Powder Processing Equipment Market

The growth of the global powder processing equipment market is driven by various factors such as the growing food & beverage industry and the need for improved productivity and efficiency in manufacturing industries. However, the growth of the market can be hindered by the increasing raw material prices.

The rapid increase in population, urbanization, and changing lifestyles have resulted in an increased demand for powdered food and nutritional products. A rise in the per capita disposable income has led to increased spending on dietary food supplements, nutraceuticals, and other premium healthcare and food products by individuals in developed countries. The increasing population, growth in demand for dairy products, and rising health consciousness have led to increased consumption of food products, which is expected to lead to market growth. According to FoodDrinkEurope, in 2018, the turnovers of food and drinks in Europe were valued at USD 1.24 trillion and USD 260 billion, respectively, which makes them the largest manufacturing industries in the EU. Additionally, the food industry in developing countries is growing rapidly. For instance, according to the India Brand Equity Foundation (IBEF), in 2016, the fast-moving consumer goods (FMCG) sector in India generated USD 49 billion in revenue. The growth is primarily driven by liberalized foreign direct investment (FDI) policies, strong macro-economic indicators, and economic and industrial reforms, resulting in the development of the food production and processing industries in the country.

A majority of the FMCGs are primarily comprised of food and beverage products, including banana powder, fruit powder, vegetable powders, powder of coffee, tea, sugar, and beans. The increasing demand for nutritional products and health supplements further boosts the demand for powder processing equipment in the global market. Thus, the growing food & beverage industry is expected to drive the growth of the global powder processing equipment market.

The food & beverage and retail industries in both developed and developing countries are growing steadily. The rising demand for retail products such as biscuits, chips, chocolate products, and other processing food products is leading to an increased demand for food processing equipment. Thus, the impact of the growing food & beverage industry on the global powder processing equipment market is expected to shift from moderate to high over the forecast period.

1.1.1 North America

North America is a major manufacturer of food products which includes cookies, cakes, milk powder, nutritional products, ginger powder, and other products. Furthermore, growing demand for coconut-based products and beverages and growing demand for coconut milk powder, and growing adoption of processed chocolate products, milkshakes, and jams are further expected to drive the growth of powder processing equipment market in the region.

The growing pharmaceutical industry in the region coupled with growing demand for pills, tablets, capsules, vials, ointments, and powders is further expected to result in the rise in demand for powder processing equipment in the pharma sector in this region.

According to US Trade Administration, various pharmaceutical and generic drug manufacturers are focusing on high volumes to earn profits, requiring efficient production methods and distribution chains. According to Metal Powder Industries Federation, the iron powder shipments in 2018 were increased by 25.81% from 2010.

1.1.2 Europe:

Europe is one of the largest food processing regions due to growing demand for packaged food and ready-to-eat products. According to European Association of the Machine Tool Industries imports of food processing equipment parts increased by 4% per year on average between 2011‑2015 to €1.9 billion in 2015. Furthermore, growing research and development by manufacturers, growing demand for advancement in equipment technology and increase in demand for energy efficient equipment increases the demand for powder processing equipment in Europe.

Growing adoption of automation, growing development in production technology, and increase in demand from end user industries is further expected to drive the demand for powder processing equipment in the region. There is also a significant level of domestic demand for bakery products, coffee, tea, spices and ready meals. The rising global meat consumption also aids demand. Germany’s abundant farmland makes it a prime location for investment. According to the German Mechanical Engineering Industry Association (VDMA), the industrial automation solutions turnover in Germany for 2017 was nearly USD 8.0 billion (EUR 7.2 billion).

The UK is home to many multinational food and drink producers. The UK has over 7,000 food and drink manufacturing companies. Furthermore, the European Additive Manufacturing Group focuses on additive manufacturing technology, with a special focus on metal powder-based products through conducting research programmes, workshops, benchmarking and exchange of knowledge.

1.1.3 Asia-Pacific:

The rise in the industrial hubs coupled with growing FDI in all major manufacturing and construction sectors in major emerging economies, such as China, India, Brazil, and South-East Asian countries, is expected to raise the demand for powder processing equipment in manufacturing sectors during the forecast period. Emerging economies are focusing on various foreign developers who intend to set up their businesses through FDI incentive schemes. This will indirectly boost the economy of the countries by enhancing industrialization and driving the growth of the manufacturing sector. For example, Greenfield FDI inflows to Asia-Pacific in 2016 was USD 395 billion, which was an increase by 11.7% from the previous year. Furthermore, these countries have evolved and restructured their manufacturing policies and procedures to attract investments and enable growth. Industrialization will certainly boost the powder processing processes to ease operations and improve the efficiency of production.

The growing advancement in powder processing equipment such as ribbon blenders, High-shear mixers, particle production, mechano chemical bonding, nanogrinding, wet milling, dry processing, air classification further expected to grow the demand for advanced powder processing equipment.

Construction, food & beverage, and pharmaceutical sectors have had major contributions in the global powder processing equipment market. Economic development across major countries is usually attributed to the significant industrial growth, which is due to the rise in demand from the end users. Moreover, China, Japan, and India along with South-East Asian countries are anticipated to witness high growth due to the rapid expansion in the manufacturing base and the increasing investment in powder processing equipment.

The raw materials required for manufacturing powder processing equipment are mild steel, carbon steel, high-speed steel (HSS), high tensile steel, aluminum, cast iron, rubber, and plastic, among other materials. The prices of these raw materials are increasing due to the depleting resources and the high demand from end-use industries. According to the World Bank, in 2018, globally, the prices of metals increased by 8.57% compared to the previous year. Furthermore, continually changing trade policies further creates market uncertainties and disrupts the supply chain, increasing price increments. Thus, increasing raw material prices is expected to restrain the growth of the global powder processing equipment market during the forecast period.

However, the powder processing equipment manufacturers are continually working on reducing the prices of powder processing equipment by developing cost-effective raw material substitutes and extraction methods. Thus, the impact of the increasing raw material prices on the global powder processing equipment market is expected to remain moderate during the forecast period.

Several enterprises, including small and medium enterprises (SMEs), are adopting powder processing equipment to enhance productivity. The design, fabrication, installation, and maintenance of powder processing equipment involve high capital expenditure. These equipment systems are comprised of software and hardware systems whose installation requires qualified and experienced automation engineers.

Powder processing equipment need to be maintained and serviced at regular intervals. The maintenance and replacement of spare parts and components such as rollers, sliders, mixers, air slides, and other related parts involve high expenses.

Business owners or managers have to consider all these factors before adopting powder processing equipment in their manufacturing plants. The development of powder processing equipment and components with longer lifespans and the cost-effective solutions offered by various intermediaries and solutions providers are expected to decrease the need for high capital investments in the global powder processing equipment market.