Global Food Processing Machinery Demand to Rise 5.2% Annually Through 2023
CLEVELAND, March 31, 2020 /PRNewswire/ -- According to The Freedonia Group, the impact of the COVID-19 pandemic on the global food processing machinery industry is likely to be extensive and multifaceted in the near term, but beyond 2020 demand for these products is expected to return to growth patterns similar to those expected before the outbreak.
Global demand for food processing machinery is forecast to rise 5.2% per year to $67.2 billion in 2023, driven by rising:
- food and beverage manufacturing activity
- mechanization rates and use of more advanced machinery models in developing markets
- adoption of innovative technologies in mature markets such as the US and China
- consumer trends driving demand for new products requiring new machinery to process
However, slowdowns in key markets that performed well in recent years – such as Italy and Spain – will hinder faster growth. In addition, uncertainties about the long-term impact of the COVID-19 pandemic further complicates the outlook, as food and beverage sales to the foodservice sector are expected to fall while sales via grocery stores and food e-commerce are rapidly growing.
Strong opportunities expected for chocolate, confectionery, and beverage machinery
Chocolate, confectionery, and beverage machinery will see more than 6% annual growth through the forecast:
- Among the factors driving growth for chocolate and confectionery equipment are rising consumer incomes in developing markets, such as Central and South American and the Africa/Mideast region. Once considered luxuries, these products are increasingly affordable to consumers in these areas, leading processors to build new factories and upgrade existing plants.
- Beverage machinery will benefit from rising consumer spending on alcoholic and nonalcoholic beverages worldwide. In particular, the popularity of alcoholic beverages in countries like China and the US will continue to drive global expansion of craft breweries, wineries, and distilleries, which are intensive users of high-value equipment.
Six countries to account for 66% of global output gains
Six countries – China, Germany, Italy, Japan, the Netherlands, and the US – will be responsible for 66% of global output gains through 2023 as each ramps up production to meet growing demand at home and abroad. A large portion of the world's leading suppliers of food and beverage processing machinery producers are headquartered in these nations, with the exception of the Netherlands. However, the Dutch food processing machinery industry includes many of the leading foreign multinationals.
Want to learn more?
Global Food Processing Machinery is now available from The Freedonia Group. This study analyzes the global market food processing machinery by equipment type and world region, providing historical demand for 2008 and 2018 and forecasts for 2023 and 2028 at the manufacturers' level in current US dollars (i.e., not adjusted to account for inflation).
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group
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