$2.9 Billion Market for Filtration and Separation in the Food Industry
The 2016 world market for food filtration and separation hardware and
consumables will exceed $2.9 billion. This is the conclusion of the McIlvaine
Company through iteration of data in a number of its related reports.
The expenditure for consumables will be nearly twice the hardware investment.
One-third of the consumables expenditures will be for replacement cartridges
followed by cross-flow filtration membranes. The third largest purchase will be
for filter cloths, followed next by filter bags. Rounding out the consumables
list are ion exchange resins and filter belts.
Centrifuges head the list of hardware expenditures.
Ranking Hardware Type
1 Centrifuges
2 Cross-flow filtration hardware
3 Filter presses
4 Cartridge hardware e.g. housings
5 Bag hardware e.g. housings
6 Leaf, gravity and drum filters
The largest application segment is dairy, fruits and vegetables, sugar beet,
corn and grain. Dairy represents more than one-third of the total in this
segment. Separation of milk and cream in centrifuges is one of the oldest
applications. Membrane technology is replacing leaf filters with diatomaceous
earth in many plants in this category.
The market is growing at rates slightly above that of GDP as filtration is used
to create new products as well as improve the quality of existing products. Fat
free and non-alcoholic beverages are two examples of new products created by
filtration and separation.
A few centrifuge suppliers dominate this hardware segment. At the other end of
the spectrum, there are thousands of companies sharing the consumable cartridge
market in the food industry.
McIlvaine derives its food filtration and separation forecasts by extracting
information and insights from the following reports:
N024 Cartridge Filters: World Market
N020 RO, UF, MF World Market
N006 Liquid Filtration and Media World Markets
N005 Sedimentation and Centrifugation World Markets
Alternatively to purchasing the individual reports, one can choose to purchase
application focused reports such as Food Filtration and Separation. This is one
of many customized multi-client reports available from McIlvaine. For more
information contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com
Half of All Flow Control and Treatment (FCT) Purchasing Decisions Are Made
Remotely
The choice among suppliers for an FCT product is more often made outside the
local sales area. This means that coordination of local sales people is
routinely necessary. Furthermore, market forecasts and sales quotas based on
where the products will be used have to be adjusted to take into account the
remote influence. A big portion of sales can be in large projects. Most of these
involve remote influence.
Large companies are moving toward global sourcing. A few hundred large companies
purchase 40 percent or more of FCT products. These large purchasers also are the
ones with the large projects. Most large project purchasing decisions are made
by groups and not individuals.
Local Influence vs. Purchasing Company Size for Flow Control and Treatment
Equipment
100%
Small companies with 60% of the market
↑
Local
Decision
Making
Influence
50%
Large companies with
40% of the market
↑
↑
Project Size →
Smaller companies tend to make purchasing decisions in the country, province or
state in which the product will be used. In larger companies, decisions are
frequently made by corporate people in another locality. Another factor is
project size. The larger the project, the more likely the decision will be made
in part by people not at the point of use. McIlvaine has determined that
anywhere from 50 to 200 large companies account for 40 percent or more of the
purchases in any of the flow control and treatment product areas.
When the influence of EPC and system suppliers are included, the relative
percentage of local decision making is further reduced.
Percentage of Purchasing Decisions Made at Another of the 95 Countries, Regions
and Provinces Rather than at the User Plant
Small Company (Purchases) Large Company (Purchases)
Local
Decision Remote Decision Local
Decision Remote Decision
Large purchaser 20 40
Small purchaser 60 10
OEM, EPC 5 10 5 15
Consultant 5 10 5 15
Total for Category 70 30 30 70
Total for Market which is 60/40 Small 42 18 12 28
In the total market, 54% of the decisions are local and 46% are made remotely.
For a major system or component, 46 percent of the decisions are made remotely.
This number is much higher when components such as pumps and valves for new
plants are evaluated. Seventy percent of the decisions would be made remotely.
Often a valve is assembled in a component in one location and then shipped to
the end user. The component supplier will make the ultimate purchase but the end
user man have substantial influence on the valve choice.
Most of the decisions will be made locally for repair parts and replacement
valves, pumps, nozzles, etc. The exception would be large companies that are
moving to global sourcing.
Sales management needs to take into account the remote influence and large
project impacts.
The first step is to create detailed forecasting of markets by use in all the
sales territories. McIlvaine has divided the world into 95 significant
territories (9 regions in the U.S. and 6 regions in China). This spreadsheet
then becomes the template for adjustments by remote influencers and large
projects.
The sales effort at the global sourcing headquarters for Arcelor Mittal which
has more than 100 steel plants and coal mines needs to be proportional to the
remote influence. A large project such as the $3 billion potash mining project
in Canada or $20 billion coal gas pipeline in China must also be taken into
account.
McIlvaine addresses all three of these needs.
Detailed forecasting of markets is available with individual reports displayed
at: MARKETS
Detailed analysis of projects is available with a number of annual
subscriptions explained at: DATABASES
Detailed listings of OEMs and end users is available in the following: PEOPLE
The general program is summarized at: Detailed Forecasting of Markets, Prospects
and Projects
Utility E-Alert Tracks Billions of Dollars of New Coal-fired Power Plants on a
Weekly Basis
Here are some headlines from the Utility E-Alert:
UTILITY E-ALERT
#1252 December 11, 2015
COAL - US
Delawares Indian River Coal-fired Power Plant in Cross Hairs
NC issues Permit for Coal Ash Excavation at Duke Sutton
Summit Power signs Construction Contract for Coal Gasification Power Plant
near Penwell, TX
EPA proposing to extend Compliance Date for BART Emission Limits for SO2 at
P.H. Glatfelter
COAL WORLD
Engie to sell India, Indonesia Assets as it seeks to exit Coal-based Projects
Proposed 600 MW Balingian Power Station for Mukah, Sarawak, Malaysia
Jimah East Power plans ultra-supercritical 2,000 MW Coal-fired Power Station
in Jimah, Malaysia
Two Phase 1,320 MW Coal-fired Power Station proposed for Kalapara, Bangladesh
Proposed 300 MW Coal-fired Power Station in Banovici, Bosnia and Herzegovina
MVR Waste Incinerator in Germany is a Template for Coal-fired Power Plants
For more information on 41F Utility E-Alert click on:
http://home.mcilvainecompany.com/index.php/databases/28-energy/485-41fi
State by State Forecasts Needed by Suppliers of Flow Control and
Treatment Products and Services
The market for flow control and treatment (N064 Air/Gas/Water/Fluid Treatment
and Control: World Market) will be over $350 billion this year. The market has
been segmented into 80 countries and sub regions. Some of the smaller countries
account for less than 0.1 percent of the total. By contrast, California accounts
for 2 percent of the total. So international suppliers need to segment the U.S.
by region and, in many cases, by State. This is accomplished in a supplemental
report, Analysis & Forecast by Industry & State.
The food segment provides an example. The U.S. flow control and treatment in the
food industry represents more than 22 percent of the world total. Expensive
pumps and valves are needed to meet the sanitary requirements of food
processors. Cross-flow membranes not only provide high purity water and clean
wastewater but are concentrating liquids such as juices and corn syrups. Fabric
filters are used not only for air pollution control but to capture product in
hot gas streams e.g. coffee spray driers.
The U.S. will purchase two hundred and twenty times more food flow control and
treatment products and services than Guatemala this year.
FOOD INDUSTRY(%s) BASE YEAR 2014
2014 2015 2016 2017 2018 2019 2020 2021
United States 21.80 22.30 22.82 23.36 23.92 24.50 25.09 25.69
Canada 1.95 1.98 2.02 2.06 2.09 2.13 2.18 2.22
Mexico 2.39 2.49 2.61 2.73 2.87 3.01 3.17 3.35
Argentina 0.98 1.01 1.04 1.07 1.10 1.13 1.17 1.20
Brazil 3.11 3.17 3.23 3.30 3.36 3.43 3.51 3.59
Chile 0.44 0.45 0.47 0.48 0.50 0.52 0.54 0.56
Colombia 0.69 0.72 0.76 0.79 0.83 0.86 0.90 0.94
Ecuador 0.21 0.22 0.23 0.23 0.24 0.26 0.27 0.28
Guatemala 0.11 0.11 0.11 0.12 0.12 0.13 0.13 0.14
The state analysis segments each industry by state and aggregates it into nine
regions. California represents 10 percent of the U.S. food industry flow control
and treatment market while the Pacific states account for more than 14 percent.
FIGURE I-2B: U.S. Food Industry - Percent of U.S. 2014 Total
STATE 2014 2015 2016 2017 2018 2019 2029 2021
Alaska 0.32 0.33 0.35 0.36 0.37 0.39 0.40 0.42
California 10.26 10.67 11.10 11.54 12.00 12.48 12.98 13.50
Hawaii 0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29
Oregon 1.21 1.26 1.31 1.36 1.42 1.47 1.53 1.59
Washington 2.08 2.16 2.25 2.34 2.43 2.53 2.63 2.74
TOTAL Pacific States 14.09 14.65 15.24 15.85 16.48 17.14 17.83 18.54
McIlvaine continues to adjust forecasts based on a number of its own reports
plus U.S. census data such as the number of employees in each facility in each
industry.
NAICS Alabama Food manufacturing facilities--- # of employees 25 50 200 300 500
3111 Animal Food Manufacturing 39 20 16 3 0
3112 Grain and Oilseed Milling 8 2 4 2 0
3113 Sugar and Confectionery Product Manufacturing 14 13 1 0 0
3114 Fruit and Vegetable Preserving and Specialty Food Manufacturing 8 6 1 0 1
3115 Dairy Product Manufacturing 8 4 1 3 0
3116 Animal Slaughtering and Processing 79 34 9 16 20
3117 Seafood Product Preparation and Packaging 22 9 9 4 0
3118 Bakeries and Tortilla Manufacturing 74 61 9 4 0
3119 Other Food Manufacturing 26 11 8 6 1
3121 Beverage Manufacturing 43 37 2 4 0
Analysis & Forecast by Industry & State is available as a supplement to
(Air/Gas/Water/Fluid Treatment and Control: World Market) or to any of the other
McIlvaine reports on pumps, valves, filtration, air pollution control, etc.
Customized excel spreadsheets can be provided for specific products e.g.
diaphragm pumps, ball valves, or polymers for water treatment. For more
information contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com.
----------
You can register for our free McIlvaine Newsletters at:
http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com