The food processing equipment market is estimated to be valued at USD 55.37 Bn in 2024 and is expected to reach USD 74.35 Bn by 2031. It is expected to grow at a compound annual growth rate (CAGR) of 4.3% from 2024 to 2031. Rapid growth in the food processing industry along with rising demand for packaged food items is supporting the demand in food processing equipment market.

Market Driver - Advancements in Technology for More Efficient Processing Systems

As technology continues to evolve at a rapid pace, food processing equipment market players are incorporating cutting edge technologies to develop more efficient systems. Advanced automation, robotics, Internet of Things capabilities, and data analytics are revolutionizing production workflows.

3D printing is enabling customized production of complex machine components on demand. Food producers can experiment with novel designs and quickly iteratively optimize processing equipment. Artificial intelligence and machine learning algorithms also help predict maintenance needs and automate troubleshooting.

Overall, innovative technologies are transforming food processing into highly automated, data-driven and customizable smart factories. They minimize manual inputs yet maximize flexibility to churn diverse product ranges. Real-time processing data also allows customized batches according to dynamic needs of the food processing equipment market.

While initial investments may be substantial, intelligent machines pay for themselves by slashing overhead costs dramatically over the long term. Thereby, advanced mechanization is a major driver sustaining high demand for innovative food processing equipment.

Market Driver - Substitution of Outdated Equipment in Mature Markets

In mature food processing industry hubs, the installed food processing equipment base is increasingly outdated due to years of continuous usage. Old-generation machines involve significant manual labor, suffer from lack of digitization and flexibility, and feature rudimentary safety standards compared to current technologies.

Cross-contamination risks are a serious concern with existing equipment lacking advanced hygienic design and washdown capabilities. Additionally, manual record-keeping makes it difficult to trace products back to their source within the mandated timeframe in case of recalls. At the same time, evolving consumer preferences for customized lower-volume niche products challenge traditional high-volume mass production models.

recent paradigm shift also involves leveraging outsourced co-manufacturing facilities that periodically upgrade their technologies. All these factors are compelling food companies across geographic locations and industry segments to undertake staggered replacement of their infrastructure, driving steady opportunities for food processing equipment market players.

Market Challenge - Rising Energy and Labor Costs Affecting Production Costs

One of the major challenges currently impacting the food processing equipment market is rising energy and labor costs which are negatively affecting production costs. Food processing requires a significant amount of energy to power the various machineries and equipment involved in operations such as cooking, freezing, packaging etc. However, global energy prices have witnessed a consistent rising trend over the past few years driven by factors like increasing demand and constrained supplies.

The food processing equipment market is highly labor intensive with activities like sorting, inspecting and manual packaging accounting for a major portion of the total workforce requirement. The dual burden of rising energy and employee costs has inevitably driven up overall operating expenses for food processing equipment manufacturers.

With margins already under pressure, this poses a serious problem for their long term profitability if not addressed properly with strategies like energy efficiency programs and automation.

Market Opportunity - Technological Advancements: An Opportunity for Market Growth

One key opportunity for continued growth of the food processing equipment market lies in further advancements in automation and robotics. Technological innovations can help food manufacturers reduce their dependence on manual labor for production thereby lowering costs.

Advanced robotics, artificial intelligence, Internet of Things, and related solutions are being increasingly adopted for automation of production and packaging lines. This allows companies to improve efficiencies, maintain quality control, achieve higher output, and flexibility to quickly change product variants.

Furthermore, automation also helps address issues like labor shortages and rising minimum wages. The growing ability of advanced food processing equipment to take over repetitive and hazardous jobs from humans is positively impacting the food processing industry. If leveraged well through focused R&D investments, technological development can drive higher demand for automated solutions in the food processing equipment market.

Focus on Innovation - Players have focused heavily on research and development to introduce innovative machinery that improves efficiency and meets stringent regulatory standards.

Target Emerging Markets - With market saturation in developed nations, players have invested in expanding presence in emerging economies where demand is growing rapidly.

Product Diversification - Leading companies offer a wide variety of equipment across different food verticals like bakery, dairy, meat etc. to address needs of varied customer segments.

Strategic Acquisitions - Players have acquired smaller innovators and regional brands to enhance their technology strengths and distribution networks.

Focus on Sustainability - Emphasis on developing green solutions helps companies capitalize on the growing need for sustainable food processing equipment. For example, GEA developed an energy-efficient combi oven in 2021 that reduces carbon footprint and optimizes resource usage.

Insights, By Type: Technical Superiority Fuels the Processing Machinery Market

Within the food processing equipment market, processing machinery contributes 60.5% share in 2024, owing to its ability to handle complex production tasks. Processing equipment handles core functions like mixing, heating, cooling, size reduction and more. Complex recipes and product formulations require precise control over multiple variables, driving demand for automated machinery.

Leading manufacturers focus on integrated platforms that can handle multi-step processing needs. For example, equipment that can simultaneously mix, heat and transfer product between vessels offer efficiency gains over standalone units. New processing needs arising from trends like clean label, organic and vegan products also spur innovation.

Niche capabilities within processing machinery extend their applications. For instance, extrusion, injection molding, and thermoforming allow for texturized plant proteins as meat alternatives. Similarly, emulsification and centrifugal separation accelerate the development of non-dairy milks and creamers. As product portfolios expand across categories, varied processing technologies will see rising integration and adoption rates in the food processing equipment market.

Insights, By Mode of Operation: Efficiency Drives Preference for Automatic Operations

Within the food processing equipment market, automatic machinery accounts for 70.2% share in the mode of operation segment. Food production relies on timely operations conducted at high speeds to meet demand while ensuring safety. Compared to semi-automatic units, automatic food processing equipment streamlines workflows for higher throughput without compromising on quality standards.

Batch sizes are increasing across food categories like snacks, prepared meals and beverages. As production scales up to serve expanding domestic and export markets, fully automated lines maintain consistency of output quantities and attributes such as weight, temperature and appeal factors. This minimizes wastage of raw materials and energy during preparation, cooking, and packaging cycles.

Customizable automatic food processing equipment suited for varied ingredient permutations also encourage product innovation. Machine learning integration aids in formulation changes without significant retooling investments. As operational budgets tighten, payback on high initial outlay for automation wins out over recurrent labor expenses in the long-run.

Insights, By Application: Wide Applications Fuel Bakery and Confectionery Segment Leadership

Within the food processing equipment market segmented by application, bakery and confectionery contributes the highest share due to its diverse machinery needs. Being a basic food group, baking underpins versatile product forms from breads to pastries, cakes, and snacks. Similarly, confectionery caters to everyone from children to adults through chocolates, candies, chewing gum, and more.

A significant portion of recipes involve leavening, requiring specialized ovens, mixers, dividers, molders, and other dough processing units. Bread and bun production particularly relies on accurate temperature and humidity control during proving and baking cycles. Scale-up of artisanal and specialty bakery businesses further stimulates demand.

Meanwhile, the healthy bakery segment drives interest in equipment supporting whole-grain, protein-rich or low-sugar variants. Overall, the diversity and mass-market appeal of bakery and confectionery items continue stimulating development across the entire value chain.

• The Asia Pacific region is leading the food processing equipment market with a 35% market share in 2023, largely driven by population growth and increasing consumer demand for processed foods.
• North America remains the largest food processing equipment market by region, especially in the United States, which continues to see significant investments in high-quality food processing systems, driven by increasing consumer awareness and R&D in the food sector.
• Automation Trends: The automatic segment of food processing equipment has gained prominence over semi-automatic options. This shift is driven by the rising demand for efficiency and quality, with automated systems being seen as the future of food production.
• Pre-processing Equipment: The demand for pre-processing equipment, especially in fruit and vegetable, meat, and poultry sectors, has risen due to the growing trend for ready-to-use food products.

The major players operating in the food processing equipment market include GEA Group AG, Bettcher Industries Incorporated, Anko Food Machine Company Limited, Berkshire Hathaway Incorporated, Atlas Pacific Engineering Company Incorporated, Bucher Industries AG, Hosokawa Micron Corporation, Bibun Engineering, and others.

• In August 2024, GEA Group AG announced advancements in processing technology that optimize production efficiency for dairy and meat applications. This development is expected to drive GEA's market share in the food processing sector, responding to increasing demand for high-quality products.
• In January 2024, Anko Food Machine Company Limited launched a new line of automatic food processing equipment, offering greater throughput and energy efficiency. This aligns with the growing trend of automation in the industry, aiming to reduce labor costs while maintaining product quality.

• By Type
  • Processing
  • Pre-processing
• By Mode of Operation
  • Automatic
  • Semi-automatic
• By Application
  • Bakery & Confectionery
  • Meat, Poultry & Seafood
  • Dairy
  • Beverages
  • Others