Food Automation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Food Automation Market is segmented by Operational Technology and Software (Distributed Control Systems (DCS), Manufacturing Execution Systems (MES), Variable-Frequency Drive (VFD), Valves & Actuators, Electric Motors, Sensors & Transmitters, Industrial Robotics), by End User (Dairy Processing, Bakery & Confectionery, Meat, Poultry, & Seafood, Fruits & Vegetables, Beverages), by Application (Packaging & Repackaging, Palletizing, Sorting & Grading, Processing), by Geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia Pacific), Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD million for all the above segments.

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Food Automation Industry Overview

Food Automation Market Summary
Study Period: 2018-2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 7.4 %

Major Players

Food Automation Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Food Automation Market Analysis

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 Automation Industry Segments

Automation in the food industry simplifies the food packaging process, which includes food sorting and grading, packing, and managing processes. Automation is an effective solution for enterprises requiring an efficient solution for overcoming numerous challenges, such as enhancing productivity, improving yield, optimizing resource management, mitigating security risks, and improving asset management.

The Food Automation Market is segmented by Operational Technology and Software (Distributed Control Systems (DCS), Manufacturing Execution Systems (MES), Variable-Frequency Drive (VFD), Valves & Actuators, Electric Motors, Sensors & Transmitters, Industrial Robotics), by End User (Dairy Processing, Bakery & Confectionery, Meat, Poultry, & Seafood, Fruits & Vegetables, Beverages), Application (Packaging & Repackaging, Palletizing, Sorting & Grading Processing), Geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia Pacific), Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD million for all the above segments.

By Operational Technology and Software
Distributed Control System (DCS)
Manufacturing Execution Systems (MES)
Variable-frequency Drive (VFD)
Valves and Actuators
Electric Motors
Sensors and Transmitters
Industrial Robotics
Other Technologies
By End User
Dairy Processing
Bakery and Confectionary
Meat, Poultry, and Seafood
Fruits and Vegetables
Beverages
Other End Users
By Application
Packaging and Repackaging
Palletizing
Sorting and Grading
Processing
Other Applications
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia Pacific
China
India
Japan
Rest of Asia Pacific
Latin America
Middle East and Africa

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Food Automation Market Trends

Rising Demand for Processed Food and Emphasis on Food Safety to Drive the Market

  • 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.
Food Automation Market - Forecast of the Per Capita Consumer Spending on Food and Non-alcoholic Beverage, in USD, Worldwide, 2018 - 2028

North America to Hold Major Share over the Forecast Period

  • 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.
Food Automation Market - Growth Rate by Region

Food Automation Market Competitor Analysis

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.

Food Automation Market Top Players

  1. Schneider Electric SE

  2. Rockwell Automation Inc.

  3. Honeywell International Inc.

  4. Emerson Electric Company

  5. ABB Ltd

*Disclaimer: Major Players sorted in no particular order

Food Automation Market Concentration

Food Automation Market Recent Developments

  • September 2022: PepsiCo., the leading soft drink company, announced an investment of about USD 100 million toward more factory automation in Romania.
  • May 2022: Emerson introduced its first pneumatic valve system with integrated open-platform communications and unified architecture. The AES helps users crack interoperability challenges and quickly access data while integrating the digital twin can improve productivity and efficiency. It is making it easier for users in food and beverage, packaging, and more to transform digitally.
  • April 2022: Yokogawa Electric Corporation announced that the OpreXVortex Flowmeter VY Series would be available in the market. These flowmeters are SIL2 certified and adhere to the main explosion-proof standards (IECEx, ATEX, FM, and FMc). Southeast Asia, Oceania, India, the Middle East, and South America, excluding Brazil, would be the first regions to get the new product series, which is a member of the OpreXField Instruments family. The product's main target markets would be chemicals, petrochemicals, oil and gas, electric power, paper and pulp, food and beverage, and pharmaceutical manufacturing.

Food Automation Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter Five Forces

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Degree of Competition

    4. 4.4 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Emphasis on Food Safety and Rising Demand for Processed Food

    2. 5.2 Market Challenges

      1. 5.2.1 High Capital Investments

  6. 6. INDUSTRY STANDARDS AND REGULATIONS

  7. 7. MARKET SEGMENTATION

    1. 7.1 By Operational Technology and Software

      1. 7.1.1 Distributed Control System (DCS)

      2. 7.1.2 Manufacturing Execution Systems (MES)

      3. 7.1.3 Variable-frequency Drive (VFD)

      4. 7.1.4 Valves and Actuators

      5. 7.1.5 Electric Motors

      6. 7.1.6 Sensors and Transmitters

      7. 7.1.7 Industrial Robotics

      8. 7.1.8 Other Technologies

    2. 7.2 By End User

      1. 7.2.1 Dairy Processing

      2. 7.2.2 Bakery and Confectionary

      3. 7.2.3 Meat, Poultry, and Seafood

      4. 7.2.4 Fruits and Vegetables

      5. 7.2.5 Beverages

      6. 7.2.6 Other End Users

    3. 7.3 By Application

      1. 7.3.1 Packaging and Repackaging

      2. 7.3.2 Palletizing

      3. 7.3.3 Sorting and Grading

      4. 7.3.4 Processing

      5. 7.3.5 Other Applications

    4. 7.4 By Geography

      1. 7.4.1 North America

        1. 7.4.1.1 United States

        2. 7.4.1.2 Canada

      2. 7.4.2 Europe

        1. 7.4.2.1 United Kingdom

        2. 7.4.2.2 Germany

        3. 7.4.2.3 France

        4. 7.4.2.4 Rest of Europe

      3. 7.4.3 Asia Pacific

        1. 7.4.3.1 China

        2. 7.4.3.2 India

        3. 7.4.3.3 Japan

        4. 7.4.3.4 Rest of Asia Pacific

      4. 7.4.4 Latin America

      5. 7.4.5 Middle East and Africa

  8. 8. VENDOR MARKET SHARE ANALYSIS

    1. 8.1 Vendor Market Share Analysis (Excl. Industrial Robots)

    2. 8.2 Vendor Market Share Analysis for Industrial Robots

  9. 9. COMPETITIVE LANDSCAPE

    1. 9.1 Company Profiles

      1. 9.1.1 Schneider Electric SE

      2. 9.1.2 Rockwell Automation Inc.

      3. 9.1.3 Honeywell International Inc.

      4. 9.1.4 Emerson Electric Company

      5. 9.1.5 ABB Ltd

      6. 9.1.6 Mitsubishi Electric Corporation

      7. 9.1.7 Siemens AG

      8. 9.1.8 Yokogawa Electric Corporation

      9. 9.1.9 Yaskawa Electric Corporation

      10. 9.1.10 GEA Group AG

      11. 9.1.11 Rexnord Corporation (Regal Rexnord Corporation)

      2. *List Not Exhaustive

  10. 10. INVESTMENT ANALYSIS AND OUTLOOK

**Subject to Availability
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Food Automation Market Research FAQs

The Food Automation Market is studied from 2018 - 2028.

The Food Automation Market is growing at a CAGR of 7.4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2022.

Schneider Electric SE, Rockwell Automation Inc. , Honeywell International Inc., Emerson Electric Company, ABB Ltd are the major companies operating in Food Automation Market.

Food Automation Industry Report

In-depth industry statistics and market share insights of the Food Automation Market sector for 2020, 2021, and 2022. The Food Automation Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Food Automation Market report PDF.

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