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Frost & Sullivan's Big Predictions for the Chemicals, Materials and Food Industry in 2012

The four Mega Trends of low carbon economy, health and wellness, functionality and performance, and globalisation will shape these markets


News provided by

Frost & Sullivan

May 23, 2012, 02:00 ET

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LONDON, May 23, 2012 /PRNewswire/ -- Green products like bioplastics, high demand for innovative chemicals and materials, and industry consolidation will dominate the chemicals and materials industry across Europe, while weight management, heart and digestive health will be the high growth sectors in food and beverage markets.

A new forecast from Frost & Sullivan presents the key perspectives on growth in the Chemicals, Materials and Food Industry in 2012 and shows where the next growth opportunities are in many different sectors and in new geographies.

Research Director Dr Leonidas Dokos says:  "The four Mega Trends of low carbon economy, health and wellness, functionality and performance, and globalisation define the developments in the chemicals, materials and food industry. The food, mobility and construction markets remain core developments for 2012 exhibiting growth overall driven by the emerging economies."

Global hot spots

According to Frost & Sullivan, China, Brazil and Russia are the top priorities for construction and utilities players, while for transportation players the focus is on China, India and Brazil. In particular, the Indian demand for chemicals will grow on the back of massive growth in end-user industries such as automotive production. China's development of green technology will draw in strong chemicals investment, even for technologies such as electric vehicles.

The Western European market remains the priority for EU based manufacturers over other regions. North America and Eastern Europe are the next priority while Russia presents significant opportunities across sectors, especially in construction, water treatment, transportation and PPE.

Latin America will be the hub for bioethanol and Brazil will continue to export it to neighbouring nations. There will also be increasing focus in oil and gas exploration with restructure in the state petrochemicals companies.  Brazil, in particular, is forecast to become a major centre of supply for biobased feedstocks and will be the construction hot spot until 2016 (supported by the 2014 Football World Cup and the 2016 Olympic Games).

The food and beverage suppliers are looking at the following three emerging markets – China, India and Brazil while in Europe the focus is and will be on bakery ingredients.

Consolidation

Targeted consolidation in the chemicals and materials industry continues as one of the main highlights of recent years but the number of closed deals will be smaller due to widespread lack of cash availability. However, in 2012 we will witness a mega acquisition of a top 100 global chemicals company headquartered in Europe. As a general forecast for all segments, the continuing debt crisis in the eurozone and the high US government debt continue to undermine the speed of the macroeconomic recovery of markets and the level of investment available.

To know more about trends, opportunities, and challenges in the Chemicals, Materials and Food industry please contact Chiara Carella, Corporate Communications, at [email protected]

Frost & Sullivan's insight on the big predictions for the Chemicals, Materials and Food industry in 2012 and beyond is available on SlideShare.

http://www.slideshare.net/FrostandSullivan/frost-sullivan-whats-hot-in-the-chemicals-materials-and-food-industry-in-2012

About Frost & Sullivan  

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. 

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.  
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible.  This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.  

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?  

Contact Us:     Start the discussion

Join Us:            Join our community

Subscribe:       Newsletter on "the next big thing" 

Register:        Gain access to visionary innovation

Contact:
Chiara Carella
Corporate Communications – Europe
P: +44 (0) 20 7343 8314
M: +44 (0) 753 3017689
E: [email protected]
http://www.frost.com

SOURCE Frost & Sullivan

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