Report

The food packaging market is expected to register a CAGR of 6.47% during the forecast period. Automation has been adopted in manufacturing plants for 50 years and is further increasing. The food industry is becoming one of the fastest-growing segments for plant automation. The food industry is growing tremendously and is one of the major sectors contributing to the GDP.

Key Highlights
Automation technologies are used widely in the processing industries. Food processing is highly monotonous and repetitive. Automating these tasks enhances product quality and process efficiency and saves labor charges.
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 in computer technology, dynamic changes in consumers' preferences, and regulatory bodies have boosted the demand for food quality and safety, resulting in the growing adoption of automated systems in the food industry.
However, the sector's need for more skilled workers, high maintenance costs, and high investments are expected to hamper the food automation market's growth. Although these challenges, rising digitization, and technology breakthroughs such as connected devices are expected to create significant opportunities for the food automation market in the coming years.
The industry saw a mixed impact due to COVID-19, the supply chain of the industry was affected due to lockdowns, but the demand for the products grew even further as the market for automation technology grew. Governments are observed the disruption and have taken every necessary step to mitigate the impact of COVID-19 by promoting food production. With the growing emphasis on food safety and rising demand for processed food, the market is growing rapidly after the pandemic.


Food Automation Market Trends

Growing Emphasis on Food Safety and Rising Demand for Processed Food Driving Market Growth


The global deployment of the food and packaging industries is driving the growth of the Food Automation Market. Furthermore, stringent regulation of food and beverage goods by respective governments and authorities is driving demand for automation in the food and beverage sector to ensure the food items' quality and efficiency. As a result, the need for automation from various food businesses throughout the globe is driving the food automation market forward.
Manufacturers in the food industry are incrementally adopting automation to meet the guidelines and regulations set by industry associations to maintain the quality of the products offered. For instance, the Food and Drug Administration's Food Safety Modernization Act (FSMA) introduced regulations that state that giant food manufacturers should meet preventive controls and the Current Good Manufacturing Practice (CGMPS) requirements.
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.
The production volume of processed seafood is increasing yearly in various regions. For instance, according to Satcan, Approximately 59,370 metric tons of processed sea fish were produced in Canada last year, an increase from approximately 58,230 metric tons produced earlier the previous year.
According to Statistics New Zealand, Australia was the leading export market for processed food and other products from New Zealand in the previous fiscal year ended in June, accounting for 38% of total exports. Furthermore, with a 22 percent share of New Zealand's exports, China was one of the largest export markets for processed food and other items.


Asia Pacific is Expected to be the Fastest Growing Market


Asia-Pacific is expected to be one of the most lucrative segments in food automation, owing to the growing demand for processed products, especially in China, Japan, and India. Moreover, stringent regulations proposed by the regulating bodies about the quality and hygiene of processed items are expected to support the demand for food automation in the Asia-Pacific industry.
The production volume of food is increasing gradually in various countries in the region. According to the Japan Frozen Food Association, udon noodles were the most manufactured frozen food in Japan, with a manufacturing volume of more than 196 thousand tons in the previous year.
New technological advancements in this region, such as computer vision, expert systems, flexible manufacturing systems, systems engineering, computer-integrated manufacturing, and so on, have enabled the integration of many batch processes into an overall manufacturing system design that is used to provide online and continuous control capabilities from receiving raw materials to finished shipping products. Automation has simplified the complicated food packaging process for applications such as palletizing and depalletizing, grading and sorting, packaging and repacking, pick and place, processing, logistics, and so on.
Automated technologies have transformed the food production business in this region by giving several benefits, such as improved quality control, improved worker safety, end-to-end traceability, band and protection, and increased product efficiency. Deploying AI and automation robots in warehouses, for example, helps to increase the efficiency of the order fulfillment process.
The adoption of food safety and quality assurance mechanisms, such as Total Quality Management (TQM), Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP), and Good Hygienic Practices (GHP), by the food processing industry fuels the need for advanced automation products in the region.


Food Automation Market Competitor Analysis

The food automation market is moderately fragmented with the presence of major players like Schneider Electric SE, Rockwell Automation Inc., Honeywell International Inc., Emerson Electric Company, and ABB Ltd. Players in the market are adopting strategies such as partnerships, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

In July 2022, ABB and SKF signed a Memorandum of Understanding (MoU) to investigate the prospects for collaboration in manufacturing process automation. ABB and SKF collaborated to identify and evaluate solutions to improve manufacturing capabilities and support clients' increased production efficiency.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support