The demand for bakery and confectionery food processing machinery is to increase over the next few years as employment and incomes rise in developing countries, according to Freedonia.
Global sales of industrial bakery machinery are expected to rise 6.8% per year from 2011 to 2016, boosted by rising demand for bread, pasta, pastries, and other baked goods.
Demand for chocolate and confectionery machinery is projected to climb 8.3% per year through 2016 to $4.3bn as they produce non-staple, high-priced items with consumption higher among population segments with greater incomes.
However, the market research firm noted that improvements in the throughput and durability of new units will limit sales of equipment as operators will have to purchase fewer machines.
Bakery equipment will post the largest value gains through 2016, reflecting the basic and essential nature of the food made.
It represents the largest product type accounting for one-fifth of all food processing machinery sales in 2011.
Technological advancements will allow for production of more complex baked goods, which will increase demand by providing food processing companIes with higher margins on sales of their products.
The market for baked goods prepared on site in grocery stores and other retail establishments not typically using industrial-type equipment will continue to grow in most developed nations, limiting potential gains.
Bakery machinery by 2016 will be led by China with $1.7bn, narrowly ahead of the US and Western Europe, while Canada and Mexico are predicted to show the least demand with $515m.
The report found there is a direct relationship between the level of processing chocolate undergoes and the quality of the end product.
Increasing personal incomes in developing nations will combine with recovering economies in industrialized countries to boost demand for higher-quality chocolate and confectionery products and more intense processing of these items.
China will lead the way in 2016 with demand reaching $965m with the least coming from Canada and Mexico at $185m.
Global sales of food processing machinery are expected to climb 7.3% per year to $53.3bn in 2016 with China recorded as the largest manufacturer in 2011, followed by the US, Germany, and Japan.
Freedonia said a dietary shift in countries like China and Brazil toward higher value-added foods such as meat and chocolate will prompt food manufucturers to broaden their operations and invest in additional manufacturing capacity.
Manufacturing of machinery is shaped by local specialties, such as winemaking equipment in Italy and France or abattoir machinery in Brazil, said the study.
The Asia/Pacific region will record the fastest demand gains from 2011 to 2016, averaging 9.5% per year with advancing industrialization making it more efficient to process foods such as grains, fruits, vegetables, and nuts by machine rather than manually.
The top six suppliers, Bühler, Tetra Laval, Marel, John Bean Technologies, GEA Group, and SPX, accounted for 13% of all global food processing machinery sales in 2011.
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