Following the coronavirus outbreak in the first quarter of 2020, online sales of fresh fruit and alcoholic beverages are witnessing growth. On the other hand, offline sales are witnessing a steady decline, with evolving consumer behavior, shifting towards maintaining safety and hygiene. Alcoholic beverages are not likely to witness substantial changes, particularly in the low to mid-level range, which is expected to sustain sales in the beverage processing equipment market.
The global beverage processing equipment market has reached a value of US$ 17.5 Bn in 2019, according to a recent report released by Future Market Insights (FMI). The market is forecasted to display a promising CAGR through 2029, manufacturers are expected to face moderate disruptions during 2020 in terms of reduced retail sales and consumption of processed beverages. The nationwide lockdowns and the resultant disruptions in supply chains are expected to hamper the beverage processing equipment market for the short term, states the FMI study.
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Brewery Equipment in Demand; Heat Exchangers Play Catch up
The beverage processing equipment market is witnessing a substantial increase in the demand for fortified beverages. Demand is fairly driven by increases in per capita expenditure, consumer bias towards low-calorie beverages, and rising concerns over safety standards. The brewery equipment segment is likely to hold a major market share through the COVID-19 crisis, while heat exchangers for carbonated drinks is expected to gain momentum post the coronavirus crises. Consequently, manufacturers seek to boost production speeds, and drink quality in compliance with government safety regulations.
“The number of new contracts in the global beverage production sector is declining steadily as the industry continues to struggle with changes in channels of consumption, owing to COVID-19. Further, foreign direct investment levels also continue to fall around in all beverage sectors, cutting into the adoption rate for beverage processing equipment,” says the FMI analyst.
Sales in Asia Pacific Buoyant by Demographic Changes in India and China
The Asia Pacific region continues to provide highly lucrative opportunities for companies working in the beverage processing equipment market. Rapid population growth supported with urbanization and changes in living standards are key contributors, especially in India and China. Favorable government policies towards the growth of small and medium enterprises in the beverage sector is expected to contribute.
China has been the epicenter of the coronavirus outbreak, which has impacted supply chains and the economy in unprecedented ways. Investors have become very hesitant to invest in the region, causing substantial fluctuations in stock markets. The outbreak has also wreaked havoc in supply chains for the regional beverage industry. In light of these events, companies in the beverage processing equipment sector have to take up measures to mitigate operational interruptions.
The FMI study offers near and long-term growth outlook of the beverage processing equipment market. Gain access to FMI’s exclusive COVID-19 tracker here.
Source: Future Market Insights