Increase in Demand for Convenience and Bakery Food Driving the Food & Beverage Processing Equipment Market

With increasingly busier lifestyles, the need for convenience and ready food is all time high, leading to innovation in manufacturing food and beverages with greater efficiency. In terms of the technology used in the manufacturing sector and end consumption, optimization of efficiency and quality has become key. The food & beverage industry is not only in line with this trend, but has seen some interesting changes. Convenience foods are becoming increasingly popular and are coupled with the need to remain fit. This has led to the need for equipment that perform an array of tasks, which can cater to the industry-wide demand for food & beverage products that are cost-, time-, and labor-efficient.

Food & beverage processing equipment are the machinery used in the large-scale production of meat, poultry, bakery, confectionery, dairy products, and alcoholic and non-alcoholic beverages; the processing involves value addition to raw materials such as water, dough, meat, milk, and malt through various technologies and techniques to produce the desired edible product and meet the demand of the target consumer. The machinery may be automatic or semi-automatic, and perform functions such as cooking, heating, chilling, sorting, grinding, slicing, brewing, mixing, pasteurization, homogenization, filtration, and separation.

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The market for the equipment is driven by varying factors. While the consumption of convenience food is increasing, there is also a growth in demand for health foods and drinks resulting in the demand for food processing equipment to manufacturer more food. Owing to these factors, the food & beverage processing equipment market is witnessing several developments in various technologies to cater to the evolving demand from the food industry. According to MarketsandMarkets, the global food & beverage processing equipment market is projected to grow at a CAGR of 6.1% during the forecast period (starting 2018), to reach USD 74.44 billion by 2023.

The food & beverage processing equipment market was dominated by the Asia Pacific region in 2017, in terms of market share. This region is also projected to be the fastest-growing market for the period considered in this study, due to the establishments by a large number of medium- and small-scale manufacturers, along with strong foothold of a majority of established equipment manufacturers such as GEA, Alfa Laval, and JBT Corporation. In terms of type, the thermal processing equipment segment is estimated to account for the largest market and is projected to be the fastest-growing, from 2018 to 2023. Further, owing to high demand for new food & beverage products, the application of the processing equipment in the manufacturing of bakery & confectionery products and meat & poultry categories is expected to gain popularity in the future.

Food & Beverage Processing Equipment Market Size, By Application 2018

Food & Beverage Processing Equipment Market

Note: The percentage estimates mentioned above the bars represent the respective CAGRs between 2018 and 2023.

*Others include fruits, vegetables, ready-to-eat meals, sauces, and dressings.

Source: Secondary Research, and MarketsandMarkets Analysis

Operation Flexibility and Efficiency Are Key Trends in the Food & Beverage Processing Industry

Macroeconomic factors such as the rise in income levels and economic growth have subsequently led to the increased demand for food & beverages across the globe, which has encouraged the increase in manufacturing capacity of end-product manufacturers. This is further supported by the operational flexibility in the equipment. For instance, GEA PHE Systems, a manufacturer of plate heat exchangers used in food & beverage processing, has a flexible assembly line that can be configured and assembled in different ways for specific applications. Such flexibility of processing lines will help the manufacturers to upscale and downscale production according to the fluctuating demand.

The upcoming trends such as a significant number of new functional food, beverage, and nutritional product launches; consumer trends for health and wellness; and higher interest in enhanced organoleptic characteristics, along with equipment manufacturers’ focus on optimization of existing plants and lines, are positively impacting the food & beverage processing equipment market. The demand from the food & beverage manufacturers is focused on equipment can reduce production costs, are easy to operate, offer flexibility, and save time, along with the ability to provide meaningful production data. Automated systems are also emerging, which are installed for operating beverage processing lines and improving plant efficiency, safety, product quality, hygiene, and profitability.

Technology Advancement is a Growth Opportunity

The opportunities for food & beverage processing equipment market growth appear in the form of the following:

  • Launch of advanced technology enabled equipment
  • Upgradation of new technologies by service providers
  • Increase in R&D activities
  • Development of low power consuming equipment, which also offers a low turnaround time

Opportunities in Developing Countries

The opportunities for geographic expansion lie in developing economies, with their growth, rapid urbanization, and globalization; this leads to greater opportunities in countries where the demand for food is high, but the supply of quality food is lagging behind. This has resulted in the higher focus of food & beverage processing equipment manufacturers on developing economies such as Brazil, India, Argentina, and Malaysia, due to the growth in food demand, less number of local advanced equipment manufacturers, and lower cost of food production. For instance, several international companies have been investing in market entry and expansion in China, which is one of the largest food importer in the world. While China is expected to lead as the major investment destination for most food producers, countries such as India, Brazil, and Argentina appear to be more lucrative for food & beverage processing equipment manufacturers, owing to lesser competition, supportive policies, and increasing food demand.

Competitive Scenario in the Industry

  • The leading companies adopted various strategies such as new product launches, acquisitions, expansions, partnerships, mergers, and agreements. New product launches and expansions were the key strategies adopted by players to sustain in the competitive market.
  • The major players in the food & beverage processing equipment market include the following:
    • GEA Group
    • Alfa Laval
    • Buhler
    • SPX Flow Inc. 
    • JBT Corporation

The market for food & beverage processing equipment has a positive outlook, since there is an increase in demand for beverage products. The market is projected to grow at a significant rate in the next five years. The projected increase in the consumption of beverage products, especially in developing regions such as Asia Pacific and South America, and the focus on product innovations provide growth opportunities for the market.