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Frost & Sullivan: High Intake of Processed Foods Expands the Girth of the Processing Equipment Market


News provided by

Frost & Sullivan

04 Sep, 2013, 11:53 GMT

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- Technology-based differentiation vital to stand out in a commodity market

MOUNTAIN VIEW, California, Sept. 4, 2013 /PRNewswire/ -- 'Convenience' is the buzzword in the global prepared food and beverage market. The rising purchasing power in developing countries has created a demand for frozen foods and prepared meals, which, in turn, is compelling processors to equip themselves with new processing lines.

New analysis from Frost & Sullivan (http://www.food.frost.com), Strategic Analysis of the Global Food and Beverage Processing Support Market, finds that the market earned revenues of $512.66 billion in 2012 and estimates this to reach $636.20 billion in 2019.

If you are interested in more information on this research, please send an email to Liz Clark, Corporate Communications, at liz.clark@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

As various packaging materials are jostling for space on retailers' shelves, manufacturers are attempting to stand out by offering packaging products in different shapes, colors and materials. Microwave and deep-freeze resistant materials are especially popular for convenience food packaging.

However, the market has been beset by escalating consumer concerns regarding hygiene and food safety. To tackle this, the market has passed regulations to safeguard consumer health. Governments have issued directives and legislation regarding product quality and energy efficiency, thus driving manufacturers to switch from traditional to modern equipment.

"Technological advancements will help in the expansion of the product line and increase margins," said Frost & Sullivan Chemicals, Materials & Food Industry Manager Christopher Shanahan. "Manufacturers can also gain a competitive edge by providing environment-friendly and light-weight packaging materials."

While domestic manufacturers are striving to stand out, cheaper products from Asia are flooding the market and triggering price wars. Further, the soaring oil and metal prices have been affecting raw material producers' margins, and are unable to transfer the higher costs to manufacturers.

The low labor costs in China and India allows these countries to offer unbeatable prices in the global market. Their ability to mimic technologically advanced equipment at low costs will further dent the prospects of manufacturers in North America and Europe. Therefore, manufacturers should attempt to identify and create equipment and packaging materials that are also inexpensive.

Manufacturers can negate Asian participants' advantage to some extent by setting up local manufacturing facilities.

"Free trade agreements between countries is an important determinant for the growth of export," noted Shanahan. "With increased demand for the export market for food, there will be a simultaneous increase in the demand for processing equipment and packaging materials."

Strategic Analysis of the Global Food and Beverage Processing Support Market is part of the Food and Beverage Ingredients Growth Partnership Service program. Frost & Sullivan's related research services include: Global Food and Beverage Distribution Services Market, Brazilian Shelf-life Food Additives Market, Australia and New Zealand (ANZ) Dairy Sector, and Global Aquaculture Feed Ingredients Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Strategic Analysis of the Global Food and Beverage Processing Support Market
NC7F-88

Contact:
Liz Clark
Corporate Communications – North America
P: +1-210-477-8483
E: liz.clark@frost.com

http://www.frost.com

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