Dairy Processing Equipment Market Size, Share & COVID-19 Impact Analysis, By Type (Pasteurizers, Homogenizers, Separators, Evaporators & Drying Equipment, Membrane Filtration Equipment & Others), By Application (Processed Milk, Cream, Milk Powders, Cheese, Protein Ingredient & Others) and Regional Forecast, 2020-2032

The global dairy processing equipment market size valued at USD 9.48 billion in 2019 and is projected to grow worth USD 18.73 billion by 2032, exhibiting a CAGR of 5.4% during the forecast period. The Asia Pacific dominated the dairy processing equipment market with a share of 38.82% in 2019.

The increasing demand for processed dairy products is attributing to the growth of the market. The equipment is installed to process milk for various products such as cheese, cream, butter, yogurt, and others. According to the Food and Agriculture Organization of the United Nations more than 6 billion people consume milk and milk-related products. With more than 150 kg per capita consumption per year the majority of the population belongs to developing and some to the developed economies. These countries are Argentina, Armenia, Australia, Costa Rica, Europe, Israel, Kyrgyzstan, North America, and Pakistan.

LATEST TRENDS

Increased Demand for Processed Dairy Products for Balanced and Nourished Diet

The increasing demand for processed dairy products along with the sustainability of the processed products are some of the major factors, which are expected to encourage market growth. The rise in demand is owed to the change in eating patterns and shifts in consumption of cheese, cream, yogurt, and dairy products. This shift in trends for balancing nourishment with taste and variety in products is expected to act as a major contributing factor in the growth of the industry. Moreover, with the declining cost of raw material, increasing number of dairy processing industry, and rising demand for better production abilities is likely to accelerate the market growth during the forecast period.

DRIVING FACTORS

Growing Demand for Healthier Dairy Products is Boosting the Growth of the Market

The growing demand for healthier dairy products is boosting the growth of the. Consumer’s changing preference for healthy dairy products with low fat, low cholesterol, low sugar along with the availability of a variety of flavors is anticipated to drive the market. Furthermore, the increase in the development of varied products to meet consumer health needs, tastes, and specifications in the meanwhile balancing it with the nutritive value and cost will aid the growth. Moreover, the adoption of automation in dairy processing for increased efficiency along with the reduction in adulteration and cost, to meet the required quality standards is expected to favor industry development. The automation adoption includes specialized processes such as, ultrafiltration facilitating the recovery of milk solids and utilization of automated control systems for processing products to achieve low fat, low sugar, and cholesterol-free products is predicted to enhance the growth of the market.

RESTRAINING FACTORS

Economic Slowdown and Outbreak of COVID-19 is Expected to Hinder the Market Growth

As per the secondary sources, the recent outbreak of COVID-19 is anticipated to hamper to market growth over coming years by more than 12%. Governments have reduced the global trade of non-essential products such as processed products limiting the market for the production milk, protein ingredients, and milk powders, thus limiting the sale of other dairy processed products. Owing to the increasing spread of COVID-19, governments are imposing stringent lockdowns in countries, which is slowing the overall economic conditions and production capacities. This has impacted the new purchase decisions of organizations, thus hampering this type of equipment market.

SEGMENTATION

By Type Analysis

Pasteurizers to Hold Highest Market Share in the Forecast Period

The global market is segmented based on type, which is further sub-segmented into pasteurizers, homogenizers, separators, evaporators & drying equipment, membrane filtration equipment, and others (churning, etc.).

As of 2019, pasteurizers are expected to be the leading in the market, with a 24.3% share. Pasteurization aids in making products safe for consumption, along with improving the preservation quality, and retains the flavor for a longer period. Dairy pasteurizer equipment manufacturers are using efficient technologies to ensure a better quality of output of the dairy products.

Whereas, the evaporators & dryers’ segment is anticipated to grow at the maximum CAGR of during the forecast period. The demand for evaporator & dryer equipment from dairy processors is increasing in majorly every region with substantial growth from Europe, Asia-Pacific, and Latin America regions. Membrane Filtration Equipment is also expected to exhibit steady growth rate owing to the demand from developed markets. The consumers are considering stimulated milk products such as whey products & other milk protein dairy products. Moreover, separators and homogenizers are expected to have moderate growth during the forecast period owing to their limited scope of operation and also due to their longer shelf life span as compared to others.

By Application Analysis

Milk Powder Application to Witness Highest Growth Rate in the Near Future

By application, the market is bifurcated into processed milk, cream, milk powders, cheese, protein ingredient, and others (yogurt, etc.) sub-segment.

Milk powder is anticipated to grow at the highest CAGR during the projection period. Milk powder sub-segment is followed by protein ingredients. Increasing demand within the dairy industry for both milk powder and protein ingredients is owed to the need for skimmed milk powder for infant nutrition from many economies such as China, Thailand, and Singapore. The demand for cheese is also projected to grow globally, owed to the consumer’s increasing preference for fast food. This demand is augmented by the expansion of the foodservice industry along with the demand from the hotel and restaurant industry, henceforth stimulating the growth of the market. Moreover, rising prominence on convenience and ready to eat cheese supplemented by easy availability in various types of retail stores will increase cheese production, which is anticipated to favor the industry growth.

REGIONAL INSIGHTS

The market is further categorized into 5 major regions, namely North America, Europe, Asia Pacific, The Middle East, and Africa, and Latin America. The market in the Asia Pacific region is expected to grow at the highest CAGR during the forecast period. Also, the region has emerged as a major region in the global market, with a substantial surge in the production, processing, and consumption of milk and milk-related products. Furthermore, changing consumer’s demand preferences owing to an increase in their disposable income is forming enhanced market in the region.

Additionally, Australia is among the major producers, and exporter of dairy-related products to China other countries across the regions. Furthermore, India is one of the largest producers of raw milk and according to the Food and Agriculture Organization of the United Nations it’s 50% of the production is consumed on-farm itself. The region’s productiveness is also perceiving great consideration from foreign stockholders. The increase in the production of dairy products and demand in Asia Pacific region is proving to be a perfect prospect for private and public investment.

Europe is expected to contribute a significant share in the global market for dairy processing equipment, owing to the presence of the majority of the key players in the region. Also, the government’s stringent regulations concerning processing equipment and processing of dairy products, along with quality standards will promote the use of efficient dairy equipment, stimulating the growth of the market. Additionally, the confiscation of milk quota by the European Union’s Common Agriculture Policy is expected to promote milk production in the region, thereby stimulating the dairy processing equipment demand. However, the recent outbreak of COVID-19 in major European countries, such as Italy, France, the UK, and Russia will hamper the market growth in 2020. Furthermore, North America is expected to observe slow growth during the forecast period. This is owed to the change in the consumption pattern of processed milk products. Moreover, a decrease in the number of cows and weakening per capita consumption of dairy products are some key challenges witnessed by the region.

The market in the Middle East & Africa is expected to exhibit a moderate growth rate. Whereas, Latin America is projected to witness a moderate growth owing to the development in Brazil’s dairy processing equipment market. The market is anticipated to witness a steady increase due to the growing working population, leading to increase in demand for healthy and protein ingredients to meet nutrition requirements.

KEY INDUSTRY PLAYERS

Key Players in the Market are Focusing on Technological Advancement and New Product Development

Key players such as GEA Group Aktiengesellschaft, SPX Flow Inc., Alfa Laval, and Krones AG are focusing on installing new technologies in their product portfolios along with setting up their new production units in the developing regions. For instance, in February 2020, SPX Flow Inc. came into agreement with Primodan A/S for acquiring equipment for yellow cheese making activities and technology. The new equipment includes pressing & final brining systems and curd making equipment technology.

Key Players in the Market are Intensifying Their Regional Presence with Acquisition and Partnerships

Furthermore, the market is highly fragmented and comparative with a high number of regional as well local players. The key players in the market are characterized by technological improvement thereby reducing production cost along with articulating more established and premium quality products. Furthermore, strategic associations including capacity enhancement, mergers and acquisitions for adopting different advanced expertise in order to increase production is projected increase the share of the key industry players.

List of Key Companies Profiled:

• GEA Group Aktiengesellschaft (Germany)


• JBT Corporation (United States)


• SPX Flow Inc. (United States)


• Alfa Laval (Sweden)


• Krones AG (Germany)


• Paul Mueller Company (United States)


• Tetra Pak International SA (Switzerland)


• IMA Group (Italy)


• Feldmeier Equipment INC. (United States)


• Scherjon Dairy Equipment Holland B.V. (The Netherlands)


• Caloris Engineering LLC (United States)

KEY INDUSTRY DEVELOPMENTS:

• April 2019: Caloris Engineering LLC announced acquisition of Seitz Stainless, which is an equipment fabricator. This was a strategic decision made by the company to add in-house manufacturing of its products.


• October 2018: •  Krones AG acquired Sprinkman US-based processing equipment manufacture. Sprinkman specializes in the dairy and brewing industry, thus resulting in enhancement of Krones AG product portfolio in North America.

REPORT COVERAGE

The dairy processing equipment market report offers an elaborative analysis of numerous factors affecting globally in this market. These include opportunities, growth drivers, threats, key industry developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as type and application. It strategically examines several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players to gain a competitive edge in the market and attract high market revenue in the forecast duration.

Report Scope & Segmentation