Northbrook, IL -- (SBWIRE) -- 01/21/2022 -- The global food extrusion market is estimated to be valued at USD 73.1 billion in 2021. It is projected to reach USD 99.7 billion by 2026, recording a CAGR of 6.4% during the forecast period. Innovative and flexibly designed processing and packaging systems are the prerequisites for manufacturers to keep pace with the trends in the food industry that may arise from operation cost and consumer spending. Advanced automated food processing equipment enables high-volume production of better-quality products with a longer shelf life.

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Drivers: Increase in demand for processed product types

The food extrusion market is primarily driven by the growth of the processed food industry. The changing lifestyles and high disposable incomes of the population have led to an increased demand for ready-to-eat product types as they help save time and effort. Additionally, the demand for processed product types from the urban population of developing economies is expected to subsequently drive the demand for food extrusion equipment. The rising per capita income and the increasing trend of snacking between meals are also fueling the demand for extruded product types. Consumer preferences in emerging economies such as China, India, Brazil, and the Middle East have gradually transitioned from traditional homemade breakfasts and snacking meals to ready-to-eat products over the last couple of decades.

Restraints: Volatility of raw material prices

Changes in climatic conditions across the globe have reduced the production of raw materials, such as potatoes, corn, and tapioca. Snack pellet manufacturers suffer a shortage of raw material supply and are unable to meet the rising demand. Due to the volatility factor, the prices of other raw materials, such as wheat and vegetable oil, vary by more than 40%, along with the fluctuation of natural gas by more than 25%. In addition to this, the high price of snack pellet ingredients, such as binding agents and savory flavors, also act as a restraint. Due to a hike in the pricing of raw materials used for snack pellets, manufacturers are experiencing a declining trend in their profit margins.

Opportunities: New product developments and launches of extruded product types

Over the past few years, the processed food industry has witnessed several activities—the emergence of new players, the expansion of snacks portfolio through continuous product innovation, aggressive marketing campaigns to establish a supplier-consumer relationship, and a shift in consumption patterns with the increasing demand for convenience foods. With the increase in disposable incomes, the demand for branded snacks is expected to increase. Additionally, the rising health consciousness owing to sedentary lifestyles and the increasing incidences of lifestyle diseases in developed and developing countries have resulted in the demand for "healthy" snacks. This demand is only expected to increase in the future and presents lucrative opportunities for both existing as well as new players.

Challenges: Operational complexity during food processing

The viscosity, screw speed, temperature, and pressure, along with the complexity of the mathematical descriptions of the process are closely interrelated. These dynamics present a challenge for accurate dynamic modeling of the extrusion process. Also, there are several load variables for viscosity regulations, depending on the choice of the manipulation variable, which may present disturbances. Also, extra caution needs to be taken while processing functional products as there may be a loss of nutrients in the ingredients during processing.

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The key service providers in this market include Bühler (Switzerland), Akron Tool & Die (US), Baker Perkins (UK), Coperion (Germany), GEA (Germany), KAHL Group (Germany), Triott Group (Netherlands), Flexicon (US), Groupe Legris Industries (Belgium), The Bonnot Company (US), American Extrusion International (US), Shandong Light M&E Co., Ltd (China), Snactek (India), Doering systems, inc. (US), PacMoore (US), Egan Food Technologies (US), Schaaf Technologie GmbH (Germany), Wenger Manufacturing, Inc. (US), Brabender GmbH & Co. KG (Germany), and Jinan Darin Machinery Co., Ltd., (China).

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