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.
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