Impact of Covid-19 on Food Automation Market: Market worth $14.3 billion by 2025

The food and beverage industry has witnessed a complete makeover since the introduction of automation as it helped the sector to achieve better quality control, end-to-end traceability, improved worker safety, and high efficiency. Consistently growing population and proportionally growing demand for processed and packaged food certainly encouraged food and beverage manufacturers to adopt automation without any hesitation. In past few years, industrial automation leveraged food and beverage industry to catch-up with the consistently growing demand for processed food with almost 44% of the contribution coming from Europe; and 20% and 19% contribution coming from the U.S. and China respectively. The growth in these regions/countries was seemed to be inevitable until the Covid-19 pandemic spread like a wildfire across the globe. Government ordered mass quarantine with some of the largest and strictest measures are in place in China, Denmark, El Salvador, France, Ireland, Italy, New Zealand, Poland, and Spain. The quarantine has forced industries to halt almost every industrial operation worldwide and food processing industry was no exception to the trend. Tyson Foods, a leading meat processing company in the U.S. restricted their pork processing by nearly 50%, and beef production by about 25% by May 2020. Besides, PepsiCo pulled its 2020 financial guidance as the company says that Covid-19 crisis has resulted in too many uncertainties to be able to offer an accurate prediction for the year.

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Meticulous Research® – one of the leading global market research companies published a research report titled “Food Automation Market by Type (Motor & Generator, Motor Control, Rotary Products), Application (Packaging, Palletizing, Processing), Industrial Vertical (Dairy Processing, Bakery, Beverage, Meat Products) – Global Forecast to 2025

According to this latest publication from Meticulous Research®, the global food automation market will grow at a CAGR of 7.5% from 2019 to reach $14.3 billion by 2025, primarily driven by the increasing food safety regulations, rising demand for processed and advanced packaged foods, and increasing technological advancements in the food industry. Also, the increasing demand for automated systems will further fuel the growth of food automation market. However, high capital investments restrict the growth of the market to some extent. Moreover, lack of skilled workforce and training has significantly challenged the adoption of automation in various food sectors in many parts of the globe.

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The global food automation market is mainly segmented by type (motors and generators, motor controls, discrete controllers and visualization, rotary and linear products, and others), application (packaging and repacking, palletizing and depalletizing, processing, grading and sorting, pick and place, and others), industry vertical (dairy processing, bakery and confectionary, beverages and distilleries, meat, poultry and seafood products, fruits and vegetables, others), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa).

Based on product type, motors and generators segment held the largest share of the market in 2018 and is expected to continue its dominance in the global food automation market during the forecast period, owing to their greater adoption due to low operating and maintenance cost, portability, higher life cycle of diesel engines, and least inflammable properties.

On the basis of application, packaging and repacking held the largest share of the global food automation market in 2018. This is mainly attributed to their greater adoption due to increasing demand for more varied & advanced packaging and pack counts and retail-ready packaging, costly compliance with hygiene regulations, increasing contamination and mislabeling risks, and growing human errors in the food packaging process.

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Geographically, the food automation market is segmented into North America (U.S. and Canada), Europe (Germany, France, Italy, Spain, U.K., and RoE), Asia Pacific (China, India, Japan, Taiwan, Indonesia, South Korea, Australia, and RoAPAC), Latin America, and Middle East & Africa. Europe commanded the largest share of the global food automation market in 2018, followed by North America and Asia-Pacific. The large share of this market is mainly attributed to the rising minimum wages, stringent food safety regulations, acquisitions from the giant players, and growing trends of automated systems from the manufacturing lines.

However, Asia Pacific and Latin American regions are expected to witness significant growth during the forecast period due to growing demand for processed and packaged foods, changing consumer habits and tastes with the adaptation of western foods, and emerging economies in the region. In addition, the expansion of major players in the developing countries further supports the growth of food automation market in the region.

The key players operating in the global food automation market are Rockwell Automation Inc., Siemens, ABB Group, Yokogawa Electric Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, Emerson Electric Co., Fanuc Corporation, Destaco, JLS Automation, Yaskawa Electric Corporation, GEA Group, Proleit AG, Falcon Autotech, and Food Automation Pty. Ltd. among others.


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