FOOD AUTOMATION MARKET ANALYSIS

Food Automation MarketSize and Trends

Rapid technological advancements, growing demand for food safety, and stringent regulations imposed by regulating bodies on food and beverage products are major key factors fuelling growth of the food automation market. 

Among product type, the generators and motors accounted for the largest segment in 2016 and is expected to lead the market throughout the forecast period, owing to its multifunctional nature. A large variety of motors such as stepper motor, gear motor, servo motor, direct drive motors, and AC motors are used in the food industry for motor controlled applications. Generators ensure efficient and smooth functioning of systems. 

Among applications, the beverages segment holds a dominant position in the market, owing to rapid developments and frequent product launches in the beverage industry. 

Market Trends

• Europe is the most lucrative market for food automation, owing to high demand for processed food and beverage products, especially in France, Germany, and Italy. Furthermore, stringent regulations imposed by regulating bodies pertaining to the quality of processed food items, fuels the demand for food automation in the region.
• North America witnesses significant demand for food automation, owing to growing demand for product integrity and food safety by consumers. Food automation machinery used in the U.S. is required to meet the stringent criteria enforced by the U.S. Food and Drug Administration (FDA) and the U.S. Department of Agriculture.
• Asia Pacific is the fastest growing market for food automation industry due to the rapidly growing food and beverage industry in the region. Improvement in standards of living among the populace due to increasing disposable income, diversification of diet, and liberalization of FDI (Foreign Direct Investment) in the food sector are some of the major factors fuelling growth of the food automation market in Asia Pacific. Furthermore, increasing number of manufacturers operating in the food and beverage industry also drives significant demand for food automation in Asia Pacific. According to the Union Budget 2017-2018, the Government of India has invested US$ 1.2 billion on dairy processing. Moreover, Confederation of Indian Industry (CII) estimated that the food processing sector in India is expected to attract US$ 33 billion over the following decade. Such investments are expected to increase growth of food automation market in India over the forecast period. Countries in the Middle East largely rely on exports for processed food. However, the government is investing on food processing technologies to improve food security and enhance productivity, which in turn, is expected to augment growth of the market for food automation in the region.
• Increasing population along with urbanization and increasing per capita spending of consumers in Africa and Latin America have contributed to rapid growth of the food automation market in these regions.