Food Manufacturing Market Research Reports: Industry Trends & Statistics

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 Food Manufacturing 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. Demand for food safety products in the Asia-Pacific region is leading global growth in the market. 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 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: 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.

Food Manufacturing Industry Leaders

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 sells cereals, beverages, snacks and baked goods. Its brands include Gatorade, diet Pepsi and Tropicana.

Nestle is based in Switzerland. 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.

Kraft Foods, an Illinois-based company, employs close to 130,000 people throughout the world, with more than 220 manufacturing facilities and 15 research and development facilities in operation. Kraft’s product portfolio includes a dozen $1 billion dollar-plus brands and 70 $100 million dollar-plus brands. The company has almost $50 billion in revenue and makes 50% of its profit from snack foods.

Food Manufacturing Market Outlook

The food manufacturing industry has been less affected by the global economic recession than other industries, as the demand for food remains largely stable regardless of economic conditions. The industry is more sensitive to other factors, such as weather and animal diseases. According to the Bureau of Labor Statistics, the food manufacturing industry represents 10% of all US manufacturing shipments. Over a third of the 50 leading food and beverage processing companies have their headquarters in the US, according to a report by the US Department of Commerce. Moving forward, the industry is likely to see high-intensity sweeteners influenced by falling prices, new companies entering the market and patent protection expiries. This will result in a boost in sales for natural sweeteners such as agave and stevia.

Leading Food Manufacturing Industry Associations

• International Foodservice Manufacturers Association 
• Food Processing Suppliers Association 
• Health Food Manufacturers' Association, UK 
• Grocery Manufacturers Association 
• Food Marketing Institute