The impact of the COVID-19 pandemic on the global food processing machinery industry is predicted to be extensive and multifaceted in the near term. However, beyond 2020 the demand for these products is expected to return to growth patterns similar to those before the outbreak, according to a study published by Freedonia Group, an international business research company.
The study reveals that global demand for food processing machinery is expected to rise 5.2% per year to US$67.2 billion (AU$110 billion) in 2023, driven by rising food and beverage manufacturing activity, increasing mechanisation rates and the use of more advanced machinery models in developing markets. The increase is also driven by the adoption of innovative strategies in mature markets (eg, US and China) and consumer trends driving demand for new products that require machinery to process.
However, slowdowns in key markets that have performed well in recent years (eg, Italy and Spain) will hinder faster growth. Additionally, uncertainties about the long-term impact of the COVID-19 pandemic further complicate the outlook, as food and beverage sales to the foodservice sector are expected to fall while sales via grocery stores and food e-commerce are rising.
Chocolate, confectionery and beverage machinery will see more than 6% annual growth through the forecast, driven by rising consumer incomes in developing markets (eg, Central and South America, and Africa/Mideast region). Once considered luxuries, these products are increasingly affordable to consumers in these areas, leading processors to build new factories and upgrade existing plants.
Beverage machinery will benefit from rising consumer spending on alcoholic and non-alcoholic beverages worldwide. The popularity of alcoholic beverages in China and the US will continue to drive global expansion of craft breweries, wineries and distilleries, which are intensive users of high-value equipment.
