Dairy Processing Equipment Market: Dairy processing equipment is utilized to process milk to create several products such as cheese, buttermilk, yogurt, butter, cream, and others. With the increasing consumption of dairy products, manufacturers invest extensively in equipment. For example, as per the Food & Agricultural Organization, United Nations, more than 6 billion people consume milk products, ranging from 150kg per capita. Furthermore, with the adoption of online shopping and delivery sites, the adoption of milk products is expected to grow considerably.
As per Fortune Business Insights™ estimations, the Dairy Processing Equipment Market is expected to reach USD 13.67 billion by 2027, exhibiting a CAGR of 5.4% during the 2020-2027 period.
Post-COVID-19 Outlook: Online Retail and Digital Has Helped Transform the Market
The industry has transformed exponentially due to rapid digitalization and the adoption of online outlets for the sales of milk products. This factor has enhanced the demand for milk processing equipment from manufacturers. Further, with the rising adoption of automated production techniques, the demand for effective, responsive, and cost-efficient machinery has increased exponentially. These factors may play a crucial role in combating the pandemic. In addition, the minimal requirement of manpower is expected to foster the demand for dairy processing equipment.
How Strong Demand for Dairy Processing Equipment Market Will Provide Remunerative Opportunities?
Dairy products are extensively consumed across several homes, bakeries, and industries. With increasing adoption of these products, the demand for effective processing machines is increasing rapidly. Further, the rising focus on the enhancement of quality is expected to foster dairy processing equipment. Also, automation leads to ultrafiltration processes to improve quality and attract consumers. With the reduction in alteration processes, investments in such equipment may increase rapidly. Further, the rapidly developing technological processes are expected to foster industrial growth.
How Packaged Foods Will Generate the Equipment’s Demand?
The sedentary lifestyles of consumers enhanced the demand for packaged foods and beverages. The increasing adoption of ready-to-eat dairy foods enhanced the production and demand for dairy products. Manufacturers aim at producing high-quality dairy products to attract consumers and bolster their sales. The upgrading in manufacturing technology enhances the quality of products and avoids wastage. Rising industrialization and the emergence of several players are likely to boost the adoption of effective products. These factors may facilitate the industry’s growth.
What are the Major Challenges Faced by this Dairy Processing Equipment Market?
The increasing demand for plant-based milk is a major restraining factor faced by this Dairy Processing Equipment Market. The rising trends of veganism are likely to hamper this industry’s growth prospects. Further, increasing cases of lactose intolerance among the population is likely to hamper the product adoption. Also, with the emergence of alternative solutions such as soybean milk products, the industry may face several challenges. These factors are likely to hinder the demand for dairy equipment.
What are the Strategies Undertaken by Manufacturers to Enhance Competitive Landscape?
Major players operating in this industry have undertaken several crucial strategies to enhance their growth prospects. The rising investments in the research and development of effective dairy processing equipment may allow manufacturers to enhance their machine’s capability. Further, the incorporation of advanced technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), may empower manufacturers to recover their costs and bolster their growth. These factors may incite growth for this industry in the coming years. Furthermore, manufacturers focus on developing effective campaigns to increase consumers’ awareness regarding the nutritional benefits of dairy products, thereby increasing dairy processing equipment adoption. These factors may allow manufacturers to enhance their market position globally.
Resumption of Lockdowns, Heavy Demand for Dairy Products, and Effective Competitive Strategies May Fuel Growth, Dairy Processing Equipment Market
The post COVID-19 phase has allowed manufacturers to tackle supply chain issues. Rapid automation has allowed manufacturers to enhance their production capacities and balance losses. Furthermore, as milk is commonly consumed across several households globally, the demand for effective and technologically enhanced equipment is expected to increase exponentially. Moreover, the increasing adoption of the equipment in the packaged foods industry presents huge opportunities for this industry. The sedentary lifestyle of consumers has increased the consumption of healthy ready-to-eat and milk-based snacks and beverages. This factor may bolster the demand for high quality and best-in-class dairy processing equipment. Manufacturers focus on the development of apps for easy delivery of pasteurized milk and enhance convenience. Furthermore, the rising trend of veganism may allow manufacturers to process milk and milk products using food grains, thereby enhancing their demand from vegan food processing companies.