Market Trends of Process Equipment Industry
Food and Beverage Processing Segment Registering a Significant CAGR
- Food & Beverage processing and handling, which involves three core subsectors, including processing, packaging, and commercial service equipment, is one of the significantly important sectors within Industrials. This industry is a mature sector experiencing a turbulent period owing to the rising global demands for food safety, growing food insecurity, and consumer demand for higher quality and sustainability.
- In many countries, the food & beverage processing industry is a major contributor to the health of the national economy and gets impacted by both the local economy where it manufactures and the global economy in terms of food logistics and imports and exports. Therefore, shifts and changes in regional economies, population size, food consumption, and the food and drinks industry all have significant implications for food processing.
- According to Rentokil PCI, to feed the growing world population, food production is predicted to reach 9.3 billion by 2050, and agricultural production is expected to grow by 70% and nearly 100% in fast-growing economies. Moreover, APAC countries, including India, China, Indonesia, Austrila, Philippines, and Pakistan, will represent more than 50% of the world's population by 2050, and two-thirds of the world's population will be living in cities, leading to the demand for increasing demand for processed foods by 128%.
- Owing to all these trends, productivity, and the cost of raw commodities, consumers, customers, and legislation will need even greater transparency of food safety and quality than ever before. As a result, the food and beverage machinery industry is expanding exponentially. In the last few decades, there has been a steady influx of technology in the food industry, and companies are trying new and innovative strategies to boost their profitability.
- These new food processing equipment are employed for food and food product applications ranging from bakery goods to beverages and dairy to produce, and a wide range of food processing equipment is used for executing various unit operations necessary during a complete production cycle, such as separating, washing, mixing, freezing, baking, and sealing. Depending on the operation's demands, these equipment can be designed and constructed to handle solid, semi-solid, or liquid food products by batch or continuously.
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Asia-Pacific Holding a Significant Share
- The United States and Europe have been at the forefront of the Industrial Revolution over the last two and a half centuries, and almost all Asian countries were latecomers to these revolutions. Nevertheless, most of them, including China, South Korea, Singapore, Hong Kong, Taiwan, India, Indonesia, and Malaysia, made notable progress by the end of the Third Industrial Revolution.
- With industrialization catching motion in Asia and the Pacific, it has also been a driving force in the economic growth of scores of countries in the region and beyond. This shift has led to greater prosperity, urbanization, and population growth. According to ADB, growth in developing Asia is expected to reach 4.8% this year and in 2024, up from 4.2% last year. Moreover, the People's Republic of China's (PRC) recovery and healthy domestic demand in India will be the region's major growth supports for the current and upcoming years.
- Moreover, as per Offshore Technology, Asia-Pacific is expected to witness 2,040 projects for Oil & Gas that will commence operations during the period 2023-27. Out of these, midstream projects would be 564 projects, upstream projects would be 230, the refinery would be 242, and petrochemicals would be the highest with 1,004 projects.
- Additionally, new-build projects are expected to dominate the upcoming project landscape in Asia-Pacific, constituting around 78% of the total projects across the value chain. The share of new-build projects is especially high in the petrochemical sector, with 54% of the total new-build projects across the value chain and expansion projects in the downstream (refinery) sector. Thus, oil & gas production is an essential part of the economy and a complex process that needs specialized equipment.to ensure sustainable, efficient, and safe production.
- Thus, the surging advanced technologies and increased process control systems in end-user sectors are flourishing the process equipment market as they facilitate smooth functioning in processes such as positioning, controlling, recording, and many other tasks.
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