LONDON — The global food processing equipment market — encompassing all segments including bakery equipment; meat, poultry and seafood processing; beverage processing; dairy; and fruit and vegetable processing equipment — is expected to grow at a CAGR of 7.2% from 2020 to reach $98.4 billion by 2027, according to a new study, “Food Processing Equipment Market by Type,” from market research firm Meticulous Research. In terms of volume, the overall market is expected to grow at a CAGR of 7.6% from 2020 to reach 56,233.9 units by 2027.
Specific to bakery equipment, the firm previously projected the bakery processing equipment market was expected to grow at a CAGR of 6.6% from 2018 to 2024. However, Meticulous Research is currently reassessing the research in light of the COVID-19 pandemic and expects to release new numbers soon.
The global baked goods market has shown rapid recovery following the economic recession and recorded strong growth over recent years. According to Agriculture and Agri-Food Canada, the global bakery market retail value is increased from $321.8 billion in 2014 to $338.7 billion in 2015 with 5.3% growth rate.
In the global bakery market, Meticulous Research identifies the top markets as the United States, China and Brazil, in total accounting for 30.8% of the world’s market share. Factors associated with expansion of baked good products market are convenience, affordability, health benefits, and growing demand for healthier fortified baked products that contain low levels of fats, sugar and calories. In addition, bakery products have become increasingly accessible to all age groups as more products are sold ready-to-eat. That growing consumption of baked goods is naturally increasing the demand for bakery processing equipment.
The global baked goods market has shown rapid recovery following the economic recession and recorded strong growth over recent years.
Overall, the food processing has been widely considered one of the fastest-growing global industries, thanks to its worldwide contribution to gross value added (GVA), employment and investment and growth supported by the availability of a large raw material base, according to the firm. Hence, the demand for processing equipment across all food production markets, including bakery.
The increasing consumer demand for processed food, an emphasis on food safety and worker safety, higher demand for productivity, a need to reduce production costs, and government support to promote the food processing sector are the major factors driving the growth of this market, the report stated. In addition, emerging economies in areas such as Latin America, Southeast Asia and Africa are laying ground for increased food production. However, the high cost of equipment and a growing consumer mistrust for highly processed food pose challenges for food manufacturers.
The food processing equipment manufacturing industry was impacted by the pandemic either by production and factory shutdowns or a limited ability to install or repair equipment inside commercial bakeries and other food processing plants.
