Global Processed Snacks Equipment Market

Global Processed Snacks Equipment Market- By Type (Cutting peeling, Grinding, Slicing, and Washing Equipment, Mixing & Blending Equipment, Extruders, Coating Equipment, Air Fryers & Ovens, and others), By Application (Bakery & Confectionery, Meat, Poultry & Seafood Snacks, Extruded Snacks, and Others), By Region (North America, Europe, Asia Pacific, and Rest of the World); Trend Analysis, Competitive Market Share & Forecast, 2016-2026

  • Published Date: March 2021
  • Report ID: BWC20294
  • Available Format: PDF
  • Page: 179

Report Overview

Global Processed Snacks Equipment Market- Industry Trends & Forecast Report 2026


The global processed snacks equipment market is expected to reach USD 10.9 billion by 2026, at a CAGR of 2.3% from 2021-26 (forecast period). With the rising demand for food products and increasing investment opportunities in food processing, the global processed snacks equipment market is all set to exhibit strong growth. North America and Europe have a thriving food & beverage processing industry. Moreover, the presence of international processed snack equipment manufacturers in North America and Europe has been driving consistent growth of the snacks equipment market due to the presence of the established food & beverage processing industry. The rise in demand for processed food and convenience foods has been driven by the rise in disposable income and rapid urbanization in developing countries such as India, Brazil, and China. At the same time, equipment manufacturers are taking stringent measures to strengthen their production capabilities by expanding their manufacturing facilities and through the acquisitions of smaller equipment manufacturers to expand their product portfolios.

Source: BlueWeave Consulting

 

Global Processed Snacks Equipment Market Forecast and Trends

Growth Drivers

Increased focus on production efficiency, processing time, and quality of food products

With increasing food raw material prices, rising labor costs and higher energy costs, manufacturers of end-products are concentrating on increasing their production quality. This is important to reduce food wastage during manufacturing and ensure the effective use of raw materials. Additionally, to minimize production costs and boost profitability, food manufacturers are putting emphasis on reducing energy consumption and utilizing renewable energy.

Processed snack producers nowadays rely on specialized food processing machinery to ensure that their products are of the highest possible quality. This helps food manufacturers to cater to the growing demand for processed snacks, bakery products, frozen meat products, and fruits & vegetables in lesser time and with reduced production cost.

Opportunity

Regulations on processing technique and hygiene standards of processed snacks

The Millennial consumers are becoming more aware of various food trends due to globalization. Moreover, due to the liberalization of trade, food processing firms have also been increasing their presence around the world. Snack manufacturers across the world are currently exploring fresh and untapped markets. To meet growing competition in the industry, domestic players in the market are also expanding their product offerings. China, India, and Japan, for example, have built their own processed food manufacturing facilities that are as good as imported equipment or equipment supplied by market leaders. Moreover, to gain an advantage over domestic and international competitors, companies are looking for durable snack processing equipment that has low maintenance costs. Therefore, to cater to the demand of processed snack companies, food equipment manufacturers are currently focusing on introducing new technology to come up with innovative processed snack equipment.

 

Restraints

The rising cost of production due to increasing energy and labor costs

One of the key constraints faced by processed snack equipment manufacturers for operating their plants continuously is increasing energy costs. In the food manufacturing industry, appliances such as homogenizers, heaters, and ovens consume a large amount of power. Moreover, an uninterrupted electricity supply is required for operating automatically processed snack equipment, which leads to higher energy bills. Automated processed-snacks equipment needs to be tested in order to minimize production costs, which can be ensured by using technologically-advanced equipment and leveraging best manufacturing practices, the greater use of automated non-stop processed snack equipment needs to be tested. Small food processors are dissuaded from building advanced processing systems due to the high cost of operating these processing facilities and the lack of non-renewable energy sources. The main quality that snack producers look for when selecting processing equipment is energy efficiency. The shortage of jobs and blue-collar employees in developing countries is another restriction faced by the industry, leading to higher hourly compensation to be paid, thus raising the overall production cost.

Impact of COVID-19 on industry

The rapid spread of COVID-19 has contributed to significant market uncertainty in the global equipment manufacturing sector. Despite the shutdown of major industries, governments of different countries around the world are taking preventive steps, such as distancing civilians and workers to minimize the spread of COVID-19, so as to mitigate the danger of being affected. Due to the hasty lockdown across the globe, the development of food processing equipment has declined significantly. As a result, the development of machines and methodologies for food processing has come to a standstill.

After the sudden spread of the COVID-19 pandemic, the food processing technology, and equipment market has been severely affected by disrupted international trade, especially in Germany, the UK, France, China, India, etc. Because these countries account for a large share of the market’s demand and the involvement of leading players in the market, the development of food processing machines has been hampered. Additionally, Foreign Direct Investments (FDIs) launched in Latin American countries, including the Middle East and Africa are heavily impacted, as the GDP of these countries have fallen below normal levels (the GDP of Saudi Arabia is -2.3 and of Brazil is -5.3).

Rising food safety management concern

The COVID-19 pandemic has severely affected global trade, thereby shaking the snack equipment manufacturing industries. Governments around the world are currently focusing on encouraging hygienic design and engineering of food equipment. Additionally, a few principles have been introduced by the Food Safety Management Systems (FSMS) to manage food safety rules based on the interpretation of the Hazard Analysis and Critical Control Point (HACCP). A recent HACCP study reveals that COViD-19 can survive on stainless steel and plastic items for up to 72 hours, whereas it remains viable on cardboard for up to 24 hours.

Global Processed Snacks Equipment Market- By Type

Processed snack equipment such as peelers, slicers, cutters, dicers, washers, and grinders help boost the efficiency of production. Such equipment facilitates precise process control besides helping the manufacturers deliver hygienically processed food. The mixture &blending equipment segment held an 18.4% market share in 2020. Mixing and blending are essential processes in sectors such as bakery products, confectionery products, beverages, and dairy products as they help reduce the time and labor required for batch mixing. Moreover, extrusion screw designs have improved over time as technology has progressed, and innovations have been introduced. Extruded snacks and snack pellets produced by the extrusion of grains such as corn, rice, tapioca, wheat, and vegetables such as potatoes are also posting positive growth year-over-year (YoY).

Global Processed Snacks Equipment Market- By Application

Bakery &confectionary segments accounted for the largest share in 2020. The demand for ultra-processed bakery products is high in developed countries such as the UK, Germany, the US, Canada, and Spain. Additionally, processed snack equipment related to meat, poultry, & seafood is witnessing positive YoY growth, though currently accounts for a 3.6% market share in 2020. There has been a rise in the consumption and production of meat, especially in industrialized countries. The demand is expected to increase in developed countries as well such as the US, supported by factors such as lower prices of beef, pork, and poultry; increased focus on the shelf life, quality, and safety of meat products; and the rising per capita consumption of meat. 

Source: BlueWeave Consulting


Global Processed Snacks Equipment Market- By Region

The Asia-Pacific (APAC) is the leading market for the processed snack equipment, owing to the availability of several domestic as well advanced food retail chains in this region. Moreover, the overall growth in demand for processed snacks from developing countries such as China and India is also driving the market growth. Further, the presence of several processed snack equipment manufacturing companies in this region is effectively driving the demand for the processed snack equipment. Europe held the second-largest share in the global processed snacks equipment market in 2020 and would continue to maintain its lead throughout the forecast period. The growth of the region's processed snack equipment market is driven by factors such as a large number of developed processed snacks equipment suppliers, a well-established food processing industry, growing exports of processed snacks equipment, advanced research & innovation in food science, and high food consumption.

Source: BlueWeave Consulting



Competitive Landscape

Some of the biggest companies in the processed snacks equipment market are- Marel HF, GEA Group AG, JBT Corporation, Buhler Group, TNA Solutions Pty Ltd, Bucher Industries AG, Equipamientos Carnicos, Clextral S.A.S, and Bigtem Makine AS. Companies are increasingly indulging in mergers & acquisitions, partnerships, and expansion of their manufacturing facilities. For instance, GEA and Israeli food-tech start-up Better Juice have joined forces to help beverage manufacturers produce healthier, lower-sugar fruit juice. Better Juice has developed a ground-breaking solution that naturally reduces the amount of sugar in fresh juice by up to 80 percent, without affecting its nutritional value or taste.

Recent Developments

  • In Jan 2021: Marel HF made an agreement with Íslandsbanki HF. and Kvika banki HF on Nasdaq Iceland. As part of the agreement, daily bid, and ask offers of each market maker will be for a minimum of 30,000 shares instead of 40,000 shares before.
  • January 2021:JBT Corporation announced the launch of its new whole bird chiller, the C.A.T. NEOCAT Chiller featuring patented Clean-in-Place technology. In addition to producing improved food and ensuring worker safety, this will assist poultry processing companies in increasing
  • yield with less maintenance


Scope of the Report

Attribute

                              Details

Years considered

Historical data- 2016-2020

Base Year- 2021

Forecast- 2021-2026

Facts covered

Revenue in USD billion

Market coverage

US, Canada, Mexico, Germany, UK, France, Italy, Spain, Japan, China, India, Australia/New Zealand, South America, Middle East, and Africa

Product/ Service segmentation

By Type, By Application, By region

Key Players

Marel HF, GEA Group AG, JBT Corporation, Buhler Group, TNA Solutions Pty Ltd, Bucher Industries AG, Equipamientos Carnicos, Clextral S.A.S, and Bigtem Makine AS


By Type

Ø  Cutting peeling, Grinding, Slicing, and Washing Equipment

Ø  Mixing & Blending Equipment

Ø  Extruders

Ø  Coating Equipment

Ø  Air Fryers & Ovens

Ø  Others

By Application

Ø  Bakery & Confectionery

Ø  Meat, Poultry & Seafood Snacks

Ø  Extruded Snacks

Ø  Others

By Region

Ø  North America

Ø  Europe

Ø  The Asia-Pacific

Ø  Rest of the World (RoW)

 

1.    What is the expected size of the global processed snacks equipment market in 2026?

Answer: The global processed snacks equipment market is expected to reach USD 10.9 billion by 2026.

2.    What are the major factors driving the growth of the global processed snacks equipment market?

Answer:  The major factors driving the growth of the global processed snacks equipment market is increased focus on production efficiency, processing time, and quality of food products, and rising food safety management concern driving the market growth.

3.    Who are the key players in the global processed snacks equipment market?

Answer:  The key players in the global processed snacks equipment market include Marel HF, GEA Group AG, JBT Corporation, Buhler Group, TNA Solutions Pty Ltd, Bucher Industries AG, Equipamientos Carnicos, Clextral S.A.S, and Bigtem Makine AS.

4.    Which application accounted for the largest share in the global processed snacks equipment market?

Answer: Bakery and confectionery applications accounted for the largest share in the global IVD market.

5.    Which region growing at a higher rate in the global processed snacks equipment market?

Answer: The Asia-Pacific likely to grow at a higher rate in the global processed snacks equipment market.