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.
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.
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.
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.
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.
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.
Report Attribute |
Details |
Market size value in 2020 |
USD 59.53 billion |
Revenue forecast in 2027 |
USD 88.56 billion |
Growth Rate |
CAGR of 5.6% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD billion and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Mode of operation, type, application, and region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; France; Italy; U.K.; China; India; Japan; South Korea; Australia; Brazil; South Africa |
Key companies profiled |
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. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global food processing equipment market size was estimated at USD 57.46 billion in 2019 and is expected to reach USD 59.53 billion in 2020
b. The food processing equipment market is expected to grow at a compound annual growth rate of 5.6% from 2020 to 2027 to reach USD 88.56 billion by 2027
b. The Asia Pacific dominated the food processing equipment market with a share of 36.5% in 2019, owing to factors such as technological advancements, industry 4.0, and green manufacturing practices followed in the region.
b. Some of the key players operating in the food processing equipment market include BAADER Group, GEA Group Aktiengesellschaft, Bühler AG, Marel, Tetra Laval International S.A., Alfa Laval, Krones AG, and The Middleby Corporation.
b. The key factors that are driving the food processing equipment market include the rising food & beverage industry, stringent regulations pertaining to food processing & safety, and increasing demand for packaged and processed foods.
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FDA, in particular, has relaxed the nutrition labeling of products which is expected to aid in increasing the distribution of packaged foods by restaurant operators leading to the optimum supply chain of products to consumers. Furthermore, food safety testing and processing industries are expected to function at full capacity owing to consumers stock-piling goods during the COVID-19 lockdown. The report will account for Covid19 as a key market contributor.