The demand for food certification is increasing in response to the rising prevalence of food-borne diseases. The recent instances of food contamination reported across emerging economies have compelled governments to mandate food certifications. Currently, International Organization for Standardization (ISO 22000), Safe Quality Food Certification, International Food Standard, British Consortium Standard, Halal Certification, and Kosher Certification are the most popular certifications in the international market, states Transparency Market Research (TMR). The demand for these certifications is expected to increase in the forthcoming years as food trade across developing nations rises.
Besides this, the changing consumption pattern and the subsequent demand for convenience food will fuel the demand for food certifications. However, the high cost of a majority of these certifications will inhibit their proliferation in small businesses. Nevertheless, TMR expects the market to report a CAGR of 5.3% between 2015 and 2021.
The global food certification market stood at US$11.25 bn in 2014 and is expected to reach US$16.09 bn by the end of 2021.
Rising Awareness about Food Contamination to Fuel Demand for Food Certifications
Based on application, poultry products and processed meat, organic food, dairy products, infant food products, beverages, and others packaged food segment (comprising bakery products) constitute the key segments in the global food certification market. Of these, the others packaged food segment held the dominant share of 23.4% in the market in 2014. Increasing brand consciousness among consumers and the rising awareness about food hazards are the key factors fuelling the demand for food certification in this segment.
The market is also expected to witness increased demand from the processed meat and poultry and dairy products segments. However, TMR projects that their market share will decline over the course of the forecast period.
In the forthcoming years, food certification in the beverage segment is expected to increase considerably. Beverages include both carbonated and non-carbonated drinks. Certified manufacturers of beverages provide quality assurance, which is the key factor fuelling the demand for food certification in this segment.
Changing Consumption Patterns to Boost Demand for Food Certification in Europe
Regionally, Europe led the global food certification market in 2014, followed by North America. Consumers in the region exhibit high consciousness about the food they eat. This, combined with the rising standards of living, is fuelling the demand for food certification in Europe. Furthermore, the region is witnessing a growing inclination of consumers towards healthy food products, which is expected to give significant impetus to the regional market. Germany, France, and the U.K. are currently demonstrating the most lucrative opportunities in the market. According to TMR, the Europe food certification market is expected to reach US$5.77 bn by the end of 2021.
North America is also a significant market for food certification. However, TMR expects Asia Pacific to report the fastest growth during the course of the forecast period. The rising standards of living and recent incidences of food contamination across emerging economies will fuel the demand for food certification in Asia Pacific. The prevalence of food-borne diseases has significantly increased in Asia Pacific and such concerns will also drive the need for food certification in the region.
Some of the players operating in the food certification market are ALS Limited, Underwriters Laboratories Inc., Dekra SE, Bureau Veritas, SGS SA, AsureQuality Limited, Lloyd's Register Group Limited, Intertek Group plc., TÜV SÜD AG, and DNV GL Group AS.
The global food certification market is driven by rules, standards, and regulations in different food application segments. Increase in consumer health consciousness and change in eating patterns are primarily boosting the popularity of certified food products globally. However, rising awareness about improving food quality coupled with increasing government regulations are stimulating the food certification market globally. Furthermore, improved standard of living is driving consumers to opt for certified food products as they perceive them to be safe for consumption.
Food certification is a process that can be applied to any stage of the food supply chain, right from primary production level to sales. Rising incidences of foodborne illness due to ingestion of contaminated food products is one of the key factors responsible for growing popularity of food certification. Food manufacturers are keen to obtain certification in order to attract consumers toward their products. Manufacturers also emphasize on certification to cope with rising competition globally. Furthermore, certified food products are perceived to be safe and secure as they pass through various verification processes. Consumers prefer to opt for certified food products to avoid unwanted health hazards caused due to consumption of contaminated food products.
Rise in number of food trade practices and food export is fueling the food certification market. Food products without proper certification are not considered for sale in certain countries. Food manufacturers aggressively focus on proper certification through audit and quality check to aid business expansion. Furthermore, audit and follow-up processes through various certification bodies ensure that the company has proper safety management systems.
By geography, the global food certification market is categorized into North America, Europe, Asia Pacific, and Rest of the World (RoW). The scope of the report offers an insight into food certifications in these regions based on revenue (USD billion). In addition, current and future trends in the food certification market are covered in the report.
Currently, Germany is dominating the market for food certification in Europe followed by the U.K. Furthermore, the U.S. dominates the market for food certification in North America. Increasing health consciousness coupled with consumer awareness regarding side effects of contaminated food products is driving the food certification market. China dominates the food certification market in Asia Pacific followed by India. Factors such as increased standard of living and rising preference for quality food products are positively influencing the food certification market.
Key global certification bodies include ISO 22000, International Food Standard, British Retail Consortium, Safe Quality Food Standard, Kosher certification, Halal certification and Food Safety and Standard Authority of India, China Food and Drug Administration, Ministry of Food and Drug Safety, U.S. Department of Agriculture among others. These certification bodies through audit and follow-up ensure that companies who are involved in food production have proper food safety management systems in place. Furthermore, they ensure that food products are safe for consumption.
Based on application, the market is segmented into processed meat and poultry products, dairy products, infant food products, organic food, beverages, and other packaged food products. Consumers prefer certified food products due to growing awareness about food safety. Organic food products are gaining momentum due to rising health concern among consumers.
Demand for safe food products is increasing considerably. Furthermore, food safety management authorities along with consumers are increasingly concerned about the quality and safety of food products. Demand for certified food products is expected to significantly increase as these products are certified after meeting required standards of any authorized certification body. Changing consumer perception about safety and quality of food products coupled with growing preference for convenience food products are fueling demand for food certification globally.
Key players in the food certification market in North America, Europe, Asia Pacific, and RoW include Dekra SE, Bureau Veritas, AsureQuality Limited, Underwriters Laboratories Inc, SGS SA, Intertek Group plc, Lloyd's Register Group Limited, TÜV SÜD AG, DNV GL Group AS, and ALS Limited.