The covid 19 pandemic has further underlined the impact of safety for the food market. The market value goes hand in hand and is expected to grow to $28.6 billion by 2026 at a CAGR of 7,9%
The importance of food safety
Food safety has become a key topic in the food industry. Many companies, government agencies and regulatory bodies have started to pay more attention to the safety of what they produce, including using new, more modern and reliable inspection systems and investing in upgrading their production line.
This trend has also been accelerated by the covid 19 pandemic, which has led most consumers to raise their guard and change their purchasing behaviour in preference to better quality products.
According to a survey conducted in the US in the aftermath of the health emergency that hit the world in 2020, 62% of consumers say that the use of new technology can help keep food safe, 51% no longer buy products from companies that do not decide to equip themselves with the latest food safety technology.
These figures also highlight the value of the damage that a recall can do to companies. The average cost for a food recall for a food company is nearly $10 milion. In addition to the economic resources wasted on logistics to recall products, there is also the lost revenue from lost customers.
Finally, product recalls also affect the environment and the ecosystem. The FAO calculates that 17% of all food globally is discarded by restaurateurs and consumers, 11% of which by households. A huge figure considering the resources used to produce the food and bring it to each person’s table. To give an example, for a single discarded can of tomato, 225 litres of water are wasted.
The Food Safety market value
Given all these factors, it is understandable that food safety is becoming increasingly important. In this regard, a market research study entitled ‘Food Safety Testing Market’ calculated the market value of the food safety and quality testing industry and estimated its growth between now and 2026.
It is estimated to be worth around 19.5 billion in 2021, and with an annual growth rate of 7%, it is projected to reach a value of $28.6 billion by 2026.
The food industry is complex, very dynamic and constantly evolving with the pace of growth of the world’s population and its needs. According to the FAO, world production will have to increase by 70% by 2050 to keep up with the steady rise in demand.
The challenge for food companies is to be able to provide all their customers with products that meet ever-increasing safety and quality standards.
The largest markets
This economic as well as industrial and production growth, again according to MarketsAndMarkets’ market research, will particularly affect the meat, poultry, seafood sectors, which will become increasingly important in the consumption of the European population in the coming years. Processed food is also expected to become the second largest segment worldwide.
The geographical area driving the growth in value of the food inspection sector will be Europe with the UK, France, Germany, Italy and Spain contributing the most. The leading food companies all come from these countries and in addition Holland and Denmark are important markets for raw materials.
Final Remarks
Despite the current macroeconomic situation that threatens to hit consumption and that will push many companies to postpone investments to more favourable times, food safety and quality still remain the focus of many companies. The growing awareness also among end-consumers means that manufacturers who want to offer safe and quality products at all times have to rethink the design and modernisation of every production plant with this objective in mind.
The continuous growth in market value and investment in this field of application is proof of this. Intercepting possible contamination upstream of production on the bulk product or raw material directly at the production line enables a significant reduction in costs, resources and production time. Xnext, with its XSpectra the most advanced inspection technology, provides an inspection system capable of guaranteeing the highest level of food safety currently on the market.
Sources
For more on the topic of the food safety market, these links may be useful:
