Market forecast for food processing and packaging industries

IN ITS report Global Markets for Food Processing and Food Packaging Equipment, BCC Research forecasts the food processing market to grow from $11.2 billion in 2015 to $14.2 billion in 2020 at a CAGR of 4.8 percent. Corresponding to this trend, the market for equipment used in these industries will reach $31.5 billion by 2020, from $25.7 billion in 2015.  

 

The US-based firm also sees the food packaging market growing from $14.4 billion in 2015 to $17.3 billion in 2020 at a CAGR of 3.6 percent during the same period. Packaging manufacturers are introducing customer-driven innovations for the food and beverage industry, their largest market. One of the more significant trends is the availability of smaller packs and single serves made in response to the ever-growing demand for convenience foods sold in reduced portions.

 

To meet their efficiency targets, food and beverage companies have to ensure high production rates, cut the number of line workers, reduce changeover time between runs, simplify cleanup and sanitation, enhance product quality, and be able to process a wider variety of products based on type and size, explains Technavio in Food Processing Machinery Market in the US 2016-2020. Companies can meet these goals more confidently by investing in newer models of food processing equipment which are less costly to operate and maintain compared to older models.

 

In addition to new machinery investments, many food and beverage companies in the US are increasingly relying on contract manufacturing in order to concentrate their efforts on the marketing of products. Contract manufacturers will produce a product based on their partner company’s formulas and processing procedures.

 

To stay competitive, companies also have to focus on optimizing their operations mainly to cut costs.  According to Technavio, many manufacturers create a standard design product with a list of options that can be tailored to meet specific customer’s needs. This process reduces lead time and also provides consistent design for machine expansion and maintenance in the future.

 

Companies also spend on automation systems and asset management programs to enhance plant efficiency, safety, product quality, hygiene, profitability, and the overall operator environment significantly.

In Asia, the focus is on automation and entry-level machinery that fit the needs of small and medium size enterprises, especially in the ASEAN region.  The processing industries are well supported by a various equipment and technology for entire processes suited for the specific requirements of customers in the region.