Food Processing Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The food-processing industry has been growing rapidly for some time past. In the current year it is estimated to reach a value of $163.79 billion, and by 2030 it will have risen to $ 407.41 billion. This represents a high compound annual growth rate of 11.82% for the period of the forecast. The growing demand for food products is due to changes in eating habits, urbanization, and the growing population. As the public seeks greater convenience and better quality, the food-processing industry is responding with innovations and improved efficiency. In this way the market for food products is expanding. The integration of new information and communication technology into the production and distribution process has facilitated the reduction of costs and the improvement of quality. These are the main reasons for the high growth rate of the industry. The main companies, such as Nestlé, Tyson, Kraft Heinz, etc., are investing heavily in research and development, forming strategic alliances, and launching new products to take advantage of the favorable conditions. The example of Nestlé is a good illustration of how companies are aligning their strategies with the evolving needs of consumers.

Regional Market Size

Regional Deep Dive

The food-processing market is growing at a rapid rate, mainly because of the growing demand for convenience foods, health-conscious products and sustainable practices. In North America, the market is characterized by a high level of technology adoption and a strong focus on food safety regulations. In Europe, the food-processing market is characterized by a wide variety of innovations, influenced by cultural preferences and stricter regulatory frameworks. In Asia-Pacific, rapid urbanization and rising living standards are driving investments in food-processing technology. The Middle East and Africa are focusing on improving their food security and production capabilities, while Latin America is focusing on enhancing its food-processing capabilities by utilizing its agricultural advantages.

Europe

• The European Union's Farm to Fork Strategy aims to make food systems fair, healthy, and environmentally-friendly, influencing food processing practices towards sustainability and transparency.
• Innovations in plant-based food processing are gaining traction, with companies like Beyond Meat and Oatly leading the charge, catering to the growing demand for alternative protein sources.

Asia Pacific

• China's food processing sector is rapidly evolving, with significant investments in cold chain logistics and smart processing technologies to meet the rising demand for fresh and safe food products.
• India's government has launched the Pradhan Mantri Kisan Sampada Yojana, a scheme aimed at enhancing food processing infrastructure and promoting entrepreneurship in the sector.

Latin America

• Brazil is focusing on improving its food processing capabilities through the National Program for Strengthening Family Agriculture, which supports small-scale food processors.
• Mexico's food processing industry is adapting to consumer trends by increasing the production of organic and health-oriented food products, driven by changing dietary preferences.

North America

• The U.S. Food and Drug Administration (FDA) has implemented new food safety regulations that require food processors to adopt Hazard Analysis and Critical Control Points (HACCP) systems, enhancing food safety and quality.
• Major companies like Tyson Foods and Kraft Heinz are investing in automation and AI technologies to streamline operations and improve efficiency in food processing, reflecting a trend towards digital transformation.

Middle East And Africa

• The UAE is investing heavily in food technology and processing to achieve food security, with initiatives like the Food Tech Challenge encouraging startups to innovate in the food processing space.
• South Africa's government is promoting local food processing through the Agricultural Policy Action Plan, which aims to boost the competitiveness of local food manufacturers.

Did You Know?

“Did you know that the global food processing industry is expected to reduce food waste by up to 50% through innovative processing techniques and technologies?” — Food and Agriculture Organization (FAO)

Segmental Market Size

Food processing is currently growing steadily. This is mainly due to the increased demand for convenience foods and healthier food. This trend is mainly driven by the growing awareness of the importance of food in terms of health and nutrition, and the regulatory framework to ensure food safety and quality. The technological development of the food industry also plays an important role in enhancing the efficiency and quality of food products. The food industry has reached a mature stage of development, with Nestlé and Kraft Heinz being the leaders in the development of new production methods. The food industry in North America and Europe is at the forefront of the development of food processing technology. The main application areas are convenience foods, snacks and plant-based food. The trend of sustainable development and the pandemic of COVID-19 are expected to accelerate the growth of the industry. In the future, the industry will be further developed by the application of automation, artificial intelligence and blockchain technology. The traceability and efficiency of the operation will be improved.

Future Outlook

During the period from 2024 to 2030, the food processing market is expected to increase from $163.79 billion to $481.8 billion, with a CAGR of 11.82%. The main reason for this is the increasing demand for processed foods from consumers, which is mainly attributed to urbanization, changes in life style, and the development of convenient food. The share of processed food is expected to increase, and it is expected that more than 70% of households will use processed foods regularly by 2030, compared with about 55% in 2024. Also, the development of new technology and the implementation of new policies will play an important role in shaping the development trend of the food processing industry. In the next few years, food preservation technology will be further developed, automation will be further developed, and the quality of food quality will be further guaranteed. The new trend of promoting green and healthy food will also drive the development of food processing technology. In the future, the trend of plant-based foods and clean label products will also be popularized. In the future, it will be a trend of technology, policy, and market.