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Food & agri tech products market set for major growth
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Tuesday, 06 August, 2019, 08 : 00 AM [IST]
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Nimish Shinde and Nagesh Manepalli
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The food & agriculture technology and products market is growing in parallel to the increasing demand and consumption of livestock-based products and seafood. Increasing demand for convenience, packaged, and processed food products and government support to adopt modern agricultural techniques are some of the driving factors for the food & agriculture technology and products market. Use of big data in agricultural farms and new technologies used for food processing is creating profitable opportunities for key players in the market globally.
The market for food & agriculture technology and products market is estimated to be valued at US$ 494.9 billion in 2018 and is projected to reach US$729.5 billion by 2023, at a CAGR of 8.1% during the forecast period. Major manufacturers that are actively participating and growing evidently in global food & agriculture technology and products market are ADM (US), Evonik (Germany), DSM (The Netherlands), United Technologies (US), Deere & Company (US), Daikin (Japan), Signify Holdings (The Netherlands), SGS SA (Switzerland), Zoetis (UK), GEA (Germany), Pentair (UK), Intertek (UK), Genus (UK), Neogen (US), AKVA Group (Norway), Eurofins (Luxembourg), Canopy Growth Corporation (Canada), Americold Logistics (US), Groupe Grimaud (France), and Mosameat (The Netherlands).
The food & agriculture technology and products market, on the basis of industry, includes animal industry, agriculture industry, cold chain industry, food & beverage industry, and other related industries. The focus of this report is mainly on animal health, innovative agricultural practices, and logistics & transportation of these products.
The agricultural industry has transformed into a technologically-intensive and data-rich industry with the advent of advanced technologies such as guidance systems, variable rate technology, Internet of Things (IoT), artificial intelligence (AI), remote sensing, and grow lights. However, the demand for food safety technology and food processing equipment has increased in the global market due to the implementation of food safety regulations, globalisation of food trade, and advancements in technology.
The Asia-Pacific is one of the key markets for food & agriculture technology and products. Manufacturers in this region are focussing on research & development activities to introduce innovative products and modern technologies in the global food & agriculture technology and products market. Of the various industry segments, the cannabis segment is estimated to grow at the highest CAGR of 30.7% in the global market of food & agriculture technology and products.
Moreover, the cold chain segment is projected to dominate in the food & agriculture technology and products market due to its significance in both the industries, to transport the goods, equipment, and products from one place to another. Globally, the cold chain industry is growing as it increases the shelf life of food products without hampering its nutritional value. This market is projected to grow at a moderate rate during the forecast period due to its application in all the industries.
Market Dynamics
Increased demand for livestock-based products, convenience food, and processed food are some of the factors that contribute to the growth of the food & agriculture technology and products market
Due to the increasing awareness about the role and dynamics of food nutrients, especially protein, on the overall physical and mental growth, there is a growing trend witnessed among consumers to spend on the animal-sourced protein in the form of either meat, eggs, or milk. The shift in demographics and rising consumer awareness has encouraged manufacturers to prioritise food safety.
Due to busy lifestyles, consumer preference has shifted from the traditional purchase of raw food products to convenience and packaged food products such as frozen foods and ready-to-eat (RTE) meals. The consumer demand for imported seasonal products and RTE food has increased, which in turn, is driving the food & agriculture technology and products market. The food industry is using newer and advanced technologies and processes to maintain the quality of products. With the increasing demand for home meal replacements and convenience foods, food processing equipment manufacturers are focussing on developing innovative products and equipment and creating new product categories for efficient food safety testing techniques.
Aquaculture products: Increasing seafood trade to drive the demand
Global aquaculture production has grown rapidly during the past decades. The rise in the demand for seafood has led to the expansion of the aquaculture industry. Several products are being introduced in the market to widen the consumer base of companies and ensure food security. Innovations in aquaculture technology, advancements in diverse aspects, and the introduction of new species significantly contribute to the growth of the global aquaculture market.
Chemicals that are used in the aquaculture industry include chlorine, calcium hypochlorite, and formalin. Aqua-chemicals are commonly used for pond preparation and disease control. Various chemicals such as hydrogen peroxide, formaldehyde, glutaraldehyde, and paracetic acid are used as disinfectants widely in the aquaculture industry globally.
Smart agriculture: Increasing adoption of IoT and AI to reflect positively on market
The agricultural industry has transformed into a technologically-intensive and data-rich industry with the advent of advanced technologies such as guidance systems, variable rate technology, Internet of Things (IoT), artificial intelligence (AI), and remote sensing. The smart agriculture technology assists in increasing profitability, improving sustainability, protecting the environment, and minimising the consumption of resources such as water, fertiliser, and energy.
Food traceability: Ease of product recall and growing consumer concerns
Traceability is a key aspect in the food safety detection process, as it facilitates recall of products when required. Traceability gives targeted and accurate information concerning implicated products to consumers and is important for the investigation of the causes of food poisoning and contamination outbreaks. Further, food traceability technology facilitates automated data collection and technological solutions and processes that help in improving business efficiency and reducing costs.
Traceability is an important aspect of food production in the food supply chain, as it helps farmers, distributors, and retailers to provide food products of the highest quality to customers.
Key Questions
Which are the substitute products and how high is the threat from them?
What are the upcoming technologies, substitutes, and trends that will have a significant impact on the market in the future?
What are the views on the growth prospects of the global food & agriculture technology and products market? What is the current scenario, and how is the market estimated to grow in the future?
What will be the major revenue-generating pockets for the market in the next five years?
Most of the suppliers have opted for strategies such as expansions & acquisitions as can be seen from the recent developments. Where will it take the industry in the medium to long term?
(Shinde is research analyst (research) - food, beverage, animal feed & agriculture and Manepalli is head - food, beverage, animal feed & agriculture. They can be contacted at nimish.shinde@marketsandmarkets.com and manepalli.nagesh@marketsandmarkets.com)
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