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Food Production & Manufacture: Get Industry Insights

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Global Food Manufacturing Industry Analysis

The food manufacturing industry covers the production and sale of food, and includes a spectrum of activities like farming, packaging, distribution, marketing and retail.

The US food industry represents around 16.5 million jobs, and the population spends around $1 trillion per year on food products. In the UK, the food industry employs more than 500,000 people, which represents around 15% of manufacturing jobs.

Key Market Segments

Food Safety: As compromised food products can have adverse effects on consumer health, safety is a key factor in the manufacture of food. Food safety products - such as diagnostic products, tracking systems, disinfection products and smart labels - are expected to grow more than 8% yearly to reach an overall market value in excess of $13.5 billion in 2014, according to Freedonia. Demand for food safety products in the Asia-Pacific region is leading global growth in the market, representing 40% of overall market earnings from 2009 to 2014. The US represents almost a quarter of food safety product demand, though developing countries are showing the fastest growth.

Food Processing: The global market for machinery and equipment used in food processing is expected to reach over $45 billion by 2015, according to research from Global Industry Analysts. The market is being shaped by technological innovation and regulations regarding food hygiene. Asia-Pacific is showing the strongest market growth for food processing machines and equipment. As the economic climate in developing countries in this region and Eastern Europe improve, the demand for food processing is rising in tandem with disposable income and living standards. The US, France, Germany and Switzerland are among the biggest exporters of food processing machinery while the US, the UK, France and Germany are among the heaviest importers.

Food Ingredients: The demand for artificial sweeteners is showing continued growth, with the global market expected to be worth $1.5 billion by 2015. Artificial sweeteners, as an alternative to sugar, are gaining ground in terms of market share partly due to medical conditions steering people away from sugar, such as diabetes, obesity and heart disease.

Industry Leaders

In 2011, the world’s leading food processing company by sales is Pepsico, followed by Nestle and Kraft Foods. Tyson Foods is in fourth place, followed by Anheuser-Busch InBev, JBS USA and General Mills. The eighth-biggest leader is Dean Foods, with Mars and Smithfield Foods, ranking ninth and tenth respectively.

New York-based Pepsico climbed three places in 2011. The company sells cereals, beverages, snacks and baked goods. Its brands include Gatorade, diet Pepsi and Tropicana.

Nestle, based in Switzerland, fell from the top spot to second place in 2011. Its main products include beverages, frozen foods, baby foods, pet foods and water. Some of its popular brands are Cheerios, After Eight, Butteringer, Häagen-Dazs and Friskies.

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