Food Automation Market: Global Industry Analysis And Forecast (2023-2029)

The Food Automation Market size was valued at US$ 12.51 Bn. in 2022 and the total Food Automation revenue is expected to grow at 7.3% from 2023 to 2029, reaching nearly US$ 20.49 Bn.
Food Automation Market Overview:
Global Food industry automation includes the use of software, sensors, sophisticated learning algorithms, and robots to reduce the need for human labor in the food industry's supply chain and boost supply chain efficiency. This is a supply chain that begins with food production and progresses to food processing and delivery, food storage and sale in grocery stores, and food sale in restaurants. Much of these methods of automation may help the food sector manage various difficulties e.g. staffing, quality control, safety, and product movement, all while offering SKU diversity and associated demand. However, the food business is famously averse to automation at all points throughout the supply chain, though much of this has begun to improve in the aftermath of the COVID-19 outbreak.



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The report explores the Food Automation market's segments (Type, Application, Function, and Region). Data has been provided by market players, and regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America). It provides a thorough analysis of the rapid advances that are currently taking place across all industry sectors. Facts and figures, illustrations, and presentations are used to provide key data analysis for the historical period from 2017 to 2020. The report investigates the Food Automation market's drivers, limitations, prospects, and barriers. This MMR report includes investor recommendations based on a thorough examination of the Food Automation market's contemporary competitive scenario.
Food Automation Market Dynamics:
The versatile benefits offered by food automation systems at various stages of food processing are a major driver of market growth.

There is a multitude of advantages to automating food production. The capacity to reproduce the aesthetic and quality of a product with little ingredient utilization not only increases line efficiency, resulting in a bottom-line profit, but it also has the potential to enhance sales. Simultaneously, strengthening the traceability of raw components will result in enhanced food safety. Food producers are attempting to automate their manufacturing processes as a result of highly competitive retailers continually pushing down prices, growing raw material costs, and skyrocketing utility rates in a labor-intensive industrial environment.

The unique nature of standards and requirements necessary for food automation is a major restraint in the market growth.

The issue that most companies in the food industry are encountering is that line automation in the food sector is not the same as line automation in the automobile or pharmaceutical industries, where the great bulk of automation has emerged. Materials or products in these sectors are frequently homogeneous in shape, size, weight, and texture and may be readily maneuvered by artificial hands and placed precisely where they are needed at speed and without damage or disruption.

Predominant packaging processes in the food industry are challenging because plenty of basic components and materials of a product - whether it is risotto, meatballs, tomatoes, cheese, or potatoes - come in different sizes, shapes, quality, weight, and contour, making it a tremendous challenge for fully automated robots to modify them at the required line efficiencies while still maintaining integrity and consistency of the product.

Automation of raw food products necessitates strict machine sanitation requirements. This necessitates elements that are easily available and can be removed for cleaning or chemical treatment. Assembling must be easy and quick, as the cleaning procedure may not be after a shift - it may be for a product transition in which the prior product resulted in allergies e.g. nuts or celery.

The lucrative advantages and demand associated with Enterprise Resource Planning (ERP) software in food automation systems is the key opportunity in the market growth.

Food production software, in addition to physical kinds of automation, provides a software overlay capable of combining machine and production management. This can automatically route orders to manufacturing equipment and track material usage, with the quantity of created goods sent back to a manufacturer's enterprise resource planning system. The following are some of the advantages of such a software system:

1. Improved worker safety:

Automation can reduce the need for employees to conduct boring, repetitive motion activities or risky duties that an automated or robotic system can accomplish, freeing up human workers to focus on more business-critical duties. A meat processing factory, for example, can perform meat slicing in an automated manner, limiting the possibility of a person injuring themselves while boosting overall productivity and lowering potential operating and maintenance expenses.

2. Increased flexibility and scalability:

Automation may assist a corporation in being dynamic since updating systems to suit changing customer needs and laws is easier than training the human workforce to adapt to such changes. This is especially true because many automated systems may be programmed to make modifications. In the context of scaling up production, this might be analogous to programming or pressing automated systems to create more over time.

3. Increased traceability:

With the frequency of food recalls and allergen-related hospitalizations on the increase, the potential to improve end-to-end traceability might help minimize both, as well as the possibility of human-borne infections entering the food supply chain. These instruments may detect a contaminated shipment and indicate where it has been or is headed, allowing the product to be canceled before it reaches the final customer.
Food Automation Market Segment Analysis:
By Application, the meat, poultry, and seafood segment is expected to grow at a CAGR of 12.5% during the forecast period. Because of the COVID-19 global outbreak, poultry processing plants encountered significant staffing issues. As a result, there is an increasing interest in robotic and automated technology solutions that can assist decrease labor difficulties and increasing worker safety. The ultimate objective of automation is not to completely replace employees in meat and poultry processing factories, but to supplement or improve the worker experience. When used properly, technology may save downtime, increase worker safety, and eliminate human error.

Poultry processing factories require tight sanitary protocols, which must be thoroughly addressed before using any automated or robotic solution. There are contemporary robots that are specifically intended for the poultry business. It is a major concern because the equipment is not suited for direct contact with food, as well as the severe wash-down techniques used in these factories. In comparison to other sectors, such as automotive, poultry processing is still in its early stages of automation and robotics usage.



Meatpacking, specifically meat cutting, remains a largely laborious operation. Despite technological advancements, operations such as deboning, cutting out beef or chicken fillets, and other processes cannot replace the precision of the human hand and eye. In this sector, we are likely to witness several stages of technological implementation, with individuals continuing to play an important role. As a result, it will most likely be semi-automated rather than fully automated. For example, the back saw cutters may divide animal carcasses along the spinal column, but finer cutting, e.g. fat trimming, is still entirely in the hands of actual humans, many of whom are mostly immigrants in the developed countries. The meat processing sector continues to prioritize cost-cutting over safety; according to the Bureau of Labor Statistics, it is one of the most dangerous professions in the global economy.
Food Automation Market Regional Insights:
North America:

The North American market is expected to grow at a CAGR of 10.7% during the forecast period. As per the Wall Street Journal, the rising technology of automation in the meat packing sector is undoubtedly a sign of greater automation to come, not just in this field, but in other industries where human labor is concentrated.

As per the same publication, more than 17,300 meat and poultry processing employees in 29 states were sick in April and May 2020, with 91 deaths, according to the Centers for Disease Control and Prevention. In late April, plant shutdowns lowered beef and pork output in the United States by more than one-third. Indeed, meat packers attempted to pressure employees to work at factories where COVID infections were fast increasing, including Sioux City and many big Tyson plants in North Carolina. Companies are gradually realizing that they have a problem and must begin implementing robotics to revolutionize the industry. For example, a team of designers from the automotive industry is working on an automated deboning system that will handle some of the 40 million chickens slaughtered, plucked, and diced up each week in Tyson factories.

Asia Pacific:

Domestic consumption is being driven up by fast-growing economies, rising spending power, and increased knowledge of health and nutrition. This trend is likely to continue, with the global middle class expected to reach 4.9 billion by 2030. The majority of this increase will come from Asia, which will account for 65% of the global middle-class population in 2030. The food industry is under pressure to get more items to market as quickly as possible while preserving quality and control. To compete in today's world of limitless possibilities, firms must develop creative methods to distinguish themselves from their competitors.

To solve these difficulties, the region's digital transformation of all industries has gained traction. 40% of Southeast Asia's manufacturing leaders indicated strong progress in using Industry 4.0 technology in their plants and processes. This encompasses big data and networking, analytics, artificial intelligence, improved human-machine interfaces, and innovative manufacturing processes.

Manufacturers' ability to acquire, analyze, and use data to improve company performance is being transformed by industrial digitalization. As food safety concerns grow, digitalization will play a larger role in guaranteeing data-driven transparency throughout the production process, as well as quality control and tight sanitary requirements.

The cost will become less of a barrier when these technologies are developed on a bigger scale and with a more economical distribution. It is encouraging to see financial assistance for technology adoption through the food manufacturing sector transformation plan, e.g. the Automation Support Package (ASP), to stimulate the large-scale implementation of automation and robotics technologies.

The objective of the report is to present a comprehensive analysis of the Food Automation market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Food Automation market dynamics, and structure by analyzing the market segments and projecting the Food Automation market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Food Automation market make the report investor’s guide.
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Global Food Automation Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 11.66 Bn.


Forecast Period 2023 to 2029 CAGR:
7.3 %
Market Size in 2029:
US $ 20.49 Bn.


 Segments Covered:
by Type
Motors & generators
Motor controls
Discrete controllers & visualization
Rotary products
Linear products
Others


by Application
Dairy
Bakery
Confectionery
Fruit & vegetable
Meat, poultry, and seafood
Beverages


by Function
Processing
Packaging & Repackaging
Palletizing
Sorting & Grading
Picking & Placing
Others



Food Automation Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest)
Key Players are:
1. Rockwell Automation, Inc.
2. Siemens AG
3. ABB Ltd
4. Mitsubishi Electric Corporation
5. Schneider Electric SE
6. Yokogawa Electric Corporation
7. GEA Group
8. Fortive Corporation
9. Yaskawa Electric Corporation
10. Rexnord Corporation
11. Emerson Electric Co.
12. Nord Drivesystems
13. Horner APG
14. Frontmatec
15. Festo AG & Co. KG
16. Elwood Corporation
17. Copa-Data
18. Eaton

FAQs:

1. Which is the potential market for Food Automation in terms of the region?
Ans. APAC is the potential market for Food Automation in terms of the region.

2. What are the opportunities for new market entrants?
Ans. The lucrative advantages and demand associated with Enterprise Resource Planning (ERP) software in food automation systems is the key opportunity in the market growth.

3. What is expected to drive the growth of the Food Automation market in the forecast period?
Ans. The versatile benefits offered by food automation systems at various stages of food processing are a major driver of market growth.

4. What is the projected market size & growth rate of the Food Automation Market?
Ans. Food Automation Market size was valued at US$ 12.51 Bn. in 2022 and the total Food Automation revenue is expected to grow at 7.3% from 2023 to 2029, reaching nearly US$ 20.49 Bn.

5. What segments are covered in the Food Automation Market report?
Ans. The segments covered are Type, Application, Function, and Region.