Global Food Automation Market Size, Envisioning Market Evolution 2024-2032

Food Automation Market Size and Forecast

Food Automation Market size was valued at USD 12.02 Billion in 2024 and is projected to reach USD 19.85 Billion by 2031, growing at a CAGR of 6.47% from 2024 to 2031.

• Food automation is the use of technology and machinery to expedite and improve processes in the food sector including production, packaging, and distribution. This comprises automated technologies that replace or help human labor in activities such as food processing, cooking, sorting, packing, and quality control.
• Automation is critical for streamlining packaging processes to fulfill a wide range of consumer expectations. Automated packaging systems can accurately weigh, fill, seal, and label products while accepting a variety of packaging types and sizes. This simplifies processes, lowers packaging waste, and extends product shelf life by reducing exposure to pollutants.
• The future of food automation promises to revolutionize how food is made, processed, and delivered to customers. Automation in food production includes the use of robotics, artificial intelligence (AI), and advanced gear to streamline operations boost productivity, and maintain consistent food quality.

Global Food Automation Market Dynamics

The key market dynamics that are shaping the global food automation market include:

Key Market Drivers:

• Labor Shortages and Cost Efficiency: Labor shortages in the food business together with rising labor prices are major drivers of automation. Automating repetitive operations like packaging, sorting, and even food preparation minimizes the need for manual labor. This not only addresses labor shortages but also improves operational efficiency and cost-effectiveness for food businesses. Automated systems can run constantly with no breaks resulting in higher production and lower labor costs over time.
• Consistency and Quality Control: Food automation ensures uniform quality and precision in the food production process. Automated systems can reliably measure ingredients, maintain precise cooking temperatures, and control production factors to ensure that food items have consistent taste, texture, and appearance. This consistency is essential for meeting strict food safety and regulatory standards as well as establishing consumer trust in the brand.
• Demand for Customization and Personalization: Consumer demand for customized and individualized food products is propelling the use of food automation technologies. Automated systems enable flexible production processes that can swiftly adapt to changing consumer preferences, dietary constraints, and regional tastes. For example, automated assembly lines can efficiently accommodate various container sizes or labeling requirements.

Key Challenges:

• Food Product Complexity and Diversity: The complexity and diversity of food products present a significant hurdle for food automation. Unlike the industrial industry where goods are uniform and consistent, food products vary greatly in terms of ingredients, textures, shapes, and sizes. Cutting, sorting, and packaging are difficult to automate when working with oddly shaped or delicate goods.
• Food Safety and Hygiene Standards: Ensuring food safety and hygiene is crucial in food automation. Automated systems must follow strict standards and procedures to avoid contamination assure correct ingredient handling, and reduce the risk of foodborne illness. This difficulty is exacerbated by the perishability of many food products and the possibility of cross-contamination during processing.
• Cost of Implementation and ROI: Many food manufacturers particularly small and medium-sized firms (SMEs) find the initial cost of deploying food automation systems excessively expensive. Automation frequently necessitates large financial investments in specialized equipment, software integration, and employee training. Calculating return on investment (ROI) can also be difficult because automated procedures might result in cost savings and efficiency increases over time.

Key Trends:

• Robotics and Automation in Food Processing: To improve efficiency and consistency, food processing companies are increasingly using robotic systems. These robots can do activities like sorting, cutting, packaging, and even cooking with high precision and speed decreasing manual labor and human error.
• Smart Packaging and Labeling: These technologies are altering the food sector by giving real-time information and increasing consumer interaction. QR codes, RFID tags, and smart sensors embedded in packaging enable product tracking throughout the supply chain, from manufacturing to consumption. This technology contributes to food safety by monitoring temperature, humidity, and other environmental conditions that can influence product quality.
• Meal Delivery Automation: As meal delivery services have grown in popularity, food preparation and delivery operations have become more automated. Automated kitchen systems, often known as ghost kitchens or shadow kitchens are dedicated facilities that only fulfill internet food orders. These kitchens use automated cooking equipment and robots to produce meals more effectively, lowering labor costs and delivery delays.

Global Food Automation Market Regional Analysis

Here is a more detailed regional analysis of the global food automation market:

North America:

• North America dominates the food automation market. The food automation sector in North America is expanding rapidly driven by rising labor costs, stringent food safety standards, and the demand for increase in food processing efficiency. According to the United States Bureau of Labor Statistics, employment in food manufacturing is expected to expand by 4.6% between 2021 and 2031 slower than the overall average. This slower increase is due in part to the increasing deployment of automation technology in the food business.
• Food automation technology has been widely used in various segments of the North American food business. The National Institute of Food and Agriculture (NIFA) reports that the usage of robots and automation in food processing has grown by more than 30% in the last five years. This trend is particularly noticeable in sectors such as packing, sorting, and quality control. The Food and Drug Administration (FDA) has also helped to drive automation adoption with its Food Safety Modernization Act (FSMA) which stresses preventive controls and traceability in food production. As a result, many food businesses have invested in automated technologies to maintain regulatory compliance and increase food safety.

Asia Pacific:

• The Asia Pacific region is experiencing the most rapid expansion in the food automation market. The Asia Pacific food automation industry is expanding dramatically owing to rapid industrialization, urbanization, and rising demand for processed and packaged foods. According to an Asian Development Bank (ADB) report, Asia’s food processing industry is expected to expand at a compound annual growth rate (CAGR) of 11.4% between 2020 and 2025. This increase has a considerable impact on the adoption of automation technologies in the food industry. According to the report, nations such as China, Japan, and South Korea are at the forefront of this trend with their food processing sectors estimated to total $1.5 trillion by 2025.
• The rapid expansion of the food automation market in the Asia Pacific is aided by government initiatives and investments in the food processing sector. For example, the Indian government’s “Make in India” initiative has set aside large funds to modernize the country’s food processing industry with a focus on automation and technology adoption. According to the Indian Ministry of Food Processing Industries, foreign direct investment (FDI) in the food processing sector totaled $904.7 million in the fiscal year 2020-2021, demonstrating a strong interest in upgrading the business. Similarly, China’s 14th Five-Year Plan (2021-2025) emphasizes the importance of smart manufacturing and automation in the food industry, with the government aiming to boost the entire automation rate to 64% by 2025.

Global Food Automation Market: Segmentation Analysis

The Global Food Automation Market is segmented based on Automation Type, Application, End-User Industry, and Geography.

Food Automation Market, By Automation Type

• Motor Controls
• Sensors and Vision Systems
• Robotics and Automation Systems
• Control and Software Solutions

Based on the Automation Type, the Global Food Automation Market is bifurcated into Motor Controls, Sensors and Vision Systems, Robotics and Automation Systems, and Control and Software Solutions. In the global food automation market, robotics and automation systems is emerging as dominant due to their versatile applications across various stages of food production and processing. Robotics systems enhance efficiency by automating tasks such as packaging, sorting, and even cooking, reducing labor costs and improving product consistency. These systems also contribute significantly to food safety by minimizing contamination risks associated with manual handling.

Food Automation Market, By Application

• Processing
• Packaging
• Sorting and Grading
• Palletizing and Depalletizing

Based on Application, the Global Food Automation Market is bifurcated into Processing, Packaging, Sorting and Grading, Palletizing, and Depalletizing. In the global food automation market, processing emerges as dominant due to its critical role in enhancing efficiency and ensuring product consistency across various food production processes. Automated processing systems streamline tasks such as cutting, mixing, cooking, and packaging, significantly reducing labor costs and minimizing human error. This automation not only improves production throughput but also enhances food safety by maintaining strict hygiene standards and reducing contamination risks.

Food Automation Market, By End-User Industry

• Bakery and Confectionery
• Dairy and Beverages
• Meat, Poultry, and Seafood
• Fruits and Vegetables

Based on the End-User Industry, the Global Food Automation Market is bifurcated into Bakery and Confectionery, Dairy and Beverages, Meat, Poultry, and Seafood, Fruits, and Vegetables. In the global food automation market, the dominant end-user industry is the Meat, Poultry, and Seafood sector. This dominance is primarily driven by several factors. The meat, poultry, and seafood industry requires stringent hygiene and safety standards which automation technologies can efficiently meet ensuring compliance with regulations. Automation in this sector improves processing efficiency enhances product consistency, and reduces labor costs, making it attractive for large-scale production.

Food Automation Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Based on Geography, the Global Food Automation Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. In the global food automation market, North America stands out as dominant due to several key factors. North America has a highly developed food industry with a strong emphasis on efficiency, quality, and safety standards. The region’s robust infrastructure supports the adoption of advanced automation technologies across various stages of food production, processing, and packaging. There is a significant presence of established food automation solution providers and technology innovators driving continuous advancements in robotics, AI, and smart packaging systems. North America’s strong economic growth and investment in research and development further contribute to its leadership in shaping the future of food automation globally. These factors collectively position North America as the dominant region in the global food automation market.

Key Players

The “Global Food Automation Market” study report will provide valuable insight with an emphasis on the global market.  The major players in the market are Rockwell Automation, Inc., ABB Ltd, Siemens AG, Mitsubishi Electric Corporation, Schneider Electric SE, Yokogawa Electric Corporation, GEA Group, Fortive Corporation, Yaskawa Electric Corporation, and Rexnord Corporation.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Food Automation Market Key Developments

• In January 2023, Teway Food installed ABB’s automated solution, which included 10 IRB 6700 robots, 65 IRB 360 delta robots fast picking robots, three IRB 660 robots, and a 3D vision system to help identify and locate products as they are fed to the line, as well as upgrading its production line to meet the growing demand for compound seasoning. TewayFood is the industry’s first company to deploy 3D vision-assisted robot positioning for feeding manufacturing lines as a result of these technologies.
• In March 2023, ForgeOS is connected with Rockwell’s Logix controllers, as well as Rockwell and READY Robotics design and simulation tools. The combination will facilitate robot integration and shorten industrial automation deployment time to market.

Report Scope

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Reasons to Purchase this Report:

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as the future market outlook