Demand for Beverage Processing Equipment Faltered During COVID-19 Pandemic; Supply Chain Disruptions to Prevail Through 2020 End, Projects FMI

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.

Download
Sample Copy with Table of Contents
: https://www.futuremarketinsights.com/reports/sample/rep-gb-2951

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

FMI Blog

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