Food processing is in vogue since times immemorial and initially, the activity involved fermenting, slaughtering and using salt for food preservation. With the passage of time, the process of canning got introduced into the realm (of food processing). The contemporary food processing, as we know today, started about hundred years back where, along with canning, usage of preservatives & artificial sweeteners was brought into the avenue.
Current trends in global food processing industry
The present worldwide food processing industry is experiencing consistent growth and is characterized by fierce competition between various entities operating in the sector. This competition is primarily attributable to the fact that the consumers now are more particular about safety and quality of food than ever before.
Additionally, the aforementioned growth of the industry (food processing) is chiefly due to the fact that, people are now giving more preference to processed food and not the one that is cooked at home. This, again, is due to the hectic pace of modern-day existence.
The increase in income of people is responsible for the growth in food processing sector, too. Here, the constantly rising world population is also a pivotal aspect.
On a global basis, the value of food processing sector is approximately $ 2 trillion, with operations being carried out by more than 400,000 players.
Many market experts have come out with a key prediction for the overall global industry (food processing), for the succeeding two years. When the entire sector is viewed, the segment of baby food is the one that shall markedly grow, especially when compared with the past. It is unsurprising!
Nowadays in most of the families, both the parents are working and they are hence bogged down with paucity of time, to prepare baby food in the conventional manner. Here, the food that is processed with all the safety norms is what that comes to the rescue.
The following points throw light on few of the challenges that the modern food processing industry is entailed to address:
- Fluctuations of economic conditions
- Climatic conditions
- The presence of a supply chain that is more complicated than ever before
- Strategic agreements between various big players
- A drastic increase in exports as well as imports, in developing economic zones
Top zones of the world food processing industry
As per the current available data, the European Union is the leading zone of the globe, constituting about 44 percent of entire global production. Similarly, the second position is occupied by the United States, with the corresponding figure standing at around 20%. By accounting for approximately 19% of the worldwide turnover, China is holding the number three position.
These are some region-wise projections for the food processing sector:
- The European Union, which already is the leading zone with regard to production, is expected to maintain its top position for next few years. The increased awareness among people on the healthy ingredients used in food processing is the main reason for that.
- In the next 5 years, the food processing sector of Asia Pacific will grow at a rate that is without a precedent in its track record.
- Similarly, the rapid urbanization combined with increase in average income of the people is going to propel the growth of the sector, in the markets of Asia Pacific zone.
- When the region of North America is taken into consideration, much growth is not estimated, over the ensuing few years. The stringent regulations by the authorities, coupled with the fact that the food processing market of the zone has already been saturated, is responsible for this scenario.
- The corresponding situation of Latin America is anticipated to be diametrically opposite to that of North America, in following 5 years. Here, in all likelihood, Brazil will be the leading market, thanks to the outstanding surge in demand for processed foods.
There has been a constant improvement in the quality of life in several countries of Africa and Middle East. Many factors have brought about this positive trend, with not the least among them being globalization. This, in turn, will ensure that the food processing sector of the region invariably develops at a noteworthy pace.