The food processing and handling industry is complex and facing a number of big challenges. Consumer tastes are changing, and they have higher expectations of the food they eat. The volume of food being produced in factories is growing fast – almost $800B in 2018! And there are fewer people available to work in food plants, meaning that food processors need to look more closely at equipment and automation to meet the increasing demands of their customers.
McKinsey has published an extremely useful report on the industry, specifically looking at the equipment that food processors are purchasing. The report also considers how food processing compares to other industries that buy heavy, expensive manufacturing equipment.
The report says that food processing and handling equipment represents a ~$100 billion market and has outperformed the broader Industrials segment over the past five years.
It goes on to say that the outlook for the sector is positive, with growth expected to accelerate in the years ahead. McKinsey highlights emerging market population growth, changing consumer tastes and operational pressures as key factors driving growth in the sector.
We’re pretty excited by what this report says and the opportunities it highlights for PPO. Click on the logo below to read the report.