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foodhq.world | August 2018 | Vol. XXXIV Issue 08
Previously
Creating the Perfect Bite 06
Coding and Marking: A Dynamic Market 08
France: High Commodity Prices Have Caused Headwinds 22
Luxury Travel Market to Reach USD1,154 Billion By 2022 31
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Issue Content
August 2018 / Vol. XXVIII Issue 08
24 Introduction
01 Issue Content
02 Opening Letter & CPH Team
03 Food Digest
Ingredients Preservatives & Texturisers
06 Creating the Perfect Bite
Packaging Coding & Labeling
08 Coding and Marking: A Dynamic Market
Sustainability Sustainability in Food Manufacturing
10 Sustainability in Food Manufacturing Is a Challenge & a Responsibility
26 Cover Story Ice Cream & Sorbets
14 Continued Growth in a Burgeoning Market
Processing Material Handling Equipment
16 Advanced Technologies Influencing the Material Handling
Equipment Market
Country Report
Bahrain
France
Australia
19 Bahrain’s Dependence on Food Imports to Increase By 2025
22 France: High Commodity Prices Have Caused Headwinds
25 Australian Premium Lamb Opportunities in the Middle East
F&B Fish & Seafood
29 The Global Fish and Seafood Market Is Poised for Strong Growth
34 Hospitality Luxury Travel
31 Luxury Travel Market to Reach USD1,154 Billion By 2022
Departments
34 Products & Services
35 Event Preview
Info
38 Buyer's Guide
39 Coming Events & General Info
40 Closing letter
Opening Letter
The Changing Market
for Food Delivery
With technology advancing and consumers smartphones and the increased
increasingly looking for convenience, it is no surprise space for restaurants and food
that food delivery is becoming more important. outlets to grow their customer
Online food delivery system is taking up the pace and base through online portals is
is shifting towards ordering through online platforms, driving the expansion of global
induced by the increasing internet penetration and online food delivery market.
well-equipped delivery services. A CREST study
by global research company NPD Group found However, the food delivery system face hurdles with
delivery equates to 4 percent of the foodservice the commission and other charges. The minimum
industry in terms of spend (USD1.6 billion). NPD charges per order received by the service provider
Deputy Managing Director for Asia Pacific Gimantha are less than the actual cost incurred. There is a
Jayasinghe said that mobile ordering and delivery scenario of cash burn, such as if the cost incurred
apps play a key role in this developing market. While is USD7 per order and the commission amounts to
63 percent of consumers order food via the internet, USD5 per order, there is a loss of revenue and the
there is a preference for using a dedicated mobile flaw in the system needs to be corrected as per the
app (72 percent). She also added that the rising use scenario.
of aggregators is resulting in independent outlets
experiencing growth. According to NPD, there has This Issue!
been a 75 percent growth in traffic for quick service foodHQ’s August 2018 issue covers the latest
restaurant (QSR) pizza, with millennials responsible developments & happenings in the food industry,
for 44 percent traffic share and families 38 percent. including new innovations, products, services,
Millennials also accounted for 53 percent of the projects, interviews, and events. On page 08, the
overall industry growth. global coding and marking market is projected
to reach values of over USD7 billion by 2023. The
As the development never stops and so the rapid article on page 10 gives us an overview of the
changing food industry, it is steering the growth challenges and responsibilities in the sustainable
of global online food delivery market. From the food manufacturing process. On page 14, the
evolution of delivering food through phone call global ice cream market value is expected to reach
orders, it has developed to dependence upon food USD89.5 billion by 2023. Additional stories are also
apps and in the near future trend of drones are available, covering the latest activities of regional
expected to take over the logistic segment for faster manufacturers, importers and exporters. We love to
food delivery, according to a report by Goldstein receive your comments, suggestions or feedback!
Research. The advancement of technology has Please send them to info@foodhq.world
widened the scope of food delivery services with the
support of software solutions. The rising millennial
population, increasing penetration of internet and Best Wishes!
Rola Hamdan Ghutmi
Editor-in-Chief
C P H Te a m
(Email domain is @cph.world)
Founders Content & Research Accounting & Finance
• Mr. Fathi Chatila (1936-2017) • Editor-in-Chief • Accountant
• Mrs. Mona Chatila (1944 - 2006) Rola Hamdan Ghutmi / content@
Hala Nizam / h.nizam@
Management • Interim Content & Research Manager Circulation & Mail
• Administrative & General Manager / Digital & Social Media Officer • Circulation & Mail Manager
Business Development & Project Manager Fatima Saab / f.saab@ Abdul Rahman Hallak / ar.hallak@
Rabih Chatila / rabih@
Marketing & Sales
• Senior Administrative Officer
• Marketing & Sales Manager
Abdul Rahman Hallak / ar.hallak@ Jad L. Aboulhosn / j.aboulhosn@
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Food Digest
DGC Hospitality & Partners Invests in F&B Entrepreneurs Link to New Markets
DGC Hospitality & Partners have committed USD4million As part of a five-year plan to strengthen Jordan’s economy
investment capital to expand some of Bahraini’s icons of the through small business growth in the artisanal food and
food and beverage sector. DGC Hospitality is the dedicated experiential/adventure travel sectors, USAID, through its Local
food and beverage investment arm of the recently formed Enterprise Support project, has supported approximately 1,200
private equity company Dividend Gate Capital (DGC). home-based, artisanal food producers in six governorates across
Bahraini companies are advancing from DGC Hospitality and Jordan over the past three years. Micro and small enterprises
Partners a USD4 million capital injection; amongst the many dominate Jordan’s economy. What’s more, market demand for
famous Made in Bahrain brands that will be part of the DGC locally produced food, made with high-quality ingredients at
Hospitality’s are T& C Vending Partnership, Tikka and Kebab competitive prices is on the rise. Jordan Food Week is organized
Amin and Fareej Bin Aqool. DGC Hospitality & Partners are by the USAID Jordan Local Enterprise Support Project and
looking to grow the partnered business through expanding under the patronage of the Greater Amman Municipality (GAM),
the exposure of the companies. Ministry of Tourism and Antiquities (MoTA).
Marriott Reinforces Its Commitment Savor 'Real Halal' Chicken
Marriott International, the world’s well-known hotel company, Customers in Oman and across the GCC can rest assured
reinforces its commitment to Egypt with the launch of Tahseen, that they can buy A’Saffa chicken and chicken parts with the
a unique hospitality training program developed in response confidence that they have been raised and slaughtered by
to a growing need for talent within the industry. Created hand using real halal techniques in accordance with Islamic
in partnership with Helwan University and Professional Sharia’a; whereas many other poultry producers around the
Development Foundation (PDF), the program is focused on world practice slaughtering, birds using electrical impulses
fast tracking the next generation of hospitality leaders from known as stunning. It is noteworthy that A’Saffa Foods
Egypt by providing them with firsthand experience and a specially employ trained Muslim staff to slaughter chickens by
springboard to launch successful careers in the industry. The hand at their farm ensuring that the staff member pronounces
company today unveiled the program at a signing ceremony ‘Bis miallah Allah ho Akhbar’, whilst facing ‘Makkah’ during
graced by the Honorable Minister Khalid Atef Abdul Ghaffar, the slaughtering of each individual bird in accordance with
Minister of Higher Education and Scientific Research, Egypt. Sharia’a principles.
GCC Hospitality Industry Sets for Steady Growth Food Security Is High on the Government's Agenda
Alpen Capital, an investment banking advisory firm, The UAE Office for Future Food Security and Masdar (Abu
announced the publication of its report on the GCC Hospitality Dhabi Future Energy Company) have announced a strategic
Industry. The report presents a synopsis of the demand-supply partnership to enhance food security in the UAE. The
collaboration aims to address future challenges by developing
dynamics and key performance indicators of the hospitality
joint initiatives that enhance the country's capacity and
industry across the GCC countries. “The GCC hospitality competitiveness in critical sectors related to future food
industry, which has been under pressure in recent years is security. The agreement was signed at the Masdar headquarters
expected to gain positive momentum on account of recovery in Masdar City, Abu Dhabi by Mariam bint Mohammed Saeed
in oil prices, upcoming mega events, increased tourist inflow, Hareb Almheiri, Minister of State for Future Food Security,
and Mohamed Jameel Al Ramahi, Chief Executive Officer
positive regulatory initiatives and increased government
of Masdar. Almheiri said: "This strategic partnership is the
spending/investments towards the hospitality and tourism cornerstone of achieving future food security objectives – an
sector. GCC countries have well-defined strategies to develop important step in activating plans to meet the challenges of
themselves as preferred travel destinations. this vital cause and invest in its opportunities.
06 Preservatives &
Texturisers
Ingredients
Photo Courtesy of RAPS GmbH & Co. KG
foodhq.world INGREDIENTS
2018 August Preservatives & Texturisers 06
Creating the Perfect Bite
H
earty meat dishes such as beef burgers,
chicken nuggets or boiled sausages are
popular meals and snacks throughout the
world. The constantly rising level of global
meat consumption means that many consumers are
getting extremely cost-conscious when buying. By
contrast, they are still looking for high quality, value-for-
money products and are less willing to compromise on
sensory properties such as taste and texture. At the same
time, consumers are carefully checking on-pack ingredient
lists to make sure there are no unpleasant surprises inside.
process to avoid rejection. With this in mind, German-
For manufacturers, keeping the price low and maintaining
based ingredients supplier RAPS had approached test
quality standards can be a challenge. Furthermore,
audiences in 14 different counties across Europe, as
taste preferences vary by country or region. As a result,
well as in the Middle East, particularly in Jordan and
functional texturizers that meet consumer demands and
Saudi Arabia. During the empirical study, test groups of
accommodate manufacturing economic requirements is
consumers evaluated the texture of meat products made
becoming more and more crucial for the meat industry.
with the new functional ingredients. The results of the
sensory test were then incorporated into the texturizer’s
On track with texture
development program to provide a wide range of solutions
The global rise in meat consumption has also had an
in terms of basic ingredients. In the end, RAPS experts
impact – albeit somewhat geographically diverse — in
have developed different texturizers that optimize the
the Middle East and North Africa (MENA). From 1961 to
consistency, firmness and viscosity of the sausage mass
2013, the per capita meat consumption in Kuwait doubled
during the chopping process. All of the new ingredients
(47.45 compared with 82.88 kg), it nearly tripled in Egypt
are suitable for high, middle and low raw material quality,
and, in Saudi Arabia, it grew approximately six-fold.
easy to use in manufacturing processes and reduce purge-
What’s more, the Gulf Region is set to become one of the
like drip or freeze-thaw loss. The texturizers work with all
fastest growing regions for Halal meat consumption, with
types of meat-sorts and are almost all Halal compatible.
beef being a secondary protein source in most MENA
For manufacturers, it’s good news that, with the right
diets after chicken and fish. When buying finished meat
texturizers, production economics can be optimized
products such as minced burgers or hot dog sausages,
and consumer needs, in terms of sensory, functional
the main criteria for consumers are the texture, juiciness
and economical attributes, can be well and truly met.
and color of the product. For example, market analysis
has shown that consumers want emulsified sausages with
a uniform and smooth surface, a meat-adequate fibrosity
and precisely tailored juiciness. Good sliceability and
crispness are very important too. When developing meat
texturizers, it’s vital to understand what the “right” texture
of the end product should be. With sausages, properties When developing meat
such as hardness, consistency and masticability play an
important role. A poor texture with uneven binding, air texturizers, it is vital to understand
bubbles or an unappetizing color is usually caused by what the “right” texture of the
the use of low quality raw materials, unsuitable additives
or poorly formulated recipes. As such, there are many end product should be
products on sale that have huge potential for improvement.
A stepwise approach to development
RAPS GmbH & Co. KG
When developing new products, manufacturers have info@raps.com
to get the consumer on board at an early stage of the www.raps.com
08 Coding & Labeling
Packaging
foodhq.world PACKAGING
2018 August Coding & Labeling 08
Coding and Marking: A Dynamic Market
T
he establishment of stringent government
standards and laws that prevents counterfeit
of products is propelling the growth of the
global coding and marking market. The
growing adoption of the centrally integrated system,
automated inventory operations, and high throughput
of production processes will boost the demand for
these services in the global market. These devices
are used to deliver the information about production
date and timing of the product, location of production,
and details of usage and consumption in the market.
The vendors are leveraging the marking process to acquisitions will assist vendors to improve their
shorten the length of the production process enhancing distribution channels and increase their market reach
the value addition and reduce product counterfeiting during the forecast period. For instance, in January
in the market. The increasing focus on developing 2016 Hitachi America completed the acquisition of
eco-friendly systems to reduce bioaccumulation and Label House (L.A. Supply Corporation), a leading
eco-toxicity due to their environment-degrading provider of marking, and labeling products and services
components will transform the market and promote to form a new subsidiary which will operate as Label
sustainable development. The exponential growth of House in the global market. The growing number of
the packaging industry will create new opportunities M&A activities is expected to help players to increase
for leading players in the global market. Industries such their customer base and add revenues in the global
as pharmaceutical, food and beverage, automotive, coding and marking market. The global coding and
and cosmetics are the key end-users in this market. marking market by technology is segmented into
The increasing requirement and use of highly efficient, primary package coding (CIJ, Laser, TIJ, and TTO) and
speedy, and reliable processes in industrial sectors secondary and tertiary packaging coding (VIJ, PALM,
will revolution the coding and marking market. The and PIJ). CIJ technique is the commonly used method
growing importance printing information such as in the market and is estimated to grow at a CAGR of
manufacture date, expiry, batch numbers, promotional over 6 percent during the forecast period. The easy
codes, and the quality control information is driving installation procedure, user-friendliness, high-speed
the demand for these devices in the global market. printing, and its "quick-dry" nature are some of the
The increasing production capacity by manufacturing factors attributing to the popularity of CIJ technique
industries and rapid urbanization is augmenting the in the global market. This technology uses a high-
growth of this market in the emerging regions in APAC. pressure pump, which targets the ink through a nozzle
The global coding and marking market is projected to onto the surface of the target material and is extremely
reach values of over USD7 billion by 2023, growing at versatile and enables printing on virtually any surface.
a CAGR of approximately 7 percent during 2017-2023. Companies such as ID Technology and Domino Printing
The increasing number of consolidation witnessed will Sciences are some of the leading companies offering
attribute to the growing revenues in the global coding a wide array of CIJ solutions for several end-user
and marking market. The industries are thriving on an industries in the global coding and marking market.
innovative and entrepreneurial zeal to widen their end-
user base and improve profitability in the market. The
market is witnessing a surge in the number of M&A
activities by large electronics equipment manufacturers
Arizton
to strategically expand their businesses. The recent www.arizton.com10 Sustainability in
Food Manufacturing
Sustainabilityfoodhq.world
2018 August 10
Sustainability in Food Manufacturing Is a
Challenge & a Responsibility
A
round the globe, more people than ever are
adopting a sense of personal responsibility
when it comes to the food they consume
and the products they purchase. It is their
way of feeling good about what they put in their
bodies and, as consumers, lessening their impact on
the ecosystem. Couple that behavior change with
the burgeoning population growth that’s expected
- 10 billion by 2050 with much of it concentrated in
countries like Africa - and it’s certain that opportunities
and challenges abound. The need for sustainable food
systems is vital not only to feed the surging population
but also to minimize the impacts of climate change.
For food manufacturers, these realities also come
with a responsibility to deliver comprehensive long-standing connection between the seafood industry
solutions across the value chain. Driving real change and global sustainability, there’s another resource in our
will take inclusive partnerships, business-driven oceans that lies ripe for sustainable practices. Last month,
strategies, and in many instances, a little creativity. DuPont Nutrition & Health announced the development
of the very first sustainable seaweed program specifically
A global agenda for the hydrocolloid industry to help guide seaweed
More and more companies are viewing sustainability farmers and harvesters toward the adoption of more
as a necessary strategy in their organizations and are sustainable practices supporting UN SDG 14 ‘Life Under
looking for partnerships and guidance in embedding Water’ that involves conserving and sustainably using
sustainability goals into their business practices and the oceans, seas and marine resources. The program,
innovation processes. The United Nations’ Sustainable developed in collaboration with the Anderson Cabot
Development Goals (SDGs) serve as a model on the Center for Ocean Life at the New England Aquarium,
necessary elements to make an impact for our future. will help seaweed farmers and harvesters along the
Adopted by the UN in 2015, the 17 SDGs were instituted coastlines of Africa and other countries around the
to help guide governments, businesses, civil society and world develop a working knowledge of sustainable
people toward contributing to a more sustainable world. practices and enhance their ability to be good stewards
Since then, organizations are also seeking assistance
through workshops and third-party institutions on how to
create and capture business value through SDG business
alignment and new business models. The key is taking
a holistic look at opportunities throughout the supply The need for sustainable food
chain-driving improvements, delivering innovation
and instituting practices that don’t already exist. systems is vital not only to feed
From sourcing to solutions
the surging population but also to
Beginning with the earliest stages of sourcing, it’s minimize the impacts of climate
important to build transparent, responsible supply chains
for all sourced materials. For instance, while there’s been a change
EXCLUSIVESUSTAINABILITY
Sustainability in Food Manufacturing 11
of their farms and seaweed beds. For many of these enough to feed its population. Therefore, the answer lies
people, their livelihoods and family’s futures depend in protecting the food, to control spoilage organisms and
on running sustainable operations. The principles of pathogens while extending shelf life. Protective cultures
the program look at environmentally sound processes are a good example. Used in white cheese, they are a
but also fair treatment and safety of workers. While clean-label way to extend shelf life by up to three times,
the seaweed program isn’t a certification, it is focused reducing food waste and saving more than 400,000
on promoting best practices related to environmental tons of carbon dioxide equivalents (CO2e) if applied
and social aspects of sustainability ensured by globally. Tailored enzyme solutions for bread products
training, performance tracking and internal audits. have a similar effect, slowing down staling, allowing the
Better utilizing resources to reduce carbon footprints bread to stay fresh and soft for longer and ultimately
at production sites also enable sustainable changes. reducing food waste significantly. Protecting food is a
In particular, use of waste streams—from energy, particularly critical issue in places where transporting
chemicals, or bio-based materials—is crucial both products across great distances is a challenge. In
economically and environmentally. Our wood-based Kenya, some producers of fermented products found
low-calorie sweetener XIVIA® Xylitol, is produced a solution to the issue with DuPont’s HOLDBAC® YM
from a side-stream called ‘red-liquor’ from pulp and Protective Cultures, which created a longer shelf life for
paper mills. It is a close loop where the remaining their white cheese. These food manufacturers sought
side-stream is returned to the pulp and paper mill to move away from preservatives by using a clean
and used for energy production. A recent update of a label formula. Adding protective cultures can make
third party-reviewed life cycle assessment, shows that a tremendous difference in situations where hygienic
XIVIA® has a 5-10 times lower environmental footprint standards are challenged by the local circumstances.
from cradle-to-gate compared to conventional xylitol Some solutions come packaged in a complete
produced from corn cobs. In some instances, driving concept, such as the GRINDSTED® Yo-Tex stabilizer
improvements can stem from dire circumstances. Since for ambient yogurt which has proved to be a critical
2015, the area near DuPont’s Cape Town, South Africa solution for partners in South-Africa and Kenya. The
site has experienced gradually decreasing rainfall. Yo-Tex system creates a longer product shelf life –
Increased urbanization and rising temperatures also extending it from 21 days to seven months or more
contributed to dwindling volumes of water stored in while eliminating the need for refrigeration. That
the city’s five major dams. After a projected drought makes this concept ideal for manufacturers who want
earlier this year, DuPont and other local commercial to distribute their products over longer distances and
property owners were tasked with reducing water to stores and consumers where refrigerators are not
usage by 45 percent from the pre-drought period in always available. Healthy dairy products reach areas
2015. No action was too small to achieve the task— where they may not already be – by transport that is
from eliminating irrigation to reducing water flow lower on energy consumption as no cooling is required.
throughout the site to increasing tanks to collect rain
water for use in productions, employees got creative Playing a role
to help replenish the water supply. But perhaps the Of course, these solutions need to be customized at a
biggest need for solutions is in food waste, which is local level. But they need to happen everywhere. No
one of the most prominent waste streams. As much as one has a larger role to play in achieving a sustainable
30 percent of food produced globally is lost or wasted future than food manufacturers. It’s a challenge we
in the value chain and each kg of food waste represent must face head on—with partners, structure, and a
4-5 kg of CO2e emissions in average. UN SDG 12 calls little ingenuity. Because it’s one we can’t afford to lose.
on all nations to halve food waste and reduce food
loss by 2030. The Food and Agriculture Organization
of the UN notes that food losses and waste amounts
to roughly USD680 billion in industrialized countries
and USD310 billion in developing countries. In Africa
alone, about half the food produced is wasted. The
amount of food lost is enough to feed 300 million DuPont Nutrition & Health
people, which means the country produces more than www.danisco.comfoodhq.world SUSTAINABILITY
2018 August Sustainability in Food Manufacturing 12
Micvac Nominated for Sacccydeloitte
Green Award 2018
Micvac’s patented packaging
Swedish food tech company, Micvac, has been nominated to this process are the microwave tunnel as well as
for the prestigious annual SACCNY – Deloitte Green Micvac’s patented packaging components: the Micvac
Award to be held during the 2018 Sustainology Summit tray and the unique Micvac valve. This method leads to
in New York. The Sustainology Summit, hosted by the reduced food waste, high levels of food safety, greater
Swedish-American Chamber of Commerce, showcases a cost efficiency and significant energy savings all along
cutting-edge field of Swedish and American experts from the value chain. “We are very honoured to receive this
within the food industry. Focusing on technology and nomination,” says Michael Bogdanski, CEO of Micvac.
innovation, academics, politicians, entrepreneurs, chefs, “It gives us the opportunity to present the advantages
sustainability experts and executives use this platform to of the Micvac method to an expert audience.” Long
highlight the latest food tech innovations. For this high- shelf life, more freshness and taste The Micvac method
profile event four companies have been nominated for enables shelf life of up to sixty days without preservatives,
their sustainability solutions as part of the SACCNY – compared to the typical five-day shelf life for other
Deloitte Green Award. Companies nominated for the chilled ready meals. The extended shelf life reduces
award must have a proven track record in environmental spoilage in stores and at home while at the same time
excellence. Reduce food waste and realize energy keeping food fresh and tasty. “Consumer research in the
savings the company has developed a chilled ready- UK shows that consumers would throw away less food if
meal production method that utilizes inpack cooking they could buy a good quality meal prepared in a natural
and pasteurization in one continuous process. Key way and with longer shelf life,” adds Michael Bogdanski.14 Ice Cream & Sorbets
Cover Storyfoodhq.world COVER STORY
2018 August Ice Cream & Sorbets 14
Continued Growth in a Burgeoning Market
I
ce cream is dairy product, which is sweetened
with either natural sugar or artificial sweeteners.
Various ice creams are provided by the companies
present in the market, including hard ice cream,
soft ice cream, light ice cream, low-fat ice cream,
and others. Summer is an undisputed season for
the consumption of ice cream and related products.
The growth of the industry is driven by availability of
various flavored ice creams. As a result, the ice cream
consumers pay a premium price for these products,
which in turn increases the revenue of the market.
The global ice cream market value is expected to reach Australia. However, the hypermarkets & supermarkets
USD89.5 billion by 2023, recording an anticipated are believed to be the fastest growing distribution
CAGR of 4.9 percent during the forecast period (2018- channel in the country. Sweden and UK are the attractive
2023), according to a report by Mordor Intelligence. markets from European region owing to the growing
The rise in income, along with an increase in demand regional demand. In 2016, the take-home segment
for sweet dishes, drives the growth of this market. accounted for the highest share in 2016, growing at a
Unilever dominates the global market occupying eight CAGR of 5.3 percent from 2017 to 2023.The growth is
of the 15 top selling brands and a 22 percent share projected because of increased disposable income, the
in the market. Nestle is the closest corporate rival of introduction of new flavors from the manufacturers, and
Unilever, occupying four brands in the top 15. The sales increased consumption of ice-cream as a snack option
of low-quality ice cream have been declining, due to the boosts the market for ice cream products. The LAMEA
increased preference for premium ice cream. The new region accounted for one-sixth of the global ice cream
innovative flavors that companies have come up with, market in 2016 and is projected to witness a CAGR
act as a major driver for this market. Also, private label of 5.8 percent during 2017 to 2023. Brazil accounted
ice-creams are cheaper, thereby increasing the demand. for approximately 50 percent of the LAMEA ice cream
The emergence of private label brands, such as Kroger, market. UAE is projected to register the highest CAGR
has helped in establishing a market presence. The rise in of 10.2 percent during 2017 to 2023. Based on product,
demand for ice cream products from consumers above the market is segmented into impulse, artisanal, and
the age of 50 is another factor that contributes to the take-home, according to Grand View Research. Impulse
growth of the market. The availability of lactose-free ice segment held the largest share as of 2016. Impulse ice
creams is expected to enhance the ice cream market. creams are bought for immediate consumption. These
Consumption of lactose causes several problems, such include cups, cones, ice-lollies, sandwiches, ice cream
as gas, bloating, and diarrhea. This resulted in several bars, and sticks. Ice cream is likely to remain an impulse
ice-cream manufacturers formulating their lactose-free purchase as manufacturers in the developing regions
ice creams to cater to the niche market of lactose- have failed to lure consumers with their bulk products.
intolerant consumers. According to a report by Allied
Market Research, Asia-Pacific is expected to witness the
highest growth rate, owing to rise in demand from the
emerging economies such as India, China, Indonesia,
and others. Moreover, increased disposable income
and rise in standard of living boost the market growth.
The global flavored and functional
India and China are projected witness significant growth market (…) is anticipated (…) to
during the forecast period. Australia is the most attractive
market for ice cream manufactures. Ice cream market reach USD70.32 billion by 2025
in Australia is approximately 10 percent of the overall
countrys food industry. Hypermarkets & supermarkets
were the second leading distribution channel in foodHQ Staff16 Material Handling
Equipment
Processingfoodhq.world
2018 August 16
Advanced Technologies Influencing the Material
Handling Equipment Market
R
ising demand for sophisticated automated
systems coupled with the ever-increasing
labor costs is anticipated to contribute to the
material handling equipment market growth
over the forecast timeline. The use of traditional
human techniques leading to reduced productivity
and increased time consumption has stressed the
need for companies to manufacture high-performance
material handling systems. In addition, the demand for
automated pick & place robots is on the rise since these
systems can be controlled remotely, offering features
such as precise operational capability, contributing
to the material handling equipment market demand.
The incorporation of advanced technologies into the may be stacked in an arranged manner to await
equipment that ensures enhanced throughput is a key consumption or transportation. These systems provide
factor influencing the material handling equipment increased storage capacity, improved inventory control
market growth. The integration of technologies, such as system, and reduced labor costs. Increasing number of
IoT, big data, cloud, and robotics, into these systems companies building new warehouses and upgrading
is encouraging their adoption across several industry the existing ones demanding these systems is expected
verticals. The implementation of big data in material to support the material handling equipment market
handling equipment is aggregating supply chain data growth. The material handling equipment market is
and is driving improvements across several businesses witnessing growth globally with the growing demand in
whereas the incorporation of IoT into these systems the e-commerce sector valued at over USD14 billion in
is enabling the real time monitoring and tracking of 2017. The integration of RFID tags and sensors into the
products. High investment and maintenance costs equipment is facilitating error-free procedures and faster
associated with these systems are expected to hinder movement of materials. Material handling solutions
the material handling equipment market growth. There provide flexible and scalable solutions to increase order
are high operational costs associated with the use of accuracy, optimize productivity, and improve the order
industrial trucks to ensure their smooth operations. cycle times. The need for flexible distribution operations
The emerging trend of renting equipment than buying in warehouses has led organizations to implement
enables consumers to reduce the overall project automation in material handling applications to speed
expenditure is anticipated to hamper the industry up the operations and meet the growing demands.
growth. In material handling equipment market, Furthermore, the growing utilization of these systems in
automated storage and retrieval system (AS/RS) is the durable manufacturing sector for several operations,
gaining popularity and is expected to reach over USD49 such as storage, transportation of goods, picking, and
billion by 2024 as it facilitates several tasks such as the placing of the object, is contributing to the industry
real-time inventory control, order picking accuracy, and demand. Asia Pacific material handling equipment
safer operations. These systems enable fast load transfers market is expected to witness growth at over 6.5 percent
at high speeds. Industries are increasingly using AS/RS CAGR. The growth can be attributed to the flourishing
over the manual order picking process to reduce labor manufacturing sector in countries including China,
costs and ensure efficient order fulfillment. Furthermore, Taiwan and India. Several government initiatives, such as
AS/RS regularly positions and transports the essential Made in China 2025 and Make in India, are supporting
inventory to a conveyor, manual outfeed, or an operator the growth of the manufacturing sector in these regions.
station and enables maintaining the real-time product
tracking & identification. Storage equipment majorly
includes shelves, pallets or racks onto which resources Global Market Insights
www.gminsights.comPROCESSING
Material Handling Equipment 17
Vibratory Cross Head Feeder Conveyors to
Multihead Weighers
When a UK company approached Cox
& Plant they set them a challenge. To
demonstrate how using their vibratory
systems would maximize the accuracy of the
feed to the dispersion table of the multihead
weigher. This would boost efficiency and
reduce wastage. Its unique ‘synchronization’
system calibrated the flow of produce to
ensure a smooth and constant delivery of
product to the multihead weigher. This
ensured the precise delivery of product to
the weigher. The synchronization system
enables the algorithm to be optimized to
achieve the target weight by alleviating the
feast or famine that is experienced when Cross Head Feeder to CCW
the infeed medium is a belt conveyor. In our
on-site and field trials, the vibratory system
increased the weigher accuracies to 93
percent with a vibratory cross head feeder
straight discharge. When a spigot [circular]
discharge was trialled, we increased accuracy
to 97.7 percent compared to conveyors,
which returned a mean result of 79 percent
across the various trails. Andrew Cox MD
said: “Across the globe our systems have an
unrivalled reputation and deliver incredible
return on investment. Our solutions are ground
breaking, nothing compared to the Cox &
Plant vibratory solution which is substantiated
by the fact we’ve replaced thousands of belt
conveyors. It’s just not the same efficiency it
is a workhorse.” This was a successful project
for Cox and Plant which delivered beyond
the client’s expectations. Cox & Plant have
been making vibratory conveyor systems
since 1973, we are designers & manufactures
of conveying equipment for the food
processing industry. The company can
provide consultancy from initiation through
to completion as well as full turnkey projects.Country Report 19 Bahrain
foodhq.world COUNTRY REPORT
2018 August Bahrain 19
Bahrain’s Dependence on Food Imports to
Increase By 2025
B
ahrain currently experiences a comfortable
level of trade-based food security. Relying
on food imports does, however, expose the
country to a high degree of price and supply
risk. To counter this, the government has created
strategies to increase domestic food self-sufficiency.
Scarce natural resources will limit any significant
expansion of the agriculture sector. As population
growth continues and consumption patterns shift
toward more processed, westernized products, Bahrain
will become increasingly dependent on food imports.
Consistent growth in foreign currency revenue is required population to 2025 and beyond. The expansion of
to support trade-based food security and reduce desalinated water will continue to meet water demand
the risks associated with a globalized food system. in the Kingdom; the financial investment required for
expansion, however, will place a significant strain on
As a small island nation, Bahrain lacks the capacity to the government’s finances. Addressing water tariffs and
make meaningful improvements in food self-sufficiency. aligning prices more closely with the value of water will
The government’s current strategy of increasing assist reduce the high per capita water consumption
domestic food production to meet 60 percent of total rates and generate finances for the maintenance and
consumption will place a further drain on already limited expansion of supply. Bahrain is likely to maintain a
resources. The country experiences an extreme level state of food and water security to 2025. Diverse trade
of water stress; consumption levels exceed renewable partners and the expansion of desalination facilities will
supplies and as the population continues to grow, meet medium-term food and water demand. Meeting
rising demand will lead to the degradation of available long-term demand however, will require significant
resources. Even if considerable increases in output could economic reforms, focused on reducing subsidies and
be achieved, it is unlikely that they could keep pace with the diversification of the economy, trade partners for
or exceed population growth rates. As consumption food products and water sources. Given the current
patterns change and total demand for food and water political climate it is unlikely the necessary reforms
grows to 2025, Bahrain will increasingly depend on food will be implemented in the near future, creating long-
imports and alternative sources of water to fill the gap term risks to the country’s food and water security.
between supply and demand and achieve food and
water security. If Bahrain were to experience a food
security crisis in the years to 2025, the likely causes
would be a major supply disruption or imported inflation
resulting from a significant global price spike. Disruptions
to supply relating to extreme weather events, trade
As a small island nation,
embargoes or geo-political events could limit food Bahrain lacks the capacity to make
availability and cause domestic food prices to rise. Given
the country’s high degree of income inequality and the meaningful improvements in food
vulnerability of sectors of the population experiencing self-sufficiency
poverty to food insecurity, a protracted rise in food
prices could cause significant social unrest. Similar to
its neighbors, Bahrain has focused on the supply-side
management of its water resources. The country requires Sinéad Lehane
Research Manager
greater investment in demand-side management if
Global Food and Water Crises Research Program
it is to sustainably meet the water requirements of its slehane@futuredirections.org.au
www.futuredirections.org.aufoodhq.world | August 2018 | Vol XXXV Issue 08 The latest technologies presented by Cama on the market have made the Lecco-based company an international specialist in the manufacture of packaging systems.
foodhq.world COUNTRY REPORT
2018 August France 22
France: High Commodity Prices Have
Caused Headwinds
T
he food industry is a key sector of the French
economy, which, according to the National
Association of Food Industries (ANIA),
generated revenues of USD200 billion in
2016, up 1.1 percent year-on-year. The
industry is generally resilient, supported by slow but
steady consumption growth every year. French food
sector value added growth is expected to increase
0.7 percent in 2017, followed by 1.9 percent in 2018.
France ranks amongst the five largest food exporters
worldwide, and its food trade balance generated a
USD8 billion surplus in 2016, yet down from 9.4 billion EU Trade Agreement (CETA), which might impact the
in 2015 due to a very poor wheat crop harvest and competitive environment. Despite those issues food
decreased prices of dairy products. The annual surpluses manufacturers proved once again to be resilient last
are mostly attributable to wine and spirits exports, while year, as food insolvencies decreased about 8 percent in
France remains the second-largest producer of wines 2016, while the agriculture sector recorded a 4 percent
worldwide behind Italy. According to ANIA, French increase. Payments in the French food sector take 45-50
food companies generate 75 percent of their revenues days on average. Despite a 1.9 percent growth forecast
domestically. However, food producers and processors for 2018, market and trading conditions will remain
continue to face structural challenges in the French challenging due to the on-going volatility of commodity
market that severely impact their margins, namely the prices and loss of market shares to European peers.
fierce price competition in the French retail segment and Price increases will be difficult to pass on to retailers,
contractual price-adjustment mechanisms. The ongoing sometimes leading to product withdrawal or contract
concentration process of retail chains has further termination. While pork prices are slowly decreasing,
weakened the bargaining power of food producers and prices for butter and eggs are expected to remain
processors. At the same time French food businesses are high for the time being. Wine production volumes are
burdened by high labor costs and taxation compared expected to decrease, but the good quality of grapes
to many of their European peers. Therefore French should compensate this decline by higher sales value.
food producers and processors are highly exposed to The ongoing difficulties coupled with an increasing
commodity price fluctuations and competition from deterioration of the financial situation could lead to
abroad. In 2016 and 2017 French food processors faced an increase in non-payments and insolvencies of food
strong cyclical headwinds caused by commodity price manufacturers in the coming months, especially in the
volatility. Pork prices grew 22 percent in 2016, triggered segment of meat processors. Compared to last year our
by increased demand from China, while salmon prices underwriting stance towards this sector has become
surged 60 percent as Norway faced production issues, more restrictive in the course of 2017, as many food
and butter prices sky-rocketed by more than 150 percent businesses published poor 2016 financial results and
since November 2016, due to production shortage and were subject to commodity price volatility or the knock-
greater demand from China and USA. Since summer on effect related to a large bankruptcy in the meat sector.
2017 egg prices have significantly increased following Therefore, we have downgraded our sector performance
the fipronil contamination scandal, putting even more forecast from “Good” to “Fair”. We have increased
pressure on the margins of biscuit manufacturers. our scrutiny on the most sensitive cases, taken more
Those price increases have resulted in a tense situation restrictive decisions and overall reduced our appetite
for many food manufacturers, stuck between farmers for “grey zone” businesses compared to last year.
demanding higher prices while retail chains strictly refuse
to increase purchase prices. Moreover, French food Atradius Collections
companies are preoccupied by Brexit and the Canada- www.atradiuscollections.com6 - 8 Nov 2018
DUBAI WORLD TRADE CENTRE
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Organised by Powered by Strategic Partner Official Logistics Partner Official Airline Partner Official Courier Handler Official Publisherfoodhq.world COUNTRY REPORT
2018 August France 24
Middle East Chefs Spread the Word on the
Virtues of European Butter
Three of the Middle East’s chefs have been recognized
by The French Dairy Board and the European Union,
thanks to their flair for using the finest butters, and
will now appear in an exclusive recipe book “Butter
of Europe: French butter, the secret to make the
difference”, to be distributed in the Middle East and
Asia. Chef Mohanad Alshamali from Dubai, Lebanon-
based Chef Maroun Chedid and Chef Ahmad Fraijeh
from Saudi Arabia were selected to have their creations
featured in the book which not only showcases a range
of recipes from leading chefs from around the world
but also highlights the history of butter and top tips on Cabbage Dolma by Chef Mohanad Alshamali
how to use it. Speaking at the launch of the book, at
Renaissance Downtown Hotel, Dubai, Chef Mohanad, bring out the flavor in any dish, hence the reason why
Executive Chef at the hotels’ Bhar restaurant and so many recipes use butter in some form. Obviously, the
European butter ambassador in the UAE, said: “Butter quality of the butter people use has a direct impact on
is one of the most universal products. You can cook with the taste of the dish and therefore the better quality, the
it, bake with it or simply eat it unmodified. Due to the better the taste and that’s why I always use French butter
versatility of butter as an ingredient it can be used to as it gives my dishes a far superior taste and flavor.”
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qualities found in cheese in regions of the world SH 20 to produce cheese without whey separation.COUNTRY REPORT
Australia 25
Australian Premium Lamb Opportunities
in the Middle East
T
he Middle East has grown to become one of
Australia’s most important sheepmeat markets
over the last twenty years. When considering
lamb by itself, Australian export volumes to
the region grew eight times between 1995 (at 8,176
tones swt) to an all-time peak in 2015 (at 68,355 tones
swt). The Middle East now accounts for almost a quarter
of all Australian lamb exports, including 3 of our top 10
markets in United Arab Emirates (UAE), Qatar and Jordan.
Over the past 10 years, Australian sheepmeat exports to
the region have evolved dramatically from being chiefly
a frozen mutton market to being more of a chilled lamb
market. The average unit price of Australian sheepmeat Middle East and constitutes a major dietary protein in
exports reflects this significant shift, almost doubling the region. In fact, the key Middle Eastern markets, such
from USD3 per kg in 2006-7 to USD5 per kg in 2016- as Saudi Arabia, UAE, Bahrain, Oman and Qatar, are
2017. Looking at Australia’s premium chilled lamb among the few markets in the world where sheepmeat
export markets, half of the top 10 markets are Middle consumption is actually higher than beef. In many of
East countries, with the region as a whole accounting these markets, lamb is considered the “prime” meat
for 47 percent (by volume) of Australia’s total chilled rather than beef or seafood - it is the most superior,
lamb exports in 2016-17. Within Australia’s Middle delicious and tender protein that’s a family favorite and
East markets for chilled lamb, the largest volumes worth paying more for. In many countries throughout
are going to the UAE, Qatar and Jordan, followed by the Middle East, lamb plays an important and unique
Kuwait and Saudi Arabia. Not only are we seeing a shift role in religious events, family celebrations and gift-
in the Middle East from frozen to chilled lamb, but also giving. Although trade in the region is impacted by
towards high value cuts. In 2016-17, Australia’s chilled oil prices and conflict, growth in consumer demand
lamb exports to the region were comprised mostly for premium imported lamb has been driven by
of whole carcase (75 percent), legs (11 percent) and a combination of increasing disposable incomes,
shoulders (8 percent). However, the mix of cuts has been urbanization, westernization, young populations, large
evolving over time. Focusing on the key high value cuts expat professional populations and developing tourism
– loin cuts and rack – the combined chilled and frozen sectors. The place of Australian lamb varies by country but
volume exported to the Middle East has increased in markets such as UAE and Saudi Arabia, MLA’s Global
almost 5 times over the past 15 years from 681 tones Consumer Tracker indicates that Australian lamb has the
swt in 2001-2 to 3,163 tones in 2016-17. High value strongest awareness and consumption of all importing
chilled lamb cuts are less impacted by price variability countries among the middle class consumers surveyed.
and competition, with consistent growing demand as
highlighted below. To give some perspective of the
high value nature of this market, in 2016-17 the average
unit price of Australian lamb exports to the UAE was
USD5.8 contrasted with China at just USD2.8. In the last
12 months, the bulk of the chilled cuts were exported
to the UAE (60 percent), Saudi Arabia (31 percent) and Within Australia’s Middle East
Qatar, with smaller (though mostly frozen) volumes
going to Oman, Bahrain, Jordan, Kuwait and Egypt.
markets for chilled lamb, the
largest volumes are going to the
What is driving this growth of Australian sheepmeat
in the Middle East? UAE, Qatar and Jordan
Sheepmeat has a long history of consumption within thefoodhq.world COUNTRY REPORT
2018 August Australia 26
Building a profile for Australian premium lamb in the competes with New Zealand, and to a lesser extent with
Middle East the UK and EU countries. MLA’s MENA team are focused
Whilst country of origin labelling at the point of sale is on growing demand for Australian lamb by building
not mandatory in the GCC, all modern retailers have meaningful differentiation from the local and international
adopted it across their fresh category, including meat competitors, and establishing a preference for True
products, which are clearly labelled - as consumer Aussie Lamb among trade and consumer audiences.
preference by origin is significant and premium The team is also working with industry and government
meat shoppers generally want to know their meat’s to remove the numerous technical barriers to trade
provenance. The purchase channels for Australian within the region in order to improve market access and
lamb vary by market. There is a presence in all retail ease of doing business and developing the challenging
throughout the region with varying volumes and cuts and new markets, such as Jordan, Egypt and Iran.
by country, but overall a strong retail presence in UAE,
KSA, Jordan and Qatar, along with a growing demand
for loin cuts in foodservice, predominantly in UAE, Saudi
Arabia, Oman and Egypt. Looking at foodservice within
the UAE (Australia’s largest regional market for premium There is a presence in all retail
chilled), chilled raw packaged lamb will be among the
fastest value growth lamb segments from 2017 to 2021
throughout the region with varying
in both the Full Service Restaurant (+45.6 percent) volumes and cuts by country, but
and Quick Service Restaurant (+45.8 percent) sectors
(Source: GlobalData). Despite consumers generally overall a strong retail presence in
having a strong preference for what they perceive as UAE, KSA, Jordan and Qatar
lamb that is raised locally, Australian lamb has quite
a strong and positive profile. At the higher value end
Meat & Livestock Australia Limited
of the sheepmeat market, Australian lamb mostly www.mla.com.au
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Heat and Control and Ishida have demonstrated their
complete solutions in snacks food production. Open
House event at the Ishida factory facility in Birmingham,
UK. Over a two week period in June 2018, around 100
snack food producers visited the Ishida Demonstration
Centre to see a live snacks factory setting in action, with
lines of Heat and Control and Ishida snacks equipment
in operation. The Open House provided a great
opportunity for snack food producers to not only see
the equipment in action, but to participate in a series
of information and training sessions, a factory tour and
see live product demonstrations from leading Heat Open House event at the Ishida factory facility
and Control and Ishida snack food experts. Customers
could also visit the Ishida Quality Control display room form a strategic alliance that provides snack customers
and view the latest in product integrity technology with with full ‘end to end’ processing and packaging
demonstration of X-ray machines and check weighers. solutions. The alliance, known as HCI Snack Solutions,
specifically targets the EMEA region, and builds upon
HCI Snacks Solutions – providing complete snack a long-standing partnership the two companies have
food solutions elsewhere in the world. In Australia, New Zealand and
Heat and Control and Ishida have come together to the USA, Heat and Control is the exclusive distributorYou can also read
