Food Processing Market Size, Share and Competitive Analysis

Food Processing Market Size, Share and Demand

The global food processing market size reached USD 166.41 billion in 2024 and is anticipated to increase from USD 177.56 billion in 2025 to an estimated USD 318.29 billion by 2034, witnessing a CAGR of 6.70% during the forecast period from 2025 to 2034. Rising demand for the convenience coupled with increasing middle-class population significantly propelling the market.

Key Highlights

• By region, North America dominated the food processing market in 2024. The Market in North America is witnessing various significant trends influenced by consumer desires and technological progress.
• By region, Asia Pacific expects the significant growth in the market during the forecast period. Increasing per capita income, an expanding working class, and the popularity of convenience foods are anticipated to boost the food processing sectors. 
• By type, the extrusion equipment segment dominated the market with the largest share in 2024. The extruder machines are developed to manage a wide variety of ingredients to process foods that consumers demand.
• By type, mixers, blenders and homogenizers segment is observed to grow at the fastest rate during the forecast period. These machines are vital in maintaining consistency, quality, and efficiency in food production, managing a variety of tasks including mixing dry ingredients, blending liquids, and formulating homogeneous mixtures. 
• By category, the fully automated segment led the food processing market in 2024. Automation technologies are increasingly being adopted in the food sector to assist companies in fulfilling the growing demand for food safety, quality, and efficiency.
• By category, the semi-automated segment is seen to grow at a notable rate during the predicted timeframe. This type of machinery is greatly esteemed for its capacity to dramatically improve labor productivity while providing versatility in production operations.
• By application, the bakery and confectionery segment held the largest share of the market in 2024. The rising desire for sweet treats and bakery goods, encompassing different kinds of chocolates, gums, and candies, is propelling the market forward.
• By application, meat, poultry, & seafood segment is expected to grow at the fastest rate in the market during the forecast period. The increasing need for protein-rich food is anticipated to drive the expansion of the meat, poultry, and seafood demand.

Surging Demand for Convenience Food Expanding the Market 

Convenience foods including packaged, easy-to-prepare choices and ready-to-eat are increasingly sought after as consumer lifestyles grow more rapid. Because of busy schedules, extended work hours, and lively family activities, individuals are seeking time-efficient options and demanding convenience foods. The food processing industry is growing due to this change, adapting to meet consumer needs for convenience while maintaining quality and flavor. Due to changing household dynamics and hectic lifestyles, modern customers aim to obtain nearly all their daily nutrition in the blink of eye. People are consuming prepackaged and prepared meals which is increasing their demand as many individuals in developing regions move to urban areas and have greater net income and have ability to spend on processed foods. Global trade networks allow food producers to access a wider range of markets, enabling them to provide a broader selection of products. A variety of innovative food processing technologies have been researched and created to alter or substitute conventional food processing methods for improved food quality and to produce foods that cater more to buyer preferences, advancing the food processing industry. 

Food Processing Market Trends 

• The increasing demand for plant-based options and organic items among health-oriented consumers is influencing the convenience food sector and transforming the food processing industries. The methods employed to produce plant-based meat and seafood are becoming less expensive and more innovative, leading to a wide variety of authentic meals for consumers. Even venture capitalists and other investors are joining the plant-based food manufacturing movement, as companies in this sector have secured over $16 billion in funding over the past ten years, with impressive totals of $13 billion in 2017 and 2018 alone, according to GFI’s State of the Industry report. 
• Technologies related to Industry 4.0 have garnered significant interest lately, revolutionizing and reshaping numerous manufacturing sectors, such as the food processing industry. By utilizing real-time data, predictive maintenance, and AI-driven automation, food processing plants can enhance operational efficiency, minimize downtime, and optimize resource utilization-all while maintaining food safety and regulatory compliance. 
• Nestlé's AI-driven visual inspection technologies are revolutionizing quality assurance in food manufacturing, whereas Danone's collaboration with Sight Machine has improved real-time oversight in dairy facilities. 
• Increasing consumer interest in sustainability is prompting food processing industries to adopt eco-friendly practices. Food producers are reducing expenses by implementing energy-saving processing techniques and utilizing alternative energy sources. Sustainable procurement of raw materials in food production improves environmental, social, and economic advantages. By selecting suppliers who engage in regenerative agriculture, food processors can reduce greenhouse gas emissions and preserve resources. 
• Food preservation technology has improved remarkably, enabling food processing companies to prolong the shelf life of products while ensuring quality and safety. Methods like high-pressure processing, pulsed electric fields, and modified atmosphere packaging (MAP) are becoming more popular. 
• Different government programs, strategies, and financial support for the food processing sector enable food processing firms to broaden their offerings. For example, the European Commission will initiate steps to broaden and promote sustainable production methods and circular business models in food processing and retail, including specifically for Small and Medium-sized Enterprises.

Market Opportunity

Next-Gen Food Processing Technology: Advancing the Food Processing Market

Creative, non-thermal techniques have caught the interest of numerous food producers, looking for novel food processing approaches. The advancement of cutting-edge technologies offers an ideal equilibrium between safety and reduced processing, while also achieving a balance between acceptable economic constraints and exceptional quality. Cutting-edge technologies lead to decreased energy and water use, consequently lowering the carbon and water footprint in food processing. Advanced technologies are becoming a prominent factor of the sector, launching innovations that not only rise production effectiveness but also outline newer standards of food quality and safety. In recent days, various novel food processing technologies have emerged, such as high-pressure processing, ultrasound, cold plasma, pulsed electric fields, sous vide, and microwave heating. The advances in technology are the necessary breakthrough to strength the developments in food processing towards the solution of current and future challenges. 

Market Challenge

Financial Burden on Food Processing Industries

Food processing industries are dealing with increased operational expense because of increasing prices for raw materials, energy, and transportation. Recent disturbances in the food supply chain have created price fluctuations, making cost control difficult. Inflation also worsens the difficulties, making it challenging to maintain profitability. 

Regional Insights

North America dominated the food processing market in 2024.

The market in North America is witnessing various significant trends influenced by consumer desires and technological progress. A primary market influencer is the rising need for convenience food, as hectic lifestyles prompt consumers to look for ready-to-eat meals and snacks. This change has encouraged food manufacturers to create products that are both easy to cook and healthy while being attractive. Innovations in technology, including automated food processing systems, robotic packaging, and digital tracking systems, are revolutionizing the sector. Additionally, trends such as clean-label items, plant-based options, and food enrichment are likewise influencing the industry. 

The food processing market in Canada has developed in recent years. The food processing industry in Canada is the largest manufacturing sector regarding GDP and employment, accounting for over 16% of the country's manufacturing GDP and 17% of its manufacturing jobs. Shifting lifestyles, increasing urbanization, and hectic routines have prompted consumers to choose convenient food choices that involve little preparation. Ready-to-eat dishes, frozen items, snacks, and canned goods are becoming increasingly popular, particularly among younger individuals and those in the workforce. This transition is prompting food producers to invest in state-of-the-art food processing machinery that can enhance production efficiency, ensure product uniformity, and prolong shelf life while conforming to safety regulations. Numerous international food processing firms operate in Canada. Prominent firms consist of PepsiCo, Kraft Heinz, Parmalat, and Nestlé. Processed food and beverage products from Canada are sent to nearly 200 nations, with a considerable percentage being shipped to several specific countries. 

• In Canada, there are around 8,500 food and beverage processing businesses that have employees, most of which are small enterprises. Sales from food and beverage processing reached $116 billion USD in 2024, with most facilities situated in Ontario and Quebec.

Asia Pacific expects the fastest growth in the food processing market during the forecast period.

Increasing per capita income, an expanding working class, and the popularity of convenience foods are anticipated to boost the food processing sectors in China and India. Multilateral and regional trade agreements facilitating trade liberalization are aiding the growth of the Asia-Pacific food processing sector and will enhance market access for participants in the food processing industry. Firms are incorporating the devices with Internet of Technology to attain optimal food safety, minimize waste, enhance traceability, and lower expenses and risks in diverse food processing.

India has become a key contender in the worldwide food processing market, making substantial contributions to GDP and job creation. The food processing industry has become a vital component of India's economic expansion, marked by ongoing advancements and a supportive policy landscape. Supported by shifts in consumer habits and tastes, the need for processed food has risen in the Indian market. These elements, combined with a rising urban populace and hectic work routines, encourage the intake of RTE (ready-to-eat) meals and packaged foods. The Indian Government's initiatives to eliminate regulatory hurdles in promoting ease of doing business have also attracted a growing number of new entrants into the market. Government initiatives, like the PM Formalisation of Micro Food Processing Enterprises Scheme, have assisted more than 200,000 MSMEs. Around 35% of India's population lives in cities. The United Nations estimates that this figure will increase to 50% by 2047. This urbanization, in turn, is causing a significant change in the food processing industry. Technological innovations are transforming the food processing industry. 

• As of 30th June 2024, the Ministry of Food Processing Industries has sanctioned 41 Mega Food Parks, 61 Backward & Forward Linkages Projects, 61 Backward & Forward Linkages Projects, 399 Cold Chain initiatives, 76 Agro-processing Clusters, 588 Food Processing Units, and 52 Operation Green initiatives under corresponding component schemes of PMKSY.

Segmental Insights

Type Insights

The extrusion equipment segment dominated the food processing market with the largest share in 2024.

The extruder machines are developed to manage a wide variety of ingredients to process foods that consumers demand. Extrusion technology transcends in adaptability, quickly responding to customer needs by adjusting ingredients and conditions. It provides wide range of products with distinctive attributes, meeting varied market preferences. Significantly energy-efficient, it lowers operational expenses and space requirements, harmonizing with eco-friendly practices, boosting the market.

Mixers, blenders and homogenizers segment is observed to grow at the significant rate in the food processing market during the forecast period.

These machines are vital in maintaining consistency, quality, and efficiency in food production, managing a variety of tasks including mixing dry ingredients, blending liquids, and formulating homogeneous mixtures. Producers are emphasizing on creating energy-efficient machines that lower processing expenses and reduce environmental impact. Additionally, the incorporation of smart technologies and automation in food blenders and mixers is becoming more popular, allowing better control, monitoring, and maintenance. As the worldwide food processing sector continues to emerge, the demand for advanced industrial food blenders and mixers is anticipated to grow, providing attractive opportunities for key market players. 

Category Insights

The fully automated segment led the food processing market in 2024.

Automation technologies are increasingly being adopted in the food sector to assist companies in fulfilling the growing demand for food safety, quality, and efficiency. Automated systems can perform tasks with precision and uniformity, ensuring that each product meets identical high-quality standards. The brand's reputation and customer satisfaction rely on this consistency. Although there might be a significant initial expense linked to automation technology, substantial savings on labor costs will ultimately be realized. There is reduced necessity for a big workforce when automation can operate outside standard hours and perform tasks that would require several individuals to finish. 

The semi-automated segment is seen to grow at a notable rate in the food processing market during the predicted timeframe.

This type of machinery is greatly esteemed for its capacity to dramatically improve labor productivity while providing versatility in production operations. Prior to using the machinery for other tasks, operators select a new product and insert it for processing. Reduced operational expenses are essential when utilizing semi-automated machinery for processing frozen foods. Its technical and economic viability renders it especially appealing for small to medium-sized food production businesses.

Application Insights

The bakery and confectionery segment held the largest share of the food processing market in 2024.

From the soothing scent of warm bread to the delight of an exquisitely flaky pastry, baked items hold lasting charm. The rising desire for sweet treats, encompassing different kinds of chocolates, gums, and candies, is propelling the market forward. State-of-the-art developments in bakery processing technology are enabling the direct tackling of these challenges. From efficiency improvements driven by automation to smart monitoring systems that boost accuracy and minimize waste, advancements in machinery and technology are aiding bakeries in optimizing operations and ensuring consistency in a progressively intricate market.

Meat, poultry, & seafood segment is expected to grow at the fastest rate in the food processing market during the forecast period.

The increasing need for protein-rich food is anticipated to drive the expansion of the meat, poultry, and seafood demand. The demand for meat and poultry products has significantly boosted, thus fostering the development of the meat and poultry processing equipment sector. Consequently, the demand for these products will keep driving the meat and poultry processing equipment sector in the years ahead. The increasing need for protein-packed food is anticipated to drive the expansion of the meat, poultry, and seafood sector.

Recent Developments in the Food Processing Market

Adani Wilmar Limited

• Launch: In January 2025, Adani Wilmar Limited, a forefront FMCG food business in India, officially began processing at its consolidated food processing facility situated in Haryana. The starting of operations is highlighted by the initial shipment of 100 metric tonnes rice, representing a significant breakthrough in the company's expansion. 

Fortifi Food Processing Solutions

• Launch: In March 2024, Fortifi Food Processing Solutions has introduced the cohesive platform featuring worldwide brands and products in food processing machinery and automation solutions. Active in over 15 nations across five continents, Fortifi offers various solutions within the food sector, featuring applications in dairy, protein, and fruits and vegetables. Fortifi’s technologies seek to boost productivity, optimize yield, and enhance worker safety for clients globally.

Bengal's Food Processing Sector

• Investment: In March 2025, under the Centre's production-linked incentive (PLI) program Bengal's food processing sector has pledged to an investment of Rs 181 crore. If the investment meets all requirements, the Centre will further approve Rs 1,200 crore as subsidy to the state's food processing industry over five years. At an industry event hosted by the Indian Chamber of Commerce in the city, this announcement was made by Subrata Gupta, secretary of the ministry of food processing industries

Food Processing Market Leading Companies

• Marel
• GEA Group AG
• The Bühler Holding AG
• JBT Corporation
• Alfa Laval AB
• TNA Solution Pty Ltd
• Bucher Industries AG
• Clextral S.A.S
• SPX Flow
• Bigtem Makine A.S.
• FENCO Food Machinery s.r.l.
• Krones AG
• Paul Mueller Company 

Segments Covered in the Report

By Type 

• Cleaning, Sorting, & Grading Equipment
• Cutting, Peeling & Grinding Equipment
• Mixers, Blenders and Homogenizers
• Extrusion & Thermal Equipment
• Other Equipment

By Category 

• Semi-Automated
• Fully Automated

By Application 

• Bakery, Confectionery and Dairy Products
• Meat, Poultry, & Seafood Products
• Fruit, Vegetable and Beverages
• Others

By Region 

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)