Impact of Covid-19 on Food Automation Market: Meticulous Research® Viewpoint

Meticulous Research® published a research report titled “Food Automation Market by Type (Motor & Generator, Motor Control, Rotary Products), Application (Packaging, Palletizing, Processing), Industrial Vertical (Dairy Processing, Bakery, Beverage, Meat Products) - Global Forecast to 2025”.

London, June 08, 2020 (GLOBE NEWSWIRE) -- The food and beverage industry has witnessed a complete makeover since the introduction of automation as it helped the sector to achieve better quality control, end-to-end traceability, improved worker safety, and high efficiency. Consistently growing population and proportionally growing demand for processed and packaged food certainly encouraged food and beverage manufacturers to adopt automation without any hesitation. In past few years, industrial automation leveraged food and beverage industry to catch-up with the consistently growing demand for processed food with almost 44% of the contribution coming from Europe; and 20% and 19% contribution coming from the U.S. and China respectively. The growth in these regions/countries was seemed to be inevitable until the Covid-19 pandemic spread like a wildfire across the globe. Government ordered mass quarantine with some of the largest and strictest measures are in place in China, Denmark, El Salvador, France, Ireland, Italy, New Zealand, Poland, and Spain. The quarantine has forced industries to halt almost every industrial operation worldwide and food processing industry was no exception to the trend. Tyson Foods, a leading meat processing company in the U.S. restricted their pork processing by nearly 50%, and beef production by about 25% by May 2020. Besides, PepsiCo pulled its 2020 financial guidance as the company says that Covid-19 crisis has resulted in too many uncertainties to be able to offer an accurate prediction for the year.

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The global food and beverage industry witnessed a sudden drop in the first two quarters of 2020, and owing to this, food automation market is also experiencing a depression for the same time frame. However, considered as an essential business, governments worldwide have permitted food processing industries to resume their operation and even boost their production in some cases. With people turned towards panic buying, shortage of essential items including processed and packages food has put tremendous pressure on the sector to maintain a continuous supply. Several industry experts believe that the only difference between recessions occurred in last decade and current situation is that the demand for certain products including food & beverages, pharmaceuticals, and cleaning supplies skyrocketed. As bulk production, hygiene, and proper material handling are on top of the priority list of manufacturers, food automation industry has certainly braced itself for a massive comeback in terms of adoption. While the impact of Covid-19 is expected to overshadow different sectors for the next few months or even a year, majority of industries including food and beverage industries are eying towards the adoption of robots and automated process as the only resort for the future, showcasing the high growth potential for food automation market in the coming years.

In such hard time, governments are keeping a close watch on the disruption and taking every necessary step to mitigate the impact of Covid-19 by promoting food productions. For instance, United Arab Emirates tripled their local food production and is aiming to increase domestic production of essential items such as dairy products, cooking oil, and packaging of items such as dates, fresh poultry, fish, and seafood. Besides, China urged its food processor and trading firms to boost the supply of food products as the government fear the second wave of Covid-19 might be just around the corner. Furthermore, the U.K.’s Food Standard Agency stated that the risk of consumers becoming infected with Covid-19 from food contact materials or food packaging is between ‘negligible’ and ‘very low’, thus permitted the continuation of food processing industries within the country. All aforementioned incidences exhibits the seriousness of local governments towards prevention of food processing industries from significant repercussion of Covid-19 and increase an existing food production, wherein food automation industry is undoubtedly going to play major role.

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Further, although the next course of action against Coivd-19 is uncertain, the pandemic has ensured that the demand for processed and packages food will keep on creeping. Besides, government policies and regulations for food processing are expected to get more stringent in coming years. Owing to this, food and beverage sectors are left with no alternatives but to incorporate food automation processes to deliver bulk quantity and maintain optimum level of hygiene with limited human resources. As industry experts are stating that companies which will survive this crisis are the companies with best tools to be flexible, agile, nimble, and can do the best job of quickly changing runs, controlling their plants, monitoring their plants, adjusting their supply chains, and being able to deploy their workforce from really any location. All these factors are certainly creating a positive growth opportunity for food automation industry and thus, the food automation market is expected to register better growth over the coming years.

Meticulous Research® published a research report titled “Food Automation Market by Type (Motor & Generator, Motor Control, Rotary Products), Application (Packaging, Palletizing, Processing), Industrial Vertical (Dairy Processing, Bakery, Beverage, Meat Products) - Global Forecast to 2025”. According to this latest publication from Meticulous Research®, the global food automation market will grow at a CAGR of 7.5% from 2019 to reach $14.3 billion by 2025, primarily driven by the increasing food safety regulations, rising demand for processed and advanced packaged foods, and increasing technological advancements in the food industry. Also, the increasing demand for automated systems will further fuel the growth of the food automation market.

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The key players operating in the global food automation market are Rockwell Automation Inc., Siemens, ABB Group, Yokogawa Electric Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, Emerson Electric Co., Fanuc Corporation, Destaco, JLS Automation, Yaskawa Electric Corporation, GEA Group, Proleit AG, Falcon Autotech, and Food Automation Pty. Ltd., among others

Scope of the Report

Food Automation Market by Type

  • Motors and Generators
  • Motor Controls
  • Discrete Controllers and Visualization
  • Rotary and Linear Products
  • Others

Food Automation Market by Application

  • Packaging and Repacking
  • Palletizing and Depalletizing
  • Grading and Sorting
  • Pick and Place
  • Processing
  • Others

Food Automation Market by Industry Verticals

  • Beverages and Distilleries
  • Dairy Processing
  • Bakery and Confectionary
  • Meat, Poultry, and Seafood Products
  • Fruits and Vegetables
  • Others

Food Automation Market by Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Indonesia
    • Australia
    • Rest of Asia-Pacific
  • Rest of World
    • Middle-East & Africa
    • Latin America

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Amidst this crisis, Meticulous Research® is continuously assessing the impact of COVID-19 pandemic on various sub-markets and enables global organizations to strategize for the post-COVID-19 world and sustain their growth. Let us know if you would like to assess the impact of COVID-19 on any industry here-

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