The worldwide growth in the food processing sector, fast-expanding emerging markets and increasingly strict regulatory regimes are all set to drive global demand for food safety products to US$13.6 billion (NZD$17.23 billion) by 2014, according FoodProductionDaily.com, citing an industry report by The Freedonia Group.
The report predicts that that growth in demand for food safety outputs, such as disinfection and diagnostic products, smart labels and tags, and software and tracking systems, will rise by 8.1% annually over the next four years.
The US-based analysts said the tightening global regulation of food products and a further focus on implementing safety systems would continue in the wake of recent high profile contamination incidents. Increases in food and beverage processing activity across the globe would also have a positive effect it added.
The most rapid gains are expected to occur in developing markets – with expansion in Asia, the Africa and Middle East region, Eastern Europe, and Central and South America all likely to outpace the global average.
The Asia-Pacific region is forecast to lead growth by accounting for 40% of aggregate market gains between 2009-2014. The market here is predicted to jump from USD$2.7 billion in 2009 to $4.5 billion by the end of the review period – with much of this growth spurred by internal and external demands for greater security in the China.
According to the report China will continue to see some of the fastest demand growth, due to mounting pressure on the part of consumers, producers and regulators to ensure the safety of the food supply.
The report predicts the Asia-Pacific region will account for 33% of worldwide demand for food safety products by 2014 – compared to 30% last year.
North America will account for 27% of global sales at USD$3.6 billion, with Western European demand reaching $3.3 billion. Other regions – including South America – will see an increase in demand of 9.4% per year to just over $2 billion by 2014.
Disinfection products will continue to account for the bulk of food safety product demands due to a rising number of reported foodborne outbreaks, said the research.
A trend towards more expensive rapid diagnostic tests is set to be the major spur for food safety diagnostic product demand. Stricter food inspection regimes – both in developed countries and in countries with large, export-oriented food industries, such as China - will also boost demand for diagnostic products.
Methods that deliver product traceability, such as smart labels and tags, software and tracking systems, will also see a hike in demand, albeit from small bases, the report said. – Source: FoodProductionDaily.com