“One of the factors boosting market growth is the demand for processed foods in countries such as China, India, and Saudi Arabia due to hectic lifestyles and rise in disposable income in these countries,” said Sharan Raj, lead packaging research analyst at Technavio, which has released a report on the segment.
Other factors contributing to market growth include increased demand for dairy products, concerns over food safety and the need for automation.
The Asia-Pacific food processing machinery market was worth more than US$16bn last year, and is expected to reach US$25bn by 2020. Its CAGR of 9% places it on a faster growth track than the rest of the world, Technavio found.
The major revenue contributor, China, represents Apac’s biggest market for equipment. Beyond increased demand for processed foods in the region’s developing nations, a shift in dietary habits in countries like China and Japan towards higher value-added foods, such as meats and chocolates, is predicted to push manufacturers into expanding their operations and investing in additional manufacturing.
Technavio also expects rising disposable income is also expected bolster demand for processed foods and costly non-staple items. In addition advancements in automation should make the processing of basic foods such as grains, fruits, vegetables and nuts more efficient.
Food processing has evolved from being a simple basic process to a more complex, diverse, and detailed operation that enables the production of a wide variety of food products, the report said.
Moreover, food processing has been undergoing a shift toward continuous processing, which will eliminate some tools used in batch processing, such as tanks.
“Simultaneous processing involves the processing of ingredients in different machineries and offers advantages such as reduced wastage, consistency, and reduction in manufacturing costs,” said Sharan.
“Manufacturers of processed foods are also introducing wireless integrated sensors in their manufacturing plants to acquire real-time data and make rapid adjustments in processing when required. Advances in technology such as these will contribute significantly to the development and growth of the market.”
Hectic lifestyles have led to consumers seeking convenience and easy-to-cook foods, while longer shelf lives compared to fresh food and nutritional values on packaging are also boosting processed goods’ attraction.
Technavio’s report also found that the global food processing machinery market has been witnessing increased demand for HPP technology due to its over conventional thermal pasteurisation to check the resultant microbiological quality of food.
Such technology can eliminate micro-organisms in food products without eliminating nutrients, colour, or flavour, by subjecting them to pressures ranging from 60,000 psi to 87,000 psi, helping to preserve the natural freshness of food products.
While the initial cost of machinery is high and most suitable for high-value niche products, HPP technology has great potential to enable food manufacturers to innovate and bring value-added products to the market, Technavio said.
Many food-processing plants are modernising their facilities and upgrading their machineries to keep pace with the growing demand for processed foods.
And stringent food processing regulations and lower profit margins are forcing processed food manufacturers, which are demanding greater energy efficiency, automation and inspection systems, to improve efficiency by investing in advanced food processing machineries and larger processing plants.
In addition, the report identified growing demand for technologies that can offer reliable performance, robustness, a high degree of efficiency, ease of installation and low maintenance.