-efficient variants. Thus, the technological advancements in the food processing industry is fuelling the growth of the food and beverage processing equipment market.
Asia Pacific Region Providing Prospects for Food & Beverage Processing Equipment Market Growth—
On the basis of region, Asia Pacific is considered to capture the largest food and beverage processing equipment market share during the forecast period and was responsible for 35.2% of the total revenues generated in 2018. The dominance of this regional market is mainly attributable to the propitious growth of the food processing industry in the developing economies such as China, India, Indonesia and Thailand. The growing inclination towards the consumption of processed and convenience food in this region is due to the rapid urbanization and industrialization. In China, the food processing market size increased by 6.3% from 2016 to 2017 and attained $1.47 trillion. Whereas, in India, the food processing market was valued at $322 billion in 2016 and expected to reach $543 billion by 2020, with a CAGR of 14.6%.
Therefore, the booming food processing industry is considered to be the prime impetus for the growth of the regional food and beverage processing equipment market. Moreover, with the growth in the economy, there is a rise in the disposable income of the people, consequently increasing the purchasing power. Wherein, the growth in disposable income can be fathomed from the growth in GDP per capita. The GDP per capita in India increased from $1730 in 2016 to $2015 in 2018, in China it increased from $8078 in 2016 to $9770 in 2018. The growth in disposable income has led to an increase in preference for healthy and functional food products. This further instigated the food and beverage manufacturers to adopt new equipment such as food processors, to meet the demand for fortified and health food products. Thus, the growing emphasis on healthy foods is propelling the market in this region. Furthermore, the incessantly increasing population in this region, especially India and China created a major gap in the food supply and demand. The total population in India and China reached 1.35 billion and 1.39 billion respectively in 2018. Due to the growing food supply-demand gap, the food manufacturers are on a quest to preserve the quality of the food products until it reaches the consumer by adopting innovative technologies such as non-thermal processing and ultra-high temperature (UHT) processing. Thus, the increasing food demand is benefiting the food and beverage processing equipment market in this region.
Food & Beverage Processing Equipment Market Companies’ Strategies—
Major companies that are investing heavily in research and development activities to introduce new products to the global customers and thereby increase their brand name presence in the food and beverage processing equipment market are Marel (Iceland), GEA Group AG (Germany), Bühler Group (Switzerland), JBT Corporation (US), Alfa Laval (Sweden), TNA Australia Solutions (Australia), Bucher Industries AG (Switzerland), Equipamientos Cárnicos, S.L. (Mainca) (Spain), Clextral (France), SPX Flow (US), Bigtem Makine (Turkey), Fenco Food Machinery (Italy), and Krones Group (Germany). Moreover, these companies are continuously involved in adopting business strategies such as acquisitions, mergers, partnerships, and collaborations to stay ahead of their competitors and reach the global customers.