General end-user and regional trends
Increasing capital investments in the food and beverage industry in key regions around the world, such as the US, Western Europe, China, and India, is expected to result in a steady demand for hygienic valves over the forecast period.
The ongoing urbanization, a growing middle class and rising standards of living have led to higher affordability amongst the spenders, towards specialty foods, premium pharma, and personal care products, in the emerging economies of Asia. The spike in demand for high-value food products has led to several international and domestic investments towards the production of cheese, yogurt and confectionaries. ARC has also seen an explosive growth of microbreweries brewing craft beers and winemaking in the region. Also, a rise in domestic consumption of premium pharma products over domestically available general medicine has led to several international brands investing in the area.
Several instances of food-related microbial Infection in processed food due to unsanitary practices have led to countries such as India and China to emphasize food safety standards, regulating the sourcing and manufacturing process. An increase in the wages of the working class in the emerging economies of Asia is steadily pushing demand for process automation. These factors have led to many domestic midsized end-users to migrating from manually operated batch processing to fully automated continuous processing to practice clean-in-place (CIP) process sanitization techniques and adhere to the required guidelines and standards.
ARC anticipates continued stable demand for hygienic and aseptic valves over the next five years.
Changing lifestyles and a growing awareness towards health and wellness are the major trends influencing buying patterns in more mature markets like North America and Western Europe. These trends are driving food and beverage manufacturers to invest in the production of alternative foods such as soy and almond milk, energy drinks, high protein foods, and plant-based meat alternatives. ARC has also seen an uptick in demand for specialty health supplement products such as multi-vitamins, minerals, protein supplements, and other wellness products.
The legalization of marijuana use in parts of North America is a mixed bag, with both positive and negative impacts on the market. The widespread usage of recreational marijuana has led to a decline in the demand for alcoholic beverage consumption. However, the increasing demand for medical marijuana has led to the establishment of new production processes for manufacturing cannabinoid-based pain-relieving and soothing drugs in the global pharmaceutical industry.
Impact of COVID 19 Outbreak and Digitalization
The global economic slowdown resulting from regional lockdowns and other social distancing measures due to the COVID-19 pandemic has led to a dramatic decrease in customer spending over the past two quarters. However, the essential nature of the products produced by the food and beverage and pharma industries provides a buffer that minimizes the effects of global economic conditions. In fact, stay at home orders around the world have compelled many consumers to rely heavily on ready to eat/convenience foods. This trend has led to an uptick in sales of processed food across various parts of the world.