Abstract
Food and Beverage Sector Presents a Dynamic Market for Water & Wastewater Treatment Equipment
The food and beverage industry uses large volumes of water as it is a convenient, clean, and a relatively inexpensive resource, both as a component of many products, and as a solvent for conducting cleanups and other production needs. For suppliers of water and wastewater treatment equipment and services the food and beverage sector presents a fairly dynamic market; however, pressures for supplier excellence and customer specific services are becoming increasingly strong. Although the food and beverage industry is in the growth to maturity stage, increasingly aging infrastructure is driving the repair and replacement market growth. Moreover, regulations and legislative compliance are driving the technology upgrade and update markets. Expansions and extensions to existing systems are the other emerging opportunities in this market.
This Frost & Sullivan research covers the U.S. end-user markets for water & wastewater treatment in the food and beverage industry. The study focuses on customer purchasing criteria, the evaluation of suppliers, and the key factors that influence customer satisfaction levels. It also profiles the emerging role of the service markets and the direction of future investments. Frost & Sullivan has plotted customers satisfaction against their expectations with various factors to evaluate both the total market trend and more importantly, the performance of each individual supplier.
Higher Customer Satisfaction Levels Will Strengthen Supply Prospects
Customer satisfaction is one of the key determinants of the end users eventual purchase decision of water and wastewater treatment equipment. Satisfaction levels are based on a blend of supply elements such as product quality, reliability, and technological superiority. There is also a growing emphasis on customized services including product training, delivery time, and after-sales service. In this respect, some suppliers have succeeded in developing a competitive advantage while others need to immediately address critical issues to retain customer loyalty.
"According to customers purchasing criteria and highest satisfaction levels, the critical success factors for suppliers are reliability and output quality as well as safety of the system," says the analyst of this research. "In terms of service, the legislative compliance and initial investment cost (capex) and operational cost (opex) of the system are very important." Additionally, customers rely on industry experience and reference from others before considering a new supplier.
Replacement and Outsourcing Market Will Drive Future Growth
With approaching saturation, the replacement market is growing in importance. There is an increased investment in technological sophistication through improved upgrades and greater process efficiencies. Newer environmental legislations and obsolete water treatment processes in food plants are expected to ensure a market for replacements and plant extensions.
"Interest in full outsourcing in this market is still relatively undeveloped, with many food and beverage companies having in-house teams to handle much of the day-to-day running and maintenance of the plants," notes the analyst. However, new developments such as ultraviolet (UV), membranes, and lower-cost sludge treatment technologies are emerging as growth drivers for the water treatment equipment market.
Table of Contents
1 EXECUTIVE SUMMARY
Executive Summary
- Key Findings
- Content
2 MARKET OVERVIEW AND INTRODUCTION TO THE CUSTOMER
Introduction
- The Food & Beverage Industry
- Regulations
- Market Revenue Forecasts
- Market Engineering Measurement System
Profile of Respondents
- Source of Raw Water
- Reason for Treating Wastewater Onsite
- Volumes of Water & Wastewater Treated Daily
- Level of Wastewater Treatment
- Age of Treatment Plant
Content and Definitions
- Content and Definitions
3 CUSTOMER REQUIREMENTS
Key Investment Decisions
- Customer Responses on Purchasing Criteria
Product Related Criteria
- Customer Responses on Product Related Criteria
- Importance of Reliability
- Importance of Water Quality
- Importance of Treatment Rate
- Importance of Safety
- Importance of Size & Footprint
- Importance of Lifespan
Service Related Criteria
- Customer Responses on Service Related Criteria
- Importance of Initial Investment
- Importance of Operational Cost
- Importance of Delivery Time
- Importance of After Sales Service
- Importance of Product Training
- Importance of Legislative Compliance
4 EVALUATION OF SUPPLIERS
Customer Satisfaction
- Overall Satisfaction With Suppliers
- Satisfaction with Supplier Factors
- Satisfaction with Price
- Satisfaction with Customer Service
- Satisfaction with Product Quality
- Satisfaction with Functionality
- Satisfaction with Added Services
- Satisfaction with Reliability
- Satisfaction with Delivery Time
5 SUPPLIER SELECTION
Supplier Selection Criteria
- Supplier Selection Criteria
- Brand Name Criteria
- Product Range Criteria
- Industry Experience Criteria
- Quality of Service Criteria
- e-commerce Criteria
- Account Management Criteria
- New Products Criteria
- Proximity & Local Presence Criteria
Supplier Information Criteria
- Supplier Information Criteria
- Reference Lists
- Company Reputation
- Marketing Promotion
- Trade Fairs
6 PERCEPTION OF SUPPLIERS AND NEW ENTRANTS TO THE MARKET
Evaluation of Water and Wastewater Treatment Equipment Suppliers
- Introduction
- Familiarity with Suppliers
- Key Perceptions
- Overall Supplier Ratings
- Supplier Performance on Price
- Supplier Performance on Customer Service
- Supplier Performance on Product Quality
- Supplier Performance on Reliability
- Supplier Performance on Technological Skills
- Customer Performance on Delivery Time
New Entrants to the Market
- Acceptance of New Entrants
- Potential Problems for New Entrants
7 INVESTMENT PATTERNS AND CONTRACTUAL DEMANDS
Investment Trends
- Annual Investment Trends
Contractual Requirements
- Contract Type
- Supply of Spare Parts
8 STRATEGIC CONCLUSIONS
Strategic Conclusions
- Key Findings
- SWOT Analysis
- Competitive Structure Analysis
9 FROST & SULLIVAN AWARDS
Frost & Sullivan Awards
- Introduction to Frost & Sullivans Best Practices Awards
Customer Recognition Award for Best Overall Satisfaction
- Introduction
- Customer Recognition Award for Best Overall Satisfaction
Customer Recognition Award for Best Product Reliability
- Introduction
- Customer Recognition Award for Best Product Reliability
10 DECISION SUPPORT DATABASE
The Food and Beverage Industry
- Butter Production
- Consumer Expenditure on Food & Beverage
- Frozen Food Production
- Margarine Production
- Total Consumer Expenditure
- Total Meat Production
- Vegetable Oil Production
