Bakery Processing Equipment Market Size, Share & Trends Analysis Report By Equipment (Ovens & Proofers, Molders & Sheeters), By Application (Bread, Pizza Crusts), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global bakery processing equipment market size was valued at USD 12.92 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2021 to 2028. Increasing demand for packaged food products, including frozen meals, snack foods, and ready-to-eat food products, owing to their convenience and shelf life is anticipated to drive the product demand over the forecast period. Changing consumer lifestyles and tastes have compelled food manufacturers to introduce new products in the market. However, these new product launches focused on catering to the changing demand for taste, flavor, and nutrients further add to the production complexity. This, in turn, is anticipated to drive the demand for advanced bakery processing equipment that can handle a wide variety of ingredients and perform several functions across the production line.

Bakery manufacturers are increasingly focusing on enhancing their production efficiency owing to the increasing energy and labor costs, coupled with the growing raw material cost of food ingredients. This is expected to drive the demand for advanced automated bakery processing machines that ensure improved efficiency and minimum wastage of food ingredients.

Equipment automation provides an increased throughput rate by minimizing the degree of manual operation required and increasing the flexibility of equipment, which can easily facilitate on-the-fly changes to the product. Automation ensures minimum human intervention, which assists in reducing labor costs. Thus, the demand for automated bakery processing equipment is expected to show a positive trend over the coming years.

This strategic integration significantly lowers the raw material and logistics costs among other challenges for the bakery companies over a significant time. Furthermore, rising awareness amongst bakers regarding the operations of upgraded bakery processing machinery owing to an increasing number of bakery schools has augmented the demand for high-quality customized bakery processing equipment.

The market is majorly ruled by various certifications, regulations, and standards enforced by multiple organizations, such as the Food and Drug Administration (FDA), and the governments of respective countries. New entrants are looking for more significant opportunities in the global bakery processing equipment market as growing urbanization and the rising population demanding bakery products have benefitted the market growth.

Rising energy cost is one of the major constraints faced by bakeries in running their firms continuously. Equipment such as ovens, heaters, chillers, and homogenizers used in the bakery processing industry consumes comparatively high power and energy. Automatic equipment is considered more desirable but requires an uninterrupted electric supply for efficient functioning, resulting in higher energy bills.

Bakery Processing Equipment Market Trends

Bakery processing equipment is extensively utilized in a variety of industries, including bakery and confectionery, due to its inherent advantages such as quality control, durability, cleanliness, and preservation. The global bakery processing equipment market is expected to increase significantly in the coming years due to rising demand for confectionery and bakery goods, as well as rising demand for packaged & convenience food and rising customer desire for healthy and nutritious food items.

The rapid expansion of the food and beverage industry is expected to boost demand for processing equipment. Consumers increasing consumption of frozen meals, bakery goods, and confectionery is likely to boost the growth of the bakery processing equipment market.

Demand for bakery processing equipment is likely to be driven by the rising population, increasing demand for processed food products. The growing consumer preferences for high-quality goods, ongoing product advancements, and strengthened government food regulations are projected to boost bakery processing equipment market growth.

The increased demand for fast food and packaged food is projected to drive manufacturers to improve their manufacturing capacities, boosting demand for processed food throughout the projection period. Furthermore, the rising prominence of commercials with appealing images and the availability of a diverse variety of flavors in processed food are expected to boost demand for processed food thereby fueling the demand for bakery processing equipment.

The rise in product releases in snack and bakery product categories with health claims such as gluten-free and non-GMO in the European market is predicted to impact the bakery processing equipment market favorably. Similarly, snacks and bakery products need a variety of operations such as cutting, coating, slicing, and heating to add flavor, texture, and shelf life. The rise of the bakery & confectionery sector in Europe and other developed nations is also predicted to fuel the need for bakery processing equipment.

Companies like ConAgra, Unilever, and McCain are focusing on increasing their global market presence by assuring the simple availability of packaged food products in both hypermarkets and retail stores. Over the projected period, the aforementioned factors are likely to support the expansion of the bakery processing equipment market.

Many emerging economies continue to lack sufficient infrastructural amenities, such as cold storage facilities, refrigerated transport, and poor availability of power supply, as well as road and rail connection concerns. To promote the growth of the bakery processing equipment market in emerging areas, regional governments and manufacturers must address these challenges.

Equipment Insights

Ovens and proofers led the market and accounted for 34.2% share in 2020 on account of the extensive use of the product for baking and the rising demand for baked goods. In addition, the market is expected to be driven by the introduction of low energy consumption ovens.

Furthermore, dough sheeters have variable speeds so that different operating rates can be adapted to different dough types that are manufactured. Though prices of dough sheeters are a bit higher as compared to other commercial kitchen equipment, dough sheeters are expected to witness significant growth over the coming years.

Planetary and spiral type batch mixers are popularly used in the baking industry on account of their high versatility as they are capable of whipping, blending, mixing, and stirring a wide range of dough mixtures. In addition, spiral mixers require less resistance on spirals, which helps in controlling the temperature of the dough, ensuring easier kneading and proper rising.

An oven is the most important processing step in the baking industry as both heat and transfer phenomena take place simultaneously inside ovens triggering biochemical and physiochemical changes in the product. In addition, this step provides a crucial kill step that prevents pathogens from blooming within the product. Furthermore, baking in the oven imparts final characteristics, such as color, aroma, texture, flavor, and shelf life, to products.

Application Insights

The bread application segment led the market in 2020 with a share of 35.0%. This is because of the high demand for bread across North America and Europe due to the dietary habits of the consumers in the regions. In addition, the high demand for bread in the erstwhile traditional economies, such as India and China, is expected to drive the market over the forecast period.

Three of the biggest American pizza companies were planning to expand their operations in developing nations. For instance, Pizza Hut was planning to open 1000 new units in China, followed by Papa John’s and Domino’s (50 units each) in 2019. However, the impact of COVID-19 on the global economy, along with the rising tension between China and the U.S., could restrict the entry of foreign companies, which could hinder the market growth over the coming years.

To remain competitive in the market, bakeries across the globe are investing significantly in offering unique flavored products, such as incorporating vegetables such as beetroot, spinach, or carrot in bread, however, vegetable-based bread currently remains niche and contributed less than 6% of all bread launches in 2019. Sieve, baking trays, dough dividers, dough scorers, weighing scales, bread molds, and ovens are some of the machines used in bread making.

Measures adopted by food processing companies, such as revisiting sourcing strategies, rationalizing product ranges, and assessing the agility and resilience of supply chains and sales channels, are expected to positively impact the market growth. Furthermore, streamlining and optimization of the distribution network and e-commerce, along with promotion and pricing strategies, are anticipated to drive the demand for bakery processing equipment.

Regional Insights

Asia Pacific accounted for the largest market share of 37.1% in terms of revenue in 2020. The majority of millennials prefer processed food products, there is a growing middle class with higher purchasing power, health awareness is rising, and there are more foreign investors interested in the region, all of which are expected to support the growth of the Asia Pacific bakery processing equipment market.

Growing industrialization, infrastructure development, and increased investments in the food and beverage sector are likely to generate positive growth possibilities in China. The food and beverage industry contributes considerably to China’s economy. As a result, increased GDP contributions from the industrial and food & beverage industries are expected to fuel the growth of the bakery processing equipment market over the projection period.

Central & South America accounted for the fastest market with a CAGR of 6.1%. The food & beverage industry has been significantly growing in this region owing to high investments. The growing disposable income, increasing consumer awareness regarding health & wellness, and growing demand for gluten-free products is projected to augment the demand for the bakery processing equipment market.

Rising health awareness and the introduction of new healthier variants by major players such as Grupo Bimbo are expected to boost the sales of bakery products. Furthermore, increasing penetration of biscuits in Brazilian households, owing to their low price and good quality, is expected to have a positive impact on the demand for bakery processing equipment.

Key Companies & Market Share Insights

New product development is a key focus area of the manufacturers in the market to strengthen their position and gain market share. Major players are investing in R&D activities and continuously launching new products in the market to enhance customer productivity, thereby attaining business growth in the market.

For instance, in August 2018, Baker Perkins introduced the TruClean Series3 rotary molder system for soft dough biscuits and sandwich cookies. Other key strategies adopted by the market participants to expand their product offering and cater to a broader group of customers include capacity and geographical expansions, coupled with mergers & acquisitions. Some prominent players in the global bakery processing equipment market include:

• Ali Group S.r.l.

• Baker Perkins Limited

• Bühler AG

• GEA Group Aktiengesellschaft

• The Middleby Corporation.

• JBT Corporation

• Anko Food Machine Co., Ltd.

• Markel Food Group

• Koenig Maschinen GmbH

• Heat & Control, Inc.

Bakery Processing Equipment Market Report Scope

Global Bakery Processing Equipment Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global bakery processing equipment market report on the basis of equipment, application, and region:

• Equipment Outlook (Revenue, USD Million, 2017 - 2028)

  • Mixer & Blenders

  • Dividers & Rounders

  • Molders & Sheeters

  • Oven & Proofers

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Bread

  • Cakes & Pastries

  • Cookies & Biscuits

  • Pizza Crusts

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

  • Asia Pacific

    • China

    • India

    • Australia

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa