Market Trends of Testing, Inspection, and Certification Industry for the Agriculture & Food Industry
Increasing Consumption of Packaged Food to Drive the Demand for TIC Services
- The last few decades have witnessed a gradual increase in the demand for packaged food. Modern lifestyles and changes in consumer behavior have led to a rapid rise in the demand for packaged/frozen products and ready meals. Processed foods, such as Pizza, Pasta, and frozen products, such as meat and fish, are becoming increasingly popular among consumers. Furthermore, with economic development and adequate food supplies, food quality and safety are also gaining attention among consumers, driving the demand for TIC services.
- According to the World Bank, about 57% of the global population lives in urban areas. Rapid urbanization, especially in developing economies, is driving the demand for agricultural products, which in turn is encouraging vendors to launch more packaged food products as they help in extending the shelf-life of edible products.
- Globalization of the agriculture & food industry is also among the key factor driving the growth of the packaged food industry, as leading food-producing countries are targeting the food-scarce markets to export their products. For instance, according to the US Census Bureau and USDA, the total export value of the United States prepared food reached USD 13.89 billion in 2021.
- Several global manufacturers of food products are adopting outsourcing service models to cater to the growing demand. Although it has been beneficial in many aspects, a surge in illicit trading and adulteration cases has enhanced the need for testing, inspection, and certifications in the food industry and the growth of the same.
- According to the World Bank estimates, about 600 million, or almost 1 in 10 people, fall sick after eating contaminated food, and about 420 000 die yearly. With the increasing cases of adulteration of unwanted substances in many food products, such as oil, milk, and others, the need for a robust TIC system is also expected to grow.
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Asia Pacific to Become the Major Demand Driver
- Agriculture is among the major economic sectors of various countries in the Asia-Pacific region, such as India, China, Malaysia, and so on. Although the sector has primarily been unorganized, in recent years, a shift in the industry's landscape has been observed mainly due to the commoditization of agricultural products and the entry of global food & beverage companies. Furthermore, exposure to developed countries has further enhanced the general awareness among consumers about food safety, creating a favorable market scenario for the growth of TIC services.
- The growing government-enforced certification requirements and industry regulations are also projected to drive the demand for TIC in the food & beverage industry. For instance, in August 2022, the China National Health Commission (NHC), together with the State Administration for Market Regulation (SAMR), unveiled 36 new national food safety standards and three amendments. Moreover, with the rising growth in the TIC market now, the intervention of emerging digital technologies and increasing demand for interoperability testing are also expected to boost the development of the Testing, Inspection, and Certification (TIC) market in the food & beverage industry.
- Apart from having a large consumer base, several countries of the Asia-Pacific region are among the leading exporters of agricultural and food products. As the exported products need to fulfill international regulatory guidelines and industry standards, the expanding export market is expected to impact the demand for TIC services positively.
- For instance, according to China Customs, the export value of agricultural products from China increased from USD 76.03 billion in 2020 to USD 84.35 billion in 2021. The country also imports a significant amount of agricultural products, with the United States being among the major exporters. According to USDA, in 2021, the United States' agricultural export to China increased to USD 32.98 billion from USD 26,399 million in 2020.
- Considering the growing demand, several new players are entering the Asia-Pacific TIC market, while the existing players are focusing on offering farm-to-fork conformity assessment services that seek to use innovative techniques, such as live data feeds on crops to more traditional inspections of ship containers and trucks, to ensure that food safety requirements and standards are met at each level of the supply chain.
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Testing, Inspection, and Certification Market for the Agriculture & Food Market Report Snapshots
- Testing, Inspection, and Certification Market for the Agriculture & Food Market Size
- Testing, Inspection, and Certification Market for the Agriculture & Food Market Share
- Testing, Inspection, and Certification Market for the Agriculture & Food Market Trends
- Testing, Inspection, and Certification Market for the Agriculture & Food Companies
