The underfloor heating system is a heat source that is simply used for keeping the room of a building warm. It can be installed under the floor, walls, or even the ceiling to ensure that the rooms heat faster. The growing trend of installing modern interior has been instrumental in supplementing the demand for an underfloor heating system since it does not occupy additional space and ensure that there is enough room for instating modern architecture. Furthermore, the ability of the underfloor heating system to work with all types of flooring further makes it an attractive option, with the global underfloor heating market size estimated to grow from US$4.110 billion in 2019 to US$6.303 billion in 2025 at a CAGR of 7.39%. Even though, the underfloor heating system requires an initial investment that is typically almost 30% higher than that of the traditional radiators, the ability of these systems to pay off the investment, in the long run, is seen as an appealing option for the building/homeowners as they are more efficient and require less maintenance in comparison to the traditional radiators. Moreover, the performance of electrical underfloor heating is similar to that of the radiators, making them popular, specifically in regions where the climate is harsh and cold.
Rising Focus on Building Energy Management
According to the U.S Department of Energy – heating, cooling, and ventilation captures 34.94% of the residential and commercial building’s energy use. Similarly, according to the Department of Industry, Science, Energy, and Resources – Australian Government, HVAC typically consumes 39% of the energy supplied to an office building in the country, within which, 6.6% of the overall energy is consumed by the heating requirement of the building.
Typical Energy Consumption in an Office Building
Source: Department of Industry, Science, Energy, and Resources – Australian Government
Thus, efforts have made by the government, specifically in the United States and Europe, to optimize energy consumption and make the commercial and residential building energy efficiency meet their respective climate change goals. The energy and power industry have been recommending replacing conventional equipment and appliances with green and power-efficient equipment. Comparing the environmental impact, due to its size and dimension, the underfloor heating system requires relatively less energy to provide a similar level of performance as the conventional radiator, with the former consuming 20%-40% less energy than the latter to heat a room of similar dimension. Thus, in order to reduce the share of HVAC in building’s energy consumption and to optimize overall building’s energy demand, replacing conventional heating equipment with the underfloor heating system may provide a small but significant stimulus in ensuring controlled carbon emission in the immediate future.
Recent Market Developments
In July 2020, Amber Underfloor Heating launched a smart thermostat in order to allow the end-users to control the heating system via a smartphone, tablet, or laptop. Furthermore, the company in January launched a decoupling membrane that guards against any movement in the sub-floor while also working as a heating cable carrier which ensures warm floors.
In January 2020, Grant NI launched Uflex underfloor heating system that is considered to be energy efficient and can be utilized in both residential and commercial applications.
Senate Electrical introduced a range of underfloor heating products and services to the market in June 2019.
Firebird Heating Solutions Ltd. announced the availability of their new Envirofloor underfloor heating range in May 2019 that is based on hydronic technology and is claimed to be 25% more efficient than the traditional radiators.
nVent Electrical PLC – a company into electrical connection and protection, launched in April 2019 an improved version of RAYCHEM QuickNet underfloor heating map that offers better flexibility and is equipped with a thermostat.
In January 2019, ARDEX Americas – a solution provider for specialty building products, launched FLEXBONE®HEAT-In-Floor Heating System that is considered ideal for all types of tiles, stones, and other manufactured approved floor coverings.
Junker Industries A/S launched the Leveldek System, Solid Hardwood Floor, and Underfloor Heating from a single point supply.
In 2017, Sidec NV had started the construction of an additional manufacturing site in Balen, Belgium, that led to the doubling of the production floor space to 12,000-meter square, with the entire site heated through the underfloor heating system.
Rising Remodeling Expenditure Providing High Revenue Generation Opportunity
According to the European Insulation Manufacturers Association, single-family and multi-family houses combine 67% of the total floor area in Europe. The underfloor heating system tends to improve the value of the property significantly. In fact, it has been suggested that underfloor heating is the second or the third most popular choice among the individuals that they spent on while getting a major home improvement in Europe. Thus, the rising household expenditure on remodeling/renovation directly correlates with the growth of the underfloor heating market. For instance, close to double-digit growth of household remodeling spending has been observed in key European markets such as the United Kingdom, Germany, and France in the last couple of years.
Distribution of Floor Area per Building Type in Europe, in %
Source: European Insulation Manufacturers Association
Similarly, in the Nordic region, specifically, in Norway – more than seven out ten apartments are owned by the private individuals (source: Statistics Norway) and property owners are the most important factors for carrying out the renovation activity in the country. In Finland, however, the spending on renovation construction has declined by 4.2% to reach EUR 6 billion in 2019 (source: Statistics Finland), however, a significant proportion of the individuals have planned spending on heating system renewal in the next three years. Similarly, in the United States, remodeling spending has been growing at a good pace over the years and has been instrumental in driving the underfloor heating market growth in the country.
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Intelligent packaging is referred to as a packaging system that is capable of carrying out smart functions such as detection, sensing, recording, tracing, communication, in addition to the application of scientific logic. This further helps in the facilitation of decision making, an extension of the shelf life of the product, safety enhancement, improving the quality of the product, providing relevant information regarding the product status, and warning about possible problems. The technology consists of temperature and freshness indicators, RFID tags, and sensors.
Intelligent Packaging for Food
The market is projected to grow at a significant pace with the rising trend towards the achievement of product safety, high-quality, and sustainability. With the increasing demand for food in order to satiate the rising global population, there is a need for sophisticated technologies that help in providing information regarding the quality status, thus preventing food wastage and spoilage. Hence, the adoption of intelligent packaging will help in the form of a quality indicator for the purchased food product. This will keep the consumer well-informed about the food quality and thus will curb food wastage to a greater extent. The growing demand for livestock products like meat, milk, and eggs will fuel the intelligent packaging market demand along with the growing demand for animal protein. As per the WHO information, there has been a surging pressure on the livestock industry for the production of high-value animal protein. Hence, the livestock sector is continuing to grow at a rapid pace and the major driving factors behind this growth are attributed to the rapidly growing population, increasing income, and rapid urbanization. The meat production on an annual basis is predicted to surge from 218 million tonnes during 1997-1999 to attain a production size of 376 million tonnes by the end of 2030.
Source: WHO, Annual Meat Production, 1997/99 to 2030, in Million Tonnes
A strong relationship between the rising income levels and animal protein consumption is depicted with the consumption of animal products like meat, milk, and eggs growing at the cost of commonly consumed staple foods. Additionally, with a sharp decline in prices, it has been noticed that the developing or the emerging economies of the world have commenced on higher meat consumption levels in comparison to the developed economies. According to the FAO predictions, the annual meat consumption in the emerging economies is projected to soar from 25.5 kg per person in 1997/99 to 37 kg per person by the end of 2030. In the industrialized nations, it is predicted to surge from 88 kg per person to 100 kg per person during the same time period. For milk and dairy products, the consumption is projected to grow from 45 kg per person per annum to 66 kg per person in the emerging economies, for the developed economies, it is predicted to surge from 212 kg per person to 221 kg per person. On the other hand, egg consumption is projected to rise from 6.5 kg per person to 8.9 per person; and from 13.5 per person to 13.8 per person in the developing and developed economies respectively.
The use of intelligent packaging for such perishable food items will definitely be of immense help in providing accurate information regarding the freshness level of the animal-derived food products.
Intelligent Packaging for Pharma Sector
The introduction of smart packaging in medicines is further providing an impetus in boosting the intelligent packaging market growth. The need for intelligent packaging is continuing to grow at a significant pace owing to the increasing prevalence of drugs that are sensitive to certain parameters such as moisture, increasing patient population that requires constant reminders for drug intake on a regular basis, and concerns regarding the sale of counterfeit drugs. It has been noticed that the use of Near Field Communication, NFC, can be highly effective in stopping the sale of counterfeit drugs. The technology involves a unique secure code that is invisible to the human eyes. The secure code is embedded inside the packaging of the pharma product. An authentication server stores the database of the pharmaceutical product, in addition, the server also stores the unique secure code related to the product. Then a mobile device is connected to the server and is configured to read the code that was inserted inside the product packaging. By bringing the mobile device close to the pharmaceutical packaging, the mobile is capable of identifying the genuine pharmaceutical product through communication with the authentic server, and, this, in turn, compares the unique secure code saved in the database.
Previous studies state that even high-income countries with strong regulatory systems that are capable of excluding false drug products also faced issues regarding the sales of counterfeit drugs in their markets. Also, as per OECD information, the incidence of adverse health consequences was noticed due to the use of fake medicines. It was estimated that around 72,000 to 1,69,000 children were expected to die from pneumonia every year after the consumption of fake drugs. Also, it was further assessed that false anti-malarial drugs are predicted to be responsible for additional 1,16,000 deaths (source: WHO, 2017).
Furthermore, significant product launches of smart packaging for drugs is contributing to burgeoning the market growth. In 2019, Log Pharma announced the release of its ActiveGuard Connect smart packaging solutions. The package designing is done for addressing the needs of patient adherence to a prescription drug or nutraceutical supplementation. The technology consists of an incorporated desiccant chamber that is designed to be attached and synchronized with a consumer’s smartphone.
Intelligent Packaging for Cosmetics
Beauty brands are also leveraging intelligent packaging technology that will not only allow the tracking of their cosmetic and personal care products but will also help in interacting with the user, in addition to offering an advanced product. Significant partnerships among organizations in the field of smart packaging for cosmetic and personal care commodities are further providing an opportunity for the market to thrive. In 2018, Cambridge Design Partnership teamed up with the international beauty brand, Avon, for utilizing smart packaging to support customer trials for a novel anti-ageing product.
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Display panels are referred to the electronic viewing devices that enable people to view a piece of information in the form of images. These mostly comprise still images, moving images or texts, or any other visual material. Today, display panels hold immense market potential with the growing consumer electronics industry. The growing gaming and entertainment industry are further contributing to propelling the market growth. Also, the advent of mobile devices including smartphones, laptops, and tablets are propagating the market demand at present and in the upcoming years. Industries such as healthcare, transportation, and others integrate display panels into their equipment for providing a user-friendly interface for viewing data.
The growing HMI industry is further fueling the display panel market demand, also the adoption of touch screen panels has strengthened further market growth prospects. Human machine interface is an important tool providing convenience to the operator for interaction or machine control, or the entire process. HMI evolved from hard wired push buttons and indicator lights on a control panel to digital visual touch screens. Traditional HMIs lacked any sort of visual display. The operator had to constantly rely on the audible feedback, and alarm systems, in addition, push buttons were utilized for controlling the process. The next HMI panel consisted of text panels or alpha numeric-based operator interfaces. The hard-wired push buttons and indicator lights were replaced by the text panels having membrane push buttons on them. The only advantage of this type of panels was that an operator was capable of reading pre-programmed messages onto the LCD screen. Hence, providing the information to the operator in a visual format. Thus, in an HMI industry, since the onset of text panels, display panels started gaining momentum. With the revolution in industrial automation, there was a rise in the adoption of more refined control systems and visualization commodities. Slowly, touch screen models came into being with advanced graphical displays replacing text display panels with better screen resolution. This provided flexibility to a programmer in designing visually pleasing screen, also, the screen can provide a user or an operator what is going on in the entire plant without the need to manually conduct the scanning process. This is because of the fact that everything is displayed right onto the HMI screen.
The growing disposable income, especially in the developing economies of the world have put a significant impact on the market growth. The major reason lies in the fact that with the growing consumer disposable income, the willingness to spend on premium consumer goods, like kitchen appliances and other electronic gadgets, has certainly risen. This has resulted in the surge of the display panel demand for incorporation in these devices. The rising middle-income-population of the developing countries like India and China from the Asia Pacific region has provided a large consumer base for the consumer goods market to proliferate. Additionally, the increase in family income, with more than one earning member, specifically, with women entering the main workforce is also contributing to the market growth. The increasing global final consumption expenditure is adding to surge the display panel market growth. As per the World Bank predictions, the final consumption expenditure of the world grew from USD55.417 trillion in 2015 to USD63.083 trillion in 2018. In China, the final consumption expenditure grew from USD5.972 trillion in 2015 to USD7.65 trillion in 2018. In India, the final consumption expenditure rose from USD1.461 trillion in 2015 to USD1.91 trillion in 2018.
Source: The World Bank Group, Final Consumption Expenditure, World, India, and China, in USD Trillion
Significant investments in display panel manufacturing facility are providing an impetus in surging the market growth. In 2020, Samsung Display announced its investment of USD500 million in India. The investment amount will be dedicated towards setting up a manufacturing unit for the production of smartphone displays. The Korean company, Samsung recently, in 2018 inaugurated a smartphone manufacturing plant in Noida for expansion of its presence in India, the second-largest mobile phone market after China. Samsung Displays novel manufacturing unit to be located in Noida, Uttar Pradesh, is geared to help its parent organization in securing smartphone display panels at a cheaper rate and enhancing productivity.
The growing adoption of wearables worldwide is further propagating the display panel market demand. This can be assessed through numerous innovative wearable product launches. In 2019, Huami announced the release of the multiple series of novel and innovative wearable products at the consumer electronic show, 2020. The event was announced to take place in Las Vegas. The world’s largest company is poised to expanding its Amazfit portfolio beyond the smartwatch range. With growing consumer demand for health and fitness products, the company aims to build a strong foundation and ecosystem of wearables with a focus on health and fitness management.
In 2020, Huawei announced the launch of its next wearable, Huawei band 4 product. The novel product is equipped with heart rate monitor, oxygen saturation, and sleep monitoring features. The wearable fitness tracker band device consists of an in-built USB charging port, with a long-lasting battery, for nine days on a one-time full charge. The band has a colour touch screen display in addition to a glass front with 2.5D with an oleophobic coating. The band provides 9 exercise modules that include outdoor run, rowing machine, outdoor walk, free training, outdoor cycle, elliptical machine, indoor walk, and indoor cycle. In addition, there is a provision for setting reminder alarms. The band offers other features as well apart from the health and fitness capabilities, these include cold calls identification, remote shutter, smart clock, and phone finder features.
The increasing popularity of digital signage is providing an opportunity for the market to thrive at a significant pace. One can see the increasing adoption of digital outdoor signage in almost every industry vertical, hotel industry, at retail locations, transportation facilities, entertainment venues such as a sport event, and many more. The major reasons for its growing popularity are attributed to the dynamic and interactive content, it is cost-effective in comparison to the traditional broadcasting boards, digital signages have shown improvement in remembering the content, thus, contributed to increasing the content retention rates. Furthermore, digital outdoor signages are designed in a way that can be easily understood, even in direct sunlight, further providing the consumers with a much better viewing experience than before. Also, the availability of innovative outdoor-specific screens capable of enduring wind, high and low temperatures, and moisture is further offering robust market growth prospects.
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Capacitive sensors are often called non-contact devices that are used to detect the presence or absence of virtually any object regardless of any type of material. Expanding the automotive industry is one of the prime drivers for the growth of the capacitive sensor market during the forecast period. Also, growing demand for smartphones, tablets, and other advanced consumer electronics worldwide is further fuelling the demand for capacitive touch displays, thus positively impacting the demand for capacitive sensors in various parts of the world.
Increasing Demand for Electronics Across Industry Verticals
Consumer electronics comprising capacitive sensors includes smartphones, wearables, and advance tablets among other consumer electronics. Increasing adoption of consumer electronics and the availability of a variety of products, the demand for consumer electronics is increasing, simultaneously which will further push the demand for capacitive sensor during the forecast period. In addition, the increasing household consumption expenditure also plays an important role in increasing the demand for consumer electronics, which further increases the demand for innovative sensors from semiconductor industry. For instance, as per the World Bank, the household’s final consumption expenditure has grown remarkably from US$ 2.732 trillion in 2011 to US$ 4.698 trillion by 2017. Furthermore, rapid urbanization and increasing disposable income in developing economies like India, China, and Brazil are anticipated to increase the demand for consumer electronics which will further widen up the growth opportunities for vendors and manufacturers during the forecast period.
Moreover, with the increasing popularity of wireless power, interactive displays, and advance robotics there is a burgeoning demand for better performance. With this heavy expenditure are being done by the manufacturers of consumer electronic devices worldwide, in the R&D to bring out the state-of-art technology, as a result, the demand for semiconductors is expected to grow in the coming years. In addition, the demand for these devices in the communication industry will see a rise due to their increasing application in smartphones and other communication devices. Smartphones utilize multiple sensors, ranging from proximity sensors, accelerometers and gyroscopes, magnetometers, and light sensors, among others. Furthermore, the technological advancements in the field have also led to manufacturers further improving the capacitive sensor usage in smartphones.
With the advancement in embedded technologies, technologies such as industrial PCs are used in electronics manufacturing plants so as to increase productivity. Industrial automation in the manufacturing industry is playing a significant role in increasing the demand for capacitive sensors. Panel PCs are increasingly being utilized in the manufacturing plants because they meet the demands of a rigorous working environment. Emerging technologies such as the Industrial Internet of Things (IIoT) are shaping the manufacturing processes in the electronics industry. It is becoming a core component of industrial transformation across the globe. Manufacturers are steadily adopting industrial IoT to upgrade their facilities and to gain a competitive edge. Thus, increasing demand for such technologies is expected to bolster the capacitive sensor market growth. The market is expected to grow at a steady pace owing to the growing semiconductor and electronics industry in the developed and developing countries. Emerging technologies such as Industrial Internet of Things (IIoT) is shaping the manufacturing processes in electronics industry. It is becoming a core component of industrial transformation across the globe. Manufacturers are steadily adopting industrial IoT to upgrade their facilities and to gain competitive edge. Thus the market is expected to grow at a steady pace owing to the growing semiconductor and electronics industry in the developed and developing countries.
Source: Apple Annual Report, Knowledge Sourcing Intelligence Analysis
China Is Driving the Growth of the Market
In China, the government policy also aims at supporting the creation of manufacturing innovation centers to 15 by 2020, and to 40 by 2025. Moreover, the availability of cheap labor and other supportive government practices have also assisted China in being a hub for electronic manufacturing and attracts producers from around the world to set up production sites in the country, further amplifying the semiconductor production and thus, positively impacting the demand for capacitive sensors in the coming years. The Chinese region is also a prominent manufacturer of solar cells. According to the Global Market Outlook for Solar Power, 2018 to 2022, by the European Photovoltaic Industry Association, China installed 53.3% of the world’s solar capacity in 2017, and the country is also responsible for more than half of the global demand. With the country still projecting a high growth in solar cell production, the demand for capacitive sensors to assist the same will also increase in the region during the forecast period.
Understanding the Japanese Capacitive Sensor Market
The domestic consumer spending has been relatively week in recent years, even though, there has been a growing indication of the improvement in real wages on account of rising employment trends. The growing consumer spending in the country is stimulating the production of personal computers, smartphones, and audio-visual equipment, among others. Thus, after a recent decline in domestic production of Japan’s electronic industry by 6% in 2016 (source: Japan Electronics and Information Technology Industries Association), the industry is projected to witness moderate growth during the forecast period, more specifically for display devices, storage/server equipment, electronic medical equipment, and electric measuring instruments.
Moreover, the production of passenger cars and commercial vehicles has also improved since 2015. For instance, the vehicle production in the country, including passenger vehicles, trucks, and buses, totalled 791, 315 units in December 2017, representing 1.3% year on year increase during the same month in 2016 (source: Japan Automobiles Manufacturer’s Association). Furthermore, the instance of a trade war between the United States and China in which the United States imposed steep import duties for the Chinese manufactured good is resulting in some firms shifting their production facilities from China to other countries such as Japan and Korea among others in order to maintain higher margins. Thus, the anticipated economic recovery and relatively favourable trade policies are projected to push the growth of the capacitive sensor market in Japan.
Industrial enzymes are the types of macromolecular biological that are commercially used in a wide range of industries such as chemical, biofuels, pharmaceuticals, and food & beverage, among others. The expanding food and beverage industry coupled with the recent advancements in enzyme engineering & green chemistry are boosting the demand for industrial enzymes. In the food and beverage industry specifically, the catalysts are used to enhance the end product’s texture, taste, and flavor. Growing demand for cosmetics and personal care products on account of the growing geriatric population in various parts of the world coupled with the rising awareness are contributing to the global industrial enzymes market growth. Furthermore, the demand for industrial enzymes is expected to increase in the coming years owing to increasing application in animal feed products to boost the nutritional value of the animal feed.
Increasing Demand for Products With Longer Shelf Lives and Convenient Storage
The widening of distribution chains, globalization and expansion of companies, a growing number of retail and wholesale outlets, and more have led to the development of food products with a longer life span. Industrial enzymes are used in the products that last for longer times. According to the USDA's Shelf-Stable Food Safety, some canned hams are shelf-stable and can be stored in the pantry up to 2 to 5 years. Due to this, there has been a rise in the demand for longer shelf life products which uses enzymes during the forecast period. Furthermore, packaging, storage, and logistics comprise a substantial part of the costing of the products and industrial enzymes are used in optimization of the production processes making it a better option for manufactures resulting in the investment in research and development in chemical industry.
Growing Demand for Convenience Products
The rise in the number of working populations worldwide is projected to be one of the key drivers to the convenience food market. According to a report by the United States Department of Agriculture (USDA), ready to eat and ready to cook foods amounted to 26% of the household expenditure on food between 1999 and 2010, with the portion of the average household food budget spent on ready to eats growing since 2007. Furthermore, according to APEAL, the Association of European Producers of Steel for Packaging, busier lifestyles have led to increased adoption of convenience products as it saves 50% time on average. Furthermore, the added benefits of portability, portion controlling, easier handling and opening, have further added to the demand for convenience products, thus resulting in an increase in the demand for industrial enzymes all around. In addition to this, multiple studies have shown the connection between advertisement and the demand for convenience products. And with the increase in the advertisement expenditure, the demand for convenience products will further rise, resulting in a snowball in the demand for industrial enzymes in the coming years.
Rapid urbanization coupled with the increasing demand for bioethanol in developing countries around the world is further boosting the demand for industrial enzymes over the forecast period.
According to the latest United Nations statistics, there is a rapid growth in the urban population of the world which has increased from around 751 million to more than 4.2 billion from 1950 to 2018. The migration of people has a consequence of an increase in disposable income, which resulted in the adoption of modern living conditions as well. Thus, all of the above factors created the market for industrial enzymes in various end-user industries.
The increase in cosmetic product demand is highly attributed to the growing middle-class population, especially in the developing economies of the world, thus creating a high consumer base. For instance, the Asia Pacific, by 2030 is projected to hold the maximum middle-class population, where it will represent more than 60% share in the global middle-class population and over 50% share on the basis of middle-class consumption. The graph below depicts the growth in the global middle-class population for the year 2009, 2020, and 2030 in billion units.
Application in the Animal Feed Industry Is Growing During the Forecast Period
Growing consumption of meat and other end products such as milk, eggs across different regions is considered as one of the prime factors driving the growth of the industrial enzymes market during the forecast period. According to the Organisation for Economic Co-operation and Development, per capita, meat consumption in Brazil has increased from 24.633 kilograms in 2011 to 25.931 kilograms in 2017. Even per capita, meat consumption in Japan has increased from 6.491 kilograms in 2008 to 7.17 kilograms in 2017. Moreover, according to the Food and Agriculture Organization (FAO), milk consumption is expected to increase from 568 million tonnes to 700 million tonnes by 2020. Compound Feed is prepared by blending several raw materials and additives, based on the needs or requirements of the target animals. Compound feed is gaining traction due to its manifold advantages such as consistency, efficiency, economy, quality, and nutrition. Technological developments in the animal feed equipment in conjunction with investments, mergers, and acquisitions in this market is anticipated to expedite the process of compound feed production. For instance, Vermeer Corporation, which has a global presence, acquired family-owned Schuler Manufacturing to expand its feed production technology to provide support to the cattle producers throughout the feeding process. Another example being, in January 2020, Cargill made an investment of $20 million in India in a new premix and supplement manufacturing facility. The company has aimed to invest $240 million in India to expand its presence. This facility is also expected to generate feed additives to be used in Northern India to augment the animal feed industry.
The pharmaceutical packaging is essential for the protection of critical healthcare products. The whole process of presentation and information about the dosage form, identification of the components of the product, and the convenience associated with the administration of the product plays a vital role in the packaging industry. The growth opportunities for vendors and manufacturers of pharmaceutical packaging are driven mostly by the growing demand for drug delivery devices, technological advancements, and reduction in the packaging cost coupled with the advancement in the technology. In addition, a rise in the demand for reusable and specialty packaging is also expected to bolster the pharmaceutical packaging market growth during the forecast period. Besides, with the growing e-commerce and online purchasing trend in developing countries like India, China, and Brazil, drugs also need robust packaging keeping in view the safety of the final product. Hence, the growing e-commerce industry is further driving the growth of the global pharmaceutical packaging market in the coming years.
The latest pharmaceutical packaging technologies blister and aseptic packaging is getting popularity as most of the pharmaceutical products today need reliable and speedy packaging solutions that deliver a combination of product protection, quality, patient comfort, and security needs. Expanding healthcare and pharmaceutical industry in developing countries is considered as one of the major driving factors that are boosting the pharmaceutical packaging market growth in recent years. In fact, according to the International Trade Administration (ITA), the U.S Department of Commerce, the biopharmaceutical industry accounted for more than $1.3 trillion in economic output, representing nearly 4% of total U.S output in 2019.
Source: The World Bank
In addition, increasing investment by market players in the form of acquisition or production capacity to expand the product portfolio is expected to further drive the growth of the market for technologies like blister packaging in the pharmaceutical industry in the coming years. For instance, in October 2018, Merck invested nearly €63 million which is a part of €1 billion investment plan of the company in transforming the Darmstadt site which will be dedicated to the packaging and shipping of the company’s pharma medicine. Furthermore, rising health spending coupled with the growing geriatric population is further anticipated to boost the demand for medicines thus augmenting the market growth opportunities for the packaging industryin the coming years. According to the Organisation for Economic Co-operation and Development, per capita, health spending in the United Kingdom has increased from US$2969.6 in 2006 to US$4653.1 in 2019. Similarly, in the United States, health care spending per capita has increased from US$6,806.9 in 2006 to US$11,071.7 in 2019. Furthermore, advanced packaging solutions are increasingly being utilized in clinical trials, drug promotion, and commercial packaging. Thus, the burgeoning number of clinical trials in the developed and developing regions is unlocking growth opportunities for the pharmaceutical packaging to provide efficient solutions that are suitable for these trials.
By Raw Material Metal Foils Segment Is Expected to Grow at a Significant Rate During the Forecast Period
Metals such as aluminium foils are being extensively used in pharmaceutical packaging to create a barrier from light and oxygen, thus eliminating the need for refrigeration and further improving the shelf life of the products without the usage of any type of chemical. Furthermore, metal foils are also a commonly used form in blister form of packaging. Thus, an increase in the demand for these medicines and other healthcare products is estimated to push the metal foils aseptic packaging market positively
Geographically, the North American Region Is Anticipated to Hold a Substantial Share in the Market
Based on geography, North America is expected to hold a major share in the pharmaceutical packaging market owing to the early adoption of technology, and the high health expenditure in countries like the United States and Canada among all the developed regions of the world. The rising health concerns are anticipated to increase health spending on drugs by individuals. Also, initiatives are taken by the U.S Department of Health and Human Services which recently proposed a regulation aimed at lowering the drug prices and reducing the out of the pocket expenditure thereby encouraging pharmaceutical manufacturers to pass the discounts directly to the patients. This is further expected to push the demand for pharmaceutical drugs, thus, driving the pharmaceutical production and hence the revenue generation opportunity for the participants in the drug packaging value chain. Furthermore, the Food and Drug Administration (FDA) has recently passed a regulation requiring all the prescribed pharmaceuticals dispensed in the hospitals and nursing homes to be packaged in the unit dose format with barcodes to reduce dispensing errors, which is expected to significantly benefit the pharmaceutical packaging market in the region. While the Asia Pacific region is expected to be one of the fastest growing, this is due to the expanding pharmaceutical industry, especially in the emerging economies of India, Indonesia, and China. In addition, with the growing prevalence of chronic diseases in the Asia Pacific region, the market for pharmaceutical packaging is projected to expand due to the rising demand for drugs and other pharmaceutical products supported by effective treatment procedures in the region. Furthermore, growing health awareness among individuals in various parts of the world is expected to provide an exponential opportunity for the market to grow at a sustainable pace in the upcoming years.
Furthermore, with the growing global geriatric population, the pharmaceutical packaging market will continue to surge on account of the increasing number of hospitalizations for the treatment of age-associated chronic diseases. Also, as per the United Nations latest report, by the end of 2050, more than sixteen percent of the people in the world will be above 65 years of age, which is estimated to rise from nine percent in 2019. An increase of more than seventy percent. Besides, the number of individuals aged 80 years of age or more is estimated to grow to three times, from a population size of around 143 million to a population size of around 426 million from between 2019 and 2025. According to the World Bank report, the population ages 65 and above as the percent of the total population in Italy and Japan has increased from 20.08% and 21.23% in 2008 to 23.01% and 28.01% in 2019 respectively.
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 packaging. 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.
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Servo motors and drives are extensively used in every machinery which requires precise position control and helps in running systems ranging from robotics, automation, to camera, and other conveyor belt system. Growing adoption of automation in various end-user industries such as automotive, food processing, and semiconductor industry among others is expected to be one of the prime drivers that are driving the growth of the servo motor and drives market over the forecast period.
In addition, favourable government initiatives coupled with rapid industrialization the process automation and instrumentation market are expected to witness substantial growth over the forecast period. For instance, the Government of China has doubled the value of large-scale infrastructure projects in 2019 than the previous year and recently NDRC (National Development and Reform Commission) has approved 21 projects worth at least US$100 billion.
Robotics Is Expected to Witness Substantial Growth During the Forecast Period
The growing preference for leisure hour and the simultaneous increase in the disposable income on account of the improvement in the economic condition of the various developed economies is significantly driving the demand for a personal service robot. In fact, the annual growth rate of household disposable income increased from -0.08% in 2009 to 1.48% in 2016 for the United States, while Canada witnessed an increase from 2.05% to 3.44% over the same period (source: OECD). Simultaneously, the funding for research and development of the humanoid robot has been increasing in the United States steadily over the years. For instance, in September 2012, the National Aeronautics and Space Administration (NASA) granted more than US$2.5 million funds for eight advanced robotic projects to support its space exploration activities by the government.
Additionally, in the healthcare industry, the use of robot-assisted surgery is increasing on account of its ability to reduce infection risk, increase efficiency, shorter hospitalization, and relatively less pain is further expected to supplement the growth of the market over the forecast period. Furthermore, in the first quarter of 2017, the U.S Department of Defense granted nearly US$80 million to American Robotics aiming to accelerate the development of robots in the country. As such in 2016, Boston Dynamic launched an upgraded version of humanoid robot ‘Atlas’ that can work both outside and inside buildings. Moreover, the government of the United States under the Trump administration recently announced a number of plans of reducing the immigration, which is expected to impact the workforce demand-supply ratio in the country, thus providing an immense opportunity for the service robot to bridge the anticipated workforce demand-supply gap, thus generating significant revenues for the manufacturers.
Annual Shippments of Industrial Robots in China, in Thousands of Units, 2007 to 2017
Source: IFR World Robotics 2018
Besides, the IFR World Robotics 2018 report shows that developing countries such as China, India, Japan, and South Korea, among others are some of the largest markets for industrial robots. This rise in the number of industrial robots opens an additional opportunity for the development of the servo motor and drives market. Servo motors and drives form an important component in the operation and maintenance of industrial automation robotics and thus will show a fast adoption rate in these regions over the forecast period.
Technological Advancement in Food and Beverage Processing Industry Is Widening up the Growth Opportunities
Technological advancements in the food processing industry are estimated to increase the demand for servo motors and drives. The revolutionizing technology used for food processing such as the use of Ozone purification systems which is exponentially powerful than chlorine water purifier systems is projected to increase the demand for ozone water purifiers. Furthermore, the cost-efficiency of employing the latest technology for processing is anticipated to amplify its demand in small and medium level industries. The advancing membrane technologies such as reverse osmosis, ultrafiltration are microfiltration techniques used for the purification of beverages that are expected to increase the demand for the advanced motors and drivers which are used in automated plants. The advancement of cost-efficient packaging is estimated to improve the demand for food processing owing to its economic feasibility, consequently, the advancement of environmentally friendly packaging materials is expected to favor the servo motors and drives market trend in the coming years.
The Automotive Industry Is Holding a Significant Share in the Market
The automotive industry is growing at a staggering pace, with the global automotive production reaching 97,302,534 units in 2017 (Source: International Organization of Motor Vehicle Manufacturers). Furthermore, the automotive market is striving to make vehicles more comfortable and efficient for consumers and thus has led to increased adoption of advanced systems in automobiles.
Servo motors and drives are being used in the manufacturing stage of the industry, but their main adoption has been seen as infotainment devices in vehicles. Initially, this adoption was only limited to higher-end vehicle models, but with the decrease in the costs of LCDs have led to a further extension of its adoption to mid-tier vehicles. Many automotive manufacturers are also bringing integration in the automotive market by introducing gesture and voice recognition for enhanced human car interactions. Voice and gesture activated controls are utilizing technologies such as voice recognition, text-to-speech, and speech-to-text to make the entertainment and navigation control effortless. Furthermore, they are also being adopted to provide detailed component information, such as detailed battery information, to the driver for easier repairability and maintenance.
In addition to this, the growing technological advancements in the automation industry will also escalate the demand for servo motors and drives in the future. Furthermore, the introduction of advanced components in other vehicles such as two-wheelers and increasing investment in the development of more such vehicles will further escalate the demand for servo motors and drives in the near future. For example, Arc Electric Motorcycles introduced the world’s first Electric Motorbike the Arc Vector at EICMA 2018, in Milan. The bike is the world’s first fully-electric motorcycle with HMI and has received investment from In Motion Ventures, the venture capital fund behind Jaguar Land Rover.
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The intrinsic capabilities of smart glasses to provide acoustic and thermal insulations, facilitate energy conservation and add aesthetics, effectively validating the evolving architectural philosophy are one part of the factor that is expected to drive the growth of the smart glass market. Additionally, the regulatory measures and policy-driven incentives by various national governments are expected to catalyze various strategic decisions pertaining to the smart glass market. The automotive sector along with public transportations such as trains and aviation-related applications are also expected to drive the market of smart glass. Further, robust demand from the commercial sector that stems from their strategic imperative of reducing their carbon footprint is also expected to be a noteworthy driver facilitating the growth of the market. Nevertheless, the demand from the residential sector for smart glasses will take some time to gain momentum which will be majorly supported by curiosity and initial interest. On the contrary, integrating smart glass solutions are expected to incur high initial expenditure which comprises procurement and installation expenditure. Further, even though smart glass solutions are dirt proof which necessitates occasional cleaning, maintaining them at regular intervals is required to prevent any possible malfunctioning, thereby incurring further expenses on maintenance. These factors are expected to deter market growth to a certain extent.
During the past few years, urban areas have experienced substantial growth with rapid changes experienced by nations around the world driven by their respective urbanized population. This has increasingly posed the challenge of meeting energy demands through sustainable means concomitantly reducing the cost of utilities. Thus, the initial endeavor of reducing the installation of light fixtures to increase daylight entering buildings and consequently reduce the cost of electricity manifested into the law of unintended consequences of increased glare and heat inside buildings which resulted in higher HVAC expenditures, which in turn stemmed from heat gains in warm months and heat loss in cold months. This realization has led to decisions about smart glass integration as exemplified by the reported announcement of California, USA, based Kinestral Technologies, Inc. in September 2018 that smart homes and buildings by Menlo Park, California based tech and construction company Katerra, will be having Halio Smart-Tinting Glass integrated into them, which is covered under a partnership between the two organizations. Further, the partnership also facilitates integrating Halio’s cloud-based automation system into Katerra’s systems, enabling an intuitive and seamless user experience for Karterra’s customers. Thus, such comprehensive partnerships are expected to contribute to the smart glass market growth, in the coming few years. This also effectively addresses the 2019 update to California’s Energy Code which necessitates greater than 50 % improvement in residential housing energy efficiency, which made it the most stringent building energy code in the USA.
The recognition of environment-friendly building codes are not just restricted to state energy policies but also has been acknowledged by supranational agencies like United Nations Economic Commission for Europe, which recognizes that buildings are central to meeting the sustainability challenge since buildings are responsible for 40% of CO2 emissions, 70% of the consumption of electric power generated requiring efficacious energy performance management of buildings. With respect to EU 28, it can be stated with certitude that the energy and power industry has benefited from the institutionalization of public financial and fiscal instruments supporting energy renovations in buildings. Many countries within the EU have opted for deploying a combination of different instruments, each of them tailored to address different barriers, specific segments, and recipient groups within the building sector. Financial support is predominantly offered in the form of grants and /or subsidies, which is a particularly popular instrument in Austria, Croatia, Ireland, Cyprus, Estonia, Latvia, Greece, and Poland. Whereas in countries like the UK, Spain, Slovenia, Slovakia, Romania, Portugal, Malta, Luxembourg, Lithuania, Latvia, Italy, Hungary, Germany, France, Estonia, Czech Republic, Bulgaria, Belgium, and Austria, loans and soft loans are made available.
Further schemes like the SALIX scheme in the UK, the National Revolving Fund for Energy Savings in the Netherlands, the Kredex Fund in Estonia and Energy Efficiency, and Renewable Sources Fund in Bulgaria, are designed in the form of revolving funds, ultimately facilitating the scaling up of energy efficiency investments using a revolving mechanism. In other words, a portion of the savings generated by supported investments is used to replenish in part the fund (i.e. revolved) facilitating the possibilities of reinvestment in future projects of equivalent value. Further, surmising the aforementioned, there are reportedly about 129 instruments which support energy renovations in buildings across the EU, out of which 10% constitutes tax incentives, 19% constitutes loans/soft loans, 61% constitutes grants/subsidies, and the remainder 10% comprises a combination of the above. As of 2019, 15 billion Euros have been spent approximately by public resources on an annual basis across the EU. The largest schemes in terms of public resources expenditure are the German KfW Energy Efficient Refurbishment Programme, the French Energy Transition Tax Credit scheme, the Austrian Regional subsidies for energy efficiency in residential buildings, Italian Eco-bonus tax rebate scheme. Thus, delineating the fact that the investment environment is conducive for further development of the smart glass market in the next few years.
Besides buildings, smart glasses have received worldwide cognizance in other applications such as automotive and public transport to name a few, which is also expected to fuel the growth of the market. For instance, marking the worlds’ first adoption to be used as a sunroof in a mass-production vehicle, WONDERLITE™ Dx by AGC Inc. has been reportedly integrated by Toyota's new Harrier that was commercially made available in June 2020. The rationale for the integration is its rapid response time, which is the fastest in the world to date, enabling instantaneous control of the light transmission. Earlier in September 2018, a collaboration was announced between Heliotrope Technologies Inc. and Oran Safety Glass (OSG) to introduce NanoEC™ smart glass technology thereby endeavoring the commercialization of the technology in the transportation industry. Further enabling transport operators to sustainably respond to the need for real-time passenger comfort. In this manner, the need for curtains has been eliminated which not only results in saving water as the need for laundering them is also eliminated at the same time but also provides the passengers with a technologically-driven-innovative means to control the degree of shade without comprising the experience of the view.
The integration of retail automation is expected to surge at an unprecedented rate due to the need for addressing an ever-increasing cost to manage supply chains, greater investments to match new competition, the rising cost of manpower, the need for providing a better customer experience as well as address steadily surging customers’ expectations especially when the standards are being continuously raised high. The aspect of automation has emerged integral to the key strategic decisions of retail companies as there’s an upswing in the integration of workforce and task management solutions, self-checkout systems, proximity beacons, mobile devices, and digital kiosks around the world.
One of the key drivers of this market is the ascending pressure of sustaining a healthy margin which is influenced by a business environment that is filled with intense competition, rising eCommerce investments, and demand for increments in remuneration. It should be noted that the pressures of cost are not new but the option to pass on the cost to consumers as a means of cost reduction measure has been depleted especially given the hypercompetitive environment. Thus, to improve the margins retailers are increasingly turning towards automation across all the subsectors and all the functional areas. To this end a recent market development during the beginning of 2020, is pertinent wherein the introduction of a robot called SmartSight, by Zebra Technologies was reportedly announced, intended for supermarkets, mass merchants, hypermarkets, and grocers. The organization’s EMA50 enterprise mobile automation system’s workflow automation, robotic capabilities, machine learning, and computer vision are utilized by the robot to identify out-of-stock conditions, pricing inconsistencies, and planogram issues on the shelf. This provides retailers the option to reassign labor hours to more pressing matters and higher value endeavors, which are more shopper-centric. Further, the robot facilitates a higher availability of store inventory by autonomously scanning shelves which leads to generating tasks pertaining to restocking and updating on time. It also reportedly reinforces workflows like buy-online-deliver-from-store (BODFS) and buy-online-pick-up-in-store (BOPIS). Thus, by assisting retailers to minimize the issues of price mislabeling and improve price integrity as well as assisting in the reduction of out of stock instances thereby enabling them to increase basket sizes, the Zebra SmartSight solution will reportedly provide retailers the competitive edge and prevent further loss of in-store purchases to online shopping resulting in a greater degree of customer loyalty concomitantly at streamlining operations and substantial cost reduction.
Further, factors such as increasing purchasing power, penetration of internet connectivity facilitating last-mile delivery, among others are raising the scale of eCommerce to great proportions that are certainly expected to drive the retail automation market that stems from the need for streamlining the processes, among others. Along with the aforementioned, the current scenario of CoVid19, which has brought about a paradigm shift in various consumption habits and purchasing trends as well as retail and eCommerce operations is also expected to drive the retail automation market to a new echelon. As the pandemic struck, there emerged an unprecedented upshot in the demand for eGroceries had led to the extension of the duration of fulfillment to over a week in certain locations which was otherwise normally executed within a day. Thus, arose the need for integration of automation.
One recent development that finds relevance in the aforesaid case is the reported announcement by Kindred, Inc. in June 2020 about the purchase of 73 additional SORT robots by Gap Inc. which certainly needs no introduction in the global retail space. This strategic decision by the latter encompasses the installation of these robots in its U.S. distribution centers, to bring its total fleet to 106 thereby reportedly increasing its robotic foot-print significantly across its supply chain resultantly meeting the increasing customer delivery expectations. It was also reported that between 1st January 2020 and 30th April 2020 the SORT robotics systems were used by Gap Inc, to sort more than 13 million units of merchandise. This has resulted in an average sorting speed of 335 units per hour sustaining an uptime at 99.8%. Thus, in such uncertain times, integration of automation enables the retailers to scale the predictability of operations with efficiency.
Gross Domestic Product by Restaurants and Hotel Expenditure at Current Market Prices, 2015–2019, Indonesia
In billions of Rupiahs
Source: BPS-Statistics Indonesia
Additional aspects that are expected to augment the growth of the retail automation market are, for one, the favorable prospects of unattended retail services that provide consumers a fast and easy way to shop at their own pace and without the need for interacting with the store employees. It also enables consumers to shop during transit. While the aforesaid is a demand-driven factor, among others, that will drive the growth of automation market during the next few years, the supply-side-driven or vendor-driven factors that are anticipated to propel the growth of this market are the prospects of bringing about uniformity with higher quality, as well as enhancement of efficiency and ensure a well-sanitized sorting environment. Besides, the integration of automation aids in the generation of sales data swiftly in an error-free manner. Moreover, it also provides an organization with the facility to execute troubleshooting measures remotely. Besides unattended retail services, an example of the recent development of retail automation pertaining to food and beverage industry is being touched upon to provide a context and partly substantiate another dimension of the expected growth of the retail automation market as a whole, also shedding light on how emerging economies, among others, are expected to drive the market growth.
A start-up based out of Jakarta, Indonesia called Wahyoo that was founded in 2017 reportedly announced the successful raising of $5 million in Series A funding led by Intudo Ventures, a venture capital firm focused on Indonesia. Other investors included Selera Kapital, Kinesys Group, Isenta Hioe., Indogen Capital, Gratyo Universal Indonesia, Arkblu Capital, and Amatil X (the corporate venture program of Coca-Cola Amatil, one of the five largest Coca-Cola bottlers across the world). The rationale for establishing this startup is to digitize and automate more tasks ranging from ordering supplies to managing finances focusing on the small eateries, called warung makan, thus enabling them to streamline their operations and have more quality of life. This has been enabled through the features made available by the startup which include a next-day grocery delivery service from its warehouses and integration with Go Food, a popular delivery app. The startup also offers the opportunity for a warung makan owner to place advertisements and earn money. The fund was raised to facilitate hiring as more owners can onboarded, among others, Wahyoo’s tech platform development and expansion beyond the area of greater Jakarta. Above all this exemplifies the extent of penetration of automation industry to small and medium enterprises, which are one of the major forces that drive the economy.
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$3.5 billion was the approx. total export value of avocado from Latin American countries (LAC) during 2016 – 18 which is further expected to increase due to per capita income growth and changing consumer tastes towards more premium tropical fruits, in particular, avocados, as per FAO estimates. Moreover, the change in consumer preferences shifting towards higher consumption of tropical fruits in developed regions, especially to avocados, is expected to stimulate a further expansion in trade. Additionally, population growth, the increasing awareness of nutritional benefits of tropical fruits that are inclusive of but not limited to avocados; the repeated identification of the same as one of the nutritional super fruits; the growing inclination of supplanting the consumption of refined sugar and widespread availability are few of the factors that are poised to drive the avocado market growth during the next few years. Moreover, according to FAO, around 80% of avocado cultivation in Mexico is carried out by smallholder farmers who are endowed with lands of 5 ha or less, each, which suggests that contingent on fair and inclusive trade conditions, tropical fruit farming is a source of substantial income for smallholder producers, which is looking good for the avocado market.
Nevertheless, increasing occurrences of erratic and extreme weather conditions along with climate-change risks pose a considerable threat to its production, subsequently to the market, especially given that many production zones are located in the LAC regions. Ramifications arising from deforestation, forest fire, irrigation, land clearing, among others add further stress to the production and trade, posing as a possible endangerment to the commercial viability of the food and beverage industryas a whole. Further, factors such as mounting price pressure, phytosanitary restrictions, trade tensions, and volatile freight costs have the potential to deter the global avocado market growth to a certain extent. From the perspective of prices, export unit values of avocados had displayed a downward trend in 2018 as a result of a rapid supply growth facilitated by Mexico, which is the home to leading exporters and producers around the world. There was a registered decline by 17% form the peak annual average of USD 2 900/ton registered in 2017.
On the other hand, owing to a rapidly growing global demand, export volumes of avocado surpassed those of mango in 2017, despite weather-related declines experienced in 2017, and went on to occupy a significant share in 2018. The year 2018 witnessed the prevalence of favorable climatic conditions and lower occurrences of destructive climatic events in the case of tropical fruit-producing regions, like that of avocado. This supported a robust supply of the avocados. Avocado production is principally carried out in Mexico, and it’s the source that caters to global and domestic markets. Avocado production in Mexico reportedly accounted for more than 1/3rd of global output in 2018, which is an estimated increase by 11 % from 2017 stemming from significant investments in yield-improving technologies and area expansion. Further Mexico is advantaged with three factors which give it an edge in the avocado market, which are as follows:
all-season production
ability to produce higher quality Hass variety
proximity to the USA
Further, benefitting from similar investments, production in the Dominican Republic, the world’s second-leading producer of avocado experienced an expansion by an estimated 10% in 2018, reaching approximately 700 000 tons. Further, production in Peru had reportedly registered an estimated 13% increase over 2017, due to an increase in harvested areas that was to the tune of approx. 8 %. The increase was due to strong import demand from the European Union, the largest export destination for Peru. Concomitantly in 2018, Peru was recognized as the 3rd leading avocado producer with an 8% volume share in 2018.
To surmise, in 2018, the world production of avocado was to the tune of an estimated 6.3 million tons in 2018 which reportedly represented 6.7% increase from its 2017 production according to FAO, Further, among the principal tropical fruits avocado has experienced the fastest growth in production during the last decade, at a registered annual average rate of 6 % mainly owing to an increase in the areas of harvest, which in turn has been driven by surging global import demands. The import demand had reportedly expanded at an annual average rate of 13 % over the previous decade as per FAO. Moreover, to put things into perspective, approximately 35 % of global avocado production was destined for export markets, in comparison with approx. average of 3% to 5% pertaining to other major tropical fruits. With respect to the quantum of trade, the global exports of avocado increased to 2.2 million tons in 2018, which was reportedly an industry first, and represented a 15.9% increase from 2017. The volume also reportedly outperformed 12.6% of the average annual growth rate observed over the previous decade. Moreover, Mexico accounted for an estimated 54 % of avocado exports in 2018 which encompassed the shipment of 1 million tons of avocado to the USA, representing a 77% share of its exports. The main export destinations for avocado are the USA, which reportedly accounted for nearly half of global shipments in 2018, followed by the EU that accounted for 28% of the import.
Moreover, the per capita fresh fruit retail availability of avocado was reportedly 3.6 kgs in 2018., and that of the EU was 1.4 kg on average. The principal avocado consuming markets in the EU, which are France and the United Kingdom reached an estimated retail availability of 1.7 kg and 1.5 kg per capita, respectively. Besides, health-conscious and vegan consumption proclivities, demand for avocado is also fueled by marketing activities which are integral to facilitating a healthy avocado market growth. For example, as per FAO, every box of Hass avocado imported from Mexico, Chile, and the Dominican Republic are financed through a fee of USD 0.6 and made commercially available at popular events in the USA. Further, establishing new business entities to cater to the demand of avocado too, has contributed to the market growth, for instance, the launch of a spinoff called The Avocado Company, which is a wholly-owned subsidiary of the Fresca Group Ltd based out of the UK was reportedly announced in June 2018. It was launched with the rationale to offer a year-round supply of avocado to meet the anticipated growth in demand for avocados in the UK.
Further demand for avocado also incentivized the launch of Grade 2 avocados during March the same year, which otherwise are generally sold to foodservice distributors and industrial users in bulk configurations, due to its external scars and blemishes that haven’t been able to facilitate its wide retail merchandising. Unveiled by Mission Produce, a subsidiary of Cabilfrut S.A. making then commercially available in 2lb and 3lb bags, the organization has capitalized on growing consumer awareness of the health benefits and acceptance of visually imperfect produce, thereby facilitating further growth of the market.
Further, avocado chips startup AvoLov based out of Oregon, the USA had reportedly perfected dehydrating avocados in 2018 to produce crispy avocado chips followed by two years of intensive research, ultimately capitalizing on the growing preference for the fruit, which was later made commercially available, the same year during March, in three flavors. The application of avocado has also transcended the boundary of edibles and have moved over to personal care as well. This was exemplified by the launch of Avocado Melt Sleeping Mask by Glow Recipe that comprises 74% of avocado, in November 2018. The product reportedly employs the flesh, extract, oil, and butter components of avocados to facilitate skin nourishment, among others during the winters. Thus to improve large-scale commercialization of avocado, secondary product development has also been a major facilitator for the avocado market growth.
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Breaking the Myth of Underfloor Heating System
BlogThe underfloor heating system is a heat source that is simply used for keeping the room of a building warm. It can be installed under the floor, walls, or even the ceiling to ensure that the rooms heat faster. The growing trend of installing modern interior has been instrumental in supplementing the demand for an underfloor heating system since it does not occupy additional space and ensure that there is enough room for instating modern architecture. Furthermore, the ability of the underfloor heating system to work with all types of flooring further makes it an attractive option, with the global underfloor heating market size estimated to grow from US$4.110 billion in 2019 to US$6.303 billion in 2025 at a CAGR of 7.39%. Even though, the underfloor heating system requires an initial investment that is typically almost 30% higher than that of the traditional radiators, the ability of these systems to pay off the investment, in the long run, is seen as an appealing option for the building/homeowners as they are more efficient and require less maintenance in comparison to the traditional radiators. Moreover, the performance of electrical underfloor heating is similar to that of the radiators, making them popular, specifically in regions where the climate is harsh and cold.
Rising Focus on Building Energy Management
According to the U.S Department of Energy – heating, cooling, and ventilation captures 34.94% of the residential and commercial building’s energy use. Similarly, according to the Department of Industry, Science, Energy, and Resources – Australian Government, HVAC typically consumes 39% of the energy supplied to an office building in the country, within which, 6.6% of the overall energy is consumed by the heating requirement of the building.
Typical Energy Consumption in an Office Building
Source: Department of Industry, Science, Energy, and Resources – Australian Government
Thus, efforts have made by the government, specifically in the United States and Europe, to optimize energy consumption and make the commercial and residential building energy efficiency meet their respective climate change goals. The energy and power industry have been recommending replacing conventional equipment and appliances with green and power-efficient equipment. Comparing the environmental impact, due to its size and dimension, the underfloor heating system requires relatively less energy to provide a similar level of performance as the conventional radiator, with the former consuming 20%-40% less energy than the latter to heat a room of similar dimension. Thus, in order to reduce the share of HVAC in building’s energy consumption and to optimize overall building’s energy demand, replacing conventional heating equipment with the underfloor heating system may provide a small but significant stimulus in ensuring controlled carbon emission in the immediate future.
Recent Market Developments
Rising Remodeling Expenditure Providing High Revenue Generation Opportunity
According to the European Insulation Manufacturers Association, single-family and multi-family houses combine 67% of the total floor area in Europe. The underfloor heating system tends to improve the value of the property significantly. In fact, it has been suggested that underfloor heating is the second or the third most popular choice among the individuals that they spent on while getting a major home improvement in Europe. Thus, the rising household expenditure on remodeling/renovation directly correlates with the growth of the underfloor heating market. For instance, close to double-digit growth of household remodeling spending has been observed in key European markets such as the United Kingdom, Germany, and France in the last couple of years.
Distribution of Floor Area per Building Type in Europe, in %
Source: European Insulation Manufacturers Association
Similarly, in the Nordic region, specifically, in Norway – more than seven out ten apartments are owned by the private individuals (source: Statistics Norway) and property owners are the most important factors for carrying out the renovation activity in the country. In Finland, however, the spending on renovation construction has declined by 4.2% to reach EUR 6 billion in 2019 (source: Statistics Finland), however, a significant proportion of the individuals have planned spending on heating system renewal in the next three years. Similarly, in the United States, remodeling spending has been growing at a good pace over the years and has been instrumental in driving the underfloor heating market growth in the country.
Intelligent Packaging: Quality Checking at Its Best
BlogIntelligent packaging is referred to as a packaging system that is capable of carrying out smart functions such as detection, sensing, recording, tracing, communication, in addition to the application of scientific logic. This further helps in the facilitation of decision making, an extension of the shelf life of the product, safety enhancement, improving the quality of the product, providing relevant information regarding the product status, and warning about possible problems. The technology consists of temperature and freshness indicators, RFID tags, and sensors.
Intelligent Packaging for Food
The market is projected to grow at a significant pace with the rising trend towards the achievement of product safety, high-quality, and sustainability. With the increasing demand for food in order to satiate the rising global population, there is a need for sophisticated technologies that help in providing information regarding the quality status, thus preventing food wastage and spoilage. Hence, the adoption of intelligent packaging will help in the form of a quality indicator for the purchased food product. This will keep the consumer well-informed about the food quality and thus will curb food wastage to a greater extent. The growing demand for livestock products like meat, milk, and eggs will fuel the intelligent packaging market demand along with the growing demand for animal protein. As per the WHO information, there has been a surging pressure on the livestock industry for the production of high-value animal protein. Hence, the livestock sector is continuing to grow at a rapid pace and the major driving factors behind this growth are attributed to the rapidly growing population, increasing income, and rapid urbanization. The meat production on an annual basis is predicted to surge from 218 million tonnes during 1997-1999 to attain a production size of 376 million tonnes by the end of 2030.
Source: WHO, Annual Meat Production, 1997/99 to 2030, in Million Tonnes
A strong relationship between the rising income levels and animal protein consumption is depicted with the consumption of animal products like meat, milk, and eggs growing at the cost of commonly consumed staple foods. Additionally, with a sharp decline in prices, it has been noticed that the developing or the emerging economies of the world have commenced on higher meat consumption levels in comparison to the developed economies. According to the FAO predictions, the annual meat consumption in the emerging economies is projected to soar from 25.5 kg per person in 1997/99 to 37 kg per person by the end of 2030. In the industrialized nations, it is predicted to surge from 88 kg per person to 100 kg per person during the same time period. For milk and dairy products, the consumption is projected to grow from 45 kg per person per annum to 66 kg per person in the emerging economies, for the developed economies, it is predicted to surge from 212 kg per person to 221 kg per person. On the other hand, egg consumption is projected to rise from 6.5 kg per person to 8.9 per person; and from 13.5 per person to 13.8 per person in the developing and developed economies respectively.
The use of intelligent packaging for such perishable food items will definitely be of immense help in providing accurate information regarding the freshness level of the animal-derived food products.
Intelligent Packaging for Pharma Sector
The introduction of smart packaging in medicines is further providing an impetus in boosting the intelligent packaging market growth. The need for intelligent packaging is continuing to grow at a significant pace owing to the increasing prevalence of drugs that are sensitive to certain parameters such as moisture, increasing patient population that requires constant reminders for drug intake on a regular basis, and concerns regarding the sale of counterfeit drugs. It has been noticed that the use of Near Field Communication, NFC, can be highly effective in stopping the sale of counterfeit drugs. The technology involves a unique secure code that is invisible to the human eyes. The secure code is embedded inside the packaging of the pharma product. An authentication server stores the database of the pharmaceutical product, in addition, the server also stores the unique secure code related to the product. Then a mobile device is connected to the server and is configured to read the code that was inserted inside the product packaging. By bringing the mobile device close to the pharmaceutical packaging, the mobile is capable of identifying the genuine pharmaceutical product through communication with the authentic server, and, this, in turn, compares the unique secure code saved in the database.
Previous studies state that even high-income countries with strong regulatory systems that are capable of excluding false drug products also faced issues regarding the sales of counterfeit drugs in their markets. Also, as per OECD information, the incidence of adverse health consequences was noticed due to the use of fake medicines. It was estimated that around 72,000 to 1,69,000 children were expected to die from pneumonia every year after the consumption of fake drugs. Also, it was further assessed that false anti-malarial drugs are predicted to be responsible for additional 1,16,000 deaths (source: WHO, 2017).
Furthermore, significant product launches of smart packaging for drugs is contributing to burgeoning the market growth. In 2019, Log Pharma announced the release of its ActiveGuard Connect smart packaging solutions. The package designing is done for addressing the needs of patient adherence to a prescription drug or nutraceutical supplementation. The technology consists of an incorporated desiccant chamber that is designed to be attached and synchronized with a consumer’s smartphone.
Intelligent Packaging for Cosmetics
Beauty brands are also leveraging intelligent packaging technology that will not only allow the tracking of their cosmetic and personal care products but will also help in interacting with the user, in addition to offering an advanced product. Significant partnerships among organizations in the field of smart packaging for cosmetic and personal care commodities are further providing an opportunity for the market to thrive. In 2018, Cambridge Design Partnership teamed up with the international beauty brand, Avon, for utilizing smart packaging to support customer trials for a novel anti-ageing product.
A Guide to Display Panel Industry
Thought ArticlesDisplay panels are referred to the electronic viewing devices that enable people to view a piece of information in the form of images. These mostly comprise still images, moving images or texts, or any other visual material. Today, display panels hold immense market potential with the growing consumer electronics industry. The growing gaming and entertainment industry are further contributing to propelling the market growth. Also, the advent of mobile devices including smartphones, laptops, and tablets are propagating the market demand at present and in the upcoming years. Industries such as healthcare, transportation, and others integrate display panels into their equipment for providing a user-friendly interface for viewing data.
The growing HMI industry is further fueling the display panel market demand, also the adoption of touch screen panels has strengthened further market growth prospects. Human machine interface is an important tool providing convenience to the operator for interaction or machine control, or the entire process. HMI evolved from hard wired push buttons and indicator lights on a control panel to digital visual touch screens. Traditional HMIs lacked any sort of visual display. The operator had to constantly rely on the audible feedback, and alarm systems, in addition, push buttons were utilized for controlling the process. The next HMI panel consisted of text panels or alpha numeric-based operator interfaces. The hard-wired push buttons and indicator lights were replaced by the text panels having membrane push buttons on them. The only advantage of this type of panels was that an operator was capable of reading pre-programmed messages onto the LCD screen. Hence, providing the information to the operator in a visual format. Thus, in an HMI industry, since the onset of text panels, display panels started gaining momentum. With the revolution in industrial automation, there was a rise in the adoption of more refined control systems and visualization commodities. Slowly, touch screen models came into being with advanced graphical displays replacing text display panels with better screen resolution. This provided flexibility to a programmer in designing visually pleasing screen, also, the screen can provide a user or an operator what is going on in the entire plant without the need to manually conduct the scanning process. This is because of the fact that everything is displayed right onto the HMI screen.
The growing disposable income, especially in the developing economies of the world have put a significant impact on the market growth. The major reason lies in the fact that with the growing consumer disposable income, the willingness to spend on premium consumer goods, like kitchen appliances and other electronic gadgets, has certainly risen. This has resulted in the surge of the display panel demand for incorporation in these devices. The rising middle-income-population of the developing countries like India and China from the Asia Pacific region has provided a large consumer base for the consumer goods market to proliferate. Additionally, the increase in family income, with more than one earning member, specifically, with women entering the main workforce is also contributing to the market growth. The increasing global final consumption expenditure is adding to surge the display panel market growth. As per the World Bank predictions, the final consumption expenditure of the world grew from USD55.417 trillion in 2015 to USD63.083 trillion in 2018. In China, the final consumption expenditure grew from USD5.972 trillion in 2015 to USD7.65 trillion in 2018. In India, the final consumption expenditure rose from USD1.461 trillion in 2015 to USD1.91 trillion in 2018.
Source: The World Bank Group, Final Consumption Expenditure, World, India, and China, in USD Trillion
Significant investments in display panel manufacturing facility are providing an impetus in surging the market growth. In 2020, Samsung Display announced its investment of USD500 million in India. The investment amount will be dedicated towards setting up a manufacturing unit for the production of smartphone displays. The Korean company, Samsung recently, in 2018 inaugurated a smartphone manufacturing plant in Noida for expansion of its presence in India, the second-largest mobile phone market after China. Samsung Displays novel manufacturing unit to be located in Noida, Uttar Pradesh, is geared to help its parent organization in securing smartphone display panels at a cheaper rate and enhancing productivity.
The growing adoption of wearables worldwide is further propagating the display panel market demand. This can be assessed through numerous innovative wearable product launches. In 2019, Huami announced the release of the multiple series of novel and innovative wearable products at the consumer electronic show, 2020. The event was announced to take place in Las Vegas. The world’s largest company is poised to expanding its Amazfit portfolio beyond the smartwatch range. With growing consumer demand for health and fitness products, the company aims to build a strong foundation and ecosystem of wearables with a focus on health and fitness management.
In 2020, Huawei announced the launch of its next wearable, Huawei band 4 product. The novel product is equipped with heart rate monitor, oxygen saturation, and sleep monitoring features. The wearable fitness tracker band device consists of an in-built USB charging port, with a long-lasting battery, for nine days on a one-time full charge. The band has a colour touch screen display in addition to a glass front with 2.5D with an oleophobic coating. The band provides 9 exercise modules that include outdoor run, rowing machine, outdoor walk, free training, outdoor cycle, elliptical machine, indoor walk, and indoor cycle. In addition, there is a provision for setting reminder alarms. The band offers other features as well apart from the health and fitness capabilities, these include cold calls identification, remote shutter, smart clock, and phone finder features.
The increasing popularity of digital signage is providing an opportunity for the market to thrive at a significant pace. One can see the increasing adoption of digital outdoor signage in almost every industry vertical, hotel industry, at retail locations, transportation facilities, entertainment venues such as a sport event, and many more. The major reasons for its growing popularity are attributed to the dynamic and interactive content, it is cost-effective in comparison to the traditional broadcasting boards, digital signages have shown improvement in remembering the content, thus, contributed to increasing the content retention rates. Furthermore, digital outdoor signages are designed in a way that can be easily understood, even in direct sunlight, further providing the consumers with a much better viewing experience than before. Also, the availability of innovative outdoor-specific screens capable of enduring wind, high and low temperatures, and moisture is further offering robust market growth prospects.
An Electrical Engineered Innovation Capacitive Sensor
BlogCapacitive sensors are often called non-contact devices that are used to detect the presence or absence of virtually any object regardless of any type of material. Expanding the automotive industry is one of the prime drivers for the growth of the capacitive sensor market during the forecast period. Also, growing demand for smartphones, tablets, and other advanced consumer electronics worldwide is further fuelling the demand for capacitive touch displays, thus positively impacting the demand for capacitive sensors in various parts of the world.
Increasing Demand for Electronics Across Industry Verticals
Consumer electronics comprising capacitive sensors includes smartphones, wearables, and advance tablets among other consumer electronics. Increasing adoption of consumer electronics and the availability of a variety of products, the demand for consumer electronics is increasing, simultaneously which will further push the demand for capacitive sensor during the forecast period. In addition, the increasing household consumption expenditure also plays an important role in increasing the demand for consumer electronics, which further increases the demand for innovative sensors from semiconductor industry. For instance, as per the World Bank, the household’s final consumption expenditure has grown remarkably from US$ 2.732 trillion in 2011 to US$ 4.698 trillion by 2017. Furthermore, rapid urbanization and increasing disposable income in developing economies like India, China, and Brazil are anticipated to increase the demand for consumer electronics which will further widen up the growth opportunities for vendors and manufacturers during the forecast period.
Moreover, with the increasing popularity of wireless power, interactive displays, and advance robotics there is a burgeoning demand for better performance. With this heavy expenditure are being done by the manufacturers of consumer electronic devices worldwide, in the R&D to bring out the state-of-art technology, as a result, the demand for semiconductors is expected to grow in the coming years. In addition, the demand for these devices in the communication industry will see a rise due to their increasing application in smartphones and other communication devices. Smartphones utilize multiple sensors, ranging from proximity sensors, accelerometers and gyroscopes, magnetometers, and light sensors, among others. Furthermore, the technological advancements in the field have also led to manufacturers further improving the capacitive sensor usage in smartphones.
With the advancement in embedded technologies, technologies such as industrial PCs are used in electronics manufacturing plants so as to increase productivity. Industrial automation in the manufacturing industry is playing a significant role in increasing the demand for capacitive sensors. Panel PCs are increasingly being utilized in the manufacturing plants because they meet the demands of a rigorous working environment. Emerging technologies such as the Industrial Internet of Things (IIoT) are shaping the manufacturing processes in the electronics industry. It is becoming a core component of industrial transformation across the globe. Manufacturers are steadily adopting industrial IoT to upgrade their facilities and to gain a competitive edge. Thus, increasing demand for such technologies is expected to bolster the capacitive sensor market growth. The market is expected to grow at a steady pace owing to the growing semiconductor and electronics industry in the developed and developing countries. Emerging technologies such as Industrial Internet of Things (IIoT) is shaping the manufacturing processes in electronics industry. It is becoming a core component of industrial transformation across the globe. Manufacturers are steadily adopting industrial IoT to upgrade their facilities and to gain competitive edge. Thus the market is expected to grow at a steady pace owing to the growing semiconductor and electronics industry in the developed and developing countries.
Source: Apple Annual Report, Knowledge Sourcing Intelligence Analysis
China Is Driving the Growth of the Market
In China, the government policy also aims at supporting the creation of manufacturing innovation centers to 15 by 2020, and to 40 by 2025. Moreover, the availability of cheap labor and other supportive government practices have also assisted China in being a hub for electronic manufacturing and attracts producers from around the world to set up production sites in the country, further amplifying the semiconductor production and thus, positively impacting the demand for capacitive sensors in the coming years. The Chinese region is also a prominent manufacturer of solar cells. According to the Global Market Outlook for Solar Power, 2018 to 2022, by the European Photovoltaic Industry Association, China installed 53.3% of the world’s solar capacity in 2017, and the country is also responsible for more than half of the global demand. With the country still projecting a high growth in solar cell production, the demand for capacitive sensors to assist the same will also increase in the region during the forecast period.
Understanding the Japanese Capacitive Sensor Market
The domestic consumer spending has been relatively week in recent years, even though, there has been a growing indication of the improvement in real wages on account of rising employment trends. The growing consumer spending in the country is stimulating the production of personal computers, smartphones, and audio-visual equipment, among others. Thus, after a recent decline in domestic production of Japan’s electronic industry by 6% in 2016 (source: Japan Electronics and Information Technology Industries Association), the industry is projected to witness moderate growth during the forecast period, more specifically for display devices, storage/server equipment, electronic medical equipment, and electric measuring instruments.
Moreover, the production of passenger cars and commercial vehicles has also improved since 2015. For instance, the vehicle production in the country, including passenger vehicles, trucks, and buses, totalled 791, 315 units in December 2017, representing 1.3% year on year increase during the same month in 2016 (source: Japan Automobiles Manufacturer’s Association). Furthermore, the instance of a trade war between the United States and China in which the United States imposed steep import duties for the Chinese manufactured good is resulting in some firms shifting their production facilities from China to other countries such as Japan and Korea among others in order to maintain higher margins. Thus, the anticipated economic recovery and relatively favourable trade policies are projected to push the growth of the capacitive sensor market in Japan.
How Industrial Enzymes Changing Our Lives!
BlogIndustrial enzymes are the types of macromolecular biological that are commercially used in a wide range of industries such as chemical, biofuels, pharmaceuticals, and food & beverage, among others. The expanding food and beverage industry coupled with the recent advancements in enzyme engineering & green chemistry are boosting the demand for industrial enzymes. In the food and beverage industry specifically, the catalysts are used to enhance the end product’s texture, taste, and flavor. Growing demand for cosmetics and personal care products on account of the growing geriatric population in various parts of the world coupled with the rising awareness are contributing to the global industrial enzymes market growth. Furthermore, the demand for industrial enzymes is expected to increase in the coming years owing to increasing application in animal feed products to boost the nutritional value of the animal feed.
Increasing Demand for Products With Longer Shelf Lives and Convenient Storage
The widening of distribution chains, globalization and expansion of companies, a growing number of retail and wholesale outlets, and more have led to the development of food products with a longer life span. Industrial enzymes are used in the products that last for longer times. According to the USDA's Shelf-Stable Food Safety, some canned hams are shelf-stable and can be stored in the pantry up to 2 to 5 years. Due to this, there has been a rise in the demand for longer shelf life products which uses enzymes during the forecast period. Furthermore, packaging, storage, and logistics comprise a substantial part of the costing of the products and industrial enzymes are used in optimization of the production processes making it a better option for manufactures resulting in the investment in research and development in chemical industry.
Growing Demand for Convenience Products
The rise in the number of working populations worldwide is projected to be one of the key drivers to the convenience food market. According to a report by the United States Department of Agriculture (USDA), ready to eat and ready to cook foods amounted to 26% of the household expenditure on food between 1999 and 2010, with the portion of the average household food budget spent on ready to eats growing since 2007. Furthermore, according to APEAL, the Association of European Producers of Steel for Packaging, busier lifestyles have led to increased adoption of convenience products as it saves 50% time on average. Furthermore, the added benefits of portability, portion controlling, easier handling and opening, have further added to the demand for convenience products, thus resulting in an increase in the demand for industrial enzymes all around. In addition to this, multiple studies have shown the connection between advertisement and the demand for convenience products. And with the increase in the advertisement expenditure, the demand for convenience products will further rise, resulting in a snowball in the demand for industrial enzymes in the coming years.
Rapid urbanization coupled with the increasing demand for bioethanol in developing countries around the world is further boosting the demand for industrial enzymes over the forecast period.
According to the latest United Nations statistics, there is a rapid growth in the urban population of the world which has increased from around 751 million to more than 4.2 billion from 1950 to 2018. The migration of people has a consequence of an increase in disposable income, which resulted in the adoption of modern living conditions as well. Thus, all of the above factors created the market for industrial enzymes in various end-user industries.
The increase in cosmetic product demand is highly attributed to the growing middle-class population, especially in the developing economies of the world, thus creating a high consumer base. For instance, the Asia Pacific, by 2030 is projected to hold the maximum middle-class population, where it will represent more than 60% share in the global middle-class population and over 50% share on the basis of middle-class consumption. The graph below depicts the growth in the global middle-class population for the year 2009, 2020, and 2030 in billion units.
Source: OECD Statistics, Knowledge Sourcing Intelligence Analysis
Application in the Animal Feed Industry Is Growing During the Forecast Period
Growing consumption of meat and other end products such as milk, eggs across different regions is considered as one of the prime factors driving the growth of the industrial enzymes market during the forecast period. According to the Organisation for Economic Co-operation and Development, per capita, meat consumption in Brazil has increased from 24.633 kilograms in 2011 to 25.931 kilograms in 2017. Even per capita, meat consumption in Japan has increased from 6.491 kilograms in 2008 to 7.17 kilograms in 2017. Moreover, according to the Food and Agriculture Organization (FAO), milk consumption is expected to increase from 568 million tonnes to 700 million tonnes by 2020. Compound Feed is prepared by blending several raw materials and additives, based on the needs or requirements of the target animals. Compound feed is gaining traction due to its manifold advantages such as consistency, efficiency, economy, quality, and nutrition. Technological developments in the animal feed equipment in conjunction with investments, mergers, and acquisitions in this market is anticipated to expedite the process of compound feed production. For instance, Vermeer Corporation, which has a global presence, acquired family-owned Schuler Manufacturing to expand its feed production technology to provide support to the cattle producers throughout the feeding process. Another example being, in January 2020, Cargill made an investment of $20 million in India in a new premix and supplement manufacturing facility. The company has aimed to invest $240 million in India to expand its presence. This facility is also expected to generate feed additives to be used in Northern India to augment the animal feed industry.
Understanding the Pharmaceutical Packaging Industry
Thought ArticlesThe pharmaceutical packaging is essential for the protection of critical healthcare products. The whole process of presentation and information about the dosage form, identification of the components of the product, and the convenience associated with the administration of the product plays a vital role in the packaging industry. The growth opportunities for vendors and manufacturers of pharmaceutical packaging are driven mostly by the growing demand for drug delivery devices, technological advancements, and reduction in the packaging cost coupled with the advancement in the technology. In addition, a rise in the demand for reusable and specialty packaging is also expected to bolster the pharmaceutical packaging market growth during the forecast period. Besides, with the growing e-commerce and online purchasing trend in developing countries like India, China, and Brazil, drugs also need robust packaging keeping in view the safety of the final product. Hence, the growing e-commerce industry is further driving the growth of the global pharmaceutical packaging market in the coming years.
The latest pharmaceutical packaging technologies blister and aseptic packaging is getting popularity as most of the pharmaceutical products today need reliable and speedy packaging solutions that deliver a combination of product protection, quality, patient comfort, and security needs. Expanding healthcare and pharmaceutical industry in developing countries is considered as one of the major driving factors that are boosting the pharmaceutical packaging market growth in recent years. In fact, according to the International Trade Administration (ITA), the U.S Department of Commerce, the biopharmaceutical industry accounted for more than $1.3 trillion in economic output, representing nearly 4% of total U.S output in 2019.
Source: The World Bank
In addition, increasing investment by market players in the form of acquisition or production capacity to expand the product portfolio is expected to further drive the growth of the market for technologies like blister packaging in the pharmaceutical industry in the coming years. For instance, in October 2018, Merck invested nearly €63 million which is a part of €1 billion investment plan of the company in transforming the Darmstadt site which will be dedicated to the packaging and shipping of the company’s pharma medicine. Furthermore, rising health spending coupled with the growing geriatric population is further anticipated to boost the demand for medicines thus augmenting the market growth opportunities for the packaging industry in the coming years. According to the Organisation for Economic Co-operation and Development, per capita, health spending in the United Kingdom has increased from US$2969.6 in 2006 to US$4653.1 in 2019. Similarly, in the United States, health care spending per capita has increased from US$6,806.9 in 2006 to US$11,071.7 in 2019. Furthermore, advanced packaging solutions are increasingly being utilized in clinical trials, drug promotion, and commercial packaging. Thus, the burgeoning number of clinical trials in the developed and developing regions is unlocking growth opportunities for the pharmaceutical packaging to provide efficient solutions that are suitable for these trials.
By Raw Material Metal Foils Segment Is Expected to Grow at a Significant Rate During the Forecast Period
Metals such as aluminium foils are being extensively used in pharmaceutical packaging to create a barrier from light and oxygen, thus eliminating the need for refrigeration and further improving the shelf life of the products without the usage of any type of chemical. Furthermore, metal foils are also a commonly used form in blister form of packaging. Thus, an increase in the demand for these medicines and other healthcare products is estimated to push the metal foils aseptic packaging market positively
Geographically, the North American Region Is Anticipated to Hold a Substantial Share in the Market
Based on geography, North America is expected to hold a major share in the pharmaceutical packaging market owing to the early adoption of technology, and the high health expenditure in countries like the United States and Canada among all the developed regions of the world. The rising health concerns are anticipated to increase health spending on drugs by individuals. Also, initiatives are taken by the U.S Department of Health and Human Services which recently proposed a regulation aimed at lowering the drug prices and reducing the out of the pocket expenditure thereby encouraging pharmaceutical manufacturers to pass the discounts directly to the patients. This is further expected to push the demand for pharmaceutical drugs, thus, driving the pharmaceutical production and hence the revenue generation opportunity for the participants in the drug packaging value chain. Furthermore, the Food and Drug Administration (FDA) has recently passed a regulation requiring all the prescribed pharmaceuticals dispensed in the hospitals and nursing homes to be packaged in the unit dose format with barcodes to reduce dispensing errors, which is expected to significantly benefit the pharmaceutical packaging market in the region. While the Asia Pacific region is expected to be one of the fastest growing, this is due to the expanding pharmaceutical industry, especially in the emerging economies of India, Indonesia, and China. In addition, with the growing prevalence of chronic diseases in the Asia Pacific region, the market for pharmaceutical packaging is projected to expand due to the rising demand for drugs and other pharmaceutical products supported by effective treatment procedures in the region. Furthermore, growing health awareness among individuals in various parts of the world is expected to provide an exponential opportunity for the market to grow at a sustainable pace in the upcoming years.
Furthermore, with the growing global geriatric population, the pharmaceutical packaging market will continue to surge on account of the increasing number of hospitalizations for the treatment of age-associated chronic diseases. Also, as per the United Nations latest report, by the end of 2050, more than sixteen percent of the people in the world will be above 65 years of age, which is estimated to rise from nine percent in 2019. An increase of more than seventy percent. Besides, the number of individuals aged 80 years of age or more is estimated to grow to three times, from a population size of around 143 million to a population size of around 426 million from between 2019 and 2025. According to the World Bank report, the population ages 65 and above as the percent of the total population in Italy and Japan has increased from 20.08% and 21.23% in 2008 to 23.01% and 28.01% in 2019 respectively.
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 packaging. 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.
Understanding the Dynamics of Servo Motor and Drives Market
BlogServo motors and drives are extensively used in every machinery which requires precise position control and helps in running systems ranging from robotics, automation, to camera, and other conveyor belt system. Growing adoption of automation in various end-user industries such as automotive, food processing, and semiconductor industry among others is expected to be one of the prime drivers that are driving the growth of the servo motor and drives market over the forecast period.
In addition, favourable government initiatives coupled with rapid industrialization the process automation and instrumentation market are expected to witness substantial growth over the forecast period. For instance, the Government of China has doubled the value of large-scale infrastructure projects in 2019 than the previous year and recently NDRC (National Development and Reform Commission) has approved 21 projects worth at least US$100 billion.
Robotics Is Expected to Witness Substantial Growth During the Forecast Period
The growing preference for leisure hour and the simultaneous increase in the disposable income on account of the improvement in the economic condition of the various developed economies is significantly driving the demand for a personal service robot. In fact, the annual growth rate of household disposable income increased from -0.08% in 2009 to 1.48% in 2016 for the United States, while Canada witnessed an increase from 2.05% to 3.44% over the same period (source: OECD). Simultaneously, the funding for research and development of the humanoid robot has been increasing in the United States steadily over the years. For instance, in September 2012, the National Aeronautics and Space Administration (NASA) granted more than US$2.5 million funds for eight advanced robotic projects to support its space exploration activities by the government.
Additionally, in the healthcare industry, the use of robot-assisted surgery is increasing on account of its ability to reduce infection risk, increase efficiency, shorter hospitalization, and relatively less pain is further expected to supplement the growth of the market over the forecast period. Furthermore, in the first quarter of 2017, the U.S Department of Defense granted nearly US$80 million to American Robotics aiming to accelerate the development of robots in the country. As such in 2016, Boston Dynamic launched an upgraded version of humanoid robot ‘Atlas’ that can work both outside and inside buildings. Moreover, the government of the United States under the Trump administration recently announced a number of plans of reducing the immigration, which is expected to impact the workforce demand-supply ratio in the country, thus providing an immense opportunity for the service robot to bridge the anticipated workforce demand-supply gap, thus generating significant revenues for the manufacturers.
Annual Shippments of Industrial Robots in China, in Thousands of Units, 2007 to 2017
Source: IFR World Robotics 2018
Besides, the IFR World Robotics 2018 report shows that developing countries such as China, India, Japan, and South Korea, among others are some of the largest markets for industrial robots. This rise in the number of industrial robots opens an additional opportunity for the development of the servo motor and drives market. Servo motors and drives form an important component in the operation and maintenance of industrial automation robotics and thus will show a fast adoption rate in these regions over the forecast period.
Technological Advancement in Food and Beverage Processing Industry Is Widening up the Growth Opportunities
Technological advancements in the food processing industry are estimated to increase the demand for servo motors and drives. The revolutionizing technology used for food processing such as the use of Ozone purification systems which is exponentially powerful than chlorine water purifier systems is projected to increase the demand for ozone water purifiers. Furthermore, the cost-efficiency of employing the latest technology for processing is anticipated to amplify its demand in small and medium level industries. The advancing membrane technologies such as reverse osmosis, ultrafiltration are microfiltration techniques used for the purification of beverages that are expected to increase the demand for the advanced motors and drivers which are used in automated plants. The advancement of cost-efficient packaging is estimated to improve the demand for food processing owing to its economic feasibility, consequently, the advancement of environmentally friendly packaging materials is expected to favor the servo motors and drives market trend in the coming years.
The Automotive Industry Is Holding a Significant Share in the Market
The automotive industry is growing at a staggering pace, with the global automotive production reaching 97,302,534 units in 2017 (Source: International Organization of Motor Vehicle Manufacturers). Furthermore, the automotive market is striving to make vehicles more comfortable and efficient for consumers and thus has led to increased adoption of advanced systems in automobiles.
Servo motors and drives are being used in the manufacturing stage of the industry, but their main adoption has been seen as infotainment devices in vehicles. Initially, this adoption was only limited to higher-end vehicle models, but with the decrease in the costs of LCDs have led to a further extension of its adoption to mid-tier vehicles. Many automotive manufacturers are also bringing integration in the automotive market by introducing gesture and voice recognition for enhanced human car interactions. Voice and gesture activated controls are utilizing technologies such as voice recognition, text-to-speech, and speech-to-text to make the entertainment and navigation control effortless. Furthermore, they are also being adopted to provide detailed component information, such as detailed battery information, to the driver for easier repairability and maintenance.
In addition to this, the growing technological advancements in the automation industry will also escalate the demand for servo motors and drives in the future. Furthermore, the introduction of advanced components in other vehicles such as two-wheelers and increasing investment in the development of more such vehicles will further escalate the demand for servo motors and drives in the near future. For example, Arc Electric Motorcycles introduced the world’s first Electric Motorbike the Arc Vector at EICMA 2018, in Milan. The bike is the world’s first fully-electric motorcycle with HMI and has received investment from In Motion Ventures, the venture capital fund behind Jaguar Land Rover.
The Smart Glass Market Trend – Raising Comfort, Cutting Costs, Saving Environment
BlogThe intrinsic capabilities of smart glasses to provide acoustic and thermal insulations, facilitate energy conservation and add aesthetics, effectively validating the evolving architectural philosophy are one part of the factor that is expected to drive the growth of the smart glass market. Additionally, the regulatory measures and policy-driven incentives by various national governments are expected to catalyze various strategic decisions pertaining to the smart glass market. The automotive sector along with public transportations such as trains and aviation-related applications are also expected to drive the market of smart glass. Further, robust demand from the commercial sector that stems from their strategic imperative of reducing their carbon footprint is also expected to be a noteworthy driver facilitating the growth of the market. Nevertheless, the demand from the residential sector for smart glasses will take some time to gain momentum which will be majorly supported by curiosity and initial interest. On the contrary, integrating smart glass solutions are expected to incur high initial expenditure which comprises procurement and installation expenditure. Further, even though smart glass solutions are dirt proof which necessitates occasional cleaning, maintaining them at regular intervals is required to prevent any possible malfunctioning, thereby incurring further expenses on maintenance. These factors are expected to deter market growth to a certain extent.
During the past few years, urban areas have experienced substantial growth with rapid changes experienced by nations around the world driven by their respective urbanized population. This has increasingly posed the challenge of meeting energy demands through sustainable means concomitantly reducing the cost of utilities. Thus, the initial endeavor of reducing the installation of light fixtures to increase daylight entering buildings and consequently reduce the cost of electricity manifested into the law of unintended consequences of increased glare and heat inside buildings which resulted in higher HVAC expenditures, which in turn stemmed from heat gains in warm months and heat loss in cold months. This realization has led to decisions about smart glass integration as exemplified by the reported announcement of California, USA, based Kinestral Technologies, Inc. in September 2018 that smart homes and buildings by Menlo Park, California based tech and construction company Katerra, will be having Halio Smart-Tinting Glass integrated into them, which is covered under a partnership between the two organizations. Further, the partnership also facilitates integrating Halio’s cloud-based automation system into Katerra’s systems, enabling an intuitive and seamless user experience for Karterra’s customers. Thus, such comprehensive partnerships are expected to contribute to the smart glass market growth, in the coming few years. This also effectively addresses the 2019 update to California’s Energy Code which necessitates greater than 50 % improvement in residential housing energy efficiency, which made it the most stringent building energy code in the USA.
The recognition of environment-friendly building codes are not just restricted to state energy policies but also has been acknowledged by supranational agencies like United Nations Economic Commission for Europe, which recognizes that buildings are central to meeting the sustainability challenge since buildings are responsible for 40% of CO2 emissions, 70% of the consumption of electric power generated requiring efficacious energy performance management of buildings. With respect to EU 28, it can be stated with certitude that the energy and power industry has benefited from the institutionalization of public financial and fiscal instruments supporting energy renovations in buildings. Many countries within the EU have opted for deploying a combination of different instruments, each of them tailored to address different barriers, specific segments, and recipient groups within the building sector. Financial support is predominantly offered in the form of grants and /or subsidies, which is a particularly popular instrument in Austria, Croatia, Ireland, Cyprus, Estonia, Latvia, Greece, and Poland. Whereas in countries like the UK, Spain, Slovenia, Slovakia, Romania, Portugal, Malta, Luxembourg, Lithuania, Latvia, Italy, Hungary, Germany, France, Estonia, Czech Republic, Bulgaria, Belgium, and Austria, loans and soft loans are made available.
Further schemes like the SALIX scheme in the UK, the National Revolving Fund for Energy Savings in the Netherlands, the Kredex Fund in Estonia and Energy Efficiency, and Renewable Sources Fund in Bulgaria, are designed in the form of revolving funds, ultimately facilitating the scaling up of energy efficiency investments using a revolving mechanism. In other words, a portion of the savings generated by supported investments is used to replenish in part the fund (i.e. revolved) facilitating the possibilities of reinvestment in future projects of equivalent value. Further, surmising the aforementioned, there are reportedly about 129 instruments which support energy renovations in buildings across the EU, out of which 10% constitutes tax incentives, 19% constitutes loans/soft loans, 61% constitutes grants/subsidies, and the remainder 10% comprises a combination of the above. As of 2019, 15 billion Euros have been spent approximately by public resources on an annual basis across the EU. The largest schemes in terms of public resources expenditure are the German KfW Energy Efficient Refurbishment Programme, the French Energy Transition Tax Credit scheme, the Austrian Regional subsidies for energy efficiency in residential buildings, Italian Eco-bonus tax rebate scheme. Thus, delineating the fact that the investment environment is conducive for further development of the smart glass market in the next few years.
Besides buildings, smart glasses have received worldwide cognizance in other applications such as automotive and public transport to name a few, which is also expected to fuel the growth of the market. For instance, marking the worlds’ first adoption to be used as a sunroof in a mass-production vehicle, WONDERLITE™ Dx by AGC Inc. has been reportedly integrated by Toyota's new Harrier that was commercially made available in June 2020. The rationale for the integration is its rapid response time, which is the fastest in the world to date, enabling instantaneous control of the light transmission. Earlier in September 2018, a collaboration was announced between Heliotrope Technologies Inc. and Oran Safety Glass (OSG) to introduce NanoEC™ smart glass technology thereby endeavoring the commercialization of the technology in the transportation industry. Further enabling transport operators to sustainably respond to the need for real-time passenger comfort. In this manner, the need for curtains has been eliminated which not only results in saving water as the need for laundering them is also eliminated at the same time but also provides the passengers with a technologically-driven-innovative means to control the degree of shade without comprising the experience of the view.
Retail Automation Market Growth – Revolutionizing the Retail Business Model
Thought ArticlesThe integration of retail automation is expected to surge at an unprecedented rate due to the need for addressing an ever-increasing cost to manage supply chains, greater investments to match new competition, the rising cost of manpower, the need for providing a better customer experience as well as address steadily surging customers’ expectations especially when the standards are being continuously raised high. The aspect of automation has emerged integral to the key strategic decisions of retail companies as there’s an upswing in the integration of workforce and task management solutions, self-checkout systems, proximity beacons, mobile devices, and digital kiosks around the world.
One of the key drivers of this market is the ascending pressure of sustaining a healthy margin which is influenced by a business environment that is filled with intense competition, rising eCommerce investments, and demand for increments in remuneration. It should be noted that the pressures of cost are not new but the option to pass on the cost to consumers as a means of cost reduction measure has been depleted especially given the hypercompetitive environment. Thus, to improve the margins retailers are increasingly turning towards automation across all the subsectors and all the functional areas. To this end a recent market development during the beginning of 2020, is pertinent wherein the introduction of a robot called SmartSight, by Zebra Technologies was reportedly announced, intended for supermarkets, mass merchants, hypermarkets, and grocers. The organization’s EMA50 enterprise mobile automation system’s workflow automation, robotic capabilities, machine learning, and computer vision are utilized by the robot to identify out-of-stock conditions, pricing inconsistencies, and planogram issues on the shelf. This provides retailers the option to reassign labor hours to more pressing matters and higher value endeavors, which are more shopper-centric. Further, the robot facilitates a higher availability of store inventory by autonomously scanning shelves which leads to generating tasks pertaining to restocking and updating on time. It also reportedly reinforces workflows like buy-online-deliver-from-store (BODFS) and buy-online-pick-up-in-store (BOPIS). Thus, by assisting retailers to minimize the issues of price mislabeling and improve price integrity as well as assisting in the reduction of out of stock instances thereby enabling them to increase basket sizes, the Zebra SmartSight solution will reportedly provide retailers the competitive edge and prevent further loss of in-store purchases to online shopping resulting in a greater degree of customer loyalty concomitantly at streamlining operations and substantial cost reduction.
Further, factors such as increasing purchasing power, penetration of internet connectivity facilitating last-mile delivery, among others are raising the scale of eCommerce to great proportions that are certainly expected to drive the retail automation market that stems from the need for streamlining the processes, among others. Along with the aforementioned, the current scenario of CoVid19, which has brought about a paradigm shift in various consumption habits and purchasing trends as well as retail and eCommerce operations is also expected to drive the retail automation market to a new echelon. As the pandemic struck, there emerged an unprecedented upshot in the demand for eGroceries had led to the extension of the duration of fulfillment to over a week in certain locations which was otherwise normally executed within a day. Thus, arose the need for integration of automation.
One recent development that finds relevance in the aforesaid case is the reported announcement by Kindred, Inc. in June 2020 about the purchase of 73 additional SORT robots by Gap Inc. which certainly needs no introduction in the global retail space. This strategic decision by the latter encompasses the installation of these robots in its U.S. distribution centers, to bring its total fleet to 106 thereby reportedly increasing its robotic foot-print significantly across its supply chain resultantly meeting the increasing customer delivery expectations. It was also reported that between 1st January 2020 and 30th April 2020 the SORT robotics systems were used by Gap Inc, to sort more than 13 million units of merchandise. This has resulted in an average sorting speed of 335 units per hour sustaining an uptime at 99.8%. Thus, in such uncertain times, integration of automation enables the retailers to scale the predictability of operations with efficiency.
Gross Domestic Product by Restaurants and Hotel Expenditure at Current Market Prices, 2015–2019, Indonesia
In billions of Rupiahs
Source: BPS-Statistics Indonesia
Additional aspects that are expected to augment the growth of the retail automation market are, for one, the favorable prospects of unattended retail services that provide consumers a fast and easy way to shop at their own pace and without the need for interacting with the store employees. It also enables consumers to shop during transit. While the aforesaid is a demand-driven factor, among others, that will drive the growth of automation market during the next few years, the supply-side-driven or vendor-driven factors that are anticipated to propel the growth of this market are the prospects of bringing about uniformity with higher quality, as well as enhancement of efficiency and ensure a well-sanitized sorting environment. Besides, the integration of automation aids in the generation of sales data swiftly in an error-free manner. Moreover, it also provides an organization with the facility to execute troubleshooting measures remotely. Besides unattended retail services, an example of the recent development of retail automation pertaining to food and beverage industry is being touched upon to provide a context and partly substantiate another dimension of the expected growth of the retail automation market as a whole, also shedding light on how emerging economies, among others, are expected to drive the market growth.
A start-up based out of Jakarta, Indonesia called Wahyoo that was founded in 2017 reportedly announced the successful raising of $5 million in Series A funding led by Intudo Ventures, a venture capital firm focused on Indonesia. Other investors included Selera Kapital, Kinesys Group, Isenta Hioe., Indogen Capital, Gratyo Universal Indonesia, Arkblu Capital, and Amatil X (the corporate venture program of Coca-Cola Amatil, one of the five largest Coca-Cola bottlers across the world). The rationale for establishing this startup is to digitize and automate more tasks ranging from ordering supplies to managing finances focusing on the small eateries, called warung makan, thus enabling them to streamline their operations and have more quality of life. This has been enabled through the features made available by the startup which include a next-day grocery delivery service from its warehouses and integration with Go Food, a popular delivery app. The startup also offers the opportunity for a warung makan owner to place advertisements and earn money. The fund was raised to facilitate hiring as more owners can onboarded, among others, Wahyoo’s tech platform development and expansion beyond the area of greater Jakarta. Above all this exemplifies the extent of penetration of automation industry to small and medium enterprises, which are one of the major forces that drive the economy.
Avocado Market Trend – On a Healthy Growth Trajectory
Blog$3.5 billion was the approx. total export value of avocado from Latin American countries (LAC) during 2016 – 18 which is further expected to increase due to per capita income growth and changing consumer tastes towards more premium tropical fruits, in particular, avocados, as per FAO estimates. Moreover, the change in consumer preferences shifting towards higher consumption of tropical fruits in developed regions, especially to avocados, is expected to stimulate a further expansion in trade. Additionally, population growth, the increasing awareness of nutritional benefits of tropical fruits that are inclusive of but not limited to avocados; the repeated identification of the same as one of the nutritional super fruits; the growing inclination of supplanting the consumption of refined sugar and widespread availability are few of the factors that are poised to drive the avocado market growth during the next few years. Moreover, according to FAO, around 80% of avocado cultivation in Mexico is carried out by smallholder farmers who are endowed with lands of 5 ha or less, each, which suggests that contingent on fair and inclusive trade conditions, tropical fruit farming is a source of substantial income for smallholder producers, which is looking good for the avocado market.
Nevertheless, increasing occurrences of erratic and extreme weather conditions along with climate-change risks pose a considerable threat to its production, subsequently to the market, especially given that many production zones are located in the LAC regions. Ramifications arising from deforestation, forest fire, irrigation, land clearing, among others add further stress to the production and trade, posing as a possible endangerment to the commercial viability of the food and beverage industry as a whole. Further, factors such as mounting price pressure, phytosanitary restrictions, trade tensions, and volatile freight costs have the potential to deter the global avocado market growth to a certain extent. From the perspective of prices, export unit values of avocados had displayed a downward trend in 2018 as a result of a rapid supply growth facilitated by Mexico, which is the home to leading exporters and producers around the world. There was a registered decline by 17% form the peak annual average of USD 2 900/ton registered in 2017.
On the other hand, owing to a rapidly growing global demand, export volumes of avocado surpassed those of mango in 2017, despite weather-related declines experienced in 2017, and went on to occupy a significant share in 2018. The year 2018 witnessed the prevalence of favorable climatic conditions and lower occurrences of destructive climatic events in the case of tropical fruit-producing regions, like that of avocado. This supported a robust supply of the avocados. Avocado production is principally carried out in Mexico, and it’s the source that caters to global and domestic markets. Avocado production in Mexico reportedly accounted for more than 1/3rd of global output in 2018, which is an estimated increase by 11 % from 2017 stemming from significant investments in yield-improving technologies and area expansion. Further Mexico is advantaged with three factors which give it an edge in the avocado market, which are as follows:
Further, benefitting from similar investments, production in the Dominican Republic, the world’s second-leading producer of avocado experienced an expansion by an estimated 10% in 2018, reaching approximately 700 000 tons. Further, production in Peru had reportedly registered an estimated 13% increase over 2017, due to an increase in harvested areas that was to the tune of approx. 8 %. The increase was due to strong import demand from the European Union, the largest export destination for Peru. Concomitantly in 2018, Peru was recognized as the 3rd leading avocado producer with an 8% volume share in 2018.
To surmise, in 2018, the world production of avocado was to the tune of an estimated 6.3 million tons in 2018 which reportedly represented 6.7% increase from its 2017 production according to FAO, Further, among the principal tropical fruits avocado has experienced the fastest growth in production during the last decade, at a registered annual average rate of 6 % mainly owing to an increase in the areas of harvest, which in turn has been driven by surging global import demands. The import demand had reportedly expanded at an annual average rate of 13 % over the previous decade as per FAO. Moreover, to put things into perspective, approximately 35 % of global avocado production was destined for export markets, in comparison with approx. average of 3% to 5% pertaining to other major tropical fruits. With respect to the quantum of trade, the global exports of avocado increased to 2.2 million tons in 2018, which was reportedly an industry first, and represented a 15.9% increase from 2017. The volume also reportedly outperformed 12.6% of the average annual growth rate observed over the previous decade. Moreover, Mexico accounted for an estimated 54 % of avocado exports in 2018 which encompassed the shipment of 1 million tons of avocado to the USA, representing a 77% share of its exports. The main export destinations for avocado are the USA, which reportedly accounted for nearly half of global shipments in 2018, followed by the EU that accounted for 28% of the import.
Moreover, the per capita fresh fruit retail availability of avocado was reportedly 3.6 kgs in 2018., and that of the EU was 1.4 kg on average. The principal avocado consuming markets in the EU, which are France and the United Kingdom reached an estimated retail availability of 1.7 kg and 1.5 kg per capita, respectively. Besides, health-conscious and vegan consumption proclivities, demand for avocado is also fueled by marketing activities which are integral to facilitating a healthy avocado market growth. For example, as per FAO, every box of Hass avocado imported from Mexico, Chile, and the Dominican Republic are financed through a fee of USD 0.6 and made commercially available at popular events in the USA. Further, establishing new business entities to cater to the demand of avocado too, has contributed to the market growth, for instance, the launch of a spinoff called The Avocado Company, which is a wholly-owned subsidiary of the Fresca Group Ltd based out of the UK was reportedly announced in June 2018. It was launched with the rationale to offer a year-round supply of avocado to meet the anticipated growth in demand for avocados in the UK.
Further demand for avocado also incentivized the launch of Grade 2 avocados during March the same year, which otherwise are generally sold to foodservice distributors and industrial users in bulk configurations, due to its external scars and blemishes that haven’t been able to facilitate its wide retail merchandising. Unveiled by Mission Produce, a subsidiary of Cabilfrut S.A. making then commercially available in 2lb and 3lb bags, the organization has capitalized on growing consumer awareness of the health benefits and acceptance of visually imperfect produce, thereby facilitating further growth of the market.
Further, avocado chips startup AvoLov based out of Oregon, the USA had reportedly perfected dehydrating avocados in 2018 to produce crispy avocado chips followed by two years of intensive research, ultimately capitalizing on the growing preference for the fruit, which was later made commercially available, the same year during March, in three flavors. The application of avocado has also transcended the boundary of edibles and have moved over to personal care as well. This was exemplified by the launch of Avocado Melt Sleeping Mask by Glow Recipe that comprises 74% of avocado, in November 2018. The product reportedly employs the flesh, extract, oil, and butter components of avocados to facilitate skin nourishment, among others during the winters. Thus to improve large-scale commercialization of avocado, secondary product development has also been a major facilitator for the avocado market growth.