Sector Spotlight: Food Processing Automation

The $4T food processing industry is under pressure. Labor costs are rising, food safety requirements are tightening, and food manufacturers need to produce more with fewer workers. Automation is helping them solve these issues.

Private food processing automation companies are growing at 18.7% per year — the fastest of any segment in the food processing industry. Here's what private market dealmakers need to know.

Opportunities in the Food Processing Automation Space

Source: Grata

Automation accounts for 16.1% of the food processing industry by number of companies, making it the third-largest segment behind packaging and supply chain & logistics. There are thousands of privately owned companies in the space — specialized manufacturers and service providers building the conveyor systems, robotic pick-and-place equipment, vision inspection systems, and process control technology that food plants run on.

Most are small, founder-owned businesses that have never taken on outside capital. That means a deep pool of first-time-seller opportunities for dealmakers who know where to look.

Food Processing Automation Financial Performance

Source: Grata

Private automation companies are the standout growth story in the broader food processing industry. At 18.7% average annual revenue growth, they're growing faster than every other segment.

They're also the smallest by headcount, averaging 471 employees. The combination of fast growth, small size, and limited outside capital is the classic setup for a PE platform build or a strategic bolt-on acquisition.

The demand driving those numbers isn't going away. In 2024, food manufacturers in the US had over 615,000 unfilled jobs. Companies that can't hire are investing in machines instead, and that shift is accelerating.

Top Companies in Food Processing Automation

Source: Grata

Finding the top companies in the food processing automation sector is quick and easy with Grata. Use our Agentic Search feature to surface companies like these in seconds. Specify the revenue range, employee head count, and more to find the exact companies you’re looking for.

Take Action with Grata

If you’re a private market dealmaker looking to make moves in the food processing automation space, Grata can help you put the insights in this article into action.

From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.

Schedule a demo today to get started.