Food Processing Market Trends and Forecast
The future of the global food processing market looks promising with opportunities in the beverage, dairy, meat & poultry, bakery, convenience food & snack, fruit & vegetable, and confectionery markets. The global food processing market is expected to reach an estimated $219.7 billion by 2030 with a CAGR of 4.1% from 2024 to 2030. The major drivers for this market are increasing preference for convenience & ready-to-eat foods, growing demand for healthy, organic, & natural food products, and rising demand for processed & packaged foods.
Raw materials used in food processing are normally composed of grains (e.g. wheat, corn, rice), fruits, vegetables, meat, dairy products and legumes. Additional substances such as preservatives, flavorings and colors are also employed to augment taste, shelf life and appearance. The selection of raw materials depends on the kind of food product being processed and desired end product attributes.
Food processing incurs higher fuel costs compared to some other industries due to its energy-intensive nature. This cost is influenced by factors that include; energy source, regional market rates and economic conditions. Fuel prices fluctuate frequently for food processing companies thereby affecting overall production expenses and competitiveness.
• Lucintel forecasts that refrigeration is expected to witness the highest growth over the forecast period.
• Within this market, bakery is expected to witness the highest growth.
Raw materials used in food processing are normally composed of grains (e.g. wheat, corn, rice), fruits, vegetables, meat, dairy products and legumes. Additional substances such as preservatives, flavorings and colors are also employed to augment taste, shelf life and appearance. The selection of raw materials depends on the kind of food product being processed and desired end product attributes.
Food processing incurs higher fuel costs compared to some other industries due to its energy-intensive nature. This cost is influenced by factors that include; energy source, regional market rates and economic conditions. Fuel prices fluctuate frequently for food processing companies thereby affecting overall production expenses and competitiveness.
• Lucintel forecasts that refrigeration is expected to witness the highest growth over the forecast period.
• Within this market, bakery is expected to witness the highest growth.
Country Wise Outlook for the Food Processing Market
The food processing market is witnessing substantial growth globally, driven by increasing preference for convenience & ready-to-eat foods. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major food processing producers in key regions: the USA, China, India, Brazil, and Germany.
Emerging Trends in the Food Processing Market
Emerging trends in the food processing market shaping its future applications and market dynamics:
• Automation and AI: Robotics, artificial intelligence, and machine learning are among the ways to improve efficiency as well as accuracy.
• Plant-Based Products: The need to provide vegan and vegetarian alternatives for meat is rising thereby necessitating innovations in this field.
• Sustainability: Green manufacturing systems that reduce pollution and emphasize on environmentally friendly practices while cutting down waste production.
• Personalized Nutrition: An individual’s health data and dietary needs determine what food they should consume or avoid.
• Smart Packaging: To improve product information and shelf life, one can use interactive packaging solutions.
A more than 150-page report is developed to help in your business decisions. Sample figures with some insights are shown below.
Recent Development in the Food Processing Market
Ongoing innovations and advancements in various sectors of the food processing market which have been highlighted by recent developments:
• Nestlé: Nestlé launched a new line of plant-based foods, expanding its portfolio to cater to the growing demand for vegan products.
• Cargill: Cargill invested in advanced automation technologies to enhance efficiency and reduce operational costs in its food processing facilities.
• Beyond Meat: Beyond Meat partnered with several major fast-food chains to introduce its plant-based burger patties, aiming to capture a larger market share in the alternative meat segment.
• Tyson Foods: Tyson Foods announced a significant investment in sustainability initiatives, including reducing greenhouse gas emissions and improving waste management in its processing plants.
• PepsiCo: PepsiCo introduced smart packaging for its snack products, incorporating QR codes and augmented reality to engage consumers and provide real-time product information.
Strategic Growth Opportunities for Food Processing Market
Some key strategic growth opportunities for this market include:
Plant-Based Products:
The company will expand its offerings of plant-based and alternative proteins in response to growing demand from consumers for healthier, greener alternatives.
Automation and AI: This company is also investing in using automated systems and artificial intelligence to make their operations more efficient, lower costs, and ensure product quality remains high as well as consistent.
Sustainability Initiatives: To appeal to green customers, these companies are implementing environmental friendly practices such as waste reduction and use of sustainable packaging
Personalized Nutrition: This company has recognized the importance of developing a broad range of individualized dietary products designed around personal health data as well as specific dietary needs.
E-Commerce Growth: In order to increase market share in a fast-growing online sales channel environment that caters directly to consumers rather than retail intermediaries, organizations can shift their business models.
Strategic growth opportunities in the food processing market lie in leveraging automation, sustainability, and personalized nutrition to meet evolving consumer demands. Expanding into emerging markets and adopting innovative technologies will drive future growth and competitiveness.
Food Processing Market Driver and Challenges
Food processing market growth is fueled by rising demand for convenient, health conscious, and sustainable products. Nevertheless, the industry encounters major hurdles such as compliance with regulations, fluctuating costs of raw materials, and disruption of its supply chain. For stakeholders to seize growth opportunities and minimize risks it is important that they maneuver through these drivers and challenges.
The factors responsible for driving the food processing market include:
1. Rising Consumer Demand: Increased demand for convenience foods, healthy options, and plant-based products drives innovation and growth in food processing.
2. Technological Advancements: Efficiency, quality, and product offerings have been improved by automation, AI, and smart packaging innovations.
3. Globalization: There are new markets and opportunities for growth with the expansion of international trade and global supply chains.
4. Health Trends: Consumer interest in health and wellness continues to drive the development of functional and fortified foods.
5. Sustainability Efforts: Increasing emphasis on sustainable packaging that is eco-friendly corresponds to consumer preferences as well as regulatory requirements.
Challenges in the Food Processing Market:
1. Regulatory Compliance: The difficulty of conforming to stringent food safety regulations across different regions can be expensive as well as problematical.
2. Rising Raw Material Costs: Production costs plus profitability are affected by changing prices of raw materials like protein or cereals.
The food processing industry grows with consumer demand for healthier and more convenient foods that are also sustainable coupled with technological changes designed to enhance efficiencies. However, the sector has to overcome barriers such as regulatory challenges, fluctuating costs of raw materials and difficulties in distribution networks among others, which are critical to maintaining competitiveness and growth. To succeed in this dynamic food processing environment, it is important that enterprises reconcile these imperatives and demands.
Food Processing Suppliers and Their Market Shares
In this globally competitive market, several key players such as Buhler, Krones, AFE Group, Atlas Pacific Engineering Company, etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players contact us.
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies food processing companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the food processing companies profiled in this report include-
• Buhler
• Krones
• AFE Group
• Atlas Pacific Engineering Company
• B.K Engineers
• National Refractories
• Heat and Control
• Meyer Industries
• ZIEMANN HOLVRIEKA
• Tomra Systems
These companies have established themselves as leaders in the food processing industry, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the food processing market are evolving, with the entry of new players and the emergence of innovative food processing technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Food Processing Market by Segment
The growth of the bakery sector has been driven by consumption of bakery products worldwide and people’s dietary changes. There is an increase in dairy alternatives as a result of innovations in dairy products. Due to increased demand for healthy drinks, the segment of convenience foods, snacks, and beverages has expanded.
Food Processing Market by Type [Value from 2018 to 2030]:
• Depositors
• Extruding Machines
• Mixers
• Refrigeration
• Slicers & Dicers
• Others
Food Processing Market by Application [Value from 2018 to 2030]:
• Beverages
• Dairy
• Meat & Poultry
• Bakery
• Convenience Food & Snacks
• Fruits & Vegetables
• Confectionery
• Others
Food Processing Market by Region [Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of the Global Food Processing Market
Market Size Estimates: Food processing market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Food processing market size by type, application, and region in terms of value ($B).
Regional Analysis: Food processing market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the food processing market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the food processing market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the food processing market size?
Answer: The global food processing market is expected to reach an estimated $219.7 billion by 2030.
Q2. What is the growth forecast for food processing market?
Answer: The global food processing market is expected to grow with a CAGR of 4.1% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the food processing market?
Answer: The major drivers for this market are increasing preference for convenience & ready-to-eat foods, growing demand for healthy, organic, & natural food products, and rising demand for processed & packaged foods.
Q4. What are the major segments for food processing market?
Answer: The future of the food processing market looks promising with opportunities in the beverage, dairy, meat & poultry, bakery, convenience food & snack, fruit & vegetable, and confectionery markets.
Q5. Who are the key food processing market companies?
Answer: Some of the key food processing companies are as follows:
• Buhler
• Krones
• AFE Group
• Atlas Pacific Engineering Company
• B.K Engineers
• National Refractories
• Heat and Control
• Meyer Industries
• ZIEMANN HOLVRIEKA
• Tomra Systems
Q6. Which food processing market segment will be the largest in future?
Answer: Lucintel forecasts that refrigeration is expected to witness the highest growth over the forecast period.
Q7. In food processing market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q8. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the food processing market by type (depositors, extruding machines, mixers, refrigeration, slicers & dicers, and others), application (beverages, dairy, meat & poultry, bakery, convenience food & snacks, fruits & vegetables, confectionery, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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