Global Beverage Processing Equipment Market - 2023-2030

Overview

Global Beverage Processing Equipment Market reached US$ 8.94 billion in 2022 and is expected to reach US$ 12.44 billion by 2030, growing with a CAGR of 4.22% during the forecast period 2023-2030.

Beverage processing equipments are essential to produce a quality product. An increase in the processing industry in developing regions helps to boost market growth over the forecast period. growing popularity of plant-based milk alternatives, such as soy, almond, and oat milk, has led to a need for equipment designed to process various plant-based ingredients and create plant-based beverages that mimic the taste and texture of traditional dairy products.

Technological advancements have not only affected the processing stage but also the packaging. Equipment for filling, sealing, and labeling beverage containers has become more efficient, precise, and capable of accommodating a variety of packaging materials. Software-driven advancements in beverage processing equipment allow for easier customization of recipes and production processes, catering to niche and personalized product offerings.

Growing Government initiatives to promote beverage processing equipment helps to boost market growth over the forecast period. For instance, on June 29, 2022, the Government of Canada launched a new support program for Canada's wine sector. the Minister of Agriculture and Agri-Food announced detail of a new two-year up to $166-million wine sector support program that helps to grow wineries. As the number of wineres are growing demand for beverage processing equipment is also growing.

Dynamics

Growing Alcohol Beverages Consumption Globally

According to the research published by a team of investigators from the Centre for Addiction and Mental Health, Canada, and the Technische Universitat Dresden, Germany reported that people's consumption of alcohol increased compared with 30 years ago. Globally total volume of alcohol consumed per year increased by 70% in 2020.

According to the data given by Gallup, Inc. in 2021, 60% of United States adults drank alcoholic beverages. 63% of men consume alcoholic beverages compared to 57% of women. According to the data given by Numerator, 90% of Millennials purchased alcohol during the 52-week period till May 2021. According to the data published by Wine Market Council / NielsenIQ's in 2022, 22% of consumers choose beer, 17% of wine, and 14% of consumers buy Spirits only, and the remaining 11% choose cider, hard seltzers, etc. As demand for alcoholic beverages increases globally need for the beverage processing equipment also growing over the forecast period.

Technological Advancement in the Beverage Processing Equipment

Technological advancements play a crucial role in boosting the growth of the beverage processing equipment market. It helps to increase product quality, efficiency, and innovation within the industry. Advanced control systems such as sensor technology, and real-time monitoring, allow for precise control over the beverage processing stages. This results in consistent product quality, reduced human error, and increased production efficiency.

Energy-efficient technologies and equipment design help lower energy consumption in beverage processing operations. This not only reduces operational costs but also aligns with environmental sustainability goals. Technological advancements in processing equipment enable better control over factors such as temperature, pressure, and ingredient mixing. This leads to higher product consistency and improved overall quality, meeting consumer demands for superior taste and texture.

High Initial Investment

High capital requirements create barriers to entry for new businesses and entrepreneurs looking to enter the beverage processing industry. The substantial initial investment needed for equipment and facilities discourages smaller players from participating in the market, limiting competition and innovation. Start-up companies in the beverage industry often face financial challenges, as they need to invest in multiple aspects of their business simultaneously, including product development, marketing, and distribution. The significant upfront cost of beverage processing equipment strains their financial resources.

High capital investments make companies risk-averse, as they are hesitant to invest in new technologies or equipment. This leads to slower adoption of innovative processing methods, which restrict the development of new and improved beverages. Maintaining and operating beverage processing equipment is also costly, especially when it involves energy-intensive processes or regular maintenance. High operating costs further strain a company's financial resources and impact profitability.

Segment Analysis

The global beverage processing equipment market is segmented based on type, beverage type, and region.

Increasing Manufacturers's Demand for Brewery Equipment

The brewery equipment segment held 43.15 % of the global beverage processing equipment market share. One of the primary drivers of the brewery equipment segment's growth is the global surge in craft beer production. According to the data given by the Brewers Association in 2021, Total beer sales by volume edged up 1 percent in 2021, and craft beer sales rose by 8% to 24.8 million barrels. Independent brewers' share of the United States beer market by volume rose to 13.1% which is increased from 12.2 % by 2020.

In 2021, there were over 9,500 breweries in the United States. Consumers are looking for unique beer options and different flavors of beer which helps to increase the need for brewery equipment to produce quality products. As the number of breweries increases globally, demand for brewery equipment also increases to increase the production of craft beer.

Geographical Penetration

Growing Production of Functional Beverages in the Asia Pacific

Asia Pacific accounted for 40.15% of the market share in the global beverage processing equipment market. The growing population in the Asia Pacific helps to boost the consumption of beverages. India and China have large and growing populations country in the region. This demographic factor creates a substantial consumer base for beverages, including soft drinks, juices, and alcoholic beverages, driving demand for beverage processing equipment.

Rapid growth in the consumption of functional beverages in Asia Pacific helps to boost market growth over the forecast period. According to the data given by Glanbia Nutritional in 2022, Asia Pacific accounted for 40% of the sales of functional beverages in the global market. As demand for functional beverages increases in the region, major key players in the market are buying beverage processing equipment to speed up beverage production and improve their quality.

Competitive Landscape

The major global players in the market include: Tetra Laval, GEA Group Aktiengesellschaft, Alfa Laval, Krones AG, Lee Industries, Neologic Engineers Private Limited, JBT Corporation, KHS GmbH, Pentair and Praj Industries.

COVID-19 Impact Analysis:

The pandemic disrupted global supply chains, affecting the availability of raw materials, components, and finished equipment. Lockdowns, and factory closures globally disrupted the production and transportation of beverage processing equipment. The closure of restaurants, bars, and other food service establishments, as well as reduced foot traffic in public spaces, resulted in a significant decrease in the consumption of beverages outside the home. This reduced demand for beverage processing equipment, particularly in the commercial sector.

Social distancing measures and lockdowns affected the manufacturing process and slowed down the production of beverage processing equipment. This resulted in delays in delivering equipment to customers. Many beverage producers faced financial constraints due to reduced revenues during the pandemic. This led to delayed or canceled investments in new equipment, especially by smaller businesses.

Russia-Ukraine War Impact Analysis

With geopolitical instability and economic sanctions, prices for raw materials like steel, aluminum, and electronics increase. This drives up the production costs for beverage processing equipment, potentially leading to higher prices for consumers. The overall economic impact of the war affected consumer spending. The conflict results in a global economic downturn, and people reduce their spending on non-essential goods, which include beverages. This led to reduced demand for beverage processing equipment.

Currency fluctuations significantly impact international trade. Changes in the exchange rates of the Russia and Ukrainian along with other major currencies affect the cost of imported or exported equipment. Ongoing geopolitical tensions disrupt trade relationships and lead to political uncertainty, making it harder for companies to plan for the long term.

By Type

• Brewery equipment
• Filtration equipment
• Carbonation equipment
• Sugar dissolvers and blenders & mixers
• Heat exchangers
• Others

By Beverage Type

• Alcoholic beverages
• Non-alcoholic beverages
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On June 20, 2023, The Timken Company, a leader in engineered bearings and industrial motion products has experienced high demand for the broad range of application-proven products and services it offers the food and beverage industry. Due to this increasing demand in 2022, the company launched GGB Bearings and achieved market growth of more than 30%.
• On September 30, 2021, Quintus Technologies reentered into food & beverage arena with the launch of new high-pressure processing systems. It offers a streamlined design, applications savvy, and unparalleled service for maximum uptime.

Why Purchase the Report?

• To visualize the global beverage processing equipment market segmentation based on type, beverage type and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of beverage processing equipment market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global beverage processing equipment market report would provide approximately 53 tables, 50 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies