New York, June 21, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Food Automation Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06465954/?utm_source=GNW
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.
Key Highlights
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. The rapid development of computer technology, dynamic changes in consumers’ preferences, and regulatory bodies have also boosted the need for food quality and safety, resulting in the growing adoption of automated systems in the food industry.
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.
According to the Global Organic Trade Guide, in 2022, the retail sales value of health and wellness (HW) packaged food and beverages in Japan amounted to around USD 56.3 billion. The sector was forecast to grow steadily and exceed USD 57.3 billion in 2025. According to Winsight Grocery Business, in 2022, the sales growth of bacon was about 3.4%. Cooking meal kits have become more popular, available from several subscription and delivery sources, and have grown by 6.1%.
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 result in significant cost increases, much more than the initial investment, further restraining the adoption.? Significantly low adoption among SMEs, especially in developing countries like Brazil, which cannot bear the product costs, is restraining the market’s growth.?
The pandemic complicated the situation of automation adoption in various sectors. It changed the standard operating procedure by bringing unique social distancing and contactless operational challenges. Organizations were forced to limit their workforce and deal with the increasing demand. COVID-19 infected several essential workers globally, leading companies on the front lines to implement new safety processes. While the spread of the virus was grave enough to warrant shutdowns, such as food production facilities, multiple other businesses were able to continue operations with the addition of new health measures.?
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 growth during the forecast period.
Food Automation Market Trends
Beverages End-user Industry is Expected to Hold Significant Market Share
The beverage industry has been among the leading adopters of automation and robotic solutions, enabling manufacturers to combine slow batch production with high-speed filling and other packaging operations. The automation solutions such as autonomous robots, palletizers, robotic arms, etc., also help companies efficiently manage the warehouse and reduce product damage due to human error.
One of the most basic functions of automation in a beverage plant is the prevention of fundamental mistakes, like mismatching products with packaging, incorrect labeling, inappropriate handling, etc., which can often happen due to human error.
With product lines diversifying with more new beverage types and flavors and regulatory and product safety requirements tightening with increasing demand for freshness and convenience, the role of automation is becoming increasingly prevalent in the beverage industry.
The growing market demand for alcoholic and non-alcoholic beverages also encourages vendors to adopt automation solutions as they help speed up the production, packaging, and warehousing processes. Software solutions such as warehouse execution systems (WES) and process monitoring software are increasingly being integrated with autonomous hardware and production robots to help beverage manufacturers have real-time data regarding the quality and efficiency of the process. These solutions also enable them to undertake preventive maintenance based on real-time data.
Beverage production has witnessed steady growth over the years. The factor that is largely contributing to the demand for automation is the increasing consumption of packaged beverages. The major contributing factors behind this growth are changing consumer lifestyles, especially in emerging regions, and the rapid expansion of distribution channels and e-commerce. According to the Alcohol and Tobacco Tax and Trade Bureau (TTB), in 2022, approximately 173 million barrels of beer were produced in the United States.
Other alcoholic beverages are also witnessing steady growth owing to the growing market demand. According to the International Organization of Vine and Wine (OIV), in 2022, Italy was the leading wine producer, with 49.80 million hectoliters of wine produced in 2022. Italy was followed by France (45.60 million hectoliters), Spain (35.70 million hectoliters), and the United States (22.40 million hectoliters).
North America is Expected to Hold Significant Market Share
The United States is witnessing a significant growth rate owing to the region’s growing 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 may ultimately drive the market’s growth.
In addition, the output of the country’s farms contributed USD 164.7 billion, about 0.7% of the US 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 others.
The growing urbanization in the country is further driving the market’s growth. 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, almost 90% of the population is expected to live in an urban setting. Further, the total population in the United States living in urban areas is anticipated to grow by 84.86% by 2030, leading to the increasing demand for food and beverages in the country.
According to BDC, the Canadian food and beverage (F&B) industry is anticipated to grow by more than 11% by the end of 2025. About 46% of Canadian food processors invest in advanced or emerging technologies.
The increasing incidences of foodborne diseases and food poisoning cases caused by contaminated packaged food have 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 growing urbanization in the country further drives the demand for the market. According to the World Bank, 81.65 % of the total population in Canada lived in urban areas in 2021. According to the CIA, the urban population of Canada is estimated to be 81.9% of the total population by 2023.
Food Automation Industry Overview
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, and Yokogawa Electric Corporation. Players in the market are adopting strategies such as partnerships, product launches, innovations, investments, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
February 2023 - Regal Rexnord Corporation debuted its new Rexnord Curve System with 1540 Series MatTopChain for conveyor lines that require a zero tangent 180 and/or 90-degree curve. The system has the industry’s tightest inner radius (420 mm) and smallest transfer (15 mm), significantly improving space utilization and package handling. Head-to-tail transfer of even small and light cases is possible with the new Rexnord Curve System, which eliminates the need for micro-pitch conveyors, transfer modules, or plates.
December 2022 - Rockwell Automation introduced FactoryTalk Vault to automate project analysis, store and protect industrial files, and streamline work processes. For manufacturing design teams, FactoryTalk VaultTMprovides centralized, secure, cloud-native storage. With its contemporary version and access control, FactoryTalk Vault, with enhanced Design Tools, enables deeper examination of controller projects for more essential insights into designs.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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