The Dairy Processing Equipment Market has a Promising Growth Potential in Coming Years

The report "Dairy Processing Equipment Market by type (Pasteurizers, Homogenizers, Mixers & Blenders, Separators, Evaporators & Dryers, Membrane Filtration Equipment), Operation (Automatic and Semi-Automatic), Application, and Region - Global Forecast To 2025" The global dairy processing equipment market size estimated at USD 9.2 billion in 2020 and is projected to grow at a CAGR of 5.4% to reach USD 12.0 billion by 2025. The market has a promising growth potential due to several factors, including the rising production and consumption of milk and other dairy products along with increased automation in dairy product manufacturing.

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Technological advancements and significantly high consumption of dairy products have been the major factors that have driven the growth of the global dairy processing equipment market in North America. Additionally, the demand for milk, cream, cheese, milk powder, and yogurt have further contributed to the growth of the dairy processing equipment market. According to International Dairy Federation, dairy processing equipment and other related industries have witnessed significant impact of the COVID-19 pandemic. The logistics and supply-chain for dairy equipment market have been disrupted due to the complete shutdown of national as well as international borders. The companies are usually involved in procuring steel as raw materials from Germany, India, and Japan. The non-availability of raw material is another factor which has significantly impacted the production of dairy processing equipment market.

The impact of COVID-19 varies among different segments of dairy processing equipment. In the months of March-April, supermarkets witnessed a surge in purchase of groceries, probably more of processed milk and other dairy products such as cheese, butter, and yogurt as they are essential commodities. Milk and other dairy products are consumed globally by people of every age group starting from infant to adults. However, post the second week of March, the shutdown and industry closures impacted the production of processed milk as well as other fresh dairy products. Factors such as non-availability of raw materials, in this case raw milk; migration of seasonal workers, and rapidly increasing instances of COVID-19 pandemic are some of the important factors to disrupt the production of processed milk and fresh dairy products. According to Wisconsin Dairy Alliance, dairy farmers are dumping milk into drains and fields, as they are not able to transport milk to processing plants due to limited inter-state transportation access, and also to retailers, as the customers have access to only limited quantity of dairy products.

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The increasing food safety concerns among consumers are leading to an increase in the demand for processed milk

Processed milk, commonly known as pasteurized milk, is heated to a minimum of 161°F for a minimum of 15 seconds or 145°F for 30 minutes to remove the presence of pathogens. The same is packaged under clean and sanitized conditions. Ultra-pasteurized milk is another form of processed milk. In this type of pasteurization, the milk is heated to a minimum of 280°F for a short time of 2 seconds. This milk is then packaged under near-sterile conditions, which make it impossible for spoilage bacteria to contaminate the milk again. Both these types of milk require refrigeration

The rising concern regarding safe dairy products has increased the demand for pasteurizers during the forecast period.

The increasing concern regarding safety of dairy-based products, especially due to the current pandemic situation of COVID-19 has increased the demand for pasteurizers in the market. Pasteurizers are used to kill the pathogens by giving heat and cold treatment simultaneously.Variuos types of pasteurizers available are batch pasteurizers,high-tempertaure short time pasteurizers, and ultra-high temperature pasteurizers.

With the rising export of dairy-based products, Europe is estimated to be the second largest market during the forecast period.

The European region accounted for the significant share of the dairy processing equipment market and was estimated to be USD 2,527.2 million in 2020. The region exports its dairy products to most regions of the world. Europe has granted reduced tariff preferences to a reasonable number of countries and currently, only a few match EU standards with regard to dairy product quality. According to the Organization for Economic Co-operation and Development (OECD), Germany was accounted as the largest producer of milk in the EU in 2017. The logistics industry plays an important role in the German dairy sector in procuring the raw milk from the farm, supplying the processed milk and products to processors of consumer products, and reaching the retailers or distributors. According to the Global Dairy Trade Portal, cheese was the main export product of the German dairy industry in 2016 and 2017.

The key players in this market include GEA Group (Germany), SPX FLOW, Inc (US), Krones AG (Germany), Tetra Laval International S.A. (Switzerland), Alfa Laval Corporate AB (Sweden), John Bean Technologies Corporation (JBT) Corporation (US), IMA Industria Macchine Automatiche SPA (Italy), IDMC Limited (India), Feldmeier Equipment, Inc. (US), Scherjon Dairy Equipment Holland B.V. (Netherlands), Coperion GmbH (Germany), and Van Den Heuvel Dairy & Food Equipment B.V. (Netherlands).

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