Developing markets to fuel demand hike for food safety products

The industry research by The Freedonia Group, predicts that that growth in demand for food safety outputs, such as disinfection and diagnostic products, smart labels and tags, and software and tracking systems, will rise by 8.1 per cent annually over the next four years.

The US-based analysts said the tightening global regulation of food products and a further focus on implementing safety systems would continue in the wake of recent high profile contamination incidents. Increases in food and beverage processing activity across the globe would also have a positive effect it added.

Emerging markets​

The most rapid gains are expected to occur in developing markets – with expansion in Asia, the Africa and Middle East region, Eastern Europe, and Central and South America all likely to outpace the global average.

“Industrialisation trends and increases in living standards will fuel demand for food safety products in these regions,”​ said Freedonia.

The Asia-Pacific region is forecast to lead growth by accounting for 40 per cent of aggregate market gains between 2009-2014. The market here is predicted to jump from $2.7bn in 2009 to $4.5bn by the end of the review period – with much of this growth spurred by internal and external demands for greater security in the China.

“China will continue to see some of the fastest demand growth, due to mounting pressure on the part of consumers, producers and regulators to ensure the safety of the food supply,” ​said Freedonia.

The report predicts the Asia-Pacific region will account for 33 per cent of worldwide demand for food safety products by 2014 – compared to 30 per cent last year. North America will account for 27 per cent of global sales at $3.6bn, with Western European demand reaching $3.3bn. So-called other regions – including South America – will see an increase in demand of 9.4 per cent per year to just over $2bn by 2014.

Product demand​

Disinfection products will continue to account for the bulk of food safety product demands, said the research.

“While demand for disinfectants is relatively mature, the rising number of reported foodborne outbreaks and food product recalls will support sales going forward”,​ said the industry group.

A trend towards more expensive rapid diagnostic tests is set to be the major spur for food safety diagnostic product demand. Stricter food inspection regimes – both in developed countries and in countries with large, export-oriented food industries, such as China - will also boost demand for diagnostic products.

Methods that deliver product traceability, such as smart labels and tags, software and tracking systems, will also see a hike in demand, albeit from small bases, said the group.

World Food Safety Products is available from the Freedonia Group priced $5,800​