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Beverage processing machinery market deep dive

PMMI Business Intelligence dives deep with a look at the second largest market segment, beverage processing.

Beverage Processing Machinery
Beverage Processing Machinery

The value of the beverage machinery market is estimated to have been $0.8 billion in 2016 in the United States; IHS Markit forecasts it to grow with 4.2% CAGR from 2016 to 2021. The market for beverage processing machinery is driven by factors such as emergence of new technologies to increase productivity, upgrades of equipment and machinery, and increasing demand for fortified drinks.

With the increasing demand for health and wellness products, sales for traditional drinks have declined over the past few years and growth for organic and natural refreshment beverages have started to increase. Innovative and unique packaging design has also helped in the growth rate.

The US beverage processing market is witnessing strong growth in fortified drinks, resulting in an increase in demand for filtration machineries, as this equipment is required during the production of beverages such as soft drinks, beer, and juices for filtering and separation processing.

Demand for filtration machinery, shift towards alternative beverage products, changing customer preferences for healthier drinks; and the demand for non-carbonated beverages such as juices, sport drinks, and energy drinks are increasing at a higher pace due to health awareness, as these non-carbonated beverages contain few calories.

With the recent decline in growth rate for carbonated soft drinks and refrigerated juices, beverage processors have had to be inventive in order to encourage consumer spending in the country by investing in innovative product packaging designs. This has increased sales for more traditional beverage processing machineries. For instance, reducing the size of cans from 12-oz to 8-oz and selling it as a premium per-ounce rate coupled with consumers’ preference for smaller-sized cans has increased spending in this area.

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