Food safety becomes a growing market for equity investments

A market that would reach 33.4 billion dollars in 2027

MADRID, 23 Ago. (EUROPA PRESS) -

Food safety has become a growing and attractive market for equity investments in recent years, as it is constantly growing and offers interesting investment options, according to Credit Suisse fund manager Patrick Kolb.

Specifically, in the current international context there is a growing need to guarantee food safety to consumers in the face of food poisoning that occurs in different countries.

According to estimates made, the global food safety market would have registered a turnover of approximately 19,200 million dollars in 2021 (19,317.9 million euros).

In this way, experts calculate that, between now and 2027, this market will reach 33,400 million dollars (33,613.27 million euros), which would mean an average annual growth rate of 9.7%.

Leading the way in the food controls industry are North American companies, driven by growing consumer demand, as well as the need to ensure enforcement of state regulations such as the Food Safety Modernization Act ( FSMA) from the FDA (US Food and Drug Administration).

Europe is also among the important regions in this area. This market, in which Germany, the United Kingdom and France stand out as the main economic agents, is governed by increasingly bulky food regulations that are dictated by the different governments and by the EU.

Today, many food and beverage companies actively use food testing in order to comply with regional safety regulations and thus safeguard their reputations.

Patrick Kolb has stressed that the strong public interest in safe food opens up a whole range of business opportunities, especially for quality control service companies.

Credit Suisse's fund manager has indicated that it is a boom that "is attractive" to investors and that it has a long-term growth trend.

However, there is currently greater uncertainty in the market, triggered by the coronavirus pandemic, rising inflation and Russia's invasion of Ukraine.

"Despite this environment, we believe that the food safety market remains attractive and that the long-term growth engines remain intact. That is why the shares of leading companies in the areas of life sciences, technology of sensors, diagnostics, testing, inspection and certification, as well as those of manufacturers of scientific instruments and consumer goods continue to be a promising option for investors," said Kolb.