Competition feeds growth
19 Apr 2004
Consumer concerns over hygiene and food safety will drive 'slow but steady revenue growth' for producers of industrial food processing equipment in Europe, according to a report from market researchers Frost & Sullivan.
The market will grow from 13.14billion Euros to 15.12billion Euros by 2009.
The drive from EU regulations, which is forcing companies to invest in new equipment, is matched by fierce competition between suppliers. This is leading to 'almost constant product innovation,' the report says, with an emphasis on higher capacity machines with flexible automation. Producers can therefore increase their production volumes and reduce labour costs.
The market dynamics also puts customers in a good position for bargaining, Frost & Sullivan says. 'They want higher specification/better equipment, namely higher output for the same amount of money. The challenge for manufacturers is to remain price competitive and retain market share.'
One trend is the development of processing equipment which can produce a wider range of products, to meet demand for higher-quality ready meals. 'These new products require new designs such as different sweetening systems, packaging systems and flavouring systems,' the report says.
Equipment for the bakery sector is the largest product segment, and with rapid growth in premium products such as Italian breads, this is likely to continue.
