Food Processing Equipment Market Size, Share & Trends Analysis Report By Type (Processing, Pre-processing), By Application, By Mode of Operation (Automatic, Semi-automatic), And Segment Forecasts, 2020 - 2027

Report Overview

The global food processing equipment market size was valued at USD 57.46 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.6% from 2020 to 2027. The increasing demand for poultry, meat, and seafood products along with packaged food products, such as ready-to-eat foods and frozen meals, is expected to drive the market growth. The market growth is also driven by heavy investments in R&D of efficient and clean food processing equipment as a result of the rising population and demand for processed foods. In addition, the presence of regulatory associations, such as the Environmental Protection Agency (EPA) and the Ministry of Food Processing Industries, is expected to drive the market growth.

The U.S. dominated the North American market in 2019 on account of the presence of major food processing companies coupled with rising investments in industrial automation. The semi-automatic mode of operation segment led the U.S. market in 2019; however, it is expected to lose its share to the automatic mode of operation on account of increasing investments in process automation to improve productivity.

Rapid advancements in packaging and processing technologies in the food sector in the U.S. and several countries of the European Union are expected to drive demand for packaged foods. In addition, increasing demand for gluten-free and high-fiber food products is expected to drive innovations in the food & beverage industry, which, in turn, is projected to have a positive impact on the market growth over the forecast period.

The rapid expansion of the food & beverage industry, particularly in Asia Pacific, Middle East, and South America, is anticipated to augment the demand for food processing equipment over the forecast period. Moreover, the rising consumption of packaged foods owing to new product launches, the development of new retail networks, and population growth are expected to complement growth.

The domestic consumption of various processed food, such as pizza crusts, ready-to-eat foods, potato chips, sausages, and bread witnessed growth in the emerging markets of China, India, and the Middle Eastern economies. This growth is attributed to the rising number of processed and semi-processed retail food outlets and new product launches.

Mode of Operation Insights

The semi-automatic segment led the market and accounted for over 50% of the global revenue share in 2019. Semi-automatic equipment is majorly used by small-scale manufacturers with limited capital, particularly in the Asia Pacific and Middle East & Africa regions. Governments in various emerging countries are investing heavily in the development of small-scale manufacturers by offering subsidies for automated equipment to increase their production and profit levels.

The penetration of semi-automatic food processing equipment was high on account of the low-cost associated with the machinery. However, increasing competition in the food processing industry has resulted in shifting the focus of the manufacturers to fully automated machinery, thereby augmenting the machinery demand.

The penetration of automatically operated machines is anticipated to witness growth at a CAGR of 6.3% over the forecast period on account of the high demand for automation, technological development, and strong research & development capabilities of market players. With the growing demand for processed food and high-speed equipment, food manufacturers prefer automated processing systems.

The automatic food processing equipment market in Asia Pacific is expected to witness significant growth owing to the increasing population coupled with rising demand for packaged food. Food manufacturers are collaborating with processing equipment manufacturers to develop customized machinery as per their requirements.

Type Insights

Processing equipment led the market and accounted for over 52% of the global revenue share in 2019, owing to the high demand for packaged and ready-to-eat foods in the market. Processing equipment is considered to be an essential part of the food & beverage industry, as it gives the product its final form.

Preprocessing equipment includes functions, such as mixing, killing, and filleting of raw materials and various ingredients used in the product, which is further processed by the equipment. The large-scale manufacturers majorly use the preprocessing equipment as small-scale producers usually procure semi-finished materials from other suppliers.

Processing equipment manufacturing companies are investing heavily in collaboration with research centers and end-use customers to develop fully automated machines. These systems are capable of carrying out all the sub-processes involved in food processing, such as mixing, killing, filleting, breaking, and baking, to optimize labor and transfer costs.

The demand for processing equipment is expected to be witness growth at a CAGR of 5.9%, in terms of revenue, from 2020 to 2027. This growth is attributed to the rising demand in the developing regions of Asia Pacific, Central & South America, and the Middle East & Africa, owing to the increasing popularity of fast food, and packaged and processed foods.

Application Insights

Bakery & confectionaries led the market and accounted for 21.7% of the global revenue share in 2019, on account of the high levels of per capita bakery product consumption in countries, such as the U.S., U.K., Spain, Italy, Germany, and France. In addition, the rising popularity of convenience and packaged foods is expected to open new avenues for manufacturers in developing nations over the forecast period.

The meat, poultry, & seafood application segment is expected to grow at a CAGR of 6.5% from 2020 to 2027, owing to the changing consumer lifestyle, high preference for nutritious food, and the rising awareness about the health benefits of seafood. Moreover, the availability of flavored, hygienic, and branded options for meat, poultry, and seafood has attracted a wide range of consumers, which will support the segment growth.

The product demand in the beverage industry is expected to witness growth on account of increasing consumption of drinks, such as wine, juices, bottled water, coffee, and tea. In addition, demand for alcohol-based drinks, high consumer spending, and changing lifestyles are expected to propel the segment growth.

The dairy, meat, poultry, seafood, packaged foods, and semi-processed foods sectors function in accordance with the trade and government regulations. This, in turn, has resulted in the development of multifunctional equipment, having the ability to carry out multiple operations, such as cleaning, skinning, and weighing, to reduce the overall processing time and cost.

Regional Insights

Asia Pacific dominated the market and accounted for over 36.5% share of global revenue in 2019. This growth is attributed to the rapid development in food packaging processing technologies in developing countries like China, India, the Philippines, Thailand, and South Korea.

In addition, product innovations and growing demand for whole-grain, gluten-free, and additive-free foods are anticipated to have a positive impact on the market growth in the region.

The demand for food processing machines in Central & South America is estimated to witness significant growth from 2020 to 2027. Factors, such as rapid industrialization and expansion of the food & beverage industry in Brazil, Argentina, and Paraguay, are expected to drive the regional market.

Key Companies & Market Share Insights

The market participants compete based on various parameters, including corporate reputation, product performance, technical competence, price, and quality. New product development, licensing agreements, and mergers & acquisitions are some of the key strategies adopted by the market players to gain a higher share and strengthen their position in the market.

Many companies are engaged in R&D to design and develop innovative products that facilitate advanced and superior functioning for various applications. The food and beverage industry has a huge contribution to R&D facilities. Some prominent players in the food processing equipment market include:

• BAADER Group

• Marel

• Bühler AG

• GEA Group Aktiengesellschaft

• The Middleby Corp.

• Tetra Laval International S.A

• Alfa Laval

• Krones AG

• JBT Corp.

• SPX Flow Inc.

• LEHUI

• Equipamientos Cárnicos, S.L. (MAINCA)

• FENCO Food Machinery s.r.l.

• Strategic initiatives

• Bigtem Makine A.S.

• TNA Australia Pty. Ltd.

Food Processing Equipment Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global food processing equipment market report on the basis of mode of operation, type, application, and region:

• Mode of Operation Outlook (Revenue, USD Billion, 2016 - 2027)

  • Automatic

  • Semi-Automatic

• Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • Processing Equipment

  • Pre-Processing Equipment

• Application Outlook (Revenue, USD Billion, 2016 - 2027)

  • Bakery & Confectionaries

  • Meat, Poultry, & Seafood

  • Beverage

  • Dairy

  • Fruit, Nut, & Vegetable

  • Grains

  • Other

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • 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