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The image sensors market is expected to witness healthy growth during the next few years because it is integral to a myriad of applications that ranges from automotive, consumer electronics, healthcare, military and defense, transportation, among others. The use of image sensors is further reinforced by continuous R&D investments made by both public and private players which are resulting in an energy-friendly, reasonable, and relatively miniaturized version of image sensors. These improvements are making image sensors suitable for a wider industrial application. Moreover, the continuously changing landscape of consumer electronic goods like mobile phones, handheld devices, cameras, among others is one of the major driving forces anticipated to influence an upward trajectory of image sensors market.
Electronic Integrated Circuits; Parts Thereof (Exports)
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In Thousands of US$
Source: International Trade Centre
Regarding consumer electronics, the semiconductor industry has reportedly witnessed certain recent market developments by key players establishing the very indispensability of image sensors to consumer electronics. To substantiate the aforesaid, the key developments were:
2018 – Product Launches
July
Teledyne UK Limited (LSE: E2V), through its Teledyne e2v, which is a provider of imaging solutions had reportedly announced the launch of Emerald 67 megapixel, the newest addition to its Emerald CMOS image sensor family. The salient feature of this relatively new sensor is a high resolution with the smallest global shutter pixel (2.5 µm). This feature, which was one-of-a-kind during the launch, facilitates the capture of more objects in a single high-resolution shot making it suitable for high-end automated optical inspection, microscopy, and surveillance. It also provides ultra-low noise performance with high sensitivity of 70% QE enabling the precise identification of defect and particle. Additionally, being ultra-high-speed, thereby the production line throughput is significantly enhanced.
October
Samsung Electronics Co., Ltd. (B3: SMSNN, FWB: SSU, SSUN, KRX: 005930, 005935, LSE: SMSN, SMSD) [SAMSUNG] had reportedly announced the launch of 48-megapixel Samsung ISOCELL Bright GM1 and the 32-megapixel ISOCELL Bright GD1 which are essentially two comparatively new 0.8-micrometer (micron) pixel image sensors. The rationale for the development and the subsequent launch of these sensors is the objective to provide smartphone vendors with greater design flexibility enabling the accommodation of more sensors in the same space, which is the case with the trend of slim, bezel-less smartphones. These sensors are based on Samsung's pixel isolation technology called ISOCELL Plus. This technology, which was launched in June during the same year, reportedly optimizes the performance for smaller-dimension pixels, enabling the integration of the same into premium camera modules. Additionally, this technology is made available incorporated with the organization’s tetra cell technology that facilitates the merging of four pixels into one enabling the enhancement of overall light sensitivity.
Besides, the end-use industry such as consumer electronics, the defense industry is expected to hold a significant share of the image sensor market. One aspect that satisfactorily substantiates the aforesaid to a certain extent is the increase in the military budget by 3.6% from 2018 to 2019 according to the Stockholm International Peace Research Institute (SIPRI).
Direct Budget Plan of Research, Dev, Test & Eval
In millions of US$
Source: Department of Defense, USA
Further, in 2019, the global military expenditures amounted to US$1917 billion representing 2.2% of GDP which in turn reportedly corresponds to approximately US$249 per person. During the same year, the United States was the leading country in global military spending with a share of 38% of the total expenditure. Further, the military spending is in part substantiated by the National Defense Strategy which was issued by the Department of Defense (DOD), Government of United States in 2018, that articulated the necessity to stand by its properties of modernization. Moreover, the increasing technological advancements of Russia and China, an observation noted by the DOD officials, makes it a geopolitical strategic imperative of the USA to reexamine its R&D investments. Thus in 2018, it was reported that U.S. Air Force researchers at Air Force Research Laboratory at Wright-Patterson Air Force Base, Ohio, have been working with Defense Engineering Corporation, Inc (DEC). in Beavercreek, Ohio; Lockheed Martin Corporation’s (NYSE: LMT) Lockheed Martin Space Systems in Louisville, Colorado and optX imaging systems, Lorton, Virginia, on the R&D of Electro-Optical and Radio Frequency Sensors (RADERS) project with the rationale of developing new enabling technologies for communications, imaging, and signals intelligence (SIGINT) applications, information processing, next-generation electro-optical (EO) and radio-frequency (RF) sensors.
The amount of RADERS contract awarded per entity was as follows, with DEC being awarded US $3.9 million during August; Lockheed Martin Space Systems being awarded US$192,009 during the same month, preceded by optX Imaging Systems being awarded US $748,315 during May. Another such development pertaining to the non-visible spectrum of image sensors related to defense was the announcement by ManTech International Corporation (NASDAQ: MANT) mission-focused technology solutions and services provider for U.S defense, intelligence community and federal civilian agencies, of a reported award of US $45 million 4-year-award for the Naval Surface Warfare Center (NSWC) Crane for the technical advancement of sensors which is employed by the Naval Air Systems Command (NAVAIR) in Hawkeye aircraft (PMA-231), in August 2018. It is important to note that PMA-231 Hawkeye aircraft provides surveillance, identification, and tracking of threat aircraft and cruise missile systems, thereby ensure situational awareness by employing integrated, automated sensors. ManTech has been tasked with the enhancement of sensor performance in the rapid-fire sprint as well as increasing the speed of crucial intelligence delivery. This will be executed by capitalizing on the organization’s pan DOD experience with sensor integration and support along with engineering and development techniques pertaining to agile software, resulting in more efficiency and flexibility for integrating emerging technologies, among others.
Thus, in view of the driving factors, market developments pertaining to the end-use market of consumer electronics and the sheer quantum of investments made by national defense industry towards effectuating practical advancements of image sensors, it can be stated with certitude that the market for image sensors is poised to witness a stratospheric growth during the next few years. Besides the aforementioned factors, aspects such as the adoption of IoT in almost every sector, Advanced Driver Assistance Systems (ADAS), government regulations mandating the implementation of new safety technologies in the automotive sector within the next few years, among others are also anticipated to reinforce the growth of the market.
Surface Mount Technology Market Growth – Sustaining Lives
BlogExperience the convenience of savoring instant popcorns, woken up by an alarm, monitoring heart rate while on the run, watching the favorite shows, swiftly googling an unsolvable problem, withdrawing cash from ATMs, monitoring one’s child’s health as well as facilitating elderly care, embarking on hassle-free trips to the safeguarding of national sovereignty, technology has effectively undergone a colossal digital revolution that is driving the demand for consumer electronics which not only have become affordable but also consume less energy. Further due to growing penetration of internet connectivity and advancements in Information and Communication Technology (ICT) as a whole, human residences are not limited to national boundaries but have transcended barriers. These advancements have also propelled the demand for smart homes, industries, connected healthcare, autonomous driving, and smart cities. This has led to the designing and fabrication of powerful yet compact semiconductors that have permeated almost every industry vertical which are inclusive of but not limited to telecommunication, healthcare, consumer electronics, automotive, aerospace, and defense, among others.
Now, it is a well-acknowledged fact that semiconductors are not available to the end-user as standalone components but is constituent of semiconductor surface-mount devices that are a part of the larger end-use products Viz. a cellular phone. Thus, to address the high volume of demand surface mount technology (SMT) is the preferred means for both designing and manufacturing in the semiconductor industry, which is reportedly known for ensuring a faster time-to-market. Besides the consumer demand-side factors mentioned above, demand for SMT by designers are mainly driven by factors like substantial weight reduction, space-saving, and electrical noise reduction, among others, and demand for SMT by manufacturers is fueled by factors such as reduced board cost, material handling costs, and a streamlined and well-managed manufacturing process. Fast-forwarding to the present, COVID 19 has brought about a marked shift in the manner in which daily functions used to take place.
Profitmaking institutions, educational entities, and businesses have collectively driven the need for web connectivity and a reliable means of communication which are cellular devices and/or personnel computers. These unprecedented developments have further fueled the need for semiconductors which in turn is anticipated to fuel the growth of the SMT market to stratospheric heights. Another reason which makes COVID 19 a catalyst in the SMT market growth is the demand for ventilators of monumental proportions. Further, the rate of development pertaining to non-contact diagnostics solutions that are capable of safeguarding the health workers from unknowingly contracting infections have also contributed to the growth of the market.
Further, in a world where peace is maintained with the aid of deterrents of peace and its continuous developments, it necessitates national governments to secure military budgets of elephantine proportions. A share of this budget is directed to aerospace, space and defense research in technology where semiconductor surface-mount devices are an integral part, thus making the employment of SMT an inseparable aspect of the entire defense value chain. Moreover, innovations in robotics, quantum computing, nanotechnology, material science, internet of things, biotechnology, autonomous systems, artificial intelligence as well as 3D printing are poised to transform the defense industries in unexampled ways. Within the ambit of defense, a healthy contribution towards the surface mount technology market growth is expected to stem from the need for securitization and militarization of cyberspace. This need is substantiated by the recent ransomware attacks as well as identity thefts through malware. Such is the importance of cybersecurity that from a regional perspective that the EU recently adopted the EU Cybersecurity Act in 2019 which made the European Network and Information Security Agency (ENISA) a permanent government agency with a reported budget allocation of €17 million for 2020 as proposed cybersecurity budget for 2021-27 which is to the tune of €2 billion.
This budget allocation will reportedly cover the bolstering of the EU’s cybersecurity industry, financing state-of-the-art cybersecurity equipment, and infrastructure, safeguarding the digital economy, society, and democracies through polling expertise. Further need for cybersecurity doesn’t stem from the requirement of combating cybercrimes and protecting critical infrastructure only. It is also to safeguard the vital lifelines of the economy by protecting the backbone that comprises electronic communications networks and services and network and information systems, the rationale that has been enshrined in the EU Cybersecurity Act, among others. EU’ s commitment to lead the next generation of cybersecurity and digital technologies is also well pronounced in the act. EU also aspires to develop companies pertaining to cybersecurity to give itself ta competitive advantage in the global market. It also envisions close cooperation with research institutions and universities to minimize its dependence on foreign security and services simultaneously enabling the strengthening of the supply chain within the union. In view of the above, it is anticipated that the global surface mount technology market will experience a meteoric rise.
Before all foregoing certain recent market developments are being elucidated below:
April 2018 – Expansion
Xiaomi had announced its first plant that was dedicated to local manufacturing of PCBA (Printed Circuit Board Assembly) units in Sriperumbudur, Tamil Nadu, in partnership with Foxconn was operational. In this manner, Xiaomi anticipated its manufacturing operations contribute 50% value if the smartphone.
September 2018 – Investment
Teledyne Advanced Electronic Solutions (AES), a business unit of Teledyne Technologies Incorporated (NYSE: TDY), which caters to Defense, Space and Commercial sectors around the world through its comprehensive portfolio of highly engineered solutions had made a substantial capital assets-investment in its production facility in Lewisburg, Tennessee. Reportedly monikered as a technical refresh, the investment comprised three Surface Mount Technology (SMT) machines, among others.
December 2018 – Facility expansion
REDARC Electronics an advanced electronics manufacturing firm based out of South Australian has officially opened its expanded factory in Adelaide suburb Lonsdale, which was inaugurated by the then Minister for Defense Christopher Pyne and SA Premier Steven Marshall. Facilitated by a federal government Next Generation Manufacturing Investment Program grant which was to the tune of $2.5 million, the expenditure also includes the purchase of a surface mount technology line for mounting electronic components. It also entailed an electromagnetic compatibility chamber and a vibration test lab that enables highly accelerated lifetime testing of products.
Level Transmitter Market Growth – Facilitating Energy Independence
Thought ArticlesRising global population, increasing degree of consumption, rapid pace of industries is leading to increasing demand for energy as is the case with a swift rate of urbanization. A shift in lifestyle and consumption trends ranging from personal care to food and beverage has resulted in increased investments in manufacturing and production expansion. Further, there has been proactive participation of players within the oil and gas industry whereby there has been an upswing in explorations activities. Further, the chemical process industry is one of the most important industries, which is known to buttress the production of fertilizers that aids in the sustenance of an important mainstay of the global economy which is animal husbandry and agriculture. Thus, the proliferation of these industries necessitates the execution of a myriad of industrial measurements to assess a range of fluid levels in diverse conditions, giving rise to the demand for level transmitters consequentially aiding in a conducive environment within the semiconductor industry that is facilitating the development of various kinds of a level transmitter.
Global Annual Petroleum and Other Liquids Production (Thousand Barrels per Day)
Source: U.S. Energy Information Administration
Before all foregoing, the end-user industry of oil and gas is expected to hold a significant market share during the forecast period. To this end, it should be noted that according to the United Nations (UN) oil constituted a 37% share of primary energy. With estimated phasing off of coal in the future, the oil demand is expected to grow because of increasing demand for fuel and the plethora of variants that find their applications in shipping, petrochemicals, long-distance freight, and aviation. The offshore sector as a source of energy is expected to gain currency due to the availability of equipment and infrastructure along with the expertise to facilitate offshore oil extraction, even though the wide cognizance alternative source of power generation and its consequent implementation has been carried out by certain economies. Also, it is important to note that at current rates of production the global oil companies hold reserves of 13 years of an average. Further, as per the UN, around 25 countries have bonds, which are validated, by the anticipation of extractable reserve ranging over durations that spans across 25 to 100 years. Resultantly, investments in upstream and downstream processes are inevitable.
To put the aforesaid in context a few noteworthy projects which are being listed below:
January 2020: The Ministry of Natural Resources, The Government of China had reportedly announced that it will make its market for oil and gas exploration and production accessible to private and foreign companies. Further, both domestic and foreign companies that are registered in China and owns net assets worth no less than 300 million yuan (appr. $42.86 million) will be reportedly eligible to obtain oil and gas mining rights.
April 2020: A scheduled commencement of the Rovuma LNG project in Mozambique is expected in 2025. It has been scheduled with revised capital investment for 2020 amounting to $23 billion. The total LNG nameplate capacity of the project is reportedly to be 15.2 mtpa.
May 2020: The construction and operation of the Alaska LNG project were reportedly approved by the U.S. Federal Energy Regulatory Commission (FERC). Moreover, FERC has reportedly granted the authorization of authorization for liquefication and exportation of liquefied natural gas (LNG). The exportation will be carried out from the North Slope to an export facility in Nikiski, Alaska. Then on to Alaska Gasoline Development Corporation (AGDC), which is an independent, public corporation of the State of Alaska. This project amounts to an estimated $43 billion.
June 2020: It was reported that Gazprom Neft PJSC (MCX: SIBN) has commenced a full-fledged development of major hydrocarbon clusters which has a reported potential resource being at 650 million tons of oil. It spans across the license blocks in Tyumen Oblast and the Khanty-Mansi Autonomous Okrug in Western Siberia.
Therefore, from the rapid pace at which the developments took place in a short period and the manner in which oil and gas exploration has been prioritized by governments, it can be discerned that the end-use industry of oil and gas are poised to creating opportunities for various players of the same market. Thus, arises an undoubted integration of level transmitters, which in turn is expected to drive the level transmitter market in the next few years. To this extent, one key development among a few is the launch of Model 575 by AMETEK Inc. (NYSE: AME) in June 2020, which is reportedly an intrinsically safe level transmitter, facilitating continuous fuel level monitoring in diesel storage tanks, through the Model DDMC meter/controller. With an optional conduit adapter to enable cable protection the transmitter is placed in the liquid.
While the aforesaid is that of a contact type, the category of contactless level transmitters is expected to witness an increased share of the market, because mechanical measuring techniques are prone to malfunction and will require maintenance. Therefore, contactless radar technology is the choice when dealing with LNG/LPG for example. Apropos such scenarios a few recent market developments pertaining to contactless level transmitters are being mentioned below –
December 2019 – Portfolio Expansion
KROHNE had reportedly announced the introduction of four new additions to the OPTIFLEX series of guided radar (TDR) level transmitters, with each of them designed for specific areas of application in a variety of industries. A few of them are OPTIFLEX 3200 which is the trusted choice for applications with hygienic requirements in the pharmaceutical and food & beverage industries; OPTIFLEX 6200 has been designed for minerals & mining industries, metals, chemical, and agri-food industries. Further, OPTIFLEX 7200 has been developed for oil & gas and the chemical and industries for facilitating level and interface measurement of liquids in process and storage applications.
Therefore, the growing importance of level transmitters and the aforesaid portfolio expansion also suggests the growing recognition of RADAR level transmitters and their evident applications in a diverse set of end-use industries. The end-use application exemplified along with other applications as well as the continuous investments in product development is expected to usher in healthy market growth during the next few years.
Breakfast Cereal a Perfect Recipe for a Healthy Life!
Thought ArticlesA type of processed food breakfast cereals is generally known for being consumed as the first meal of the day even though they are featured under the all-day-breakfast option offered by numerous food and beverage establishments throughout the world. They are typically consumed with hot or cold milk with or without fruits. They are manufactured from grains Viz. corn, oats, rice, and wheat. This category of processed food is generally classified as two types which are namely, ready-to-eat cereals such as corn flakes, puffed oats, puffed rice, and shredded wheat, and other types like hot cereals, gluten-free cereals, among others.
Prepared Foods Obtained by the Swelling or Roasting of Cereals or Cereal Products, E.G. Corn Flakes; Cereals (Other Than Maize "Corn") in Grain Form or in the Form of Flakes or Other Worked Grains (Except Flour, Groats and Meal), Pre-Cooked or Otherwise Prepared, N.E.S. (Export)
In Thousands of Dollars
Source: International Trade Centre
The rising trend in consuming low calorie and low carbohydrates and high fiber food, lifestyle changes increasing nutrition considerations of a growing pool of newer generations of customers in emerging economies, growing preference for more transparency in food sourcing and labeling, convenience, changing food habits are a few of the major drivers which are anticipated promote breakfast cereal market growth. Also, region-specific brand localization, marketing initiatives as well as other strategic moves are some investments which market players have been continuously engaged to promote their products and increase their brand value. Organizations are increasingly updating their product formulations and processes to facilitate new product launch thereby catering to the varied customer interests around the world. Nevertheless, the profusion of alternative food products such as yogurt, bread, fruits, eggs, and cereal bars are expected to restrain the growth of the market to a certain extent. A few of the recent market developments that exemplify the increasing engagements of the breakfast cereal market are as follows:
2020 January – Product Launch
Kellogg Co. (NYSE: K) had reportedly launched a newly developed plant-based breakfast cereal, called WK Kellogg By Kids which contains extruded cereal devoid of any sugar but with the natural sweetness beetroot and carrots. Further, the range consists of strawberry hoops, carrot and beetroot balls, and apples stars.
2020 January – Partnership
A partnership was announced between the manufacturer of iconic ready-to-eat cereal brands including Sugar Crisp, Shreddies, Shredded Wheat, Honeycomb and Alpha-Bits, among others called Post Foods Canada Inc. and Tim Hortons® which is Canada's largest restaurant chain operating in the quick-service industry which has evolved to be part of the Canadian fabric to launch two new kinds of cereal create by the former namely Post Timbits® Chocolate Glazed Cereal and Post Timbits® Birthday Cake Cereal.
Final Consumption Expenditure of Households – Restaurants and Hotels , Australia
Source: EUROSTAT
In Millions of Australian Dollars, at current prices
The APAC region primarily due to its diverse preference in tastes, growing availability of disposable income, increasing accessibility to internet resulting in eCommerce, data-driven product placement facilitating increased visibility is expected to substantially contribute to the estimated growth of breakfast cereals market during the next few years. For example, as reported by USDA the retails sector of Thailand expanded by 2.8 %, with a total value of approximately $116 billion. Largely driven by the growing young middle-income population, greater proclivity to spend, and a trend towards urbanization as well as economic growth. Further with the advent of COVID 19 change in consumption behavior has brought about which has led to rising demand for convenient ready-to-eat meals, healthy food products, and food delivery.
With regards to USDA, the sales of the Philippine food retail sector in 2019 amounted to about $50 billion, with modern retail accounting for half the total. The food retails industry of Malaysia as reported by USDA in June 2020 is expected to grow and is driven by increased spending by consumers. The total sales for this sector reportedly reached $26 billion in 2019. On the other hand, Singapore has a highly developed retail food sector that is reportedly competitive with a total sale that had reportedly exceeded above $6 billion in 2019. Moreover, in light of social distancing measures due to COVID 19, consumers have increasingly prioritized healthy snacking options and ready-to-eat meals recognizing the importance of value-added food as they are increasingly partaking in at-home consumption. Further from the above mentioned it is also pertinent to note that the retail food sector is a determinant that is expected to impact the breakfast cereal market.
It is a known fact that the food and beverage industry also comprise of food and beverage establishments of various formats and tourism (both international and domestic) is one of the key revenue streams. Albeit factors like border shutdowns, travel restrictions, safety concerns associated with travel, the resurgence of the COVID 19 as well as risks of new lockdowns or curfews have influenced consumer confidence ultimately affecting the tourism and hospitality, together these industries are expected to drive the growth of breakfast cereals market in the second half of 2020 because tourism is expected to resume in many destinations in June and July according to the World Tourism Organization (UNWTO). Further, other aspects that are expected to positively impact the breakfast cereal market growth are the planned project expansion of various hospitality chains which is expected to increase the number of breakfast buffets over the coming years. For example, in February 2020, it was announced that Rosewood Hotel Group and its inspiring brands – Rosewood Hotels & Resorts®, New World Hotels & Resorts™, and KHOS™ reportedly continued with its expansion plans with new openings and signings ( a total of 35 projects ) in the world’s most attractive destinations along with a curated pipeline of projects. Again, during the same month the Indian Hotels Company Limited (BSE: 500850; NSE: INDHOTEL) had reported the opening of 24 hotels that are present in their development pipeline.
Heat Pump Market Outlook
BlogFavorable construction market, growing carbon emissions, growing concerns over polluting consumption practices, helpful government policies, rising consumer spending on clean energy, and variable energy prices are few of the factors that are responsible for driving an anticipated growth of the heat pump market. Furthermore, the rising need for heating requirements for water and space around the world along with increasing commercial accessibility of energy-efficient solutions are expected to augment the growth of the market. Moreover, conducive government policies will also assist in the reinforcement of the market growth, in the next few years. From the perspective of consumption, IEA notes that approximately 20 million households bought heat pumps in 2019.
Despite a share of the above are reversible units there is an unquestionable growth in major heating markets. IEA also notes that despite the emergence of heat pumps as one of the most commonly installed technologies in new residential constructions, only 5% of the heating demand of buildings around the world, whereas fossil fuel-based and conventional electric technologies comprised 3/4th of sales globally in 2019. The market growth is expected to be restrained to a certain degree due to high upfront purchase and installation costs, among others. With respect to opportunities, policy support and innovations are required to facilitate the removal of market barriers for renovation and enhance energy performance.
The construction segment of real-estate development is reportedly the main driver resulting in most hear pump technology purchase. Further, with respect to national markets, in the case of the USA, the heat pump sales share for newly constructed buildings is over 40% for single-family dwellings and is about 50% for new multi-family buildings. On the other side of the Atlantic, the market is witnessing a rapid expansion as the year 2018 registered purchase of heat pumps by approx. 1.3 million households. While France, Italy, Spain contributes to the half of the tola sales in the European Union (EU), Estonia, Finland, Norway and Sweden reportedly have the highest penetration rates with more than 25 heat pumps sold per 1 000 households each year, which is conducive for regional heat pump market growth.
The Permeating Popularity of Various Heat Pump Technology
The air source heat pumps are rapidly gaining currency and are becoming more widespread during the recent years and now occupy the largest share of global sales due to factors like improved standards of construction, favorable policy environment and rising demand for air-conditions. On the other hand, the sales of water source heat pumps, especially those intended for production for hot water, have tripled majorly contributed by sales in China. The increase in purchases was facilitated by subsidies made available through the Coal-to-Electricity program of northern China, which incentivized the replacement of coal-fired boilers with air-to-water heat pumps. The second-largest market was Japan in terms of sales for the same, during 2018 which was to the tune of 480000. Besides despite experiencing a lower sales volume, Europe experienced a steep rise in sales of heat pump water heaters which numbered 155000 units in 2018 from approx. 30000 units in 2010. On the contrary, wit annual sales of around 400000, ground-source heat pumps are relatively less common around the world, with Sweden accounting for the highest number of per capita installations globally. In view of the above, it can be stated with certainty that the energy and power industry is poised to witness a surge in heat pump technology demand irrespective of their types.
Policy Regulations and Government Programs Open up Opportunities for Future Growth
The labeling of products with a seasonal performance factor for heating and minimum energy performance standards for heat pumps has been mandated by the USA, thereby paving a way for such performance-based incentivizing system to encourage the use of heat pumps in conjunction with local PV production in a self-supply mode which in turn is anticipated to boost performance during the coming years and contribute to the reduction of electricity consumption from the public grid. Besides, in the EU and China, heat pumps’ energy source is categorized as renewable heat which makes incentives Viz. tax rebates accessible. On the other hand, subsidies made available under the aegis of the Air Pollution Prevention and Control Action Plan are aiding in the reduction of upfront installation and equipment costs in China. Moreover, the subsidies for air-source heat pumps across various Chinese provinces were made available by the Chinese Ministry of Environmental Protection as evidenced by the reported RMB24 000 to RMB 29 000 per household in Beijing, Shanxi, and Tianjin in February 2017. EIA also notes that 30% of the initial investment cost incurred towards ground-source heat pumps is covered by the state in the case of both the USA and China. The overall favorable outlook has mobilized developments in 2018 within the heat pump market, which are as follows:
January – Joint Venture
The leading manufacturer of technologically advanced ductless and variable refrigerant flow (VRF) heating and air conditioning systems Mitsubishi Electric Corporation (TOKYO: 6503) and a world-leading developer of comfortable, sustainable and efficient environments Ingersoll-Rand plc (NYSE: IR) had reportedly announced an agreement between them to establish a 50 %-50 % joint venture (JV) pending a global antitrust review. The JV was agreed upon to facilitate marketing and sales as well as distribution VRF and ductless heating and air systems which would be reportedly highly efficient, mini-split, multi-split, variable-speed and VRF air conditioners and heat pumps intended for commercial and light commercial as well as residential applications
April – Acquisition
The 3rd largest supplier to heat pump market of the Nordic region with annual sales registering around 68 million euros, Danfoss Värmepumpar AB, known under the brand name 'Thermia', based in Arvika, Sweden was reportedly acquired by The Stiebel Eltron Group for an undisclosed amount, enabling the latter to focus on the heating and cooling with renewable energy, consequently develop business in other markets which were then dominated by ground/water heat pumps.
Nevertheless, albeit such promising potential for the market global pandemic and its resultant effects like lockdown measures leading both supply-side and demand-side shocks is expected to create a dent in the growth prospects of the market.
3d Printing Revolution
Thought Articles3D printing is an action of the process of making three dimensional solid objects from a digital file using a 3D printer. Increasing adoption of 3D printing technologies in industries such as consumer electronics, healthcare, and automotive among others aiming to reduce costs is expected to drive the growth of the market for 3D printing during the forecast period. In addition, the market also witnesses increasing investment by major market players in research and development which is further fuel the growth of the market.
By Component Insight
Based on the component, the 3D printing market has been segmented into hardware, software, services, and material. The software segment is holding a significant share in the market as it is considered as an essential tool for the designing and manufacturing of 3D printed models. Software not only the users to create and prepare the model for printing, but also allow for pre-printing repair and provide control over the production process. The demand for software for 3D printing is estimated to grow during the forecast period owing to the rising penetration of 3D printing technology for residential and commercial applications. Furthermore, rapid product launches and the introduction of innovative software to improve the efficiency and performance of 3D printers are also estimated to drive the 3D printing software market in the coming years. The software segment is further segmented based on CAD tools, slicers, and others. The rapid rise in the demand for 3D printing in multiple ends user industries such as automotive, aerospace and defence, electronics and more, has heavily impacted the demand for paid CAD software as these industries require technical and precise drawings for prototyping, tooling, and parts manufacturing. Furthermore, the rising availability of newer software and advanced features in this domain are expected to strengthen the growth of the 3D printing CAD tools market. However, the availability of free software and piracy concerns in the software domain is projected to hinder the market potential of this software in the coming years. A slicer software cuts the 3D model file that is needed to be printed into individual layers and generates machine code for the 3D printer to print the final design, thus making them a crucial part of 3D printing. This software is available in both free and paid versions, with the paid ones providing a string of additional features to aid pro-level designing.
By Technology Insight
By technology, the 3D printing market is segmented into Vat Polymerization, Material Extrusion, Material Jetting, Binder Jetting, Direct Energy Deposition, Powder Bed Fusion, and Sheet Lamination. The demand for vat polymerization technology is projected to witness exponential growth over the forecast period on account of increasing demand due to its high accuracy and smooth finish, enabling its high use in precision and specific industries such as healthcare, aerospace, and semiconductor industry. Vat photopolymerization is one of the earliest and most demanded 3d printing technology available, and the demand for this technology is further projected to improve in the coming years. The technology further comprises of stereolithography, digital light processing, and continuous digital light processing technologies. Besides, vat polymerization is further segmented based on stereolithography, digital light processing, and continuous digital light processing. Stereolithography (SLA) 3D printing technology is projected to witness good growth over the forecast period owing to the increasing demand for residential and commercial 3D printers all around the world. Furthermore, the 3D printing market trend also witnesses the rapid technological advancements in the industry which are further projected to shoot the demand for this technology in the coming years. For example, Formlabs, a US-based SLA 3D printer manufacturer, introduced the Form 3 and Form 3L to its professional 3D printer lineup. Additionally, multiple market players are also partnering up and expanding their portfolio in this technology to improve their share in the market, thus resulting in further growth during the forecast period. For instance, in September 2019, Nexa3D, a California based SLA 3D printer leading manufacturer collaborate with TWeatherford Inc., an additive manufacturing solutions provider to expand its reseller network in the mid-west. Furthermore, the company also partnered with Creat3D to expand its market reach to the United Kingdom in August 2019.
Furthermore, Powder bed fusion is a process where an energy source like laser or electron beam fuses with an atomized powder to create the layers of a 3D object. Among the various types of powder bed fusion technologies, industries like aerospace, automotive and transportation are utilizing these technologies as per their industry requirement and accuracy level. Amongst all, Select Laser Sintering (SLS) holds a majority share in the powder bed fusion technology as aerospace and automotive players are increasingly utilizing it to produce functional prototypes and complex parts at a high level of accuracy. The market for Direct Metal laser Sintering is poised to grow at the fastest rate during the forecast period on account of its growing utilization across industries like medical, satellite, and others.
Recent Update
February 2019, Xerox has acquired liquid metal 3D printing company Vader Systems to leverage its liquid 3D printing technology to produce parts at fast speed.
September 2019, Digital Metal announced the launch of its two new superalloys for its DM P2500 binder jetting platform, which are considered as the revolutionizing products.
December 2018, EnvisionTEC, a global 3d printer and material provider announced the launch of the company’s new cDLM systems with the name Envision One cDLM.
July 2018, the Lockheed Martin Space embraced a 3-D printed titanium dome for satellite fuel tanks that carry fuel on board satellites.
November 2018, HP announced the expansion of its installations of its HP Multi Jet Fusion 3D printing solutions aiming to meet the growing demand for production-grade 3D manufactured parts from various end-user industries such as manufacturing, transportation, medical and consumer.
April 2018, Prodways technologies has launched a wide range of 3D printers in the United States that are based on its latest PA612-GB 3800 laser sintering powder and high-temperature versions of its latest and advance P series of Selective laser Sintering 3D printer.
December 2018, Rocket Lab has launched First NASA Mission with 3D-printed Rocket that whose engine is developed using electron beam melting where metal powder or wire is placed under a vacuum and fused by heat from an electron beam, enabling them to create unique and relatively inexpensive engines.
ABOUT THE AUTHOR:
Rajat Sudan is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from healthcare to automotive, with a special knack for semiconductor. With the addition of his formal education in Economics, Commerce, and Finance, he is able to provide more light on the macro aspects of the story. To read more articles by him, and for more information regarding multiple global markets,visit www.knowledge-sourcing.com.
Image Sensors Market Trend – Effectuating a Spectrum Wide Illumination
Thought ArticlesThe image sensors market is expected to witness healthy growth during the next few years because it is integral to a myriad of applications that ranges from automotive, consumer electronics, healthcare, military and defense, transportation, among others. The use of image sensors is further reinforced by continuous R&D investments made by both public and private players which are resulting in an energy-friendly, reasonable, and relatively miniaturized version of image sensors. These improvements are making image sensors suitable for a wider industrial application. Moreover, the continuously changing landscape of consumer electronic goods like mobile phones, handheld devices, cameras, among others is one of the major driving forces anticipated to influence an upward trajectory of image sensors market.
Electronic Integrated Circuits; Parts Thereof (Exports)
In Thousands of US$
Source: International Trade Centre
Regarding consumer electronics, the semiconductor industry has reportedly witnessed certain recent market developments by key players establishing the very indispensability of image sensors to consumer electronics. To substantiate the aforesaid, the key developments were:
2018 – Product Launches
July
Teledyne UK Limited (LSE: E2V), through its Teledyne e2v, which is a provider of imaging solutions had reportedly announced the launch of Emerald 67 megapixel, the newest addition to its Emerald CMOS image sensor family. The salient feature of this relatively new sensor is a high resolution with the smallest global shutter pixel (2.5 µm). This feature, which was one-of-a-kind during the launch, facilitates the capture of more objects in a single high-resolution shot making it suitable for high-end automated optical inspection, microscopy, and surveillance. It also provides ultra-low noise performance with high sensitivity of 70% QE enabling the precise identification of defect and particle. Additionally, being ultra-high-speed, thereby the production line throughput is significantly enhanced.
October
Samsung Electronics Co., Ltd. (B3: SMSNN, FWB: SSU, SSUN, KRX: 005930, 005935, LSE: SMSN, SMSD) [SAMSUNG] had reportedly announced the launch of 48-megapixel Samsung ISOCELL Bright GM1 and the 32-megapixel ISOCELL Bright GD1 which are essentially two comparatively new 0.8-micrometer (micron) pixel image sensors. The rationale for the development and the subsequent launch of these sensors is the objective to provide smartphone vendors with greater design flexibility enabling the accommodation of more sensors in the same space, which is the case with the trend of slim, bezel-less smartphones. These sensors are based on Samsung's pixel isolation technology called ISOCELL Plus. This technology, which was launched in June during the same year, reportedly optimizes the performance for smaller-dimension pixels, enabling the integration of the same into premium camera modules. Additionally, this technology is made available incorporated with the organization’s tetra cell technology that facilitates the merging of four pixels into one enabling the enhancement of overall light sensitivity.
Besides, the end-use industry such as consumer electronics, the defense industry is expected to hold a significant share of the image sensor market. One aspect that satisfactorily substantiates the aforesaid to a certain extent is the increase in the military budget by 3.6% from 2018 to 2019 according to the Stockholm International Peace Research Institute (SIPRI).
Direct Budget Plan of Research, Dev, Test & Eval
In millions of US$
Source: Department of Defense, USA
Further, in 2019, the global military expenditures amounted to US$1917 billion representing 2.2% of GDP which in turn reportedly corresponds to approximately US$249 per person. During the same year, the United States was the leading country in global military spending with a share of 38% of the total expenditure. Further, the military spending is in part substantiated by the National Defense Strategy which was issued by the Department of Defense (DOD), Government of United States in 2018, that articulated the necessity to stand by its properties of modernization. Moreover, the increasing technological advancements of Russia and China, an observation noted by the DOD officials, makes it a geopolitical strategic imperative of the USA to reexamine its R&D investments. Thus in 2018, it was reported that U.S. Air Force researchers at Air Force Research Laboratory at Wright-Patterson Air Force Base, Ohio, have been working with Defense Engineering Corporation, Inc (DEC). in Beavercreek, Ohio; Lockheed Martin Corporation’s (NYSE: LMT) Lockheed Martin Space Systems in Louisville, Colorado and optX imaging systems, Lorton, Virginia, on the R&D of Electro-Optical and Radio Frequency Sensors (RADERS) project with the rationale of developing new enabling technologies for communications, imaging, and signals intelligence (SIGINT) applications, information processing, next-generation electro-optical (EO) and radio-frequency (RF) sensors.
The amount of RADERS contract awarded per entity was as follows, with DEC being awarded US $3.9 million during August; Lockheed Martin Space Systems being awarded US$192,009 during the same month, preceded by optX Imaging Systems being awarded US $748,315 during May. Another such development pertaining to the non-visible spectrum of image sensors related to defense was the announcement by ManTech International Corporation (NASDAQ: MANT) mission-focused technology solutions and services provider for U.S defense, intelligence community and federal civilian agencies, of a reported award of US $45 million 4-year-award for the Naval Surface Warfare Center (NSWC) Crane for the technical advancement of sensors which is employed by the Naval Air Systems Command (NAVAIR) in Hawkeye aircraft (PMA-231), in August 2018. It is important to note that PMA-231 Hawkeye aircraft provides surveillance, identification, and tracking of threat aircraft and cruise missile systems, thereby ensure situational awareness by employing integrated, automated sensors. ManTech has been tasked with the enhancement of sensor performance in the rapid-fire sprint as well as increasing the speed of crucial intelligence delivery. This will be executed by capitalizing on the organization’s pan DOD experience with sensor integration and support along with engineering and development techniques pertaining to agile software, resulting in more efficiency and flexibility for integrating emerging technologies, among others.
Thus, in view of the driving factors, market developments pertaining to the end-use market of consumer electronics and the sheer quantum of investments made by national defense industry towards effectuating practical advancements of image sensors, it can be stated with certitude that the market for image sensors is poised to witness a stratospheric growth during the next few years. Besides the aforementioned factors, aspects such as the adoption of IoT in almost every sector, Advanced Driver Assistance Systems (ADAS), government regulations mandating the implementation of new safety technologies in the automotive sector within the next few years, among others are also anticipated to reinforce the growth of the market.
A Widening Demand-Supply Gap in the Economics of Ventilator
BlogA ventilator is a medical device that aids an individual to breathe when the lungs are unable to perform their designed tasks itself. There are different types of ventilators available that are utilized based on the gravity of the patient’s conditions. For instance – non-invasive ventilators are primarily used when the patients tend to suffer acute pulmonary malfunction while the invasive techniques are the recommended choice for the healthcare personnel in case of a serious patient condition.
The number of emergency admission in hospitals has increased over the years. For instance, in the United Kingdom, the total number of patients admitted in the hospitals in the emergency condition has increased from 5,010,670 in 2008-09 to 6,437,959 in 2018-19 (source: Hospital Episode Statistics, NHS Digital). Similarly, there were 36,353,946 admissions in the United States Hospital in 2018 (source: American Hospital Association). Moreover, the number of COPD cases has been increasing worldwide, with the World Health Organization (WHO) estimating the burden of moderate to severe chronic obstructive pulmonary disease (COPD) to be around 65 million individuals. Thus, the ventilator market size is estimated to reach US$3,095.180 million by 2025
Hospital Emergency Admissions in the United Kingdom, in Thousands
Source: Hospital Episode Statistics, NHS Digital
COVID-19 Impact
As of 30th July 2020, there are 17,195,62 recorded COVID-19 cases worldwide, with the United States, Brazil, and India cumulatively constituting more than 50% of the cases. Moreover, only 10% of the patients may require mechanical ventilation support in order to aid in the patient’s recovery and treatment. However, in absolute terms, the 10% figure is high which is adding significant pressure on the government to ensure that adequate beds and ventilators are available to patients – should a need arise. The COVID-19 pandemic has swelled the revenue generation opportunity for the manufacturers, with the ventilator market, projected to surge in 2020.
Developing Healthcare Infrastructure Driving the Market in Asia Pacific
China has made significant progress over the years in improving the access to healthcare services to its large proportion of the population. This is indicative of the fact that more than 95% of the population has been covered under healthcare insurance. Moreover, in 2016, the government of China announced Health China 2030 blueprint that is based on the principle of prioritizing health, supporting innovation and scientific development, and to boost healthcare services in the remote regions of the country.
Number of Hospitals in China, in Units
Source: National Bureau of Statistics of China
Moreover, the number of hospitals in the country has increased at a CAGR of 5.87% from 20,918 units in 2010 to 33,009 units in 2018 (Source: National Bureau of Statistics of China) with Hebei, Jiangsu, Shandong, Henan, Hunan, Guangdong, and Sichuan cumulatively constituting 41.85% share. Similar efforts have been noticed in India as well where the focus is growing to reduce the waiting time and improve the access to healthcare services even in remote location as well. The developing healthcare infrastructure is providing an opportunity for ventilator manufacturers to generate higher revenues. Moreover, as a result of the COVID-19 pandemic, the Chinese manufacturers are working on the full capacity to meet the demand – both from the domestic and foreign markets. In fact, China has approximately twenty-one multifunction ventilator manufacturers out of which eight have obtained the European Union’s CE marking. Moreover, these companies have shipped more than 1,000 multifunction ventilators to both the domestic and foreign hospitals in order to treat critical COVID-19 patients. Similarly, Kerala State and Drugs Pharmaceutical (KSDP) is expected to start the production of a low-cost ventilator after getting the necessary approvals from the Government of Kerala and Indian Council of Medical Research (ICMR). The pandemic has resulted in many companies working on the full capacity to meet the requirement of the current situation, however, apart from the COVID-19 situation, the healthcare industry in the emerging countries have taken measures to cater to the need of mass proportion of the population that is projected drive the market growth in the next five years.
ABOUT THE AUTHOR
Siddharth David is a Senior Market Research Analyst at Knowledge Sourcing Intelligence LLP. Siddharth’s expertise lies in offering predictive analysis and an all-inclusive outlook of different industry verticals from both the macro and micro point of view, with the special knack in market sizing and delivering key strategic insights. To read more articles by him, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.
Global Food Glazing Market – Reinforcing Retail Food Growth
Thought ArticlesAdditives which when applied over food products provide it with polished, protective, and shiny coating, are known as food glazing agents. Bakery and confections, fruits as well as ready-to-eat (RTE) products, among others are generally applied with food glazing agents. These additives are derived from both artificial and natural sources.
Vegetable Waxes, Beeswax, Other Insect Waxes and Spermaceti, Whether or Not Refined or Coloured (Excluding Triglycerides)
In Thousands of US Dollars
Source: International Trade Centre
The food and beverage industry has been experiencing a rapid transformation during the past few years due to a multitude of factors that are inclusive of but not limited to digitalization, globalization, incomes increase, internet penetration, policy changes, population growth, shifts in food consumption patterns and diets, trade liberalization as well as urbanization. One of the most significant to start with is globalization, which has food markets in both developing and developed markets. This is mainly due to the resultant creation of a single global market that is devoid of protectionism and is promoted by trade agreement among various nations. To this end, it is important to note that as of June 2020 there are 303 regional trade agreements (RTAs) were in effect. The most recent being the European Union Vietnam Free Trade Agreement (EVFTA) & EU-Vietnam Economic Integration Agreement (EVIPA) between EU and Vietnam, whereby 65% of duties on EU exported to Vietnam will be reportedly abolished whereas the remaining will be gradually eliminated in coming 19 years. On the other hand, 71 % of duties on exported originating from Vietnam will be eliminated while the remaining be eliminated over seven years.
It is an ambitious agreement that seeks to eliminate almost 99% of customs duty between the EU and Vietnam, it is expected to facilitate investments in the food industry, among others. The complementary nature of Vietnam’s competitiveness in the agri-food sector and labor-intensive industries and the EU’s high-tech and quality management expertise with investment capabilities is expected to make the situation more conducive, especially for the processed food category. Further according to report by Delegation of the European Union to Vietnam one of the benefits from tariff elimination for EU exporters that have been exampled therein is that of food preparations will become duty-free after 7 years. Further facilitating increased access to Vietnamese markets. Further, the internationalization of the food market has effectively contributed to the diffusion of snacking practices among others which has been further augmented by the proliferation of fast-food restaurants across the world, food delivery services as well as increased innovation.
In view of the above, it is important to note the APAC region is expected to drive the global food glazing agents market growth to new heights. Taking the example of the food processing industry of Joan which is to the tune of $220 billion according to USDA reports of July 2020 is known to produce a wide range of food products concomitantly fueling the food retail industry which in 2019 registered a food and beverage sales $483 billion. Confections are one of the leading applications that hold a share of the retail food sector. Particularly to Japan, this is exemplified by the recent launch of a new KitKat snack mix that combines sweet and salty flavors by Nestles. Additionally, convenience is expected to further augment the growth of the market facilitated by digitization. This would partly drive the APAC region to contribute to market growth. For instance despite the COVID-19 pandemic continued to impact the daily operations of chinse food deliver giant Meituan-Dianping’s (SEHK: 3690) merchants, that includes restaurants, hotels, and other local services, the organization reportedly registered a revenue for the end quarter of 2020 increased by 8.9% year-over-year to RMB24.7 billion from RMB22.7 billion for the same period of 2019.
Moreover, the Gross Transaction Volume of its food delivery business increased by 16.9% year-over-year to RMB108.8 billion. At a rate of 6.9% year-over-year, the daily average number of food delivery transactions increased to 24.5 million. The food delivery business further registered an increase in average value per order by 9.4% year-over-year. The operating profits from the food delivery business transitioned to a positive figure of RMB1.3 billion for the second quarter of this year and increased by 65.7% year-over-year with operating margins improving by 2.7%-points year year-over-year. On the other hand, in India, Amazon.com, Inc. (NASDAQ: AMZN) had launched its online food delivery operations in select pin codes of Bengaluru. With Amazon Food this strategic initiative comes when Uber sold its food delivery business, Uber Eats, in India to local rival Zomato during January 2020, suggesting the degree promise which the Indian market holds.
Rural Population (% of Total Population)
Source: World Bank
Before all foregoing, it is important to note that the globalfood glazing agent market is also influenced by the increasing global population and rural to urban migrations. In view of the above, the gradual growth of the population and simultaneous rapid urbanization and adoption of new trends is anticipated to further drive the demand for processed food. A marked shift from the traditional means of food and beverage consumption and increasing expenditure on processed food which is native to urban and peri-urban areas. Presently a majority of the global population lives in urban areas. In 2018, Northern America was the most urbanized region in the world, with 82 % of its population living in urban areas. Further, according to the UN, the share of the global population is anticipated to rise from 55 % in 2018 to 60 % in 2030. Additionally, the fastest-growing cities are in Asia and Africa, with the African urban population projected to grow three times the present and that of Asia is to increase by 61% which in turn is expected to propel the growth of the urban population. By 2030 the number of megacities is expected to increase numbering to 41 hosting 14% of urban dwellers across the world.
Pet Food Ingredients Market Trend – Nourishing the Rise of Quadruped Flexitarians
Thought ArticlesGlobally, the proclivity of pet ownership is increasing. Especially with regards to the aging population in matured economies, many consumers are considering animals their companions. Furthermore, the rising population of singles and childless couples are increasingly perceiving pets as companions. In developing economies, the increasing availability of disposable income has facilitated pet adoption in greater numbers. It is a fact that the existence of pets in human lives is a time-honored aspect, nevertheless with an increasing shift in perception pets now occupy human spaces that even extend to social media.
Thus, with the advent of pet parents emerges the concept of humanization. This has resulted in aspirations for offerings for pets that take into account the same concern for health and wellbeing, which would influence consumer choices when purchasing products meant for human consumption. The aforesaid is one of the fundamental determinants influencing the decision of pet food purchases that are expected to drive the demand for pet food ingredients.
The Emerging Trend of Limited-Ingredient Diets to Positively Influence the Pet Food Ingredients Market
The human dietary pattern is marked with a variety of trends, a few of them pertain to a substantial restriction of certain kinds of food. The same has emerged in the pet food market and is being made commercially available in the form of limited-ingredient diets (LID) that are known to constitute a short ingredient list to deliver maximum nutrition. More consumers are turning to limited ingredients for simplicity in their pets’ diets with the increasing momentum of meat-first formulations that focus on high-quality proteins at the forefront of a short ingredient. Due to the reduction of ingredients salmon oil, patented probiotic, miscanthus grass, inulin, among others are few of the consideration which is increasingly becoming integral to pet food and supplement. Further, particularly for pets that may have specific dietary restrictions, a high-quality, accessible limited-ingredient diet has the potential to improve pets’ well-being and allow them more quality time with their owners.
A recent example is the launch of Brilliant Salmon Oil, which is a single ingredient product and devoid of any additives, by Hofseth BioCare, during July 2020, in Canada and the United States that has been made commercially available in the independent pet specialty channel. The supplement is reportedly human grade and is known to offer functional benefits that include healthy coat, skin and paw pad as well as facilitate the increase in appetite and energy. The company reportedly manufactures its salmon oil in Norway using Norwegian Atlantic salmon and a patented extraction process. Further augmented by increasing consciousness of allergens and food sensitivities for companion animals, and due to the growing adherence with the trend towards clean eating, the growing popularity of LID is expected to foster pet food product innovation which in turn is expected to drive the growth of pet food ingredients market.
The Transcendent Trend of Plant-Based, Vegetarian and Vegan and Its Influence Favorable to Pet Food Ingredients Market Growth
With increasing awareness that pets do not essentially need animal meat but they need protein, which can be derived from a plethora of sources that are, inclusive of but not limited, to proteins from plants, insects, fungi, and cell-based lab production, the pet food ingredient market growth is estimated to be driven by the aforementioned trend, as well. For instance, in August 2019, the renowned maker of koji-protein dog treatsWild Earth, Inc., had reportedly launched its first dog food product at SuperZoo which was made commercially available by independent US pet retailers. The reportedly balanced and complete diet for dogs is meatless and each serving contains 31% complete protein derived from yeast. Other ingredients, which the diet comprises are sweet potatoes, spinach, pumpkin, oats, chickpeas, blueberries, and spinach and is devoid of artificial flavors or preservatives. Moreover, in August 2020, it was reported that the Scoular Company will construct its $13 million barley protein concentrate (BPC) manufacturing facility, to the south of the company’s existing livestock feed ingredient facility, in Jerome. It spans 15,000 sq. ft and is to be reportedly constructed on 4 acres of land, in Jerome. Earlier in June that year, a partnership with Montana Microbial Products was announced by the company to produce and market the sustainable, plant-based protein ingredient for Asian and North American pet food manufacturers, among others.
Further, proteins are not the only consideration for pet food formulators who have to carefully weigh in the science behind a trend, the size of the product that is in trend, and the product portfolio diversification. Vitamins, minerals, and fibers are also equally important which was exemplified by the reported launch of new vegetable ingredients by Duynie Group, a ROYAL COSUN company earlier in November 2018. These ingredients are dried and reportedly ground where applicable. Further, it was also reported in May 2020, that to respond to the demand for sustainably produced high-quality pet food ingredients, Duynie Ingredients will officially move to its new office at the climate-neutral factory which has been recently built in Cuijk, the Netherlands. The factory would reportedly operate entirely on residual heat from an adjacent biopower station.
COVID 19 and Its Influence on the Pet Food Ingredient Market
Just like it is in the case of retail food for humans the pet food market is also expected to witness a surge in demand for all-natural products with a special emphasis on the origin of the ingredients and how the ingredients have been sourced. The high rates of furloughs and unemployment due to the pandemic are expected to dissuade the consumers from aspiring for premium price tags which comes with the territory of sustainable as well as naturally-formulated pet products. However, the trend for pet food with naturally derived ingredients is expected to witness an upwards trajectory, in the years to come. Another trend that is expected to primarily stem from trade disruptions due to COVID 19, is the increasing domestic sourcing of ingredients which is expected to augment the growth of domestic pet food ingredient markets. Nevertheless, national regulatory compliances (wherever present) are expected to create challenges that are estimated to further provide opportunities for pet food ingredient manufacturers resulting in newer product developments.
Organic Feed Market Trend – Fostering Sustainable Livestock Farming
BlogAnimal feed is fundamental to animal health and welfare which results in the production of quality and safe products of animal origin. Additionally, the increased demand for proteins derived from animals has led to an intensification of livestock production. The issue of feed safety has also achieved prominence due to an increasing trend of clean label consumption trends as well as the need to prevent and control hazards like dioxin, aflatoxins, and other undesirable substances. The aforementioned factors are collectively responsible for increasing demand for animal feed.
The current general production scenarios as per FAO is that the global meat production in 2020 is expected to fall by 333 million tons (carcass weight equivalent), 1.7 % lower than that of 2019. Also, pig meat production is expected to fall duet to African swine fever (ASF) that is largely concentrated in Asian countries. On the contrary, the global poultry meat production is estimated to grow. Also, with a growth output of modest nature, ovine meat production is expected to grow. Further world milk production is forecasted to grow by 0.8 % to 859 million tons. The factors that are responsible for growth are increasing in production in Asia and North America, with modest growth in the Caribbean, Oceania, Central America, and Africa. Additionally, despite the economic difficulties due to COVID-19 along with logistical hindrances, and a sharp decline in sales of food and beverage due to the closure of food and beverage establishment, the demand for dairy and meat products has been met through an increased eCommerce purchase which sustained the food and beverage industry during the lockdown measures. Moreover, post world normalization the demand for meat and dairy is going to rise.
Further, increasing modernization of farms in China and the engagement of village cooperatives in India are sustaining milk output growth in Asia. On the other hand, there is a reported increase in milk output in the Russian Federation which is largely driven by a modern dairy farm. At the same time, the international meat trade is anticipated to increase to 37 million tons in 2020, up 2.4% year-on-year. Much of the trade momentum is expected to be provided by China, as imports are seen rising by 24 % year-on-year. The demand for meat imports which is projected to rise is expected to be met mainly through increased exports by the USA, the United Kingdom of Great Britain, the European Union 27 member countries (EU), Northern Ireland (the UK), and Brazil. The aforesaid is a snapshot that further reaffirms the importance of feed safety to ensure food security. This supports the need for the same degree of quality assurance that is observed in the case of food production, thereby potentially contributing to the anticipated organic feed market growth.
According to a recent report by the Research Institute of Organic Agriculture (FiBL)as of 2018, 186 countries around the world have been partaking in organic activities, the global organic market registered value of 96.7 billion euros and above all, there were 103 countries with organic regulations as compared to 93 countries in 2017. Additionally, in Europe, the highest organic shares were for sheep and cattle. Due to the high demand for eggs, the organic share for poultry witnessed the greatest increase. Accounting for 4.85 million heads in Europe, the largest numbers of bovine animals are present in Germany, France, and Austria. With an overall share that is more than 20%, the highest organic shares are in Latvia, Liechtenstein, Sweden, and Austria. The highest organic shares that are more than 40% encompasses the Baltic countries of Estonia, Latvia and Lithuania, and the Czech Republic. Moreover, the European organic cow’s milk product as of 2018 was to the tune of 5.4 million metric tons constituting 3.4 % of the European Union’s milk production from dairy cows. The report also notes that with the aid of increasing availability of organic feed, organic livestock is projected to grow significantly for pigs and poultry, with the possibility of the share of organic poultry doubling to 5%. Further, facilitated by increasing organic cheese production, the growth of organic dairy is expected to grow. Thus, with such a well-developed European organic livestock farming, among others and the expectation of growth in organic demand mentioned in a new publication on the agricultural outlook 2019-2030, Europe is expected to hold a robust share of the organic feed market. According to the Commission, the EU organic area is projected to reach 18 million hectares by 2030, i.e. 10 % of the total agricultural land, representing growth in land use of 3 % per year.
Thus, despite the characteristic high labor input associated with organic production the aforementioned reaffirms with the estimated upward trajectory of organic feed market in the coming few years. Further, a variety of standards, legislation, and policy support are expected to augment the growth of the same. Thus, again revisiting the aspects of the EU, it was reported that Regulation (EC) No 834/2007, on the basis which the region had gained considerable experience, will be repealed and replaced by the new Regulation (EC) No 2018/848 from the 1st of January 2021. Contained with the regulation the intention of ensuring the integrity of organic production at all stages of the production and processing and distribution processes of animal feed, among others, has been mentioned. Earlier, in April 2019, a Memorandum of Understanding on Organic Products was reportedly implemented between Brazil and Chile to facilitate trade in organic products in both countries through the mutual recognition of their certification and control systems. The negotiations were executed between the Ministry of Agriculture, Chile through the Agricultural and Livestock Service (SAGI) and the Coordination of Agroecology and Organic Production of the Ministry of Agriculture, Livestock and Supply of Brazil (COAGRE-MAPA). Thus, with such initiatives implemented by the government, it can be stated with certitude that the environment is gradually becoming more conducive for the use of organic feed.