The high manufacturing costs associated with food extrusion equipment and processes is negatively impacting the growth of the food extrusion market. Food extrusion involves complex machinery that utilizes heat and pressure to shape, mix, homogenize, and texturize ingredients. This equipment requires a significant capital expenditure that not all food manufacturers can afford. Additionally, operating costs are also high due to energy-intensive motors that power the extruders as well as high maintenance costs to keep the machinery running optimally.
Market Opportunities: Emerging markets in Asia-Pacific and Latin America
The food extrusion market in emerging economies of Asia-Pacific and Latin America regions holds great potential for growth over the coming years. These regions have seen rising disposable incomes and growth of middle-class populations in countries like India, Indonesia, Brazil, and Mexico. This has significantly increased the demand for packaged, convenient, and processed foods. Food extrusion offers an efficient way of producing snacks, breakfast cereals, and other processed food products at scale to meet the needs of large populations in these regions. Several international and domestic food companies have already established manufacturing bases in countries like India and Brazil to cater to the rapidly growing domestic demand.
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