$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.

 

 

 

The general program is summarized at:  Detailed Forecasting of Markets, Prospects and Projects

OEM Networking Directory Has the Contacts at Consulting and Supplier Companies

If you sell systems, scrubbers nozzles, packing or corrosion resistant materials you will use the McIlvaine OEM Networking Directory daily. Check it out at:  53DI OEM Networking Directory.

300 Large Oil and Gas Projects Account for 80 Percent of the Flow Control and Treatment Purchases

Some oil and gas projects include hundreds of millions of dollars of pumps, valves, filters, compressors and other flow control and treatment equipment. The top 300 projects each year account for more than 80 percent of the purchases. McIlvaine tracks these in the bi-weekly Oil, Gas, Shale, Refining E-Alert.

 

October 30  Oil and Gas E Alert covering Two Week Period

 

Project Name

 

Description

 

Total Amount

$ Millions

Flow

Control

Treat

$ Millions

 

Order

Yr 20+

Enbridge

Canadian pipeline

38,000

300

16-19

Odebrecht

Pipeline in Peru

4,000

40

17-19

Golar

FLNG off Cameroon

8,000

90

17

Saudi Arabia's PetroRabigh

Petrochemical and refining complexes

10,000

200

16-18

Dung Quat Refinery

New refinery in Vietnam

4,000

90

16

 

Rosneft

New refining and petrochemical complexes in Eastern Russia

10.000

200

17-19

10 Additional Large Projects

LNG, refining, extraction

50,000

1,000

16-19

Total

 

124,000

1,920

 

Sixteen projects reported in the latest bi-weekly issue account for close to $2 billion of purchases of flow control and treatment equipment. The scope includes oil and gas extraction, LNG, gas-to-liquids processing, and tar sands processing.

The Alert is available separately but is also available as part of N049 Oil, Gas, Shale and Refining Markets and Projects, which provides a complete program for detailed market, prospect and project forecasting.

For more information on Oil, Gas, Shale, Refining E-Alert: click on: http://home.mcilvainecompany.com/index.php/databases/28-energy/991-71ei.

 

Bob McIlvaine
President
847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com