Despite its maturity, participants in the E13.14billion European industrial food processing equipment market are confident of slow but steady revenue growth.
Recent legislation supporting improvements in product quality and subsequent replacement sales are expected to push the market to E15.12billion by 2009.
Responding to mounting consumer concerns over hygiene and food safety, the European Commission (EC) has passed a series of directives to safeguard consumer health. To meet more stringent EC regulations on product quality and safety, food manufacturers are being compelled to invest in more advanced food processing machinery.
In addition to setting higher standards for public health protection, European Union (EU) legislation has attempted to keep consumers aware of the nature and provenance of foodstuffs. Traceability has consequently become an important consideration with manufacturers having to incorporate tracking systems in their machines. New food safety standards are also spurring an increase in software-based industrial food processing equipment.
Technological developments in the market are being driven by EU legislation governing food safety, product quality and energy efficiency. At the same time, heightened competition is also supporting almost constant product innovation. Here, the effort has been to boost productivity and reduce labour costs through flexible automation and higher capacity machines.
"Intense competition has put customers in a good bargaining position. They want higher specification/better equipment, namely higher output and more flexible machinery for the same amount of money. The challenge for manufacturers is to remain price-competitive and retain market share in this highly charged environment,“ warns Frost & Sullivan.
The development of technologically advanced machines with dual-application capabilities is expected to assume greater relevance due to changing consumer tastes. As consumers demand greater variety in their food, there is expected to be a corresponding rise in demand for processing equipment with crossover applicability.
"With increasing demand for home meal replacement and convenience foods, end users are putting pressure on food processing equipment manufacturers to innovate and create equipment that can produce new product categories,“ the study says.
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