PUBLISHER: Mordor Intelligence | PRODUCT CODE: 2073160
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 2073160
According to Mordor Intelligence, the food processing and handling equipment market is projected to grow from USD 125.48 billion in 2025 to USD 133.23 billion in 2026 and reach USD 179.81 billion by 2031, with a CAGR of 6.2% during 2026-2031.

This report is Segmented by Equipment Type (Food Processing Equipment, Food Packaging Equipment), End-Product Form (Solid, Liquid, Semi-Solid), Application (Meat and Poultry, Bakery and Confectionery, Dairy Products, Beverages, Others), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).
The food processing and handling equipment market is growing alongside the rising demand for packaged and value-added foods in developed and emerging markets. In 2025, the global packaged food market experienced growth, with the Asia-Pacific region holding a significant share. This reflects the regions expanding manufacturing capacities and increasing equipment demand. The focus is shifting beyond volume, as categories like functional foods, plant-based proteins, and premium ready meals require advanced systems for handling, mixing, thermal treatment, and filling. Older production lines, though mechanically functional, are becoming less suitable, shortening replacement cycles in the market. Investments are now directed toward flexible platforms that support frequent changeovers, stricter quality controls, and complex product requirements within the same plant footprint.
Food manufacturers now prioritize labor efficiency and line consistency as essential operational needs rather than improvement goals, driving growth in the food processing and handling equipment market. By 2026, PMMI and FPSA identified AI-assisted inspection, HMI knowledge transfer, and digital tool adoption as key investment areas for U.S. food and beverage processors. Processors no longer view robotics as standalone purchases but integrate automation into systems connecting inspection, data capture, machine response, and output quality. This approach shortens the return window on automation projects, especially in regions with labor shortages and limited skilled operators. As payback periods shrink, demand for food processing and handling equipment is expanding, now including more mid-sized processors.
The food processing and handling equipment market benefits from stricter standards, but the cost of meeting them still acts as a restraint for smaller processors. Compliance work often requires equipment redesign, additional validation, more structured change control, and broader documentation, which stretches procurement cycles and limits discretionary spending on performance upgrades. Large processors can spread those costs across higher output volumes, while small and mid-sized operators face a narrower margin for replacement decisions in the food processing and handling equipment market. This creates uneven order patterns for OEMs because some customers move quickly to replace lines, while others delay purchases and focus on minimum viable retrofits. The result is a market where regulation supports long-term replacement demand but can also slow short-term conversion of interest into finalized orders.
Other drivers and restraints analyzed in the detailed report include:
For complete list of drivers and restraints, kindly check the Table Of Contents.
In 2025, food processing equipment held a 48.21% share of the food processing and handling equipment market. This dominance highlights essential operations like cutting, grinding, mixing, and thermal treatment, which are crucial for product transformation. These processes result in a larger installed base and higher replacement needs compared to other equipment categories. Additionally, hygiene, automation, and productivity upgrades often start in primary processing before extending to other plant functions.
Between 2026 and 2031, the food packaging equipment segment is expected to grow at a 6.7% CAGR. This growth is driven by rising demand for flexible filling, sealing, labeling, and end-of-line systems as manufacturers adopt recyclable materials, diversify formats, and shorten production runs. Krones AG reported EUR 5,663.8 million in revenue in 2025, a 7.0% increase from EUR 5,293.6 million in 2024, reflecting strong demand for packaging technology. VDMA reported that packaging machines accounted for nearly 70% of Germany's food machinery exports in 2025, emphasizing their global importance. As a result, packaging lines are evolving into strategic assets, improving launch speeds, material adaptability, and labor efficiency.
In 2025, North America accounted for 32.11% of the food processing and handling equipment market. The U.S. led the region, with food and beverage machinery shipments reaching USD 6.2 billion, a 3.2% increase from 2024. The focus has shifted to brownfield upgrades over new plant construction, driving demand for automation, traceability, and throughput improvements. Suppliers specializing in retrofitting existing lines, enhancing digital traceability, and improving labor efficiency are benefiting. Replacement demand, driven by operational pressures, sustains North America's market growth.
Europe remains the second-largest market and a key export hub for food processing and packaging machinery. Germany's food and packaging machinery sector reached EUR 17 billion in 2025, with 84% exported, totaling EUR 11 billion. European suppliers are closely tied to global capital spending trends. Policies like the Green Deal and EXQUISHEAT program are boosting demand for energy-efficient systems and optimized process layouts. The market leans toward premium systems offering energy savings, hygiene readiness, and compliance durability, justifying higher upfront costs.
Asia-Pacific is the fastest-growing region, projected to grow at an 8.34% CAGR from 2026 to 2031. Growth is concentrated in China, India, and Southeast Asia, driven by rising processed food production, export activities, and cold chain investments. India's Ministry of Food Processing Industries allocated INR 6,520 crore (USD 785 million) for cold chain and value addition infrastructure under PMKSY through March 2026. JBT Marel's Global Production Center, launched in Pune in September 2025, highlights the region's growing manufacturing importance. While South America and the Middle East & Africa hold smaller shares, Latin America contributes 25% to global food exports. Abu Dhabi Food Hub's 37,000 sqm cold chain infrastructure deal in May 2026 signals expanding market potential for food processing and handling equipment.