PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1955048
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1955048
The global food processing and handling equipment market was valued at USD 124.85 billion in 2025 and is projected to grow to USD 131.72 billion in 2026, eventually reaching USD 206.85 billion by 2034, reflecting a CAGR of 5.80% over the forecast period. The Asia Pacific region dominated the market in 2025 with a 30.90% share, fueled by the rapid growth of the food manufacturing sector, increasing disposable income, and rising demand for convenient and ready-to-consume foods.
Food processing and handling equipment is essential for processing raw products such as meat, seafood, bakery items, dairy, and confectionery, in response to growing consumer preference for processed and packaged food. Leading players like Buhler AG, JBT Corporation, IMA Group, and Tetra Pak International S.A. are investing in automation, smart sensors, IoT integration, and advanced processing technologies to improve efficiency, precision, food safety, and traceability, while reducing costs and minimizing operational risks.
Market Dynamics
Drivers
Automation and Robotics Integration:
Manufacturers are increasingly incorporating AI, robotics, and IoT-based automation to improve operational efficiency, enhance food safety, and strengthen supply chains across geographies. Technologies like remote maintenance, self-diagnosis, and live product monitoring allow food processors to optimize operations and reduce waste. For example, in March 2024, GEA Group launched "NisoMate," a sensor-based monitoring technology that detects quality issues during homogenization, helping manufacturers reduce waste and maintain consistent product quality.
Rising Demand for Ready-to-Consume Food:
Growing global consumption of dairy, meat, frozen snacks, and bakery products is fueling demand for advanced processing and handling equipment. According to the India Brand Equity Foundation (IBEF), the food processing industry represented 32% of India's total food market in 2024, highlighting the sector's significance. Consumers increasingly prefer healthy, protein-rich, and hygienically packaged ready-to-eat products, pushing manufacturers to invest in advanced equipment for sorting, cooking, chilling, freezing, and packaging.
Restraints
High Capital Investment and Operational Challenges:
Modern equipment, especially automated and hygienically designed systems, requires substantial upfront investment ranging from USD 50,000 to USD 500,000 for medium to large processing plants. Rising utility costs, such as electricity, water, and gas, further strain operating margins. For example, the average U.S. industrial electricity price rose from USD 7.18 cents/kWh in 2020 to USD 8.15 cents in 2024, impacting smaller players. Additionally, compliance with HACCP, GMP, FDA FSMA, and EU Food Hygiene Regulations demands significant investment in equipment, cleaning, and traceability systems.
Opportunities
Growing Demand in Developing Economies and Government Initiatives:
Developing nations, including India, Brazil, ASEAN countries, and South Africa, are witnessing rapid urbanization, rising disposable incomes, and shifts toward processed foods, creating opportunities for food processing equipment manufacturers. Governments are promoting the sector through subsidies and schemes. For example, in February 2025, India's Ministry of Food Processing Industries sanctioned 1,608 projects under PMKSY schemes, disbursing USD 710.3 million (₹6,198.76 crore) to support industry growth.
Market Trends
Technological Advancements and Sustainability:
Food processing equipment is increasingly integrating smart sensors, machine learning, and predictive maintenance to reduce unplanned downtime and enhance lifecycle efficiency. Sustainability-focused machinery, such as high-pressure processing (HPP), vacuum cooling, clean-in-place (CIP) systems, and modular designs, minimizes energy and water usage while reducing food and material waste. Marel's Innova Food Processing Software, widely adopted in 2024, allows processors to efficiently manage production, monitor quality, and optimize operations from raw handling to dispatch.
By Equipment
By Application
Competitive Landscape
The market is highly fragmented, with players focusing on mergers, acquisitions, joint ventures, and R&D investments. Key companies include:
Key Developments:
Conclusion
The food processing and handling equipment market, valued at USD 124.85 billion in 2025, is expected to reach USD 131.72 billion in 2026 and USD 206.85 billion by 2034, growing at a CAGR of 5.80%. Asia Pacific leads the market, while automation, IoT integration, and sustainability drive technological trends. Baking, dairy, and meat processing dominate applications, and mergers, acquisitions, and R&D investments by key players shape the competitive landscape, ensuring growth across developed and developing regions.
Segmentation By Equipment
By Application
By Region