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Wednesday, 10 October 2018

Food Borne Diseases Lead to Demand in Food Certification Market

Competition is heating up in the global food certification market with more players entering the domain. This is because of the increasing uptake of certified foods which are considered much safer to consume since they are subjected to strict verification.

Prominent participants in the market for food certification are AsureQuality Limited, Dekra SE, Underwriters Laboratories Inc, Bureau Veritas, Intertek Group plc, and SGS SA. In order to bolster their positions, such players are mostly banking upon mergers and acquisitions. Some are even expending money on building new laboratories equipped with state-of-the-art equipment for testing of food quality.


A report published by Transparency Market Research on the global market for food certification states that it would expand at a steady 5.3% CAGR from 2015 to 2021. Rising at this pace, the food certification market which was valued at US$11.25 bn in 2015, will likely reach a valuation of US$16.06 bn by 2023-end, states the report.

Food certification finds application in poultry products and processed meat, infant food products, dairy products, organic food, beverages, and others such as bakery and packaged foods. Of them, the segment of packaged food accounted for a leading 23.4% share in the market in 2014. Geographically, the leading region in the market for food certification is Europe. This is because of a large tribe of discerning consumers in the region who are very particular about the food they consume. The comparatively higher standards of living in the European nations is also serving to drive the market in the region. As per our report, the market for food certification in Europe is expected to reach a valuation of US$5.77 by 2021-end.

Many factors are providing tailwinds to the market for food certification worldwide. One of those is the rising instances of food borne diseases. Awareness about the same has fuelled the demand for certified products that have passed stringent tests ensuring its quality. Besides, rising brand consciousness among consumers whose disposable incomes are rising by the day has also proved beneficial for the food certification market. They are now keener on certified organic food, poultry, fresh food, and meat products.

Providing headwinds to the food certification market worldwide, on the other hand, is the high price of international certifications which has prevented several processing units and food manufacturers to avoid food certification. Explains the lead analyst of our report, “Deep-pocketed, big companies are typically inclined to spend on expensive food certification logos, namely Halal or Organic. This adds to their brand value. But not so with smaller companies for whom obtaining such labels is an expensive proposition that increases costs.”

Notwithstanding such setbacks, the market is expected to rise owing to the strict regulations mandating food certification. Savvy players are seen training their sights on the emerging economies which are relatively under-tapped so far but hold out a lot of potential.


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