Global Food Processing Machinery

Report Overview

Featuring 167 tables and 98 figures

• New Processing Technologies are Transforming Food Production Around the World

Global demand for food processing machinery is forecast to expand 4.2% annually to $74.3 billion in 2028. While the global market will experience weakness in the near term – due to high operating costs for food and beverage companies, elevated processing equipment prices, and the large number of machines sold since 2021– market conditions will improve sharply during the latter part of the forecast period as:

• personal incomes grow around the world, leading to a rise in consumer spending on food and beverage products

• technological innovation accelerates in the food and beverage industries, driven by intensifying competition and the adoption of new regulations

• new food and beverage production facilities are built around the world, and companies upgrade and expand existing sites

• consumer preferences change, pushing manufacturers to roll out myriad new products and invest in new processing equipment

Sales Opportunities Arise in Developing Asia/Pacific Food Processing Markets

While China’s massive food processing market will drive gains in the Asia/Pacific region, the area also features some of the fastest growing markets globally. Countries such as India, Indonesia, and Thailand feature rapidly growing food and beverage industries. As these industries develop, their processing techniques are becoming increasingly mechanized, creating opportunities for suppliers. Demand for more advanced processing equipment will rise as food and beverage companies ramp up production and develop new products to meet a growing domestic consumer base. Greater foreign participation in these countries’ industries will also encourage the use of more advanced equipment.

Operating Costs, Workforce Issues, & New Regulations Drive Sales in Mature Markets

In mature markets such as the US, Western Europe, and Japan, a combination of high operating costs and workforce issues has led food and beverage manufacturers to rely increasingly on state-of-the-art processing equipment. These advanced processing technologies can help alleviate some of the labor and cost issues that weigh on those industries. Additionally, this advanced equipment can meet new regulations instituted by these governments to ensure the safety of food and beverage products.

The Rise of “New Foods” to Boost Demand for Advanced Processing Equipment

Increasing concerns about climate change, the treatment of animals, and human health have generated greater consumer interest in a variety of “new foods”, ranging from cultivated meats to insect proteins to plant-based proteins. Start-ups have appeared all over the world in recent years and have secured funding for their activities. A number of leading food and beverage processing equipment manufacturers have expanded their presence in the “new foods” market in recent years, including GEA Group and Tetra Pak. While a limited number of production facilities are operating around the world today, the long-term potential of this market is high, offering opportunities for machinery suppliers.

Historical Market Trends & Growth Factors

Food processing machinery is used exclusively in the food and beverage industries, which tend to be cyclical and sensitive to trends in the overall economy. The use of food processing equipment varies greatly from country to country because of multiple factors, such as:

• population growth and demographics

• levels of consumer spending and food and beverage preferences

• fixed investment expenditure patterns and level of nonresidential building construction activity

• the size and nature of the agricultural sector, which impacts the availability of agricultural commodities and their quality

• size of food and beverage manufacturing industries

• size of the tourism sector

Demand for food processing equipment in a particular country or region is also influenced by a complex interplay of industry-specific factors, economic conditions, technological advancements, regulatory frameworks, and consumer behavior.

The development and expansion of the food processing sector, which in turn is driven by population growth, urbanization, and increased demand for processed foods, directly boosts the need for new and upgraded equipment:

• A wider range of processed food products requires specialized equipment, driving demand for more varied and advanced machinery.

• Countries with growing food exports often invest in advanced processing equipment to meet international standards and increase production efficiency.

Other factors that influence both the development of a country’s food processing sector as well as impact demand for food processing equipment include:

• technological advancements, such as process automation, innovation in food processing techniques, and integration of AI in production systems

• food safety regulations

• environment regulations and sustainability initiatives

• trade policies

• access to capital

• labor costs – high labor costs can push companies to invest in automated equipment to reduce reliance on manual labor

• government policies and initiatives

• growing demand for convenience foods

• infrastructure development including energy availability, transportation and logistics infrastructure, and cold chain development

Supply & Demand

Demand by Region

Global demand for food processing machinery is projected to advance 4.2% per year to $73.7 billion in 2028, exceeding the 2018-2023 pace. Annual growth will vary significantly during the forecast period:

• The global food processing equipment market is expected to contract in 2024 and register subdued growth in 2025 because of:

  • elevated equipment prices

  • high operating costs for food and beverage companies

  • the ongoing conflict in Ukraine

  • the large number of machines sold since 2021

• Conditions will improve in 2026 and the market is expected to register strong gains through 2028 because of multiple factors, such as rising food and beverage production output and technological innovation.

With a few exceptions, most countries will experience this year-to-year variation during the forecast period.

Multiple trends that are expected to drive market gains through 2028, including:

• accelerating global GDP growth and rising consumer spending

• changes in consumer preferences, which will help drive product development in the food and beverage industries

• the construction of new food and beverage production facilities

• the increasing use of state-of-the-art processing technologies by medium and large food and beverage companies as competition intensifies, workforce issues worsen, and new regulations are adopted

• increasing world farming activity and the increasing use of more sophisticated farming techniques, which will lead to the more widespread availability of high-quality agricultural commodities

• the growing popularity of “new foods” and the introduction of new processing technologies (e.g., precision fermentation)

• the immense equipment replacement needs of the North American, European, and Asia/Pacific regions

• rising food and beverage industry mechanization rates in developing areas

Global Agriculture Outlook

Trends in agricultural output significantly impact demand for food processing machinery, as changes in agricultural practices, crop production, and market dynamics directly influence the types and quantities of raw materials that enter the food processing sector. This is especially the case in the production and processing of basic foods such as produce, meat, poultry, and dairy products:

• The rise of organic agriculture requires food processing equipment that can handle smaller batches, maintain the integrity of organic products, minimize cross-contamination and adhere to strict processing standards.

• The introduction of new or non-traditional crops, driven by changing consumer preferences and climate adaptability, creates a need for specialized machinery.

• Changes in consumer preferences, such as a shift toward plant-based diets, influence the types of crops being cultivated.

• As farmers diversify their outputs to include value-added products such as juices, jams, or pre-cut vegetables, there is increased demand for machinery that can handle these diverse products, such as slicing and pulping machines.

• Trends toward localized food production, driven by sustainability concerns or disruptions like pandemics, increase the need for processing equipment that is suitable for smaller scale, local operations rather than large centralized facilities.

• The adoption of precision agriculture leads to higher quality and uniformity in crops, which can influence the type of processing machinery required. For instance, more consistent crop sizes may reduce the need for sorting equipment but increase demand for automated packaging solutions.

Global Processed Food Industry Outlook

Demand for food processing equipment in a particular country depends primarily on the status of its food processing industry, especially in terms of the amount and type of processed foods being produced.

Overall growth in the global food processing industry is forecast to grow 3.0% per year through 2028, driven by various factors, including population growth, urbanization, and changing consumer preferences. However, there are significant variations in outlook depending on region, product type, and market segment.

Fastest growth is being seen in the developing countries in Asia and Africa/Mideast, with China, India, and Southeast Asia together accounting for over half global net gains. Rising incomes, urbanization, and the influence of Western diets are increasing the demand for processed and convenience foods in these areas.

Production of convenience foods, including fresh/refrigerated ready-to-eat meals, frozen dinners, and snack foods, continues to rise as more consumers look for quick and easy meal solutions. This trend is particularly strong in urban areas where time constraints are significant and incomes tend to be higher.

Report Details

This study analyzes the global market for food processing machinery. Demand values are provided for 2013, 2018, 2023, with forecasts to 2028 and 2033 at the manufacturers’ level in current US dollars (i.e., not adjusted to account for inflation). Annual data are also provided for 2020-2027. Demand is segmented by equipment type and world region. Data include the value of replacement parts and attachments sold separately. Values do not take into account retail markups. Food processing machinery products include:

• industrial bakery machinery:

  • includes cooling equipment, depositors, dividers, extruders, formers, kneaders, mixers, molders, ovens, proofers, sheeters, and machinery used to make pasta

  • excludes retail-type baking equipment

• meat, poultry, and seafood machinery:

  • includes chillers, deboners, filleters, marinators, meat grinders, smokehouse equipment, skinners, stuffers, tenderizers

  • excludes general-purpose food processing machinery (e.g., cutters) that can also be used on non-meat processing applications is categorized elsewhere and all types of non-industrial products intended primarily for use on farms, in fishing operations, or in retail establishments rather than for the manufacture of food products

• beverage production machinery, including brewhouse equipment, carbonation machinery, distilling equipment fermentation tanks, grape destemmers and crushers, maceration tanks, filling and pasteurization machines, and presses

• fruit and vegetable machinery, including choppers, corers, evaporators, formers, graders, juicers, milling machinery, peelers, pitters, pulpers, roasters

• chocolate and confectionery machinery, including coating machines, conches, fillers, formers, kneaders, refining equipment, rope sizers, sugar refining equipment, and toffee/caramel cookers

• dairy and milk machinery:

  • includes blenders, chillers, evaporators, freezers, homogenizers, pasteurizers, separators, and slicers

  • excludes milkers and other equipment designed primarily for use on dairy farms, non-industrial ice cream makers, and other items designed for use in a commercial or residential setting

• other food processing machinery, including cooling, drying, freezing, mixing, and oil extraction equipment and general-purpose cutting, slicing, and grinding machinery

• food processing machinery parts and attachments (including bearings, cutting attachments, pulleys, power units, sensors, and temperature regulators)

To avoid double counting, sales of parts and attachments to food processing machinery original equipment manufacturers are not included in parts and attachments demand.

Excluded from the scope of this study are:

• machinery designed for and used primarily in nonmanufacturing settings (e.g., farms, food service operations, grocery stores, and other settings where the capabilities of industrial-grade equipment are warranted) such as milking machines, restaurant cooking and heating equipment, and retail bakery ovens and bread slicers

• non-industrial food processing machinery used in food and beverage manufacturing facilities (e.g., residential or commercial-type microwave ovens installed in employee lunchrooms)

• refrigeration equipment designed for food storage applications (as opposed to processing line chiller and freezers)

• packaging and associated line machinery (e.g., bottling and filling equipment, case loading machines, conveyors, and labeling and coding equipment)

• used food processing machinery

• related services such as equipment rebuilding

• retrofitting systems integration