The food processing and handling equipment market is expected to grow by 6% - compound annual growth rate (CAGR) - in the coming years, reaching $175.1 billion in 2026, compared with $130.6 billion in 2021. According to a study by MarketsandMarkets, growth will be driven by increasing demand for processed food products worldwide, but also by changes in consumer lifestyles. Other factors include the technological leap that will transform the production apparatus, as well as soaring investment opportunities in the food processing industry.
The study covers the three segments of food processing, catering and packaging, in the meat and poultry, bakery and confectionery, alcoholic beverages, soft drinks and dairy sectors. Among these segments, food packaging equipment is expected to see the strongest growth over this period, as consumers look for more attractive packaging, especially for premium products.
Bakery products, the fastest-growing segment in the food industry
Over the same period, bakery and confectionery products are expected to account for the largest share of the food processing and handling equipment market. Why is this? The short shelf life of these products, and the somewhat contradictory consumer preferences for freshness on the one hand, and longer shelf life on the other.
At the same time, the growing demand for locally produced bread and bakery products is stimulating orders for bread production equipment. According to the study, basic equipment such as coating systems for confectionery processing also show strong growth potential.
Asia-Pacific favors automation and digitization
Asia-Pacific will account for the largest share of the market between 2021 and 2026. In this region, the food packaging industry is strongly focused on automation, digitization and sustainable innovation. This trend can be explained by the exponential growth of online retailing and consumer interest in environmental issues.
More numerous than baby-boomers, millennials in the Asia-Pacific region are expressing strong expectations of e-commerce business models that are more responsive and, above all, more sensitive to issues such as sustainability and the environment.
To find out more about the food processing and handling equipment sector, look out for us at the next Djazagro, to be held in Algiers from April 22nd to 25th, 2024.