This study analyzes the US food safety product industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product type (e.g., disinfection, diagnostic, smart labels and tags, software and tracking systems) and market (e.g., food processing plants, foodservice establishments, farms).The study also considers market environment factors, details industry structure, evaluates company market share and profiles industry players.
US demand to reach $4.6 billion in 2016
US demand for food safety products is forecast to reach $4.5 billion in 2016. Solid gains will be the result of increased public awareness, the enactment of more stringent government regulations, and industry initiatives that will provide a strong impetus for companies to improve their food safety practices. Additionally, growth will be driven by challenges arising from the increasingly global nature of the food supply, which adds complexity and the potential for the introduction of new pathogens from different regions.
Smart labels, tags to be fastest growing products
While healthy growth is projected in all segments, smart labels and tags are expected to experience the fastest gains. Demand for smart labels and tags will be boosted by increased emphasis on traceability in the food supply chain and expanded adoption of newer smart label technology in food packaging to reduce losses in perishable foods. Opportunities will also exist in the livestock market as large cattle and pig farms seek ways to speed animal transfer and processing at feed lots and slaughterhouses and to improve the traceability of animals to their point of origin. The latter is crucial in the event of animal disease outbreaks. While demand for barcode labels and tags will lag the segment average due to market maturity, the implementation of standardized barcodes in the produce industry for improved traceability will stimulate gains.
Diagnostic products will post above average growth, benefiting from increased government testing requirements along with heightened emphasis on testing for possible contamination following recent high profile recalls due to outbreaks of foodborne illness. Also driving growth for food safety diagnostic testing will be the continued migration toward rapid diagnostic tests, which are more expensive.
Food processing plants to remain dominant market
Food processing plants represent by far the largest market for food safety products, accounting for 60 percent of the total in 2011. Overall demand growth in this market is expected to be in line with the industry average, reflecting the continued industry focus on food safety as a primary concern. While all submarkets will log healthy gains, the fastest growth is expected in the seafood, fresh prepared food, and beverage segments. Additional market-specific factors will propel demand in various submarkets. For instance, trends toward convenienceoriented refrigerated food options will support rapid gains in fresh prepared food applications.
Foodservice establishments will continue to represent a sizeable market for food safety products. Advances will be fueled by accelerated growth in foodservice revenues following weaker performance in the recession-impacted 2006-2011 period. Gains will also reflect the general importance of sanitation and testing for the prevention of cross-contamination and foodborne illnesses. Through 2016, the farm market will be the fastest growing application for food safety products. Crop and produce uses will outpace those of livestock due to increased pathogen testing of produce at the farm level, and continued testing for the presence of GMOs at grain elevators. Robust growth is anticipated for smart labels and tags, and software and tracking systems used to comply with produce traceability mandates.
Profiles 34 industry competitors such as Dana, Freudenberg, Henniges Automotive, John Crane, Parker-Hannifin and SKF
This study analyzes the US market for food safety products. The topic is evaluated from the standpoint of product type (e.g., disinfection products, diagnostic products, disposable gloves, smart labels and tags, and software and tracking systems) and market application (e.g., food processing plants; foodservice establishments; farms; retail, wholesale and distribution operations; and the government). Disinfection products include disinfectants and sanitizers, as well as disinfection equipment. Diagnostic products include test kits and reagents, as well as sensors and detectors, but not analytical instruments. Disposable gloves include plastic and rubber types. Smart label and tag demand is restricted to the labels and tags only; printing equipment and readers are not included. Likewise, software demand does not include computer equipment or other data input and output devices. Other products such as food additives and preservatives, hand soap, dish detergent, general purpose cleaners, dishwashing equipment, refrigeration equipment, color coded utensils, and storage containers have all been excluded to better focus on the food safety products being covered.
For the purposes of this study, food safety product demand arising from milk and dairy product processing done on the farm is counted in the farm market. Similarly, testing done at grain silos has been counted at the farm level, rather than in distribution. In the foodservice market, disinfection equipment such as ovens and dishwashers are not included as they are considered integral to the business even from a non-food safety standpoint. The same is true of hand soap and dishwashing detergents.
The study places the food safety product market in the context of the overall US economy through an in-depth overview of market environment conditions. In addition to providing economic background, the market environment section examines the regulatory environment and discusses foodrelated illness trends within the US population. A section is devoted to providing a technology overview in food safety products. Finally, the study is concluded with an analysis of the industry structure, followed by profiles of representative companies within the industry.
Historical demand data for 2001, 2006, and 2011 and forecasts to 2016 and 2021 are presented in current dollars. The term “demand” -- used interchangeably with “market,” “sales” and “consumption” -- is defined as all shipments from US plants plus imports minus exports. Tabular details may not add to totals due to independent rounding, and some ratios are based on unrounded numbers. Throughout the study, demand for food safety products is related to various indicators for comparative purposes and to facilitate further analysis. Macroeconomic and demographic indicators in this study were obtained from The Freedonia Group Consensus Forecasts dated April 2012. Because of the Bureau of Economic Analysis’ use of chain-weighted price indexes, inflation-adjusted Gross Domestic Product components (2005 dollars) do not necessarily add to the total.
Information and data on food safety products were obtained from several primary and secondary sources, including government publications, industry participants, and online databases. Historical data are based upon the US Bureau of the Census figures, including the Annual Survey of Manufactures and other statistical series. These and supporting data were adjusted as necessary in light of consultation with personnel of participating companies and other industry contacts. Secondary data and background information were obtained from various trade publications, such as Dairy Foods, Food & Beverage Packaging, Food Engineering, Food Processing, Food Quality, Food Technology, The Packer, Prepared Foods, RFID Journal, and Supermarket News. Corporate annual reports, SEC Form 10-K filings, product catalogs, and other company-provided information were used extensively in framing the industry environment and as input for market size assessment.