water quality and scarcity – challenges and opportunities for the global food and beverage...
TRANSCRIPT
Food & Beverage Industry Taps into Modern Food & Beverage Industry Taps into Modern Water SolutionsWater Solutions
Water Footprint Focus will Drive Growth in the Global Water Footprint Focus will Drive Growth in the Global F&BF&B Water Water and Wastewater Treatment Market to about $5 Billion by 2020 and Wastewater Treatment Market to about $5 Billion by 2020
Paulina Szyplinska,
Research Analyst
Environment & Building TechnologiesEnvironment & Building Technologies
April 3rd 2012
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Today’s Presenter
�Market research expertise in:
Paulina Szyplinska, Research Analyst
Environment & Building Technologies
Frost & Sullivan
2
�Market research expertise in:- Monitoring and analyzing emerging trends, technologies and dynamics in the water and environmental markets
- Strategic analysis- Opportunity assessment
�Experience base covering broad range of sectors:- Water and Wastewater Treatment Markets in CEE and Russia- Design-Build-Operate Opportunities in the Global Water Market- Strategic Water Management in the Global Mining and Food & Beverage Industries
Food & Beverage
Industry Taps
into Modern
Water Solutions
Market Size and Revenue Forecasts until 2020
Treatment Solutions Related to Food & Beverage Water and Wastewater Treatment
Key Market Forces Impacting the Global Food & BeverageWater & Wastewater Market
Focus Points
Water as an Integral Part of Food & Beverage Production
Focus Points
3
Water Solutions
Strategic Conclusions
Water and Wastewater Treatment
Recommendations for Market Participants
Mega Trends Impacting Water and Wastewater TreatmentOpportunities in the Food & Beverage Industry
Where to Look for Investment Opportunities?
Water Intensive Food & Beverage
Sectors
Sector Global Water Footprint
Meat Processing
Dairy Products
Fruits & Vegetables Processing
Food and Beverage Water and Wastewater Treatment Equipment Revenue Share by
Sector, Global, 2011
Water Intensive Food & Beverage SectorsFood & Beverage Production Requires Good Quality Water in the Input Streams and Efficient Discharge Purification
4
Processing
Soft Drinks & Bottled Water
Brewing, Wine& Spirits
Cooking Oils & Fats
Note: Other includes prepared food,
confectionary & bakery products. All
figures are rounded. The base year in
2011. Source: Frost & Sullivan analysis.
Key: High Medium Low
Source: Frost & Sullivan analysis.
Key Market ForcesGlobal Trends Have a Strong Impact on Water and Wastewater Solutions Development in the Food & Beverage Industry
Global Trends Impact on Food & Beverage Water and Wastewater Market
Voluntary Water Conservation
Programmes by Tier
Population Growth
Globalization, Urbanization &
Changing Economies
Global Trends Impacting Food & Beverage Water and Wastewater Market
Development of Water
5
Programmes by Tier 1 Food &Beverage
Companies / Associations
Increasing Food, Energy & Water
Prices
Climate Change & Water Scarcity
Declining Water Quality
Source: Frost & Sullivan analysis.
Development of Water and Wastewater
Solutions in the Food & Beverage Industry
How Demand for Food Impacts Water Industry?Future Food Security Depends on More Efficient Water Use
Water Requirements for Food Production, Global, 1960-2050
Wate
r R
equirem
ents
for
Food
Pro
ductio
n (
km
3/y
ear)
Support food production to feed additional 2.7
billion people worldwide between 2010 and 2050
Percent of Population Growth by
6
Note: The data has been calculated for developing countries with minimum set of calories
Year
Source: Global
Harvest Initiative,
Frost & Sullivan
analysis.
+4.0%+1.0%
Percent of Population Growth by Region, Global, 2010-2050
+7.0%
+49.0%
+41.0%
Source: Hugo Ahlenius,
UNEP/GRID-Arendal
(http://maps.grida.no/go/gra
phic/water-requirements-
for-food-production-1960-
2050), Frost & Sullivan
Sustainable Water & Wastewater SolutionsFood & Beverage Industry is in Demand for Solutions to Cover all Health, Environmental and Economical Aspects
Sustainable Water &
Wastewater
Non-chemical andClosed Loop Water
TreatmentSolutions
SludgeManagementSolutions for
BiogasGeneration
Water IntegratedSolutions for CarbonFootprint Reduction
7
Solutions for Food & Beverage
IndustryHealth Risk Management
Solutions
Cost Effective Water Reuse and Recycling
Solutions
Energy Efficient andResource RecoveryEnabled WastewaterTreatment Solutions
Generation
Water Cycle in Food & Beverage IndustryGiven the Significant Volume of Water Required for Food & Beverage Production, There is a Vast Need to Implement Advanced Treatment Technologies and Solutions
Raw & Industrial Water•Chemical Treatment
•Filtration
Process Water•Membrane Separation
•Reverse Osmosis•Disinfection
•DemineralisationWater Recycling
•UV disinfeciton
Boiler Feed Water & Cooling Tower Make-up
•Ion Exchange•Demineralisation
•Softening•Chemical TreatmentWater Cycle in
Food & Beverage Industry
8
•Demineralisation
Sludge•Aerobic Digestion•Energy Recovery
Safe Discharge to the Environment
Sludge•Dewatering
•Drying•Chemical and Biological Odor
Removal
•UV disinfeciton•Membrane Separation
•Reverse Osmosis
Food & Beverage Processing Wastewater
•Pre-treatment & Primary Treatment•Secondary Treatment
•Tertiary & Advanced Treatment
•Flotation•Separation
•Anaerobic Digestion
Food & Beverage Water and Wastewater Market SizeIncreasing Concern About Water Efficiency in Food and Beverage Industry will Drive Demand for Water and Wastewater Services Between 2011 and 2020
Food and Beverage Water and Wastewater Market Revenue Forecast, Global, 2011 and 2020
Mark
et R
eve
nue (
$ M
illio
n) CAGR
(2011–2020) 5.5%
$ 4.80 Billion
$ 2.96 Billion
9
Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
Mark
et R
eve
nue (
$ M
illio
n)
Attractiveness of Treatment TechnologiesDemand is Growing for Treatment Solutions that Can Reduce the Overall Water and Energy Consumption and Increase Reuse
Water Treatment Technology
Market Share (2011)
Growth Potential
(2011-2020)
Membrane Separation
Disinfection
Water Treatment
Technology
Market Share (2011)
Growth Potential
(2011-2020)
Pre-treatment
Primary Treatment
Attractiveness of Water Treatment Technologies in Food & Beverage Industry,
Global, 2011-2020
Attractiveness of Wastewater Treatment Technologies in Food & Beverage Industry,
Global, 2011-2020
10
Filtration
Demineralization
SecondaryTreatment
Tertiary & Advanced Treatment
Sludge Treatment
Key:
Source: Frost & Sullivan analysis.
High Medium Low
Continues re-assessment of healthier solutions in food and beverageproduction, introduction of new categories such as specialty
products(ex.vitaminwater)
Process efficiency improvements, (e.g. Valaqua, a subsidiary of TheCoca Cola Company implementing electrochemically activated hygiene
device to reduce cleaning time from 6h to 45 min.), zero discharge plants
Health, Wellness & Wellbeing
Influence of Mega Trends on W&WWT in the F&B IndustryStrong Focus of Food & Beverage Companies to Increase Water Quality and Resource Efficiency Can Be Looked Upon as Business Opportunity for Water Companies
Factories of the Future – Smart &
Green
2011-2020 Mega Trends of Food & Beverage Industry Impacting Water Water Market
11
Extension of service reach with convergence of skills (e.g. GE Waterpartnering with facility management company-Diversey) Water trading to
better manage supply risks (ex. Prana Sustainable Water)
New infrastructure facilities for food processing (e.g. Mega Food Park Scheme (MFPS) in India to increase share in global food
trade from 1.5 to 3.0 percent by the year 2015)
Optimization of energy, chemicals and water consumption during production (e.g. Danone Group set a goal of reducing its carbon footprint
by 30.0 percent between 2008 and end of 2012)
New Business Models
New Trade Zones
Carbon FootprintReduction
Source: Frost & Sullivan analysis.
Wate
r U
se R
atio
(lit
ers
of w
ate
r used p
er
liters
of pro
duct)
The Coca-Cola Company’s Water Use Ratio, Global, 2006-2012
Case StudyExamples of The Coca-Cola Company and Diageo Show How to Successfully Reduce Water Use and Operational Costs by Applying Water Efficiency Solutions
New Water
Growing Market Opportunities for Water
Companies
�Increasing investments into water and wastewater infrastructure, especially in water-stressed regions�Ability to invest in solutions
Source: The Coca-Cola Company
12
The Diageo’s Water Use Ratio, Global, 2005-2015
Wate
r U
se R
atio
(lit
ers
of w
ate
r used p
er
liters
of pro
duct)
New Water Targets set for
2011-2015
�Ability to invest in solutions that increase operational costs even with longer pay-back periods�Demand for innovative and advanced technologies to mitigate water supply risk, and reduce wastewater discharge �Demand for sustainable solutions to improve product quality and brand perception
Source:Frost & Sullivan analysis.
Source: www.diageo.com
Investment Opportunities by RegionAsia Pacific is Considered as the Market Hot-spot for Water-related Investments in Food & Beverage Industry
Attractiveness of Food and Beverage Water and Wastewater Market by Region,
Global, 2011-2020
Regio
n C
AG
R (
%, 2011-2
020)
Asia Pacific
Europe
Latin America
New-build
Projects
Refurbishment
Projects
Advanced
Treatment
North
America
Latin
America
Investment Opportunities 2011-2020
13
Note: Size of bubbles represents market size. All figures are
rounded. The base year is 2011. Source: Frost & Sullivan analysis.Opportunity: High Medium Low
Regio
n C
AG
R (
%, 2011
Market Share (%)
North America
Latin America
Middle East
& Africa
Asia
Pacific
Middle
East &
Africa
Europe
Strategic Recommendations for Market ParticipantsBusiness Innovations, Adjustment to Different Local Conditions and Advanced Technological Solutions Bring Advantage in the Highly Competitive Market
�Strong portfolio of MF/UFmembrane technologies,
advanced disinfection, biologicaland anaerobic treatment solutions
provides a competitive edge forsuppliers to the F&B Industry
�Innovative solutions with attractive pay-back
periods
�Global presence with strong local footprint to service
14
�Integrated water management services from turnkey plants supply to full operation and
maintenance (O&M)
�Value-add services thatincrease efficiency, reduceoperational costs and lower
environmental impact
local footprint to service world’s growing markets
Source: Frost & Sullivan analysis.
Examples of Best PracticesThe Market Creates Good Investment Opportunities for Companies of all Sizes – from International Water Corporations to Mid-size Companies Covering Niche Segments
Designs, builds and operates on-site treatment systems and facilitating generation of renewable energy from liquid bio-waste from brewing &
drinks, dairy processing and food manufacturing as well as other industrial sectors, bringing benefits in cost reduction, space saving,
waste limitation and treatment efficiency.
Electro Chemical Activation (ECA) technology, which provides a green solution for water disinfection in food & beverage and other industrial
Clearfleau Limited
15
solution for water disinfection in food & beverage and other industrial applications. The company has installed its patented technology in 21
countries in North America, Latin America, Europe, Africa, Asia and Australia.
Radical Waters International Ltd.
Source: Frost & Sullivan analysis.
Source: www.clearfleau.com.
The Last WordGiven the Global Trends Shaping Food & Beverage Industry, There are Vast Opportunities to Introduce Advanced Water and Wastewater Solutions
Years 2011-2020 is expected to see continuing positive investment trends into food & beverage water and wastewater solutions
Food & beverage industry will remain extremely positive towards adopting innovations andtechnology upgrades delivering process efficiency and product quality improvements
The investments will focus on new build projects in emerging markets and improvement of water efficiency in developed and water stressed regions
16
Water footprint is set to be 2020 differentiator for food & beverage products
Energy and resource recovery expected to become industry standard in mid-term
technology upgrades delivering process efficiency and product quality improvements
Source: Frost & Sullivan analysis.
Innovative service mechanisms such as water trading will enable mitigating water supply related risks
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