Industrial equipment, industrial bakery equipment and industrial filtrating equipment are all growing in importance in the global food and beverage sector, according to a new report.
Food manufacturing, which includes bread making, flour and milk production, has been in a steady decline for years, according the latest report from the Food and Agriculture Organization of the United Nations.
The report is titled The Future of Food Manufacturing and is based on the latest data available from the UN Food and Agricultural Organization.
According to the report, the global economy is experiencing a severe economic slowdown, with the unemployment rate rising to 8.7% and the population of people living in poverty rising by more than a third in the past five years.
The world is witnessing an alarming shift towards a food system in which large numbers of people are living in abject poverty, with many countries seeing a rise in hunger and malnutrition, the report said.
While the global manufacturing sector grew at an annual rate of 3.5% in 2016, the sector is expected to grow by 1.9% in 2017 and by 3.6% in 2018, according a recent report from Nomura.
Food and beverage, however, is expected be the most important industry in the next 10 years, with a growth rate of 15% to 30% by 2025.
The biggest winners are those that have been developing a unique industrial manufacturing approach to the production of foodstuffs, according Dr. Ramesh Agarwal, senior research fellow at the World Food Programme.
Agarwal told AFP news agency that the focus on industrial production has resulted in significant advances in the industry, including advances in automation and advanced materials, including plastic, that are helping to create a new era of manufacturing.
However, there are still major challenges ahead.
While there is growing interest in food manufacturing, there is a lack of information about what makes up the sector, he said.
“Foodstuffs are being made in a lot of different places, in a number of different ways, and we are not talking about just bread or flour, but all sorts of products,” Agarwa said.
The number of manufacturing jobs worldwide will be almost 8 billion by 2025, but according to Agarwals data, it is expected that about 1.5 billion will be held by small and medium enterprises, or SMEs.
The largest companies, such as Nestle, PepsiCo, Nestle India and the Mondelez Companies, together account for about 40% of the global production of packaged food products, and a whopping 70% of global food-related trade, according an estimate from the International Monetary Fund.
The sector has also witnessed growth in its value added services sector, which is a key source of revenue for many SMEs and the sector has been witnessing a significant growth rate in the last decade, Agarwi said.
But there is still a long way to go to meet the challenges that are expected in the sector.
The average growth rate over the past 10 years in the value added service sector has slowed to 2.2%, and the average growth in the production sector has dropped to 2%.
“The trend is negative, and the problem is that we have a lack, a lot is being lost,” Agmarwal said.