Food Automation Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

Food Automation Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

The food automation market is expected to register a CAGR of 7.4% during the forecast period. Automation has been adopted in manufacturing plants for the last 50 years, and it is increasing day by day. The food industry has become one of the fastest-growing segments of plant automation. The food industry is growing tremendously and is one of the major sectors contributing to GDP.

• The demand for processed goods is increasing, with increased buying power and changing lifestyles. This has made it necessary for food manufacturers to implement automation to improve the processing rate to meet consumers' demands. Furthermore, the rapid development of computer technology, dynamic changes in consumers' preferences, and regulatory bodies have boosted the need for food quality and safety. This has resulted in the growing adoption of automated systems in the food industry.
• Automation provides direct and indirect benefits to the production line, including increased waste reduction and speed. Indirect benefits can range from increased workplace safety and precision to longer operational hours at a lower total budget; vendors operating in the market are increasingly focusing on adopting these solutions to drive efficiency and their operational capabilities.
• Food processing has improved the palatability and shelf-life of foods. Processed food items undergo at least some processing and thus include moderately and highly processed foods. Advancements in the food processing industry, innovation in processing technology, and continuous growth in the requirement for processed food are expected to support the development of food and beverage processing equipment.
• The installation and acquisition cost of a control system for an intelligent factory represents half of the total cost during its lifetime. Additionally, the frequent changes in networking and technology also result in significant cost increases, which is much more than the initial investment, further restraining the adoption. ​Even significantly low adoption among SMEs, especially in developing countries like Brazil, which cannot bear the product costs, is restraining the market's growth.​
• In the post-COVID-19 scenario, with the economy returning to normalcy and vendors increasingly focusing on adopting automation and advanced digital solutions, the studied market is expected to witness upward growth during the forecast period.

• Food processing has improved the palatability and shelf-life of foods. Processed food items undergo at least some processing and thus include moderately and highly processed foods. Advancements in the food processing industry, innovation in processing technology, and continuous growth in the requirement for processed food are expected to support the development of food and beverage processing equipment.
• With modern food technologies, the range and volume of processed foods have increased. This has led to an expansion in the consumption of processed foods, especially in high- and middle-income countries like China, India, Japan, the United States, etc.
• For instance, according to USDA Foreign Agricultural Service, the sales of spreads were forecasted to grow by 15.8% between 2017 to 2022 in Canada, while the sales of sweet biscuits, snack bars, and fruit snacks were estimated to witness a growth of 19.8% during the same period.
• The Asia-Pacific region is witnessing robust growth in the market studied due to the increasing demand for processed and packaged food. For instance, according to the Department of Commerce (India), in the fiscal year 2021, the export value of processed fruits, juices, and nuts from India was USD 780 billion. This increased from the previous fiscal year when the export value was about USD 554 billion.
• Further, according to the Department for Promotion of Industry and Internal Trade (India), the proposed investment value in the food processing industry in India rose from INR 67.81 billion in 2020 to INR 127.81 billion in 2021. The increasing investments in the food processing industry are likely to boost the growth of the food automation market.

• The United States is witnessing a significant growth rate owing to the region's high Food & Beverage industry growth. The country is witnessing tremendous growth in the food and beverage industry due to health awareness, disposable income, and increasing urbanization. As a result, many companies in the F&B industry are moving from manual processing to automation to grow output and develop new products, which ultimately drives the market's growth. According to the United States of Agriculture, food and related industries contributed roughly USD 1.264 trillion to US gross domestic product in 2021, a 5.4% share.
• In addition, the output of America's farms contributed USD 164.7 billion, about 0.7% of the United States GDP. The overall contribution of agriculture to GDP is more significant than 0.7% because agricultural sectors rely on agricultural inputs to contribute added value to the economy. Sectors related to agriculture include food and beverage manufacturing, food and beverage stores, and many others.
• The growing urbanization in the country is further driving the growth of the studied market. According to the world bank, the United States is one of the earliest nations to industrialize, and it has had a comparatively high rate of urbanization over the past two centuries. By the midpoint of the century, it is expected that almost 90% of the population will live in an urban setting. Further, the total population in the United States living in urban areas is anticipated that 84.86% by 2030. This has led to increasing demand for food and beverages in the country.
• The demand for processed goods is increasing, with increased buying power and varying lifestyles in Canada. This has made it necessary for food factories to implement automation to enhance the processing rate to fulfill consumers' demands. According to Agriculture and Agri-Food Canada, Canada recently exported nearly USD 82.2 billion in food products, including fish and seafood, raw agricultural materials, and processed foods.
• Furthermore, the increasing incidence of food-borne diseases and food poisoning cases caused by contaminated packaged food has increased the need for a more secure and safe food production process, which may be accomplished with the assistance of industrial robots. This is propelling the food automation market.

The degree of competition in the food automation market is high with the presence of major players like Schneider Electric SE, Rockwell Automation Inc., Honeywell International Inc., Emerson Electric Company, ABB Ltd, Mitsubishi Electric Corporation, Siemens AG, Yokogawa Electric Corporation, among others. Players in the market are adopting strategies such as partnerships, innovations, investments, and acquisitions to enhance their product offerings and gain sustainable competitive advantage. In September 2022, The OpreXMagnetic Flowmeter CA Series was released and reported by Yokogawa Electric Corporation. The OpreXField Instruments family released this new product series to replace the ADMAG CA Series. This new line of products includes capacitance-type magnetic flowmeters, which can measure the flow of conductive fluids via a measurement tube without the fluids touching the device's electrodes. The product's main target markets would be chemicals, paper and pulp, mining, food and beverage, water, and sewerage. In August 2022, Honeywell announced it launched an Industrial Automation Lab in conjunction with the University Politehnica of Bucharest's Department of Automation and Computer Science to help students build the technical skills and knowledge required to join, compete and succeed in the global industrial automation sector.

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