Food Processing And Packaging Equipment Market To Reach $31 Billion By 2020
How is the market ?
By 2020, the global market for food processing and packaging equipment will reach $31.5 billion, BCC Research forecasts. This represents a compound annual growth rate (CAGR) of 4.2% from 2015 to 2020.
The demand for food production equipment has increased as the number of families with working parents has grown. These families shop for processed foods and beverages for convenient meals.
Equipment also needs updated to meet safety and quality standards. In addition, companies seek to streamline the production process, reducing their workforce while increasing production.
"Many manufacturers are creating standard design product with a large list of options that can be tailored to meet a specific customer's need. This reduces lead time and also provides consistent design for machine expansion and maintenance in the future," TechNavio said in a press release.
The food packaging and processing markets also will experience growth.
The food packaging market is forecasted to reach $17.3 billion in 2020. For the period 2015-2020, this represents at a CAGR of 3.6%.
The food processing market is forecasted reach $14.2 billion in 2020. For the period 2015-2020, this represents a CAGR of 4.8%.
Meanwhile, the food processing market faces numerous challenges. One of these challenges is food recalls including numerous in recent weeks.
Tyson recalled chicken nuggets because of plastic found inside them. Kellogg, Nestle and Kraft Heinz all have recalled products because of listeria monocytogenes contamination. Blue Bell Creameries also was forced to recall products when ingredients from one of its suppliers, Aspen Hills, was contaminated with listeria.
Blue Bell also had to issue a recall in 2015 because of listeria.
Food additives pose another challenge as more consumers are basing product choices on food labels. Additives are used to prevent spoilage, and add flavor or coloring, among other uses.
In the U.S., at least 3,000 of 10,000 additives used in food have not been approved by the Food and Drug Administration.
The Food Additives Amendment to the Federal Food, Drug, and Cosmetic Act of 1958 was passed to address safety. However, ingredients considered safe were exempted from testing.
The FDA became overwhelmed with additive petitions and in 1997 began to take manufacturers at their word that additives are safe. These additives are not tested and do not appear on food labels.
ReportLinker Review – Global Food Processing Market
In 2015, the retail sales of food packaging reached 1.9 trillion units, growing at CAGR 3%. The market is expected to continue to expand into 2020. (source: Euromonitor International)
During the period 2016-2020, the packaged food traceability market is forecasted to grow at a CAGR of more than 8%. (source: TechNavio)
Over the period 2013-2018, the Nano-enabled food and beverage packaging market is forecasted to grow at a CAGR of 10.5%. (source: TechNavio)
By 2020, the retort packaging market is forecasted to be valued at $41.1 billion. (source: MarketsandMarkets)