The chocolate and confectionery processing equipment market will grow at a CAGR of 8.3% over the next seven years, reaching nearly USD 7.9 billion in 2027, according to the latest publication from Meticulous Research®.
The confectionery industry is benefiting from the overall demand for indulgence products. Chocolate and confectionery processing equipment are expected to witness strong growth due to the rising incomes in many developed and a shift in consumption patterns in developing nations. This trend will be complemented by increasing chocolates and confectionery consumption in developed nations as their economies continue to recover, and families can afford confectionery products. Also, the consumption of confectionery products is undoubtedly stimulated by promotional campaigns by large manufacturers.
Further, chocolate manufacturing involves various complex processes to manufacture high-value products under cost-pressure. The cost pressure for confectionery manufacturers is mainly attributed to factors, such as product quality, integration of innovative processes, product innovation, building & maintaining a strong brand of products, and optimization of traditional processes. Additionally, during processing, confectionery manufacturers face some problems, such as fat migration, incorrect heating, and the interfering aroma in cocoa, making formulation ingredients rancid and light, ultimately impacting the product's quality and cost. These issues offer confectionary equipment manufacturers the chance to prove their capabilities and innovative power to support confectionery producers by maximizing energy efficiency aimed at more sustainable production. Hence, chocolate processing equipment is increasingly being used by chocolate manufacturers to solve these problems.
As worldwide demand for chocolate and confectionery equipment continues to grow, leading companies are accelerating their investments through acquisitions to meet increasing demand. For instance, in September 2017, Buhler acquired Haas Group (Austria), a manufacturer of confectionery production systems.
Growing need to increase productivity to drive the market for food processing equipment
By 2050, the demand for food is expected to grow substantially. A major factor for this increase is world population growth. According to the Department of Economic and Social Affairs of the United Nations, the world population reached 7.3 billion in 2015 and is projected to increase to 9.7 billion by 2050. According to Alexandratos and Bruinsma (2012), food supplies would increase by 60% to meet the food demand in 2050. In addition to population growth, food needs will rise due to urbanization and economic development. According to the World Health Organization (WHO), the urban population in 2050 is expected to account for around 66.4% of the total global population, up from 18.1% in 2020. Simultaneously, the global economic growth would lead to a significant reduction or even near elimination of absolute economic poverty in the developing countries. These trends mean that market demand for food or processed food would continue to grow.
Moreover, changes in agricultural practice over the past 50 years have increased the world's capacity to provide food for its people through augmented productivity, greater diversity of foods, and less seasonal dependence. However, the food industry faces challenges, such as food wastage and international trade. According to the Food and Agriculture Organization (FAO), per year about more than one-third of food is lost or wasted in post-harvest operations globally. Thus, understanding the capacity of agricultural systems to feed the world requires multiple tools and methods for projecting future food demand and reducing wastage of the food. This is only possible by adopting modern food processing technologies and equipment by food processors.
Therefore, increased agricultural production to meet the world's hunger and the need to minimize post-harvest losses implies significant demand for food processing equipment to ensure food security. Meticulous Research® expects the food processing equipment market will grow at a CAGR of 7.2% during the forecast period to reach USD 98.4 billion by 2027 from USD 60.5 billion in 2020.
High cost of equipment due to its high production cost to hamper the market growth
The activities covered in food equipment production are manufacturing, processing, generation, assembling, and mining. This has always been closely linked to developing technology. The new food and beverage processing equipment have a complex & sensitive electrical system and controls. This has resulted in replacing old generation equipment with modern machines, which has led to increasing maintenance, technical support, and power costs. Industrial Food Processing Equipment (IFPE) manufacturers face many challenges during the supply of high-quality machinery.
Further, plant capital expenditure is also increasing due to existing manufacturing constraints. Fluctuating nickel price has effects on the price of nickel-containing stainless steels. According to the London Metal Exchange (2016) data, over the past three decades, the price traded in a range of just under USD 5,000 to over USD 50,000 per ton. Additionally, IFPE manufacturers are often small- and medium-sized organizations that do not have information technology resources. They need professional Computer-Aided Design (CAD) and productivity solutions that are easy to implement and maintain. Also, to increase productivity and food safety, processing equipment must be designed with geometries that quickly shed contaminants and allow easy cleaning, often in harsh processing environments. Hence, the need for innovation and investment in new technology requires more financial investments.
Moreover, food equipment manufacturers are moderately dependent on a steady stream of innovations, R&D, and new models to compete in the market. Also, there is a need for production facilities to be located close to customers to minimize transportation costs. This industry's footprints may also have influenced by regulatory effects (e.g., safety standards) and trade agreements. In addition, services such as training and maintenance are a growing complement to equipment and machinery exports. Thus, to overcome these problems and fulfill the requirement of customers, equipment manufacturers need high capital investment. This high investment ultimately increases the production cost of equipment. This increase in production cost makes the final equipment expensive, affecting food processors, especially small and medium-scale food processors.
Access Free Sample Research Copy: https://www.meticulousresearch.com/request-sample-report/cp_id=5049
Related Tag:
Related Blogs:
Soil Conditioners: The Soil Improvers
Read More
Rising Consumption of Processed Foods
Read More
Increasing Consumption of Seaweed-Based Products
Read More
Rising Need for Natural Colorants
Read More
Growing Demand for Natural Food Colorants
Read More
Innovations in Alternative Protein Processing Equipment
Read More
Rising Demand From The Sports Nutrition Industry
Read More
The Increasing Need for Potato Starch in the Paper Industry
Read More
Clean Eating to Propel the Growth of the Lab-grown Meat Market
Read More
Increasing Preference for Microalgae-sourced Products
Read More
