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Food & Beverage Industry Taps into Modern Food & Beverage Industry Taps into Modern Water Solutions Water Solutions Water Footprint Focus will Drive Growth in the Global Water Footprint Focus will Drive Growth in the Global F&B F&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 Technologies Environment & Building Technologies April 3 rd 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.
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Food & Beverage Industry Taps Into Modern Water Solutions

May 14, 2015

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An analyst briefing about the food and beverage industry in conjunction with modern water solutions.
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Page 1: Food & Beverage Industry Taps Into Modern Water Solutions

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.

Page 2: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 3: Food & Beverage Industry Taps Into Modern Water Solutions

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?

Page 4: Food & Beverage Industry Taps Into Modern Water Solutions

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.

Page 5: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 6: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 7: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 8: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 9: Food & Beverage Industry Taps Into Modern Water Solutions

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)

Page 10: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 11: Food & Beverage Industry Taps Into Modern Water Solutions

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.

Page 12: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 13: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 14: Food & Beverage Industry Taps Into Modern Water Solutions

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.

Page 15: Food & Beverage Industry Taps Into Modern Water Solutions

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.

Page 16: Food & Beverage Industry Taps Into Modern Water Solutions

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

Page 17: Food & Beverage Industry Taps Into Modern Water Solutions

Next Steps

Develop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas or

join our GIL Global Community

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Join our GIL Community NewsletterKeep abreast of innovative growth opportunities

Page 18: Food & Beverage Industry Taps Into Modern Water Solutions

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Page 19: Food & Beverage Industry Taps Into Modern Water Solutions

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Page 20: Food & Beverage Industry Taps Into Modern Water Solutions

Chiara Carella

Head of Corporate Communications

Europe, Israel, Africa

+44 (0) 207 343 8314

[email protected]

For Additional Information

Andrew Thorndyke

Sales Director

Environment & Building Technologies

+44 (0) 186 539 8645

[email protected]

20

Fredrick Harry Royan

Global Research Director

Environment (Water) Markets

+44 (0) 207 343 8353

[email protected]

Archana Chauhan

Research Manager

CEE Operations

+48 (0) 22 481 62 81

[email protected]