Besides an increasing rate of application of tea extracts in the food and beverage products due to their antioxidative capacity, their nutraceutical properties of polyphenols have driven the application in the food and beverage as well as supplement industries facilitating new products innovations in the personal care and healthcare markets in the form of capsules, tablets and blurred category of health drinks. Further increasing health awareness, high rate of R&D investments and growing integration in nutricosmetic products are expected to drive the demand for the tea extract market. Nevertheless, the availability of cost-effective substitutes is expected to hinder the growth of the tea extract market to a certain extend.

During the past few years, there has been a rising inclination towards augmenting the health benefits derived out of daily food consumption with nutraceuticals which offers more targeted delivery of the nutritional aspects which fail to be absorbed via the former. Further with the increasing cognizance of naturally derived ingredients, the inclusion of tea extract has emerged as one of the growing trends in the same. Based on the beauty-from-within philosophy, both players in the food and beverage market and personal care market are increasingly investing in the new product development with tea extract and its variety as key the ingredient. The purchasing propensities of consumers are being increasingly influenced by the perception of food as medicine whereby the rationale is to derive health benefits for a variety of food and beverage products.

The beverage category, especially that of the ready-to-drink (RTD) category is dominating the market due to its acknowledgment by various sections of consumers. Another aspect that is determinative of tea extract market growth is the increasing tendency to monitor the intake of sugar.  Particularly, due to increased consumption of processed food which paves the way for consuming free sugars, among others deters the adherence to a balanced diet leading to non-communicable diseases (NCDs). To this end, quite a few countries across the world have implemented taxes on sugar-sweetened beverages, among others which have driven an increased rate of product development as far as RTDs are concerned. Above all, certain key market developments pertaining to the tea extract market to convey the forecasted upward trajectory are being mentioned below:

January 2018 Beverage based application – Product Launch

The launch of a new sparkling drink was announced among others by UK juice maker The Berry Company, among which the goji berry drink was reported to constitute green tea extract among others which was designed to deliver a fully authentic Far Eastern experience.

March 2018 Nutraceutical based application – Product Launch

The Launch of a unique nutraceutical that is a plant-based nootropic, was announced. Designed to be administered orally, Percepta™ has been developed to target the accumulation of tangles and plaques in the brain that directly contribute to memory loss that is related to the normal rate of aging. It reportedly constitutes of a specific oolong tea extract known as MemorTea^TM harvested from the Guan Yin mountain in China

May 2018 Cosmetics based application – Product Launch

Hawaiian Tropic^® the organization that is renowned for making personal care products with high-quality ingredients had reportedly launched a product called intended for providing total-body sun care by making Hawaiian Tropic^® Antioxidant Plus which is formulated with green tea extract in addition to broad-spectrum protection, available in SPF 30 and SPF 5, commercially available.

May 2018 Beverage based application – Product Launch

Nestle Waters had reportedly launched a range of organic sparkling flavored teas with the rationale to foray into trends for low- and no-sugar offerings. Sanpellegrino + Tea, which is made commercially available in flavors like Limone + Tea and Pesca + Tea reportedly contain 50 calories per 25cl can and is made from organic tea extract, among others.

September 2018 Cosmetic based application – Product Launch

The designer and developer of distinct hair care products that had reportedly launched a line of hair care products called Theorie Sage hair debuted in Canada with a benefit-drivencollection of eight aromatic shampoos and conditioners with reportedly highly concentrated blends that merge the best of lab-formulated and natural ingredients. Among the aforesaid a product is known for invigorating and strengthening damaged, dull hair has green tea extract as one of the key botanicals.

October 2018 Cosmetic based application – Product Launch

NIVEA is a German personal care brand that specializes in body-care had reportedly launched a complete cleanse skin named MicellAIR Skin Breathe Professional intended to be used for effectively removing long-lasting waterproof makeup, has been formulated with a combination of Black Tea extract, MicellAIR Complex, and dry oil among others.

The aspect of COVID 19 with substantial emergence of new cases in many countries as well as the looming threat of the second wave, at best the current condition can be termed as a mixed scenario for the tea extracts market. The aforesaid is also substantiated by the fact that despite governments of several countries are gradually relaxing the lockdown measures in their respective countries, consumers are adhering to extra precaution measures. Further, based on the mixed scenarios, the consumers who are protected form a plausible loss of income or health is expected to sustain the market growth through a purchase made over various online distribution channels, however those affected with furloughing or in some case unemployment have to reconsider their costs. Even though the aforesaid has impacted the growth of the market, the emerging trend of in-home consumption is expected to offset the downward-draft of RTDs and other FMCG products with tea extract as their ingredient. 

The sales performance of tea extract infused products is expected to vary, should another wave of lockdown measures arise. It will be more geared towards the necessity than luxury where the cost-effective alternatives have high chances of supplanting certain products with tea extracts, which will impact the overall performance of the tea extract market. COVID 19 restrictions also provide opportunities for producers where they can leverage the altered consumer perception of value sensitivity. Thereafter expandable categories like that of soft drinks and other edibles will be subjected to promotions thereby invigorating in-home consumption.

Gas Turbines utilize natural gas for generating electric power. They are complex high technology engines, with the growing demand for energy and power, the market is projected to grow at a significant pace. Gas turbines usually range from a size less than 1 MW to close to 400 MW. Today, gas turbines are highly efficient with an efficiency of around 40-45%. Normally, these systems are designed as stand-alone engines that are capable of burning a fuel for driving a generator. The most common fuel used is natural gas, however, liquid fuels and a range of gases derived from biomass can also be used for power generation.

Beyond Power Generation

Apart from generating power, gas turbines are used for other applications as well. These include their utilization in aeronautics, to power ships, trucks, and military tanks. For moving an aircraft, there is a requirement of some propulsion system for generating thrust. All gas turbine engines contain a combustion section, a compressor, a turbine, and inlet and a nozzle. The compressor, burner, and turbine are known as the core of the engine. The core is also known as the gas generator, this is due to the fact that output of the core is hot exhaust gas. The gas is passed through a nozzle for producing thrust for the jet engine and is used to drive the turbine. Significant investments in aeronautics sector will provide an opportunity for the global gas turbine market to thrive. For example, the aeronautics and defense industry of Europe is mainly driven by research and development activities and significant investments. R&D is referred to as the activities that companies and public stakeholders take up for the improvement or development of novel products and services. In 2018, the aeronautics and defense research and development expenditure through industry and government was estimated to be around €19bn. The R&D expenditure was divided equally for military and civil applications. The R&D investment for the United States, on the other hand is much more than the European region. In 2018, the research and development investment of the US was over four times more than that of the European region. For the European industry to stay ahead in the rapidly-changing innovation race, the support of the national government and the European Union holds importance.

In February 2020, it was announced that aerospace industry in Singapore will receive an investment of around USD360 million over the time period 2020-2025. The announcement was made as the global companies in the city state bolstered their position by establishment of new bases or expansion of facilities. An agreement was signed between the firms GE Aviation, Rolls-Royce, and Safran Aircraft Engines and JTC, Singapore Government Agency for novel or expanded facilities. JTC is a land developer that is involved in managing the Stelar Aerospace Park in Northeastern Singapore among other industrial sites. The park is poised to be expanded to incorporate nine ready-built standard factories for aerospace manufacturing and maintenance, repair, overhaul (MRO) activity. The new standard factories are set to include industry requirements in order to accommodate industry 4.0 technologies and utilize heavier and larger equipment.

Natural Gas Consumption         

Increasing natural gas consumption in the world is contributing to augmenting the market growth. As natural gas is the most commonly used gas for driving gas turbines, the increasing consumption will put a positive effect on the market growth as well. As per the U.S. Energy Information Administration (EIA), the global consumption of natural gas is projected to grow over 40% between the time period 2018 to 2050. The total natural gas consumption is estimated to achieve close to 200 quadrillion Btu by the end of 2050. It is analyzed that the consumption of natural gas is more in the non-OECD regions in comparison to the OECD countries. This is due to the rising demand from enhanced industrial activity, natural gas-fired electricity generation, and demand from the transportation sector using liquified natural gas as fuel.  In the non-OECD countries, the consumption of natural gas grew from around 70 quadrillion Btu to achieve 120 quadrillion Btu from 2018 to 2050. An increase by 70%. The natural gas consumption for electricity generation in the non-OECD regions is predicted to increase by over 60%, with 1.5% y-o-y growth during the same time period. This accounted for part of 2.2% y-o-y growth in electricity demand in these regions. While in the OECD countries, demand for natural gas in the power sector is estimated to grow at 0.3% y-o-y, in addition, electricity demand is growing at 0.9% every year. In these regions, the total natural gas consumption is projected to increase by 17% from 2018 to 2050. During the same time period, the non-OECD share of the global natural gas consumption is projected to rise from around 51% to 61%.

Source: EIA.Gov, Increasing Natural Gas Consumption in Non-OECD Countries, 2018-2050

Source: EIA.Gov, Increasing Non-OECD Share of Global Natural Gas Consumption, 2018-2050

Available Gas Turbine Products

The presence of companies manufacturing gas turbines that are industry-specific are further contributing to enhancing global gas turbine market growth.

Siemens diverse gas turbine portfolio is designed according to the specific market needs. The products include reliable gas turbines containing aeroderivative, industrial, and heavy-duty gas turbine products up to 593 megawatt. The benefits include low lifecycle costs and an exceptional return on investment. Some of the gas turbine applications include oil and gas applications, industrial power generation, and power production. Innovations have led to the development of turbines for seafloat power plants, products include gas turbine series like SGT 800, A-65, and 8000H. Seafloat power plants are capable of providing electrification to remote areas, further helping in enhancing development in these regions and contributing to economic growth in the remote areas. This shift from land-based power plants will further provide support to countries that constantly face problems of destroyed infrastructure resulting from hurricanes and earthquakes.

GE, a leader in gas turbine technology manufactures gas turbines that are efficient and reliable along with being versatile with an individual output that ranges from 34 MW to 571 MW. They perform in simple and combined cycle operation for power generation, co-generation, mechanical drive, and waste-to-power. Products include H-class gas turbines, F-class gas turbines, E and B-class gas turbines, and aeroderivative gas turbines.

The economic growth engines running across all countries worldwide have been changing the face of landscapes across them. The economic growth of a country, in a way, determines the ability of the respective government to spend on infrastructure and on other fronts. Since individual income taxes, corporate taxes, and payroll taxes among other taxes and duties make up a government’s earnings, to increase its spending on infrastructure and other sectors, governments need to increase the collection of revenue from any or all of these sources. While the economic growth of a country can be mapped by looking closely at the growth of various sub-sectors, physical infrastructure in a country is also a key indicator. Infrastructure developments drive with them the growth of many markets, both small and large, which are aligned or tied closely to their growth. An instance of this is the growth of dumper truck market, which is tied closely to the development of infrastructure across countries. A dumper truck, which is also referred to as a tipper truck or dump truck in many parts of the world, is a heavy commercial vehicle, which usually includes a big and flat bed, and a hydraulic system under it. The big-box-like bed carries the weight of the dumps like gravel, sand and others, and the hydraulic system underneath lifts up the bed from one side in a way that dump is deposited at the designated spot behind the truck.

The dumper truck market growth is majorly attributed to increasing spending by many countries into infrastructure development. Since many developed economies already have a mature road and highway infrastructure, the spending by governments on infrastructure development across them is limited. A major chunk of the market growth comes from spending into infrastructure across many developing countries. India, for instance, has been witnessing the pouring of huge investments by the government into infrastructure over the past two decades. The figure below shows the inflow of investments into road infrastructure in India from 2004 to 2015.

India Infrastructure Investments, Road, 2004 to 2015, Euro Billion

Source: Organisation for Economic Co-operation and Development

The sector has managed to retain a healthy growth and the flow of investments into construction of new roads and highways still continues to increase. According to a data from Invest India, an investment promotion and facilitation agency under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India., 10, 800 km of highways was constructed in the country during 2018-19 and the government has plans to expand the network of national highways to over 200,000 km. Under its Bharatmala Pariyojana, the government plans on constructing 66,100 km of expressways, economic corridors, and border and coastal roads, the first phase of which is poised to bring in investments worth $82 billion by 2022 and add 34,800 km to the total highway network. China is another economy which has been pumping huge investments into infrastructure development. A significant share of these investments is attributed to the China’s Belt and Road Initiative (BRI) which includes, but is not confined to, construction of an economic belt which connects the country with Southeast Asia, South Asia, Central Asia, Russia and Europe by land. As many other countries across regions like Asia Pacific, South America and Middle East and Africa continue to witness an increase in spending into infrastructure, the demand for construction machinery will also increase. While these regions will continue to witness a fairly heavy flow of investments into infrastructure, this does not mean that the countries in Europe and North America do not contribute to the total spending globally. Ageing infrastructure in the United States and in many countries across regions has been attracting investments by governments into renovation and repair. Since ageing infrastructure poses a significantly high risk to life and property, governments tend to ensure that the renovation work for such infrastructure begins before any severe damage is done. These developments are driving with them the demand for heavy construction machinery. Since dumper trucks play a key role in this sector, these developments are driving their demand, thus augmenting the market growth. The market growth is being further driven by high consumption of coal, for various applications, worldwide. He figure given below shows the global consumption volume of coal:

Global Coal Consumption, in MTOE

Source: International Energy Agency (IEA)

Although many countries across the globe are moving continuously towards cleaner sources of energy, the demand for coal is expected to witness some impact. For instance, rapidly growing popularity of solar energy worldwide is driving the growth of the renewable and clean energy sector. According to Knowledge Sourcing Intelligence estimates, the global solar PV glass market is expected to witness an impressive growth over the next five years. The estimates show that the market is anticipated to grow at CAGR of 24.60% between 2020 and 2025, and is expected to reach a total size of US$26.848 billion in 2025 from US$7.175 billion in 2019. Although demand for energy is also witnessing a continuous increase, the demand for coal will still remain significant but it is expected to witness some erosion due to the shift towards cleaner sources of energy. Stringent regulations in place regarding preventing environmental pollution, and their strict enforcement in many countries will also continue to steer some end users away from coal to other sources of energy. Yet, the global demand for coal is expected to remain significant over the next five years, and better cost-efficiency offered by a wide range of dumper trucks in the market will continue tom drive their adoption among customers, thus propelling the market growth.

About the Author:

Dhiraj Kumar Sharma is a Market Research Analyst at Knowledge Sourcing Intelligence. He combines his outright understanding of technologies with years of experience working in the industry to deliver actionable information to clients who span across industries and geographies. Dhiraj often works closely with clients in order to better understand their requirements and is known for the quality of market insights he delivers to them.

The technologies related to controlled releases of substances and encapsulation have already been at the forefront due to technology advancements that have been pioneered by pharmaceutical organizations which stemmed from increasing incidences of patient noncompliance and concern thereof; the need to prolong and reinforce the market monopoly of new drugs as provisioned by international patent laws among others and the requirement of swift improvement in strategies pertaining to drug development that targets specific organs and cells. Nevertheless, the integration of this technology in the food and beverage industry is of recent phenomenon thus paving the way for presently pharmaceutical companies thriving food encapsulation market.

Food encapsulation technologies have been primarily designed to prevent the actives from undergoing unwanted interaction concomitantly enhancing their functionality and bioavailability as well as their functionality. The additional rationale for the integration of encapsulation technology is ensuring adequate administration of heat- or oxidation-labile health actives, as well as ensuring their delivery at a predetermined rate to a target site. Bakery, beverages, breakfast cereals, confections, dairy products, packaging, among others are few of the areas of application of food encapsulation systems. The main objective is to incorporate high levels of nutrients in food and beverage products Viz.  calcium, vitamins, or polyunsaturated fatty acids which otherwise would result in an undesirable sensorial experience such as oxidized or medicinal taste as well as grittiness, simultaneously retaining the desired taste and flavor and sometimes enhancing the same as well. Factors like innovations in microencapsulation technologies for protecting or delaying the release of antimicrobials, enzymes, health ingredients, leavening agents, as well as sweeteners have led to a healthy market share of bakery applications of the food encapsulations market.

Additional demand-side factors are inclusive of increased demand for functional food and beverage whereby the new generation of consumers can have their share of fill concomitantly addressing their need for adhering to a healthy diet. Urbanization too has resulted in a shift in traditional dietary trend s leading to an upswing in convenience snacking, and ready-to-eat food which saves a lot of time when compared to cooking, among others. Besides the government regulations like that of banning of the use of antibiotics as animal growth promoters in the European Union; increased public concern about the use of chemicals in livestock feed which has led to the adoption of essential oils as effective growth promoters in cattle are slated to reinforce upward food encapsulations market trend.  This is mainly because essential oils are sensitive materials that can easily degrade under the action of light, moderate temperatures, and oxygen. Another area of application is that of functional beverages that are expected to reach stratospheric heights due to growing health consciousness which is being substantiated by the hydration and nutrition claims by sports nutrient beverages. At the same time, appealing sensorial appeal ensures brand loyalty. For example, in November 2019, it was reported that Glanbia plc had reportedlyintroduced a new beverage solution CreaBev™ which features then patent-pending encapsulation technology, facilitating enhanced solubility and stable creatine monohydrate. Certain additional market developments related to food encapsulation during the past few years which reaffirm the upward trajectory of the Food Encapsulation Market are as follows:

January 2018 – Product incorporating nanoencapsulation technology launched

A Vancouver based premium functional food and beverage company called Phivida (CNSX: VIDA) that engages in the integration of plant nutrition and natural ingredients, in the form of organic active hemp extract into a variety of clinical products and food and beverage products for everyday health, had reportedly launched its flagship line of beverages infused with high-performance Nano-CBD which is nanoencapsulated-cannabidiol targeted for the U.S. athletic and sports medicine market. This rage of product is designed to enhance the physical, mental performance of athletes, fitness professionals as well as health-conscious consumers.

May 2018 – Product incorporating microencapsulation technology launched

The Australian based Bega Cheese’s (ASX: BGA) health and ingredient arm Bega Bionutrients, had reputedly launched a novel form of microencapsulated infant formula ingredient lactoferrin – Inferrin that was developed in collaboration with the University of Queensland and the Australian encapsulation firm Progel by utilizing the latter’s patented microencapsulation technology to produce lactoferrin encapsulated in common food-grade materials. It was also reported that the format was designed with the rationale of delivering lactoferrin's benefits to the small intestine where most of the absorption activity occurs by extending its protection through microencapsulation technology to prevent premature degradation.

May 2018 – Partnership for delivery format development

Algatech LTD which is based out of Israel and is known for manufacturing astaxanthin had reportedly partnered with Sphera Encapsulation that is headquartered in Italy which is known for its encapsulation technology to facilitate the development of innovative delivery formats for ingredients derived from microalgae through the combination of both firm’s knowledge and expertise. It was also reported that the first product that was slated to launch within a few months of this partnership agreement was Algatech’s all-natural astaxanthin brand called AstaPure that has a neutral taste and is colorless and odorless as well as easily water-soluble.

October 2018 – Launch of new microencapsulation technology for flavoring and sweetening applications

the UK based company that is at the forefront of microencapsulation technology, and is known for the manufacturing of controlled release flavorings and ingredients called TasteTech Ltd had reportedly launched a Gum Kit with the rationale for aiding chewing gum manufacturers to create longer-lasting chewing gum. This innovative microencapsulation technology for chewing gum demonstrates the benefits of using TasteTech matrix particle technology within sugar-free chewing gum formulations.

November 2019 – Fat encapsulationtechnology launch announcement

The world’s leading flavor and fragrance company Givaudan (SIX: GIVN) had been reported to unveil what it had described as a breakthrough fat encapsulation technology that reportedly helps minimize up to 75% of the fat content and 30% of the calories in meat substitutes in comparison with market products contemporary during the time of the announcement. Moreover, according to the organization, the technology would not only extend to the advantage of enhanced authenticity along with an impression derived from flavor stabilization but also would improve a product’s nutritional value.