Global sector report 2019 Testing, inspection and certification (TIC) in the food segment

The global TIC market has an estimated size of around US$210 billion this year and is expected to grow with a CAGR of 4.9% to US$266 billion in 2024. Testing and inspection of food already holds a large share of the total TIC market and it’s anticipated to become increasingly important in the coming years.

Food segment

The global food safety TIC market size is expected to grow from an estimated US$17 billion in 2018 to US$24.6 billion in 2023, equivalent to a CAGR of 7.7%. This development is driven by multiple trends, including the increase in the number of outbreaks of food-borne illnesses, the implementation of more stringent food safety regulations, food scandals spread via social media, ongoing technological innovations and the globalization of food supply.

Food quality and safety is a increasingly important topic in the global food market and makes the food TIC market one of the fastest growing segments in the overall TIC industry. As a consequence we see a lot of M&A activity in this sub-segment. Arjen Kostelijk, TIC specialist

Growth

The implementation of various regulations on food safety, particularly in developed countries, drives the growth of the global food safety testing market. One of the largest segments within the overall food safety testing market is the pathogens segment, which has grown due to an increasing number of instances of food contamination and food-borne poisonings. However, the highest growth is expected in the GMO testing segment, driven by an increase in consumer awareness about genetically modified organisms in food, stringent regulatory restrictions and efficient technology trends.

The food safety TIC market will still be dominated by meat, poultry and seafood. However, the fastest growth is expected to come from the fruit and vegetable segment as this segment is susceptible to microbial and other contaminations. As witnessed in other segments of the TIC market, we see technology rapidly modernizing the industry. High accuracy, high sensitivity, fast service and low turnaround times in combination with the ability to test a wide range of different contaminants are demanded by customers and further drive the digitalization and technological innovation within the sector.

Key trends

The key trends described above have also been visible in the TIC M&A market in the second half of 2019, with multiple transactions in the specialized food safety market. Merieux NutriSciences, one of the largest food testing companies in the United States, has extended its global footprint by acquiring the Netherlands-based company KTBA Netherlands, a provider of quality and business assurance and software solutions for the food testing market. Other transactions in the food testing segment include the acquisition of AS4 by Normec and the acquisition of Nomor Holding by ServiceMaster.

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Arjen Kostelijk gives an update on the overall TIC industry and focuses in on the food safety TIC sector. He explores the different trends driving its growth, the significance of the fruit and vegetable segment, and the impact of technology. This edition also includes an overview of recent transactions in three key sectors: food and environmental; building, industrial and products; and healthcare. Download the sector report (full version in pdf), for more expert commentary in this sector.