MOUNTAIN VIEW, Calif., Sept. 4, 2013 /PRNewswire/ -- 'Convenience' is the buzzword in the global prepared food and beverage market. The rising purchasing power in developing countries has created a demand for frozen foods and prepared meals, which, in turn, is compelling processors to equip themselves with new processing lines.
New analysis from Frost & Sullivan (http://www.food.frost.com), Strategic Analysis of the Global Food and Beverage Processing Support Market, finds that the market earned revenues of $512.66 billion in 2012 and estimates this to reach $636.20 billion in 2019.
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As various packaging materials are jostling for space on retailers' shelves, manufacturers are attempting to stand out by offering packaging products in different shapes, colors and materials. Microwave and deep-freeze resistant materials are especially popular for convenience food packaging.
However, the market has been beset by escalating consumer concerns regarding hygiene and food safety. To tackle this, the market has passed regulations to safeguard consumer health. Governments have issued directives and legislation regarding product quality and energy efficiency, thus driving manufacturers to switch from traditional to modern equipment.
"Technological advancements will help in the expansion of the product line and increase margins," said Frost & Sullivan Chemicals, Materials & Food Industry Manager Christopher Shanahan. "Manufacturers can also gain a competitive edge by providing environment-friendly and light-weight packaging materials."
While domestic manufacturers are striving to stand out, cheaper products from Asia are flooding the market and triggering price wars. Further, the soaring oil and metal prices have been affecting raw material producers' margins, and are unable to transfer the higher costs to manufacturers.
The low labor costs in China and India allows these countries to offer unbeatable prices in the global market. Their ability to mimic technologically advanced equipment at low costs will further dent the prospects of manufacturers in North America and Europe. Therefore, manufacturers should attempt to identify and create equipment and packaging materials that are also inexpensive.
Manufacturers can negate Asian participants' advantage to some extent by setting up local manufacturing facilities.
"Free trade agreements between countries is an important determinant for the growth of export," noted Shanahan. "With increased demand for the export market for food, there will be a simultaneous increase in the demand for processing equipment and packaging materials."
Strategic Analysis of the Global Food and Beverage Processing Support Market is part of the Food and Beverage Ingredients Growth Partnership Service program. Frost & Sullivan's related research services include: Global Food and Beverage Distribution Services Market, Brazilian Shelf-life Food Additives Market, Australia and New Zealand (ANZ) Dairy Sector, and Global Aquaculture Feed Ingredients Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Strategic Analysis of the Global Food and Beverage Processing Support Market
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SOURCE Frost & Sullivan