Future of Food Processing Machinery Market: Challenges and opportunities

Future of Food Processing Machinery Market: Challenges and opportunities

Mr.Sanjeev Gupta, Managing Director, Kanchan Metals, 0

The food processing industry has been on a high growth trajectory as highlighted in a report by Transparency Market Research that indicated its CAGR to be at five percent from 2019 to 2027. The value of the industry is expected to reach 80 bn USD by 2027 as per the same report. Thus, the food processing industry is admittedly looking forward to a surge in the market in the future as well.

Any business, especially one that is growing at a substantial pace, has a certain set of opportuni ties and challenges that it needs to look out for. Similar is true for the food processing market. Being able to recognize and capitalize on the opportunities and minimize the threat of the challenges can prove to be a significant help in the long-run growth and sustenance of the business.

The opportunities for a business refer to the upcoming trends that, if utilized, can work to bolster the profits and overall development of the business. Recent times have witnessed revolutionary changes in all industries, which have substantially impacted the trends that one can expect from tomorrow. Some opportunities that the players of the food processing machinery market can tap into in the near future are listed as follows.

Technological advancements
The world has witnessed rapid technological advancements over the last decade and technology is now a part of all world processes, no matter how big or small. An increasingly popular trend in terms of technical developments is automation. Businesses across industries and sectors have automated their processes to avail the many benefits in terms of cost-cutting, enhanced efficiency and precision, and reduced time consumption.

Technology and automation are an inherent part of the food manufacturing industry as well, and thus, the members of the industry need to be in constant touch with the technical updates that surface. Timely and proper application and utilization of relevant technology can help give a business an edge over its competitors. In the present day, technology is only advancing by the minute and thus poses a golden opportunity of gaining lead in the industry.

Rising globalization and Government encourage ment
The world is coming closer by the day in this time of technology. It is now very common for consumers to purchase goods and services from across borders as per their preferences. The food processing industry, too, has been gaining global momentum and can thus expect a rise in demand in terms of geographical boundaries. As orders pour in from across the world, the market is bound to witness an expansion. The Government,too, has been encouraging the growing market in an attempt to bolster Research and Development. This geographically
growing market trend can be capitalized on by business that seeks to enhance their global foot print.

While it is true that the rapid advancement in fields of technology and the opening of global trade serve as tempting opportunities for businesses in the food processing machinery market, they also need to pay heed to the approaching threats and challenges that, if not identified and confronted timely, can lead to minimizing their revenue and profits.

The quality of the labor force is a key factor when it comes to determining the success and proficiency of the operations of an organization

High costs
The monetary requirement of running a successful food equipment processing business is quite high. The manufacturing of Machines is capital intensive as the Machines are state of art technology and automated. Additionally, the Steel prices along with other inputs have been on the increase trajectory for last few years making the input costs very high. To ensure this, extra expenditure has to be incurred by the manufacturers. Thus, the production costs can be extremely high. Hence, continuous efforts are required to mitigate such increases with better designs of machines and other measures to remain profitable. Businesses must pay due to attention making sure that all expenses are reduced to a minimum byensuring optimum utilization of resources and minimizing wastage.

Difficulty in finding skilled labor
The quality of the labor force is a key factor when it comes to determining the success and proficiency of the operations of an organization. The hi-tech machinery employed in the food equipment processing industry requires technically qualified workers to operate them. A lack of skilled workers and operators can work effectively to hinder producti vity and serve as a major challenge in this industry.

Summing Up
The food processing machinery market has experienced substantial growth in the last few years. To continue on the high growth path, the enterprises functioning within this industry must be aware of the trends, and should seek to identify the upcoming opportunities and challenges from them. In the present-day context, the businesses of this industry should try to amplify the benefits derived from ongoing technological advancements and globalization while keeping an eye out for the expected challenges that they may counter regarding increased costs and an unqualified labor force. If rightly recognized and confronted, these can work to give the business a major edge over its competitors.