The prosperous bakery industry is giving a push to the equipment industry. However, the growth will be defined by a few types of equipment and will operate on terms of efficiency and cost-reduction in production, MarketsandMarkets said.
“New technologies, such as automated spray systems, intelligent heat control systems, infrared ovens and reflected coatings, etc., are expected to drive the market,” analyst Kirti Bansod told BakeryandSnacks.
Higher than expected
MarketsandMarkets predicted the bakery process equipment market will grow at an annual rate of 7.3%, which is “a little higher” than expected.
“The equipment business involves a slow return on investment process. Sales contracts are few in numbers and demand was quite low in the past,” Bansod explained.
However, equipment manufacturers seemed to thrive well in the review period and took crucial strategic business decisions to expand their businesses, she added.
“This was mainly due to increasing demands for newer equipment from the bakery industry,” Bansod said.
“The introduction of new bakery products, growing demand for frozen bakery products, automation and robotics in production are the primary factors driving the growth of bakery processing equipment.”
Several food giants have been scaling up their frozen bakery portfolio in the past year, including Nestlé and Hostess, BakeryandSnacks previously reported.
Hostess extended into the frozen food market for the first time with deep fried Twinkies last summer, not long before partnering with Nestlé earlier this year to launch new ice cream flavors that feature Twinkies, mini muffins and Sno Balls.
Sheeters and molders
Sheeters and molders posted the highest growth among all bakery processing equipment, the report showed.
Sheeters and molders are used to prepare bakery products of varied shape, size and style. A dough sheeter increases the baker’s efficiency and consistency by flattening dough into very thin crusts, while bakery molders form or mold dough into the desired shape and size, Bansod said.
“Sheeters and molders are the equipment of the modern bakery industry. Their high growth rate is a consequence of their increasing demands from bakery products manufacturers all around the globe.
“Small-scale players have adopted new product development strategy for sheeters and molders to expand their businesses globally, by investing in the development of R&D sectors to create new products,” she added.
Bakery equipment manufacturers who actively participated with investment and in NPD include MONO Equipment from the UK, Reading Thermal and Belshaw Admatic from the US, and COMAS SPA from Italy, according to MarketsandMarkets.
Bansod said 90% of the overall strategic developments of bakery processing machinery took place in the developed markets. But, by 2020, 50% of the overall investments are projected towards those developing markets.
The US, in particular, recorded high utilization of bakery processing equipment in 2014, especially ovens and proofers, followed by mixers, the report showed.
The US market is projected to witness a competitive growth of 9.2% from 2015 to 2020, Bansod said.
She also noted US manufacturers face cost-based competition from the Chinese manufacturers, as they are offering low-cost machinery to neighboring markets.
“The US counterparts benefitted from the quality of their products,” Bansod said.
“Cost-cutting is still an issue. Major steps have to be taken to understand the supply chain, and methods to reduce costs from every possible angle should be reinforced to bring products into a cost-effective category.”