The global food testing and certification market value was worth USD 20,505.37 million in 2019 and is estimated to reach USD YY million by 2027, growing at a CAGR of 7.22% during the forecast period (2020-2027).
Food safety is a cumulative effort involving various institutions such as regulatory bodies, industries, food testing labs and institutions and enforcement. The food testing and certification market is driven by an increased number of foodborne illnesses which created consumer awareness regarding the safety aspects of food products. The stringent regulatory requirements which create pressure on food companies to ensure safety of food products through testing and certifications have also provided a major boost to the growth of the market. Unsafe food caused 600 million foodborne illness and 420,000 deaths each year as per WHO. About 1 in 10 million people in the world fall ill after consuming contaminated food. Children under 5 years of age carry 40% of the foodborne disease burden, with 125 000 deaths every year.
Bacteria such as Listeria, or E. coli among others, Viruses like norovirus or hepatitis A and parasites are the major cause of foodborne illness globally. As per the Centers for Disease Control and Prevention (CDC) estimates there are about 48 million cases of foodborne illness every year in the US. Increased consumer interest in food safety and quality issues, and the capability to rapidly share these issues through social media, combined with expanding regulatory resourcefulness, such as the Food Safety Modernization Act (FSMA), are enhancing the prominence of testing.
Moreover, food certifications will continue to gain traction as a necessity, with dynamic business models, frequently evolving legislation and regulatory standards, and globalization of the food sector.
A large number of companies operating in the food processing sector are adopting food certification methods with an aim to garner consumer trust in terms of quality and safety. As the entire food certification process covers safety of all parameters from production, packaging, storage, and distribution, industry stakeholders are developing indulging more in presenting certified food products to appeal to target customers.
Market Dynamics
Drivers
- Increasing demand for food testing safety compliance due to growing food-borne disease and food adulteration scandals
- Technological changes along with the application of new technology in the food safety category
Restraints
- Low awareness of the importance of food safety hinders market growth.
Market Opportunities
- Increasing digitization
- Regulations on GMO’s
Increasing digitization
- The growing digitization of goods and services is highly substantial for food TIC players because not only does it changing existing TIC services and processes, it also directs to new market opportunities.
- Some of the cutting-edge technologies such as automated systems, drones and integrated sensors are starting to substitute physical inspection, which is labor-intensive and subjected to human error, which creates more opportunities for new entrants.
- Three technologies: automation, computer simulation and blockchain, are creating new possibilities of making the food TIC processes more efficient and productive.
- According to A Siemens Healthineers survey, automation decrease turnaround times by approximately 40%-45% by replacing manual labor in processes such as sorting and transporting to re-routing and diluting.
- It is expected that the level of lab automation to increase as major enterprises, both TIC and instrumentation players, will compete in terms of differentiation through cost advantages, increased accuracy or speed and by robotics technology.
- Food safety testing for genetically modified organisms (GMOs) is projected to witness high growth rate during the forecast period.
- Changing government regulations on GMO labeling will boost the industry growth. Around 175 million hectares of genetically modified crops are grown in more than 25 countries.
- Developing regulations on GMO’s, requiring manufacturers to disclose the GMO’s in their products, will create new growth opportunities over the forecast timeframe.
Competitive Landscape
Global food testing and certification market is highly competitive and consists of several global players. Although the market is fragmented, the market is dominated by companies such as SGS, Bureau Veritas, Hill Laboratories, AsureQuality and Intertek. Enterprises across industries, like food, utilities, and the public sector, are still dependent on in-house testing and certification services. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.
Most of these companies are focusing towards acquisition of new testing facilities and companies to widen their range of services. Several global players have acquired or partnered with testing companies to hold foothold in the high growth testing and certification market
For instance, in January 2021, Bureau Veritas announced the acquisition of Orion Assessment Services International Inc.'s Canadian food auditing business based in Toronto, ON. Orion delivers best-in-class food certification services to food manufacturers across Canada.
In November 2019, SGS opened its new ISO 17025-accredited laboratory in Fairfield, New Jersey USA - providing a broad spectrum of microbiological testing services across every food category. Located just 30 miles west of New York City, investment into the 2,000 sq. ft. food testing laboratory will enable SGS to meet the growing demand for food testing services from the region's food producers, manufacturers and suppliers.
In July 2018, Eurofins Scientific acquired Laboratoire de Bromatologie de l’Ouest, a specialist player in microbiological and physicochemical analyses of food products in France.
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