Footwear is an indispensable aspect when it comes to the human’s sole. It is a known fact that footwear empowers the feet to manage a diverse range of activities. From imparting cushioning, flexibility, and/or rigidity as well as stability, footwear is inseparable from our daily lives. As technology and lifestyles evolve, footwear has been required to provide the highest degree of comfort and performance, which has paved the path for substantial engineering of shoes. Nevertheless, footwear hasn’t always been subjected to such systematic construction. For instance, the earliest known footwear that has been documented was discovered inside Fort Rock Cave, Oregon, the USA by Luther Cressman. The artifact was reportedly dated to the end of the last ice age, i.e., approx. 10,000 years old. It comprised a simple construction which comprised (i) a covering for the forefoot, (ii) sagebrush bark knotted together that resulted in an outsole with ridges for traction, and (iii) straps to go around the heel. Thus, despite the dearth of scientific know-how, it can be stated with certitude that footwear was deemed integral to facilitate the exploration of their surrounding as well as the distant environment.
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By Segment, the Athletic Type of Footwear Is Expected to Occupy a Substantial Share in the Global Footwear Market
Restriction of the movement due to the lockdown measures implemented by various governments as the COVID 19 pandemic spread, has brought about a profound impact on the daily consumption proclivities of consumers around the world. Additionally, with most of the brick-and-mortar distribution channels shuttered down because footwear is inherently not essential many shoe manufacturing companies weren’t adequately made available over online distribution channels. Further many nations have certain kinds of restrictions put in place which prevents mass gathering which also by default translates to the p prohibition to use indoor gyms and to practice collective sports.
Additionally, with gradual relaxation and the resultant reopening of business activities shopping in person would be governed by safety and health concerns and the provision of which would dictate the extent by which the retailers are capable of wooing in new customers, concomitantly retaining existing customers. Also, telecommuting is expected to prevail wherever it is possible which suggests the consumers would prefer to continue to spend more time at home. Thereby resulting in the preference of products rather than preference of fashion resulting in the decrease in formal shoes demand, inclination towards machine-washable shoes, more comfort sales, and selective about athletic footwear.
These developments can result in a downward-draft in the overall athletic type of footwear, however, conversely, certain kinds of products particularly suited for individual sports, outdoor activities, and running has the potential to evolve favorably. Additionally, with a transition to solo fitness as per Bank of America Global Research (as communicated by World Footwear) performance running sneakers are anticipated to profit from such a growing inclination. As of May 2020, as per the aforementioned US-based entity, the Google search trends for Nike increased by 104%, followed by other brands that fall within the ambit of performance running sneakers viz, Brooks that increased by 83%, HOKA that increased by 65%, and On Running that increased by 28%.
Top 10 Global Footwear Consumers 2019
Source: World Footwear
World Share In %
Recent Developments in the Athletic Footwear Segment Which Is Expected to Augment the Global Footwear Market Growth.
December 2020 – Agreement
A 6-year agreement has been announced with NIKE, Inc. (NYSE: NKE) by UCLA Athletics which includes the former and Jordan Brand as the official athletic footwear provider among others for Bruin commencing July 1, 2021.
December 2020 – Portfolio Expansion
Just like humans, industries are also required to read the room, one of North America’s largest designers, producers, and retailers of footwear and accessories Designer Brands (NYSE: DBI) has exactly done that by recognizing the growing trend of at-home fitness that has stemmed from the pandemic and in the 3rd quarter of 2020 it has added more athletic shoe styles to its stores.
November 2020 – Complementary Wearable Tech Launch
A wearable tech that has been designed to aid runners to identify the pair of shoes that are appropriate to their running style. The tech utilizes an Artificial Intelligence (AI) based algorithm after the runners; gaits are measured and finally match the results to recommend the right kind of shoes. This is also another instance that capitalizes on the increased use of online distribution channels.
April 2020 – Running Shoe Launch
In the midst of the COVID-19 pandemic, a Silicon Valley-based start-up called the Allbirds is known for its comfortable wool sneakers made out of sustainable materials is debuting its first-ever running shoes.
Jube 2020 – Product Launch
Integrated with shock-resistant padding called the MIZUNO ENERZY that provides resilient lightweight footwear for athletes, Mizuno Corporation (TYO: 8022) has launched new athletic footwear nicknamed “Akira Shoes”.
May 2020 – Partnership
Herzogenaurach, Germany-based Adidas, (FWB: ADS) and based in San Francisco, USA-based Allbirds have been reported to embark upon a collaboration which would effectuate a swift and joint development of a high-performance athletic shoe with negligible carbon impact.
February 2020 – Partnership
California based designer, developer, and marketer of a diverse range of lifestyle footwear for all age and genders, as well as performance footwear for all genders Skechers (NYSE: SKX), has been reported to develop upon the technology in its footwear through a new collaboration with The Goodyear Rubber & Tire Company which would make use of Goodyear rubber technology to create custom Skechers outsoles that will deliver increased grip, stability and durability. The range of styles featuring Goodyear Performance Outsoles which was initially made available on 3 running shoes of the Skechers GOrun collection comprised a broader assortment of running and walking sneakers during the time of the publication and would expand through 2020 to athletic lifestyle, trail, and work footwear.
January 2020 – Product Launch
Called the ‘BALENCIAGA ZEN’, a leather-free and lightweight set of trainers inspired by athletic tech was unveiled by Balenciaga that otherwise known as the pioneer of the chunky dad shoe trend. It is further proof of the subtle rise of luxury sportswear.
Global Ice Cream Market Trend – Gearing Towards Healthier, More Sustainable Artisanal Product Offering
Thought ArticlesGlobally consumers are experiencing substantial changes in their respective lifestyles, a few of them are the natural process that is brought about by external factors like that of the global pandemic of COVID 19. To this end, it is relevant to note the increasing number of people are spending time indoors as telecommuting to work emerges as the new normal. The broad range of ice cream offerings is providing much sought-after comfort to the consumers. On the flavor front, albeit traditional flavors like chocolate and vanilla are still among the consumer favorites, today’s consumers are more open to experimentations paving the way for a new range of flavors for an unprecedented sensorial experience.
Japan Leads in New Product Development
Comprising mayonnaise to matcha as well as soybean to seaweed, Japan has emerged as the leading innovator in global ice cream innovation concomitantly occupying the highest share in ice cream launches. Propelled by the need to make year-round ice cream consumption available exciting formats and quirky flavors are facilitating Japanese ice cream to lead the food innovation drive of the nations and simultaneously providing a considerable amount of inspiration for launches across the world. Additionally, the rising cognizance of the uniqueness of the Japanese cuisine is another key determinant that is offering companies a means to incorporate traditional Japanese flavors Viz. yuzu and hojicha. Coupled with unconventional ice cream cones and the postponing of the Tokyo 2020 Olympics Japan has emerged as a global platform for food and beverage innovation that can appeal to global consumers.
Ice cream consumption in Japan was earlier limited to only the months of the summer season, however, this changed when LOTTE (KRX: 004990) endeavored to bridge the gap withing Japan’s Ice cream industry which it had noticed during the 1980s and brought about a path-breaking innovation resulting in winter product called Yukimi Daifuku- mochi ice cream. This new product development comprised the establishment of a new recipe that incorporated for mochi, different packaging (transitioning from blue to red emphasizing the warmth that it wanted to convey) ultimately opening up the Japanese market to the entire year and a wide variety of flavor in which this product is made commercially available. Blazing the trail in the Japanese ice cream market is EZAKI GLICO CO., LTD (TYO: 2206) that had commenced its ice cream business in 1953. Fats forward to the present, the official souvenir sweet of Tokyo that is manufactured and sold by GRAPESTONE Co, Ltd Tokyo Banana has announced the launch of the brand’s first-ever soft-serve ice cream in July 2020.
The Growing Adoption of Vegan Diets Is Expected to Drive the Non-Dairy Ice Cream Segment Augmenting Global Ice Cream Market Growth
Consumers across the globe are conscientiously preferring plant-based consumption which has also transcended to the ice cream space. This has incentivized the players in the global ice cream market to transition from the traditional offerings to more indulgent options to gain a competitive advantage. In this regard, it is important to note that the global ingredients manufacturers are also contributing to this development effectuating a promising outlook for the vegan ice cream market, with a plethora of options. This has also empowered companies to showcase that vegan options can also offer a range of luxury flavor offerings rendering it a preimmunized version of indulgence. Besides in continuance of the [popularity of oat-based drinks, dairy-free ice creams are expected to incorporate oats as well. A few instances are being provided to communicate the contextual relevance of the aforesaid in present times.
November 2020 – Partnership
A 150-year-old family-owned Cincinnati-based company called Graeter’s Ice Cream which has never launched an alternative to its dairy ice cream since it was established in 1870 had reportedly partnered with, a San Francisco-based startup producing animal-free milk proteins via microbial fermentation called Perfect Day to launch “Perfect Indulgence”, a range of frozen desserts using the latter’s animal-free dairy proteins. The product would be marked as animal-free, lactose-free, and vegan.
July 2020 – Ingredient Solution launch
A range of ingredient solutions for plant-based food and beverages solution called Danisco PlanitTM was launched by DuPont Nutrition & Biosciences [DuPont (NYSE: DD)] which is constantly engaged in the development of ingredient solutions for plant-based food and beverages, among others that comprise ice cream, among others. The product was developed with the rationale to aid food producers with the ability to cater to the increasing demand for healthier, and more sustainable foods and beverages that are devoid of dairy among others.
By Type, the Segment of Artisanal Ice Cream Is Anticipated to Be Favorable for Bringing About a Healthy Global Ice Cream Market Growth
Among the cornucopia of ice cream products which are a staple in any departmental stores as well as other offline distribution channels, then there has been a surge in the number of creative, independent ice cream shops around the globe. With a profusion o low-calorie options made available to consumers. Companies are incorporating new features that are augmenting the paradigm shift in ice cream consumption which has been already set in motion by the commercially available plant-based and functional options. For instance, in October 2018, it was reported that the premium ice cream brand calledCulture Republick™ the first with probiotics was launched by Unilever (LSE: ULVR, NYSE: UL). The range of ice cream initial was reported to constitute Chocolate & Cherry, Cold Brew & Chocolate Chip, Lemon & Graham, Matcha & Fudge, Milk & Honey, Pistachio & Caramel, and Turmeric Chai & Cinnamon. Additionally, it was also communicated that Each pint tub comprises 11-12 grams of fiber, 16-18 grams of protein, 3 billion live active cultures, 400 – 500 calories, and zero artificial sweeteners. Further in December 2020, it was reported that artisan ice cream chain Salt & Straw would be unveiling a range called Vegandulence commemorating vegan ice cream indulgence. In January 2021, Perth, Australia Denada which offers all-natural sugar-free ice cream bridging the gap in the ice cream market experienced massive success catering to the keto community as well as general consumers.
The ICT Industry Has the Potential to Give the Global Travel Insurance Market a New Lease of Life
BlogTravel Insurance has been fraught with the perils of being complicated which have been acknowledged as inconvenient by abroad set of consumers. To this end, technologies have been at the forefront in the effort of simplifying the processes of travel insurance. The technologies which encompass artificial intelligence (AI), blockchain, and machine learning, have been known to guide the global travel insurance market into the present times. The adoption of these technological developments has the potential to further market modernization, process expedition, customer service improvement that aids in customer retention and giving a new lease of life into the age-old procedures with concrete favorable outcomes for both insurers and policyholders.
After all, humans are undoubtedly the proverbial creatures of convenience and for such creatures, the ability to make a claim or buy ravel insurance via an app with a simple press of a button, assisted by the support available during every stage of the process from well informed and friendly chatbot, certainly has the potential to simplify the erstwhile complicated processes as it is the case with rideshare apps. Such a convenience aided by technological advances has rendered the global travel insurance market increasingly attractive. For instance, Shift Technology is of the opinion that AI has the capability to unlock the insurance of tomorrow. The company endeavors to bring about AI-native solutions that have the potential to empower insurers to deliver unparalleled consumer experiences. They are capitalizing on the trend that has been set about by the on-demand economy as exemplified by eCommerce, food delivery, and ride-sharing. More the simplified the entire policy lifecycle is the better is the rate of adoption by travelers who would consider travel insurance as simply an addition to their plans. Another challenge is customer loyalty. Prior to the COVID 19, when travel insurance was not a legal obligation by most of the countries in the world, unlike the subscription-based automobile and home insurance, travel insurance was faced with the issue of providing a simple user experience.
Again, the integration of technology has emerged as the manna from heaven for the travel insurers as far as customer loyalty is concerned. Besides convenience, bespoke solutions are also something that the consumers are eagerly inclined to avail. Machine learning technologies that capitalize on customer data enables the adequate design and development of parametric insurance products that are perfectly tailored to various individual needs. Thus, the integration of such technologies marks a shift away from the standard one-size-fits-all products to those variants which are known to insure against risks associated with a particular set of activities that one undertakes irrespective of the prevailing environmental conditions. Therefore, tourism products could be made more attractive by travel providers with the integration of such technologies making their product relevant and ultimately ensure repeat business. Conversely from the perspective of process simplification via technology is something attractive for the designers and developers but the result of the technology is the aspect that woos in consumers because they are looking for chatbots but speedier support, also they are not interested whether the product is AI-enabled they are keener on swifter claims.
Additionally, machine learning is capable of being employed in the monitoring of data sources which falls outside the purview of the service provider. These sources include weather websites, for instance, which would enable the technology to automatically provide compensation to consumers based on the prevailing weather forecasts. For example, in case a traveler is presented with an option to cancel an overnight trip in response to natural calamities and receives a refund automatically without the need for claims, it would have a much better impact on the consumer experience-wise as opposed to the experience of manual claims. Besides digital transition that has the potential to transform the global travel insurance market into a user-friendly experience. And as the foundation for an effective foundation for such transformation effective implantation of efficacious fraud detection and mitigation strategies is the strategic move for the travel insurers as well as the implementation of technology as a tool to balance the dissemination of necessary information and recommendation of favorable policy options. The latter is particularly important because travel insurance comprises too many moving parts which would result in unfavorable results for both the company and insures if any one aspect is simplified too much.
While the capability of the ICT industry to transform and potentially reshape the global travel insurance market has been depicted above, it also useful to gain a regional perspective. According to the US Travel Insurance Association (UStiA) the travels originating from the USA have demonstrated a higher proclivity to ensure their investments in travel are properly safeguarded with an efficient travel insurance product. As per UStiA, approx. $3.8 billion was spent by Americans on various kinds of travel insurance products. This is an increase of 40.9% from that registered during 2016. The protection and coverage constituted annual products and per-trip travel protection, with benefits that ranged from emergency medical, lost luggage, medical evacuation, trip cancellation, and interruption, along with a variety of other benefits and programs made commercially available by the member companies of UStiA. Moreover, as per UStiA the travel insurance market has been continuously subjected to constant evolution to cater to the demands of a variety of consumers. Products that offer coverage over investments, lives, and valuables have been made available as a response to increased mobility.
2018 marked the coverage of approx. 65.8 million people, and by over 46.3 million plans approx. 65.8 million people were protected. These plans were bought by the consumers via a variety of distribution channels Viz. insurance producers, internet aggregators, travel agents, travel insurance providers, and travel suppliers. From 2016 the travel insurance market experienced an increase in the number of people covered which was in the order of 49.1%. Whereas the market witnessed a significant increment in the number of plans which is in the order of 36.5%. During the publication of this update, the most popular choice of products comprised cancellation/interruption which constituted benefits pertaining to trip cancellation and interruptions that represented almost 90% of the travel insurance products that were purchased during that period. On the other hand, plans which fell under the purview of benefits related to medical and medical evacuation represented only 90% of the travel protection products purchased. Trip cancellation/interruption remains the most popular choice Programs that include trip cancellation/interruption benefits accounted for almost 6.3% of the travel protection products purchased.
The Global Footwear Market Trend – The Rise of Athletic Footwear
Thought ArticlesFootwear is an indispensable aspect when it comes to the human’s sole. It is a known fact that footwear empowers the feet to manage a diverse range of activities. From imparting cushioning, flexibility, and/or rigidity as well as stability, footwear is inseparable from our daily lives. As technology and lifestyles evolve, footwear has been required to provide the highest degree of comfort and performance, which has paved the path for substantial engineering of shoes. Nevertheless, footwear hasn’t always been subjected to such systematic construction. For instance, the earliest known footwear that has been documented was discovered inside Fort Rock Cave, Oregon, the USA by Luther Cressman. The artifact was reportedly dated to the end of the last ice age, i.e., approx. 10,000 years old. It comprised a simple construction which comprised (i) a covering for the forefoot, (ii) sagebrush bark knotted together that resulted in an outsole with ridges for traction, and (iii) straps to go around the heel. Thus, despite the dearth of scientific know-how, it can be stated with certitude that footwear was deemed integral to facilitate the exploration of their surrounding as well as the distant environment.
By Segment, the Athletic Type of Footwear Is Expected to Occupy a Substantial Share in the Global Footwear Market
Restriction of the movement due to the lockdown measures implemented by various governments as the COVID 19 pandemic spread, has brought about a profound impact on the daily consumption proclivities of consumers around the world. Additionally, with most of the brick-and-mortar distribution channels shuttered down because footwear is inherently not essential many shoe manufacturing companies weren’t adequately made available over online distribution channels. Further many nations have certain kinds of restrictions put in place which prevents mass gathering which also by default translates to the p prohibition to use indoor gyms and to practice collective sports.
Additionally, with gradual relaxation and the resultant reopening of business activities shopping in person would be governed by safety and health concerns and the provision of which would dictate the extent by which the retailers are capable of wooing in new customers, concomitantly retaining existing customers. Also, telecommuting is expected to prevail wherever it is possible which suggests the consumers would prefer to continue to spend more time at home. Thereby resulting in the preference of products rather than preference of fashion resulting in the decrease in formal shoes demand, inclination towards machine-washable shoes, more comfort sales, and selective about athletic footwear.
These developments can result in a downward-draft in the overall athletic type of footwear, however, conversely, certain kinds of products particularly suited for individual sports, outdoor activities, and running has the potential to evolve favorably. Additionally, with a transition to solo fitness as per Bank of America Global Research (as communicated by World Footwear) performance running sneakers are anticipated to profit from such a growing inclination. As of May 2020, as per the aforementioned US-based entity, the Google search trends for Nike increased by 104%, followed by other brands that fall within the ambit of performance running sneakers viz, Brooks that increased by 83%, HOKA that increased by 65%, and On Running that increased by 28%.
Top 10 Global Footwear Consumers 2019
Source: World Footwear
World Share In %
Recent Developments in the Athletic Footwear Segment Which Is Expected to Augment the Global Footwear Market Growth.
December 2020 – Agreement
A 6-year agreement has been announced with NIKE, Inc. (NYSE: NKE) by UCLA Athletics which includes the former and Jordan Brand as the official athletic footwear provider among others for Bruin commencing July 1, 2021.
December 2020 – Portfolio Expansion
Just like humans, industries are also required to read the room, one of North America’s largest designers, producers, and retailers of footwear and accessories Designer Brands (NYSE: DBI) has exactly done that by recognizing the growing trend of at-home fitness that has stemmed from the pandemic and in the 3rd quarter of 2020 it has added more athletic shoe styles to its stores.
November 2020 – Complementary Wearable Tech Launch
A wearable tech that has been designed to aid runners to identify the pair of shoes that are appropriate to their running style. The tech utilizes an Artificial Intelligence (AI) based algorithm after the runners; gaits are measured and finally match the results to recommend the right kind of shoes. This is also another instance that capitalizes on the increased use of online distribution channels.
April 2020 – Running Shoe Launch
In the midst of the COVID-19 pandemic, a Silicon Valley-based start-up called the Allbirds is known for its comfortable wool sneakers made out of sustainable materials is debuting its first-ever running shoes.
Jube 2020 – Product Launch
Integrated with shock-resistant padding called the MIZUNO ENERZY that provides resilient lightweight footwear for athletes, Mizuno Corporation (TYO: 8022) has launched new athletic footwear nicknamed “Akira Shoes”.
May 2020 – Partnership
Herzogenaurach, Germany-based Adidas, (FWB: ADS) and based in San Francisco, USA-based Allbirds have been reported to embark upon a collaboration which would effectuate a swift and joint development of a high-performance athletic shoe with negligible carbon impact.
February 2020 – Partnership
California based designer, developer, and marketer of a diverse range of lifestyle footwear for all age and genders, as well as performance footwear for all genders Skechers (NYSE: SKX), has been reported to develop upon the technology in its footwear through a new collaboration with The Goodyear Rubber & Tire Company which would make use of Goodyear rubber technology to create custom Skechers outsoles that will deliver increased grip, stability and durability. The range of styles featuring Goodyear Performance Outsoles which was initially made available on 3 running shoes of the Skechers GOrun collection comprised a broader assortment of running and walking sneakers during the time of the publication and would expand through 2020 to athletic lifestyle, trail, and work footwear.
January 2020 – Product Launch
Called the ‘BALENCIAGA ZEN’, a leather-free and lightweight set of trainers inspired by athletic tech was unveiled by Balenciaga that otherwise known as the pioneer of the chunky dad shoe trend. It is further proof of the subtle rise of luxury sportswear.
Sustainability, Premiumization, and Convenience Are Key Determinants of the Current Beverage Market
BlogWith consumers becoming incrementally concerned with the plausible ramifications that have waste has on the environment there has been an increased inclination towards more eco-friendly packing offerings. The aspect of sustainability has become a now or never matter for the beverage industry and not something that can be ensconced in the 5-year agenda of the company. The aspect of sustainability has further gained credence particularly because of regulations that address the increase in single-use plastic use. Glass bottles, cardboard cartons, and aluminum cans were earlier replaced by polyethylene terephthalate (PET), and currently, there has been a renewed interest in the former. Thus, packing innovation is altering how consumers have been engaging with their go-to products.
Brand differentiation is at the forefront of any business strategy. Thus, coupled with the absence of a one-size-fits-all packaging option, manufacturers who are engaged in the packaging market are increasingly investing in the current profit margins, client demographics, and how it is consumed, and assessment of characteristics of the beverage, to find the right solution for their products. For instance, in November 2020, Smurfit Kappa (OTCMKTS: SMFTF) has teamed with one of the world’s leading manufacturers of filling and packaging systems for the beverage and liquid food industries known as KHS Group, to launch a sustainable TopClip multipack product for bundling canned beverages. The partnership has resulted in an end-to-end solution for beverage companies. While the aforesaid was from the purview of packaging manufacturer, in December 2020 it was reported that Coca-Cola European Partners was inclined to invest in Lavit which is a US-based company that has created a compact countertop system that has been innovated with the rationale to minimize packaging waste and carbon footprints.
This partnership with Lavit will advance the former's ambition to explore and test new dispensed delivery solutions, which act as a strategic route that would aid in extending consumers the choice (through customizable options for flavor and carbonation) and conveniences and the company the means of eliminating waste and minimize its carbon footprint. Developing products in line with the consumers’ desire for quality has emerged as the fundamental driver of the current global beverage market trend. As consumers around the world are trading up to premium brands and letting go of more traditional categories, they have embraced the proverbial less is more. This has led to niche categories that comprise a variety of beverages like craft beer, premium cocktails, and origin coffee. Consumers in both developed and developing economies are comfortable to shell out more for beverages that are made produced with high-quality sustainably sourced ingredients.
This leaves ample room for innovation within the premium beverage space. Craft beer is an example that has rapidly spread across every corner of the world. For instance, Indian Craft beer brand Bira 91 has reportedly secured investment from Japanese integrated beverages company Kirin Holdings (TYO: 2503) which was in the order of $30 million. This the Japanese beverage company’s first in India enabling it to acquire a stake in B9 Beverages which is Bira 91 parent company. Besides beer, the increase in interest has also resulted in craft mezcal, nonalcoholic mixers, and tequila around the world. Additionally, premiumization has been the main facilitator of M&A which decreases the sole reliance on in-house capabilities of product development. For instance, in February 2019 Anheuser-Busch has reportedly acquired Cutwater Spirits a US-based company that would enable Cutwater to join Anheuser-Busch’s Beyond Beer portfolio that comprises Spiked Seltzer, HiBall, and Babe Rose brands. This marks a shift in the company’s strategy which is predominantly known as the beer brand seeking growth in the spirit’s segment. Moreover, there has been a surge in the blurring of category lines as traditional beverages are being developed to create premium options.
For instance, in January 2021, a new player in the dynamic ready-to-drink (RTD) market has announced that its innovative sparkling tea has been developed using a trifecta of clean ingredients that comprise proprietary tea concentrate brewed from vitamin-rich citrus, sparkling water, and organic coffee fruit, would mad commercially available le in flavors like lemon, orange, and grapefruit over its website drinkhusky.com Earlier in February 2019 a multi-year partnership with beverage incubator LA Libations was announced by Molson Coors (NYSE: TAP ). This partnership comprises a substantial minority equity investment made by the latter into the beverage company based in California since it aims to strengthen its position in the non-alcoholic space.
New routes to the market providing consumers access to the market at their consumer is another trend that is governing the current food and beverage industry trend. With consumers’ inclination to alter their ways to purchase beverage companies are present with new avenues to place their product in a variety of channels to remain market relevant. This in part due to new players who are providing enhanced convenience as far as the purchasing experience is concerned. While off liquor shops and convenience stores have been the go-to source of alcoholic beverages there has been a rise in eCommerce platforms are becoming the preferred means of buying alcoholic beverages. For instance, Rémy Cointreau (EPA: RCO) recognizing the growing interest in at-home cocktail-making, a partnership was announced in October 2020 between the alcohol eCommerce platform operating in over 100 markets across Canada and the United States called Drizly and Rémy Cointreau Americas. Under this agreement, a new virtual cocktail studio would be made available which would include The Botanist Islay Dry Gin, Mount Gay Rum, and Cointreau, which are three of Rémy Cointreau’s home bar essential spirits.
Further, this is the first-to-market concept would be enlisting industry experts to educate cocktail connoisseurs and beginners alike on the basics of at-home cocktail making. Whereas last year the same month Amazon.com, Inc. (NASDAQ: AMZN) made a major investment in the spirits category with the launch of Tovess Gin (41.5% ABV) which is being marketed as premium dry gin that has been crafted. In line with highest standards of quality it has been made through a single batch distillation with the infusion of distilled lime and grapefruit peels.
Marine Algae a New Opportunity for Global Ethanol Market
BlogGlobally, industrial activities and the quality of human lives are inextricably linked and both rely on the use of fossil energy sources, such as coal, natural gas, or oil. Unfortunately, this fossil fuel dependence of modern societies has several noteworthy ramifications, which are inclusive of but not limited to acid rain, deterioration of air quality, global warming, and oil spills, which have direct and severe consequences on human health and the quality of the environment. For example, the modes of transports are almost entirely dependent on fossil fuels and use more the half of the global fossil fuels produced and are responsible for the emission of a high proportion of carbon monoxide and occupy a significant share of CO2 in the atmosphere. Additional concerns related to fossil fuel is that of the continuous depletion of fossil fuel resources. Further, if consumption is to remain at the current levels, it has been estimated that in Europe the oil resources Europe will be exhausted in 40 years, the gas resources will be completely depleted in 60 years, and the coal resources will be exhausted in 200 years.
As a result, a quite few nations would be compelled to import fossil fuels, which will lead to a significant increase in sales prices. Such negative outcomes related to the consumption of fossil fuels have determined the orientation of scientific research towards finding new sources of clean energy, through the use of renewable resources which would be in tandem with sustainable development principles, and this trend is also supported by the international political regulations. One particular path that can lead to the fruition of minimizing the consumption of fossil fuels is the use of biofuels derived from renewable resources. It is widely accepted that biofuels are an excellent alternative to traditional fossil fuels, mainly because they can be obtained from large available and renewable feedstock, as biomass, and their utilization generates relatively low levels of greenhouse gas and other pollutants.
Out of all the available biofuels, bioethanol has received significant attention, because it is the most widely used liquid biofuel for motor vehicles and production of green energy, and these numerous utilizations have determined the rapid growth of the market for this kind of biofuel. This recognition also necessitates renewed investments to identify a suitable raw material for the production of bioethanol, which must be efficient both economically and technologically. This because it is impractical for the price of bioethanol to be more than the price of conventional fuels. Further, the selection of adequate biomass for bioethanol manufacturing must take into account factors such as bioethanol yield, conversion technologies, environmental impact, use of land for cultivation, as well as advantages and disadvantages of each category of biomass. These are an important determinant for the biofuel to be accessible in the market due to its comparatively low final price. Further, the production should not encroach upon the available land for cultivating food crops thus ensuring food security. Thus, arises the need for using a new kind of raw material for the production of bioethanol which can potentially extricate the global energy market from the Scylla of global environmental deterioration and the Charybdis of complete energy resource depletion.
The chemicals and materials industry is currently challenged with identifying the appropriate biomass which can be used as raw material for the production of bioethanol. Further, the ideal properties of the raw ingredient are that it should be carbohydrate-rich and should be widespread. Additionally, such biomass should not need agricultural inputs like fertilizers, land, and water, and most importantly should not be a part of the food chain both animals and human. Marine algae can potentially be the type o biomass that fits the aforesaid criteria. Marine algae (usually called seaweeds) are pluri-cellular biological organisms whose size may vary ranging from a small microscopic size (3–10μm) to large microscopic shapes (less than 70 m). From a biological perspective, unlike plants, the roots of marine algae are essentially thallus leaf, albeit sharing certain features of plants like leaves and stems. Arguments that are in favor of utilizing marine algae as raw materials for bioethanol are inclusive of but not limited to their high availability in many regions of the world and low cost of preparation. Nevertheless, with regards to the collection of marine algae naturally occurring in the sea certain considerations are required to be taken into account which is, among others, the number of marine algae that is harvested is heavily reliant on the season and climatic conditions which may impact the continuity of production.
However, cultivation of marine algae in specialized farms using open-pound technology, and the naturally grown marine algae to be used additionally, when they meet the qualifying conditions required for the raw material, is a prospective solution to the above. In August 2020, a company called Ocean Rainforest has reportedly raised US$1.5 million in an investment round led by the World Wildlife Fund (WWF), which contributed $850,000. This investment would enable Ocean Rainforest to deploy new farms at a scale equipping the organization to meet the growing need for seaweeds. Earlier in June the same year, the company had signed a contract with the ARPA-E (Advanced Research Projects Agency-Energy) to conduct the 2nd phase of its pioneering seaweed cultivation project called “MacroSystems” in California.
Also, in December 2020, a biologist at the University of Wisconsin-Milwaukee’s College of Letters and Science has reportedly received substantial federal funding to unlock the potential of giant kelp which are usually widespread in Milwaukee and is known to be fast-growing seaweed in the Pacific Ocean to be used as the source for biofuel. Besides, suitable cultivation systems too must be designed for the efficient harvesting from wild stocks to make marine algae a feasible raw material for the production of bioethanol. These factors have necessitated the increase in the economic viability of technological processes used to produce bioethanol, which involves the solving of technological particularities, the minimizing of energy consumption, and the time required to manufacture resulting in a competitive bioethanol cost. Thus, the natural segment is expected to increase its share in the global ethanol market resulting in the latter’s growth during the forecast.
Global Calcium Carbonate Market – Enabling a Wide Range of Industrial Applications
BlogThe uses of minerals are an integral part of our daily lives. Since time preceding the medieval ages, various areas required the use of comminuted minerals and a broad variety of rocks. Further, presently the extent of production and consumption of nonmetallic raw materials is synonymous with nations’ progress and growth. Industrial minerals are representative of wealth and there are no such mineral materials that are as significant as calcium carbonate and no other industrial mineral has such a broad range of application as the latter. From sculptures, through construction, chemistry, paints, and papers as well as agriculture, pharmaceutical, and food products calcium carbonates can be found. The immense economic significance of calcium carbonate minerals is further discerned when the production volumes of some lime, chalk, and marble stone are glossed over. An instance of lime, which has a wide industrial application and includes the manufacture of precipitated calcium carbonate, the global production volume was estimated by U.S. Geological Survey (USGS) to be in the order of 430,000 thousand metric tons in 2019 which was an approx. increase of 22.8 % from the estimates of 2016 which was in the order of 350,000 thousand metric tons.
Application wise, as briefly touched upon earlier, despite a global initiative towards the digital economy the size of the paper industry is still to be reckoned with. Once the application of paper (among many) is that of the paper packaging. To this end, Knowledge Sourcing Intelligence has forecasted the paper packaging market to attain a market value of US$278.222 billion in 2023 after growing at a CAGR of 3.12% from the US$231.452 billion that has been estimated for 2017. The mention of paper is contextual to the global calcium carbonate market which is estimated to grow at a remarkable CAGR of during the forecast period from a market value of USD3.583 billion that has been estimated for 2019 by Knowledge Sourcing Intelligence, is because since the 1970s calcium carbonate has been integral to papermaking. This is due to properties such as high whiteness and solubility, along with alkaline pH value, as well as the rhombohedral pigment form of calcium carbonate has led to the development of numerous process such as finally leading the inclusion of precipitated calcium carbonate (PCC) that has supplemented the use of naturally derived ground calcium carbonate. With regards to PCC, in July 2020, it was reported that Austria based euroMinerals GmbH which is specialized in developing and micronizing industrial minerals has opened a new plant for PCC in Bad Ischl, Austria which is scheduled to be operationalized in 2021.
Besides the paper industry, calcium carbonate is integral to the construction industry both as cement and as building materials. The contribution of calcium carbonates ranges from making of concrete blocks, the mortar used in bonding bricks, roofing shingles, rubber compounds, stones, and tiles. It is also used as a multi-purpose filler/anti-strip agent when added to hot rolled asphalts with a variety of sands and gravels. It imparts sand modification to enhance the resistance for the mixture and provided a consistent material for ease of work. With regards to construction, a country level over alone is contextual in substantiating the growth forecasts. For instance, The U.S. Census Bureau and the U.S. Department of Housing and Urban Development have jointly announced that as of November 2020, privately-owned housing starts of were approx. 8.6% higher than that of the preceding month. Single-family housing starts in November were approx. 7.9 % above the revised figure of the preceding month.
Equally important is food security which is guaranteed by agriculture to which the chemicals and materials industry has been a key determinant. Calcium carbonate is one such substance that has been elemental in agriculture application and thus the market of paramount importance. Its key contribution is to use as an amendment to neutralize soil acidity that is beneficial for better us of water, recovery of nutrient and plant performance with a healthier root system, enhanced nitrogen (n) fixation by legumes, greater availability of phosphorus (p) and improved n mineralization and nitrification and to supply calcium (Ca) for plant nutrition. With respect to plant nutrition, the demand for calcium surges particularly when kernels or grain start to develop. To this end, in January 2019 Oro Agri had announced the launch of a liquid, soil-applied product designed to supply crops with readily available calcium during periods of high demand called ENCOURAGE NANOCAL. The product was launched with the rationale of improving the ready availability of calcium for uptake by the crops’ roots because the particle size may be often comparatively large (3 to 20 micron-size) as far as the standard nutrient program is concerned. The calcium carbonate particles of this product have been milled to an average size of 0.7 microns which is significantly small to be taken up by the meristematic region of adventitious roots concomitantly doing away with additional mineralization like gypsum, limestone, or products with larger particle sizes.
Another important area of application of carbonate is that of dental care. Despite the first mention of products pertaining to dental care were in Chinese and Indian scripts which are more than 4000 years old, tooth care is the product of present times. For instance, in February 2020 Wellness a company that creates high quality, responsibly sourced, and safe products with the objective of increasing the economic, environmental, and social value for consumers, communities, and the planet, had launched Wellness Whitening Toothpaste in Fresh Mint made commercially available in environmentally-friendly compostable sugar cane packaging and reportedly uses calcium carbonate. Again, during the same month, Dr. Bronner's Magic Soaps reportedly launched a new variety of All-One Toothpaste called the Dr. Bronner’s Spearmint All-One Toothpaste which has calcium carbonate, among others that acts as a gentle abrasive along with other ingredients. These developments underscore the integral nature of calcium carbonate in personal care products which would further facilitate the growth of the market.
Global Travel Insurance Market – Stimulating Air Travel During Uncertain Times
Thought ArticlesA languorous increase in disposable income particularly in developing countries during the current downward draft because of the COVID 19 pandemic has potentially influenced the avoidance of travel insurance purchase. Also, the dearth of consumer awareness about the practical details of the policies appropriate to one’s individual needs is certain challenges that need ironing out to effectuate the anticipated growth of the global travel insurance market. Nevertheless, the growing concerns over the likelihood of losses pertaining to cancellations of flights and rescheduling of flights are anticipated to lead to an increase in travel insurance purchase. While this can be a surmised the main market drivers and challenges it is important to gloss over the market conditions. In order to gain a perspective, the comprehension of several factors that have stemmed from the progression of the global economy, trade liberalization, among others is pertinent.
International Tourist Arrivals
In Million
Source: UNWTO
By Type of Travel, the Leisure Segment Is Anticipated to Witness Significant Growth During the Forecast Period
According to UNWTO (The World Tourism Organization) as of January 2020, the international tourist arrivals as far as global overnight visitors increased by 4% in 2019 attaining 1.5 billion, approx. 54 million more than that of the previous year. The same year also marked a robust growth albeit Europe registering slower growth. 2019 also featured several incertitudes that revolved around Brexit, the collapse of Thomas Cook and of several low-cost airlines trade and geopolitical tensions, that impacted the global tourism market. Despite the aforementioned, the international tourist arrivals (+3.8%) overtook the global economy (+3.0%). Further, an increase in arrivals was registered by all the regions. To this end, it is pertinent to note the growth was led by the Middle East that registered a growth of 8%. It was followed by the APAC which registered a growth of 5%. The regions of Europe and Africa both registered a growth by 4% that reportedly increased in tandem with the global average, whereas the Americas registered a growth by 2%.
Concerning sub-regions, the growth was led by North America that registered a growth of 9%, followed by South-East Asia and South Asia both registering growth by 8%. Moreover, the Caribbean and the Southern as well as Meditation Europe registered a growth of 5%. Concerning the major source markets, the most robust growth was reported by France among the top 10 markets as far as the international tourism expenditure is concerned. Also, the international air passenger traffic that was measured in RPK (revenue passenger kilometers) experienced a similar trend to that of international arrivals that registered an increase of 4% through November 2019. Considering the impact of COVID 19, there is a weak consumer confidence despite repressed demand for leisure travel and visiting relatives and friends which has brought about a downward draft in international travel that can influence the growth prospects of the global travel insurance market. Nevertheless, the announcement of vaccine roll-out is anticipated to increase consumer confidence. Further, in certain large markets particularly that of China and Russia the domestic air travel demand has reverted to pre-COVID levels due to a surge in domestic air tourism.
Air Transport, Registered Carrier Departures Worldwide
Source: WORLD BANK
Now considering RPK, 2019 was the year that registered the weakest growth since 2009 registering an increase of 4.2%. However, it significantly overtook the global GDP (gross domestic product) which is considered a noteworthy feat since the growth of transportation is typically subsequent to the global economy. The year also marked an increase in airline passenger capacity registering a growth of 3.4%. This led to an increase in load factor by 0.7% to an all-time high of 82.6%. Regionally, leading all regions, Africa registered a robust growth rate of 4.9% and followed by the APAC registering a growth rate of 4.8%. Whereas Latin America and the Middle East experienced both experienced growth rates by 4.2% and from a subregional perspective, North America registered a growth rate of 4.1%.
COVID 19 Has Emerged as a Boon to the Global Travel Insurance Market
While essentially a bane to international air travel, due to the advent of COVID 19 several countries have made travel insurance mandatory positively impacting the medical insurance segment that has can potentially drive the growth of the global travel insurance market. Further airlines around the world are making an effort to stimulate the demand for air travel which was estimated to fall 55% in 2020 compared to 2019 according to (IATA) International Air Transport Association. For instance, in October 2020, it was reported that the Ethiopian Airlines Group will cover the medical insurance in partnership with AXA Partners and Awash Insurance Company. Etihad Airways had announced in September 2020 that it would cover the medical cost (of up to 150,000 euros) and quarantine costs (of up to 100 euros) for 14 days in case passengers contract COVID 19 after traveling on one of its flights. This facility is included in the airfare of tickets till the year-end and is being offered in partnership with insurance firm AXA (EPA: CS). In August 2020, Virgin Atlantic announced the introduction of Virgin Atlantic COVID-19 Cover that would apply to all existing and new bookings from 24 August 2020 till 31 March 2021.
This policy is fulfilled by Allianz Assistance and reportedly covers that offers comprehensive cover encompassing emergency medical costs, associated expenses such as transport and accommodation, and repatriation up to £500,000 for passengers in case they contract the virus while traveling. It also covers costs pertaining to boarding denial at either departure or at the destination and quarantine of up to £3,000. Earlier in July 2020, it was reported that the low-cost carrier SpiceJet Limited (NSE: SPICEJET) had partnered with Go Digit General Insurance through its Digit Illness Group Insurance Policy to offer insurance cover for COVID 19 hospitalization comprising all pre-and post-hospitalization expenses for 30 and 60 days, respectively. This facility included are tests, medication, and consultations upon testing positive for Covid-19. Further passengers are given the option to opt for insurance coverage that varies between Rs 50,000 and Rs 3,00,000 at a premium for as low as Rs 443 to Rs 1,564 a year (including GST).
Global Ethanol Market Growth – Enabling Sustainable Decarbonization of Environment
Thought ArticlesThe application range of ethanol is extensive and covers fuel ethanol towards which 73% of the global ethanol production is utilized, followed by beverage alcohol which occupies takes up 17% of the global ethanol production, and then by various industrial applications which are taken contributed by 10% of global ethanol production. Further, there have been an increasing degree of investments and eagerness towards R&D due to the unchecked depletion of fossil fuel reserves and stringent environmental legislation which necessitates identifying new alternative energy sources. To this end, it is important to note that one such promising alternative to nonrenewable fossil fuels are biofuels. In view of above ethanol has been deemed to be of great potential as an environmentally clean and sustainable transportation fuel to replace petroleum fuel.
Energy is fundamental to socio-economic development and instrumental in the achievement of various milestones in every walks of life. Transport is integral to economic and social development that brings about newer opportunities and empowers economies around the world to be more competitive and plays an important role in poverty reductions and aid progression towards sustainable goals. According to the World Bank transport accounts for approx. 64% world oil consumption, 27% of all energy utilization, 23% of CO2 emissions that are related to energy, among others. Air pollution that stems from motorized road transport has been linked to a broad range of health conditions, constituting cardiovascular and pulmonary diseases. Every year, about 185,000 deaths can be directly ascribed to pollution from automobiles. Furthermore, with the advent of rapid urbanization will come unprecedented rates of motorization which would lead to an estimated number of 2 billion vehicles on the road by 2050.
By Application, the fuel segment is anticipated to hold a significant market share which is expected to augment the growth of the global ethanol market
Considering the aforementioned scenario, the need for developing renewable sources has been felt more than ever. One particular means of minimizing fossil fuel consumption is by utilizing biofuels that are derived from renewable resources. It is widely accepted that biofuels are an excellent alternative to traditional fossil fuels, mainly because they can be obtained from large available and renewable feedstock, as biomass, and their utilization aid in the emission of relatively lower levels or negligible levels of greenhouse gas and other pollutants. In the transportation sector, bioethanol can be used as a substitute for gasoline since it was the ethanol in an automobile engine as a pioneering fuel. Earlier, during 1970, when there was an oil crisis, bioethanol was considered a potential fuel. Ethanol has a highly oxygenated molecule that has the potential to reduce the emission of dangerous gasses such as carbon monoxide and unburnt organic compounds. Apart from environmental advantages, bioethanol is an effective source of powerful employment generation.
The farming of sugarcane is a source of income for people living in rural areas. Bioethanol is an attractive substitute for the traditional transport fuel due to its high number of octane and elevated heat of vaporization. Moreover, its combination along with gasoline elevates the octane number without the aid of any undesirable constituents. As an example of a recent government initiative that underscores the degree of cognizance of ethanol as a potential transport fuel, India’s National Biofuel Policy, 2018 had forecasted a 20% national average ethanol-gasoline blend by 2030. Further the Government of India, to reduce vehicular emissions and thus minimize air pollution had reportedly proposed to further the blend mandate by 2025. Consequently, in December 2020, the Ministry of Road Transport and Highways published a Draft Automotive Industry Standard (AIS) with the purpose to introduce E-85 and E-100 vehicles in the regions that have ethanol surplus.
World Ethanol Projections (Consumption)
In bln L
Source: OECD-FAO Agricultural Outlook
By Source the natural segment is projected to hold a substantial market thereby propelling the growth of the global ethanol market
Out of all biofuels, bioethanol has received special attention, because it is the most widely used liquid biofuel for motor vehicles and for the production of “green” energy, and such a growing number of uses have been key determinants for the rapid biofuel market growth. Presently, the raw biomass materials that can be used for bioethanol production are divided into three categories, which are namely (a) oleaginous biomass that comprises sugar cane, sugar beet, potato, corn, etc., (b) lignino-cellulosic biomass that constitutes lignino-cellulosic waste, wood waste, etc. and (c) non-food crop biomass that consists marine algae biomass. The initial driving factors which are at the core driving the biofuel production is to mitigate the greenhouse gas as far as the developed economies are concerned and with regards to the less developed low and middle countries the preliminary driving forces were reducing energy scarcity, foreign energy dependence, earn foreign exchange achieved by exporting biofuels and generating employment to the local communities. In this regard certain estimates by the OECD-FAO AGRICULTURAL OUTLOOK 2020-2029 are relevant. For instance, the global sugarcane use in biofuel is expected to increase to approx. 25% in 2029 from 23% estimated for 2020.
This stems from the RenovaBio program of Brazil and its expansion that aims to minimize GHG emissions from transportation fuel by 2028. The fuel ethanol consumed in Brazil is either in the form of pure anhydrous ethanol fuel or in the form of a blend with gasoline. The lower taxes incentivize higher uses of ethanol which renders ethanol a more competitive alternative than fossil fuel. As far as the Asian nations are concerned, sugarcane molasses is the preferred feedstock in ethanol production as opposed to sugar cane because increasing sugar cane production has the potential to affect cereal production for food consumption due to the need for additional lands thus threaten food security. The APAC region is forecasted to account for 33% of the global growth in ethanol use. With regards to North America, the production of ethanol is forecasted to attain volumes of 65.5 Billion liters (bln L) which is an increase by approx. 6% by 2029 and the consumption of ethanol is projected to increase to 59.8 bln L by 2029 from 55.4 bln L. The world ethanol production is forecasted to attain a volume of 140 bln L by 2029.
Global Bicycle Market – Sustaining Sound Health & Promoting Green Mobility
Thought ArticlesThe increasing cognizance of the benefits of a healthy lifestyle is fundamental to the growth of the global bicycle market. Bicycling is also increasingly perceived as a form of leisure activity in both developed and developing economies. Further, the need to remedy, maintain a sound functioning health as well as prevent cardio-vascular-diseases (CVD), diabetes and obesity that are increasingly prevalent are also factors that are anticipated to augment the growth of the global bicycle market. Additionally, the lockdown measures due to the COVID 19 pandemic have brought about a renewed interest in bicycles which has resulted in a spike in bicycle sales are factors which are also expected to contribute to the projected growth of the global bicycle market. Moreover, with the introduction of electric bicycles and the emergence of dockless bike-sharing services which has revolutionized bike-sharing markets during recent years and the growth in shared bike fleets in China, as well as their rapid expansion throughout the world, is anticipated to lead to the global bicycle market growth that is projected to grow at a CAGR of 6.98% to attain a market value of US$76.845 billion by 2025 from the market value of US$51.262 billion that was estimated for 2019.
The Emergence of Dockless Bike-Sharing Systems to Augment the Growth of the Global Bicycle Market
The dockless design of bike-sharing systems has been recognized for substantiality enhancing the experience of the users at the end of the trip. Since it comes devoid of the responsibility of returning it to a designated dock, this system offers and an unparalleled degree of convenience that makes it comparatively more attractive. Moreover, the high degree of flexibility and efficiency of this kind of system makes it an ideal option for integration with public transit offering a competent option for first/last-mile trips. Also, the embedded GPS tracking in every dockless shared bike allows for an unexampled degree of data collection which facilitates new means of people's travel behavior analysis. Further being essentially a sharing system, it is known to incentivize the use of bikes for running errands, leisure trips, and commutes, which also helps in minimizing the fuel usage and emissions, traffic congestion alleviation as well as meeting the needs for recommended exercise by incorporating physical activity into daily life. Additionally, the use of mobile applications for locating, unlocking, and making payments made it possible to overcome the barriers which prevent the adoption of station-based bike-sharing services. After experiencing growth in China, this kind of system has been widely adopted in the United Kingdom, the USA, the Netherlands, and Singapore as well as in India.
For instance, in India, where bicycling has emerged synonymous with lifestyle, a Gurugram-based startup called Mobycy that was founded in 2017 has been reportedly endeavoring towards creating a sustainable means of mobility. Further, a comprehensive Public Bicycle Sharing (PBS) system with 3,000 bicycles was launched by the former Chief Minister of Karnataka, India, HD Kumaraswamy called “Trin Trin” in March 2019. The project has been led by The Directorate of Urban Land Transport of the state which is responsible for issuing licenses, among others. Also, an Ahmadabad based sustainable mobility solutions provider called MYBYK was reportedly keen on aggressively expand across the entire city that has received permits under the 'Amdabike' project of SCADL (Smart City Ahmedabad Development Limited) to provide its fully automated IoT enabled dockless bicycle sharing service. Further, in August 2020, it was reported that LTA (the Land Transport Authority) Singapore has opened its bike-sharing license application cycle which normally is made accessible every January and July. There is also an option for applying for a sandbox license to start bike-sharing operations on a small scale of up to 1,000 bicycles in Singapore. Additionally, in November 2019, SG Bike which is a startup formed by bicycle rental firm Park Cosco Recreation and estate upgrading company ISOTeam Ltd (SGX: 5WF), which is a majority shareholder, in 2017 had announced that it has completed the acquisition of Mobike's license, thus the Singapore operations for about S$2.54 million, enabling the former to operate a fleet of 25,000 bicycles in Singapore.
Prevalence of Diabetes in Adults (Age: 20–79 Years) (Projection)
In %
Raw diabetes prevalence
Source: International Diabetes Federation
The Rising Incidences of Chronic and Non-Communicable Diseases Are Expected to Augment the Global Bicycle Market Growth
Health has been inextricably linked with the automotive industry and the bicycle market is no exemption. To this end, it is important to note that the prevalence of non-communicable diseases such as CVDs, diabetes, and obesity has led to a growth in demand for bicycles globally. This is because bicycling aids in the fulfillment of physical fitness needs and facilitate sustaining healthy lifestyles. According to the U.S Department of Health and Human Services, the prevalence of obesity has grown to 42.4% by the year 2017 from 30.55 % registered in 1999. Also, according to the department crude estimates for both diagnosed and undiagnosed diabetes prevalence in 2018 comprised 34.2 million people of all ages or 10.5% of the US population with diabetes, 34.1 million adults aged 18 years or older i.e., 13.0% of all US adults with regards to undiagnosed diabetes. 7.3 million adults aged 18 years or older who corresponded to laboratory benchmarks for diabetes either did not report the diseases or were either never aware of the condition.
Additionally, as per the International Diabetes Federations as of 2019, about 116 million adults in China were estimated to be living with diabetes, SEA (South-East Asia) region constitutes a total of 7 countries and territories had registered a total of 87,611300 individuals, the same year. This research shows that cycling reduces blood sugar levels which in turn results in the reduction of the risk of diabetes. Further, according to the Department of Health & Human Services, State Government of Victoria, Australia, CVDs include the risk of stroke, high blood pressure, and heart attack and can be mitigated by the stimulation provided by regular cycling. Further cycling reduced blood fat levels, minimizes resting pulse, and strengthens hurt muscles. The aforesaid comprehension and the global acknowledgment of the instrumentality of bicycles to manage such non-communicable diseases are expected to propel the global bicycle growth.
Global Marine Fuel Market Trends – Sustaining the Key Enabler of Maritime Trade
Thought ArticlesShipping is one of the principal facilitators of global economic growth and supports international trade. Thus, a birds-eye view of the global maritime trade is adequately capable of presenting the integral nature of marine fuel thus partly responsible for sustaining the marine fuel market. Due to the global economic and trade slowdown, the international maritime trade came to a standstill during 2018 in comparison to its performance during the preceding years and was at its nadir since the financial crisis of 2008–2009. Moreover, trade volumes marginally expanded at the rate of 0.5% registered in 2018 after a moderate increase that was registered in the order of 2.8% during 2018. Such maritime trade performance has been a result of the following: low oil demand growth, sanctions, supply-side disruptions, Viz. Cyclone Veronica in Australia, the collapse of Vale dam in Brazil, trade policy tensions, and unfavorable economic conditions and social unrest in a few nations. However as depicted by the second illustration below, the total maritime trade volume during 2019 has been estimated in the order of 11.08 billion tons by UNCTAD (The United Nations Conference on Trade and Development).
The global GDP during 2019 diminished to 2.5 %, which was 3.1 % which was registered in 2018 and 1.1 % point below the historical average in 2001–2008. Further, both developing and developed economies were affected which demonstrated the persistent trade tensions between China and the United States and the overall deterioration of the economy. Besides, despite the gradual maturation and diversification of the Chinese economy, trade tensions have been a key determinant to its poor GDP expansion in 2019. Besides, with the outbreak of COVID 19 pandemic that was initially localized in China, and evolved rapidly during the early 2020 and its consequences on the consumption patterns, mobility trends, production volume, and the global economies as well as the world supply chains have led to a global recession. Despite the black swan events like COVID 19 that is extremely rare and unpredictable, with potentially severe consequences like supply-chain disruptions, falling global demand and global economic uncertainty, and stagnant outlook mentioned above some countries gained export market share as companies looked for new suppliers from countries that were not directly affected by the rising tariffs, which had otherwise e heightened policy uncertainty, undermined investment and adversely affected global trade. Additionally, during 2019, the biggest slice of the global maritime trade pie was constituted by developing economies with cargo being unloaded accounting for 65% and cargo being loaded accounting for 58% around the world. 42% of the global merchandise exports carried out by sea were generated by transitioning and developed economies collectively and the imports generated via the same means were in the order of 35% of the global trade of the same nature.
International Maritime Trade – ALL CARGO
In Million Tons Loaded
Source: UNCTAD
Marine fuel market conditions that are anticipated influence the market growth
Global bunker fuelaka marine fuel demand is anticipated to substantially reduce as a result of the COVID 19. Further, a market that was already facing the effects of a global economic downturn and which earlier had to undergo a transition to the IMO’s (the International Maritime Organization) low sulfur mandate w.e.f. January 2020 has experienced the amplification of credit risks. However, the demand for marine fuels was resilient in major ports whereas in certain ports it varied, resulting in the steep drop in marine fuel sales volumes during June this year. But at ports, where suppliers who have been known to provide the best quality services and guaranteed the quality of the fuel experienced strong demand. On the other hand, fuel costs generally represent 50% of the total operating cost of a ship and are progressively prioritized for facilitating market advantage. To date, residual/heavy fuel oil (HFO) which is the residue of the distillation process of crude oil, occupies a substantial share of the global marine fuel market with MGO (distillate marine gas oil) occupying a relatively smaller share. Additionally, MGO is one of the highest grades of marine fuel and is relatively more expensive because of its lighter fraction and better quality than diesel fuel. Further, it has 0.1 % sulfur content. The aforesaid is also the reason why MGO is made commercially available at a premium in relation to HFO which is of the lowest price.
Besides post sulfur regulation implementations, the vessels that would be permitted to continue employing HFO will be those that are equipped with exhaust scrubber. This is because post the IMO’s 2020 0.5% Sulphur cap on marine fuel, ships that are not fitted with scrubber systems a carriage ban was implemented March 2020 onwards. To this extent, it should be noted that in March 2020, 9,784 TEU post-panamax MSC Joanna (IMO: 9304435) has been prohibited from operating in UAE waters for 1 year. Its master has been banned indefinitely and is facing legal action from the Federal Transport Authority (FTA) of UAE after allegedly failing to comply with an order to debunker 700 tons of HFO before entering Dubai port of Jebel Ali. Conversely, all those without scrubbers are required to transition to MGO or other compliant variants. Major oil corporations are already moving towards producing the new sulfur blend which is in compliance with the new IMO directive. However, the initial lack of shop equipped with scrubbers and the possible apprehension regarding compatibility issues pertaining to very low Sulphur fuel oil (VLSFO) does have the potential of the majority of the ship turning to MGO increasing its demand. On the other hand, the global collapse of marine fuel prices has significantly narrowed the price gap between VLSFO and HFO, this means that ship operators will take a longer time to recover the investment cost of scrubbers and have to withstand the reduction of charter rate premium for scrubber-fitted ships. This brings into question the economics of scrubber which is also a key determinant of the global marine fuel market.