Latin American Trends and Their Impact on Food Industry

Latin American Trends and Their Impact on

Food Industry

June 2014

Presented to: Enfocando Chile 2014

2 9833-88 Confidential - Property of Frost &

Sullivan

Presentation Guide


Sullivan 3 3

Presentation Guide

1. About Frost & Sullivan

2. Mega Trends – The Impact in Latin America

– Urbanization

– Health, Wellness and Well-being

– Food Safety and Security

– Sustainability

3. Q&A


Sullivan 4 4

Presentation Guide



– Urbanization



– Sustainability

3. Q&A


Sullivan

About Frost & Sullivan

http://www.frost.com/



Sullivan 9 9

Presentation Guide



– Urbanization



– Sustainability

3. Q&A


Sullivan

Mega Trends


Sullivan 11 11

What is a Mega

Trend?

Mega trends are

transformative, global

forces that define the

future world with their far

reaching impact on

business, societies,

economies, cultures

and personal lives.

Urbanization

– City as a

Customer

Smart is the

New Green

Social

Trends

Connectivity

and

Convergence

Bricks and

Clicks

Innovating to

Zero

New Business

Models: Value

for Many

Beyond

BRIC: The

Next Game

Changers

Future

Infrastructure

Development

Health,

Wellness and

Well Being

Future of

Mobility

Top Mega Trends Covered By The Visionary

Innovation Research Division

Future

of

Energy

What’s a Mega Trend?


Sullivan

Served Market

• Expand geographic, end users and

product dimensions over the time

• Drivers and restraints acting in the

market

• Megatrends will determine the

maximum market that can be

reached

• Megatrends will determine the

characteristics of the new market

• Current market size

• Competitor’s forces acting in the market

• SWOT analysis to define growing strategies

Note: All figures are rounded. Source: Frost & Sullivan analysis.

Food and Beverage Value Chain, Global, 2013

Introduction

Potential

Addressable

Market

Total

Addressable

Market

Why Megatrends are important?


Sullivan

Food

Safety

Globalization and Changing Economy

Health &

Wellness

Sustainability

Consumer

Seeds and

Traits

$45

Agricultural

Production

(Includes

Animal Feeds)

$4,000

Agricultural

Logistics

$700

Food and Beverage

Logistics

$175

Retail Grocery

(Food at Home)

$8,000

Retail Food Service

(Food Away From Home)

$3,500

Food

Processing

Software

for Ag

$2 Software for

Logistics

$3

Software for

Processing

$8

Software for

Retail

$20

Food Packaging

$300

Processing

Equipment

$200 Nutritional and

Functional

Ingredients

+$300

The cumulative value of all revenue derived from the global food and beverage

value chain was over $20 trillion dollars in 2013, representing nearly 30 percent of

the entire world’s annual production.

The Global Food and Beverage Value Chain—Your

Opportunity Universe

Food and Beverage Market: Generalized Value Chain, $US Billion (Global), 2013

Source : Frost & Sullivan analysis.


Sullivan

• With respect to the F&B industry, the

key global trends expected to have a

direct effect on industry growth and

performance can be grouped into

four main categories: globalization

and changing economies, the

growing need for health and wellness

solutions, a growing sensitivity to

food safety, and sustainability issues.

• By 2020, Frost & Sullivan expects

that companies with a truly global

market and product strategy, that fully

exploit the growing demand for health

and wellness solutions, and that

adopt an all-encompassing

sustainability strategy will lead the

F&B industry.

Food and Beverage Market: Relative Impact of the Top Trends,

Global, 2012

1 5 2 3 4 7 6

Low High

Low High Food Safety

and Security

Globalization

and Changing

Economics

Low High Sustainability

Low High Health and

Wellness

Source: Frost & Sullivan analysis.

Gre

en

, S

afe

, a

nd

He

alt

hy

Green, Safe, and Healthy—A congruence

of trends that expands the potential

product/market opportunity space.

Future of Health, Wellness and Wellbeing: Food and

Beverage Angles and Opportunities


Sullivan

As long as a company communicates its green, safe, and healthy initiatives as being more beneficial or less costly than its competitor’s product offering, customers will be willing to pay a

premium for it.

Source: Frost & Sullivan

Green Safe

Healthy

• Waste

prevention

• Degradable

after

chemical

product use

• Use of

renewable

feedstocks

• Minimize

chemical by-

products

• Maximize

energy

efficiency

• Maximum

pollutant

production

monitoring

during the

production

process

• Slow minimization of unhealthy

ingredients

• Inclusion of functional

ingredients

• Healthcare products

• Dietary supplements

Smart value-

added Solutions

• Safe chemical

product design

• Minimal hazard

chemical

syntheses

• Avoidance of

chemical

derivatives

• Use of safer

solvents

• Minimize

product and

production

accidents

Green, Safe, and Healthy—Industry Challenges

Drives the Need for More Effective Solutions

The Intersection of Green, Safety, and Healthy, 2012


Sullivan

Globalization & Changing Economy


Sullivan

Four Main Trends in Urbanization: Development of Mega

Cities, Mega Regions, Mega Corridors and Mega Slums

MEGA REGIONS

Cities combining with

suburbs to form regions

(Population over 15

million)

EXAMPLE: São Paulo and

Mexico City

MEGA

CORRIDORS

The corridors connecting

two major cities or Mega

Regions (60 km or more

apart, and with a

combined population of 25

million or more)

EXAMPLE: Rio-São Paulo,

Buenos Aires – Cordoba,

and Central Mexico

MEGA CITY

City with a minimum

population of 8 million and

a GDP of $250 billion in

2025 (12 Mega Cities in

2011 and 35 Mega Cities in

2025)

EXAMPLE: Buenos Aires,

Rio de Janeiro, Mexico

City

MEGA SLUMS

1 million urban poor living

in an area measuring just

1.5 square miles

Source: Frost & Sullivan Analysis.


Sullivan

Mega Cities: By 2025, it is expected that 85.7% of the

population (566.5 million people) in Latin America will be living

in urban areas

People per Square Kilometre

Highly Urban Countries More than 200 people

Medium-High Urban Countries 100 – 200 people

Medium Urban Countries 50 – 100 people

Low-Medium Urban Countries 10 – 50 people

Low Urban Countries Less than 10 people

Mexico City Population

2025:

24.6 million

GDP 2025:

$713.5 billion

Bogota

Population

2025:

11.4 million

GDP 2025:

$298.0 billion

Rio de Janeiro

Population

2025:

13.6 million

GDP 2025:

$327.1 billion

Buenos

Aires Population

2025:

15.5 million

GDP 2025:

$327.1 billion

Sao Paulo Population

2025:

23.2 million

GDP 2025:

$643.9 billion

Mega Cities in 2025

Emerging Mega

Cities (4-8 million

population in 2025)

Santiago Population

2025:

7.1 million

Belo

Horizonte Population

2025:

6.6 million

Guadalajara Population

2025:

5.7 million

Source: United Nations, Department of Economic and Social Affairs Statistics, Frost & Sullivan and other regional and country level statistics bureau

Lima

Population

2025:

11.5 million


Sullivan

Mega Regions: The region is characterized by a rapid increase in Tier

2 cities – Cities with population between 1 and 5 million people are

expected to grow at a 16% pace by 2025

Source: United Nations, Department of Economic and Social Affairs Statistics, Frost & Sullivan and other regional and country level statistics bureau

Sao Paulo (Sao Paulo –

Campinas – Sao Jose

dos Campos – Santos)

29.8 million

Buenos Aires

– La Plata

21.0 million

Central Mexico

(Mexico City –

Puebla

Cuernavaca –

Toluca -

Pachuca)

31.4 million

Monterrey- Saltillo

- Torreon

8.2 million

Santiago –

Valparaiso-

Rancagua –

San Antonio

9.1 million

Brazil Northeast (Natal –

Joao Pessoas – Recife –

Salvador- Maceio –

Aracaju)

15.3 million

Caracas – La

Guaira

12.5 million

Bogota -

Villavicencio

14.0 million

Brasilia – Goiania -

Anapolis

7.6 million

Potential Mega Regions after 2030

Mega Regions in 2025

Potential Mega Regions in 2030

Rio de Janeiro (Rio de

Janeiro – Niteroi – Nova

Iguazu - São Gonçalo -

Duque de Caxias)

17.2 million


Sullivan

“She-conomy”: Women to Account for 53.0% of Latin American

Working Population and 33.5% of Directorship Positions in 2025

2011 2025

Total Female Decision Makers in Public

and Private Sectors (%) 21.4 33.5

Women Professional, Scientists and

Intellectual (%) 48.8 51.2

Average income Gap of Latin American

Urban Women vs Men (%) 17 8

Percentage of Parliament Seats

Occupied by Women (%) 23.0 35.7

Women Bank Account Holders (millions) 103.3 170.3

Women Empowerment, Latin America, 2011–2025

Source: CEPALSTAT, CELADE, Frost & Sullivan Analysis.

Rise in Single Mother Households by 2025

2025

Female Work Participation Statistics, Latin America,

2011–2025

2011

170 million

295 million

156 million

334 million

Total Female Population Female Working Population

One-Child Families and Late Children

New Social Trends in 2025

Increase in Average Marrying Age of Women


Sullivan

The Middle Bulge: Middle Class Individuals to Account for

69% of Latin America’s Population (461 million) in 2025

Source: IADB, ECLAC, Frost & Sullivan Analysis.

Note: Figures in brackets are millions of individuals.

Poverty Line based on ECLAC definition of poverty - $2.5 US dollars per person per day in market prices

2025

661 million Individuals

2011

577 million Individuals

$32,000

$14,600

$60,000

$3,650

$100,000

10.8%

(62)

Below

Poverty

Line

Poor

Lower Middle

Class

Middle Class

Upper Middle

Class

Rich

31.1%

(206)

9.7%

(64)

13.8%

(91)

27.2%

(180)

11.3%

(75)

Income Per Annum

Poverty

Line

12.9%

(74)

32.6%

(188)

6.6%

(38)

19.2%

(111)

17.9%

(103)

6.9%

(46)

Income Pyramid, Latin America, 2010 and 2020


Sullivan

159.8 145.4

197.3 204.9

180.0 241.3

39.8 69.4

0

200

400

600

800

2010 2020

Po

pu

lati

on

in

Mil

lio

n

0-14 15-34 35-64 65 Years and Above

Life Expectancy will increase from 74.3 years in 2011 to 76.0 years in 2020

$0

$200

$400

$600

$800

2001 2010 2020T

ota

l A

nn

ual

Pu

rch

ase P

ow

er

($

billio

n)

Ageing Population – Total income of ageing population (over

60) will have a 55% increase from 2010 to 2020 in Latin America

Over 60 People Total Income: (Latin America & Caribbean), 2011-2020

$458.5

$711.4

Population: Breakdown by Age Range (Latin America), 2010-2020

6.9% in 2010 10.5% in 2020

Source: World Resources Institute and Frost & Sullivan analysis.

$256.3

Source: The World Bank, IMF, IBGE and Frost & Sullivan analysis. Source: CEPALSTAT 2012


Sullivan

Latin America’s GDP vs. Population Levels: GDP To Reach

$15.14 Trillion in 2025

1995 2000 2005 2010 2015 2020 2025

Population (millions) 471 510 545 577 608 636 661

Real GDP (Growth (%)) 0.7 4.4 4.6 6.0 5.8 5.2 5.4

Per Capita Income ($) $3,829.5 $4,110.4 $4,868.1 $8,401.9 $12,086.7 $16,823.3 $22,927.3

$1.80 trillion

$2.65 trillion $2.09 trillion

$ 15.14 trillion

$10.70 trillion

$7.35 trillion

$4.85 trillion

Note: GDP and per Capita Income at Market Prices

Source: IMF, World Bank, ECLAC, Frost & Sullivan Analysis.

0.4%

4.4%

6.0%

6.5% Latin America’s GDP vs. Population Levels, 1990-2020

24 Confidential - Property of Frost &

Sullivan

Health & Wellness


Sullivan

The functional food and beverages market will value US$

21B in 2020 in Latin America – 13% of the global market

Change in lifestyle and increasing of disorders such as diabetes and cardiovascular

diseases create opportunities for: stevia, amino acids, antioxidants, enzymes, fibers,

proteins, probiotics, prebiotics, phytosterols and polyphenols.

• Ingredients for functional beverage are

the most promising category:

• healthiness-on-the-go concept

Consumption of health ingredients and nutricosmetics will

become a way of life

Average Price, Natural X Synthetic

Food Ingredients

218.1%

276.5%

352.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

400.0%

NA EU BR


Sullivan

Health & Wellness—Addressing Heart Health

Issues will Have a Major Impact on Rising Costs

The frequency of cardiovascular death is correlated more with limited access to health care services as opposed to demand for services. Obesity is a leading

current and future indicator for the prevalence of heart disease, and consequently the demand for nutritional ingredients.

0 100 200 300 400 500 600

Japan

Australia

Israel

Netherlands

Italy

United Kingdom

Denmark

United States of America

Germany

Mexico

Brazil

South Africa

India

Turkey

Russian Federation

Cardiovascular diseases and diabetes, deaths per 100,000 (age-standardized estimate)

Source: World Health Organization

0 10 20 30 40

Japan

Switzerland

Netherlands

Sweden

Denmark

Germany

Poland

Spain

Greece

Iceland

Luxembourg

Canada

Chile

New Zealand

Mexico

Obese population, measured, % of total population*

Source: OECD Health Data 2012

* % of total adult population with a BMI>30 kg/m2,

based on measures of height and weight


Sullivan

The need for a change in the consumer behavior will enable the

appearance of new niche markets within the Food Industry

Peru:

15%

Note: Obesity percentage is defined in the population older

than 15 and with a BMI (body mass index) greater than 30 Sources: Organization for Economic Co-operation and Development (OECD)

/ World Health Organization (WHO) / International Obesity Taskforce

Colombia:

16%

Bolivia:

18%

Brazil:

18%

Honduras:

19%

Chile:

25%

Argentina:

26%

Venezuela:

28%

Paraguay:

32%

Mexico:

33%

The rising of middle class and increasing urbanization is leading to higher obesity rates in Latin America.

Considering the current growth rate, Brazil will present in 2020 the same level of obesity presented by

the US today (34%)

From Fat to Fit…

Weight management ingredients

(fat burners, satiety ingredients,

metabolism regulators) will grow

at a 7.5% CAGR by 2020

Obesity rate in Latin America countries (2010)


Sullivan

Heart Health Ingredients Market—Opportunity

Overview

• Cardiovascular diseases is a major cause for

mortality globally. This factor drives the demand

for heart healthy functional foods.

• The key heart health ingredients include omega-3

fatty acids, phytosterols, soy protein, and fiber.

• The current trend in this market is to develop

specialized ingredients for targeted applications

such as cholesterol lowering, blood pressure

control, and heart energy.


Cardiovascular disease is the most costly non-communicable disease in the world in terms of medical spending and mortality


Sullivan

Heart Health Ingredients Market—Opportunity

Overview

Omega-3 continues to be the dominant heart health ingredient in the global market in terms of market penetration and growth.

0%

2%

4%

6%

8%

10%

12%

14%

0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0 1800.0 2000.0

CA

GR

, 2

01

2-2

01

8, (%

)

Market Size, 2012 ($US Million)

Growth Opportunity Analysis by Product Type, Global, 2012-2018

Note: All figures are rounded; the base year is 2012. Source: Frost & Sullivan

Beta Glucan Omega-3

Phytosterols

Soy Protein and

Isoflavones


Sullivan

Osteoporosis by country

0 200 400 600 800 1000 1200

Cameroon

China, Beijing

Mexico

Iran

Japan

Kuwait

Argentina

Singapore

England

Hong Kong

Australia

New Zealand

United States

Sweden

Norway

Age standardized hip fracture rates (per 100,000) Selected Countries/Regions

Men Women

Source: D. K. Dhanwal, C. Cooper, and E. M. Dennison, (2010)

This suggests that diet and exposure to sunlight may

be a key contributor to problems associated with

osteoporoses-attributed hip fractures.


Sullivan

Women’s Health Ingredients Market—

Opportunity Overview

xxxxx The markets for calcium and iron nutritional supplements is mature and major

segments ion the women’s health ingredients market.

0%

2%

4%

6%

8%

10%

12%

14%

16%

0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0

CA

GR

, 2

01

2-2

01

8, (%

)

Market Size, 2012 ($US Million)

Growth Opportunity Analysis by Product Type, Global, 2012-2018

Note: All figures are rounded; the base year is 2012. Source: Frost & Sullivan

Iron Calcium

Vitamin D

Folic Acid

Cranberry Extract


Sullivan

Woman Health Ingredients

• The main areas of concern for woman are

bone and joint health, urinary tract health,

circulatory system health and reproductive

system health

• The ingredients usually included in the

women’s health category are iron, calcium,

vitamin D, soy isoflavones, folic acid, and

cranberry extract.


Bone health is the most important issue facing women due to its heavy contribution

to total health care costs among the world’s elderly women.


Sullivan

Global Vitamin and Mineral Ingredients Market—

Product Attribute Selection Criteria


Cost effectiveness, solubility, and stability are the key attributes for vitamin and mineral ingredient selection.

1 5 2 3 4 7 6 • Dietary supplements are mostly supplied as multi-

vitamins to consumers. However, the water soluble and

fat soluble vitamins do not form a perfect emulsion. It is

important that all the active ingredients are completely

soluble.

• Vitamins are sensitive to heat, moisture, oxygen, and

acid. These factors could result in potential loss of the

active ingredient formulated in the product. Hence,

stability is a key functional property.

• For better acceptance of vitamins and minerals by

consumers, it needs to be palatable.

• To reduce the side effects, products need to be

formulated with nature identical isomer.

• Bio-availability is the most important attribute for product

selection by customers.

• As dietary supplements is a huge market for vitamins,

price of raw materials plays a key role in ingredient

selection.

• Dietary supplements are primarily regulated by the FDA

and FTC in the US. Therefore, its imperative for

customers to select products that are regulatory

complaint.

• Formulating products with natural ingredients gives a

competitive edge for customers.

Low High

Low High

Low High

Low High

Low High

Low High

Low High

Low High

Low High

Solubility

Organoleptic

Properties

Stability

Nature identical

isomer

Bio-availability

Regulatory

compliance

Cost

effectiveness

Safety

Natural Source

Attractive Not Attractive KEY


Sullivan

Food Safety


Sullivan

Confusion over the many different food standards and regulations impacts the implementation of effective food safety practices.

Food Safety and Security—Industry Challenges


“Everybody wants to supply Wal-Mart. Wal-Mart is not the only one, but when Wal-Mart begins, everybody

starts to listen because everybody hinges their (profit) margin on that account…”

(Large Food and Beverage Ingredient Manufacturer)


Food Safety Standard

Confusion and

Redundancies

Heightened Awareness

of Food Security

Breaches

Retailer Demand for

Safer Products Mistrust of Third-party

Auditors


Sullivan

The top four product categories in terms of retail sales are fresh vegetables, pulses, and cereals, fresh fruit, fresh milk, and fresh meat, respectively. Delivering fresh food necessitates

the need for value chain speed.

Food Safety and Security—The Need for Value

Chain Speed

Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan

Total Food At Home Revenue and Value Chain Speed Estimates by Product Type, Global, 2011

1,7

05

1,5

03

1,4

52

729

430

400

246

220

175

129

125

112

108

105

105

100

100

82

80

75

70

70

62

47

42

20

15

10

8

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

300

600

900

1,200

1,500

1,800Faster Medium Slower

Value Chain

Speed

Reve

nu

e (

$U

S B

)


Sullivan

Food Safety—Why are Food Safety Standards

Needed?

• The burden of food safety breaches is significant. According to the World

Health Organization, food borne illnesses results in roughly 2 million deaths

per year from just diarrheal diseases and according to the Centers for

Disease Control and Prevention, approximately 1 in 6 Americans get sick

from food borne illnesses, with about 3,000 people dying annually.

• Thus, there is a strong need for a harmonized set of global food safety

standards that assures the following:

o Promotion of safe and quality food and animal products for global

consumers

o Protection against risk factors at all stages of the food supply chain,

from farm through to fork

o Protection of brand quality and manufacturer reputations

o Prevention of disease outbreaks or health concerns occurring as a

result of breaches in food safety

o Offers a benchmark against which food industry operators and food

supply organizations can be trained in the correct procedures for

provision of a safe consumer food supply

• Despite progress in the right direction, challenges persist globally in

implementing a truly global food safety system.

The burden of food safety breaches is very costly, resulting in billions of dollars of

wasted food product, wasted time, and most importantly, human lives.



Sullivan

• SIRA Technologies created a revolutionary packaging barcode

label that was supposed to be commercialized in 2010. The

company’s product failed in the market, and thus it filed for

bankruptcy in 2011.

• SIRA incorporated a newly designed ink into its new proprietary

barcode labels, which was supposed to only cost about four cents

to place on food item barcode labels. Yet, the product failed in the

marketplace due to low demand from end users and no top-down

regulations requiring adoption.

• Ink Properties:

o Shelf-stable until activation

o Can be used on standard printing presses

o Print on labels, packages, or cartons

o Cannot revert after it reaches its trip point

o Archival “memory” storage of the thermal change

o Automated “readability” of labels and packages using

conventional barcode scanners

o SIRA’s labels were not “additional” labels, just an addition

to the food label that gave it a transformative capability

Food Safety—Implementation Challenges Persist

Key takeaway: Despite the need for a communication solution, confusion over food standards and regulations and the uncertainty around whether there is a need to adopt expensive compliance

technologies has had an adverse impact on the adoption of innovative food safety solutions and services.



Sullivan

Barcode number

and bright purple

visual marker

indicate an unsafe

product.

Barcode number

and the lack of a

bright purple

visual marker

indicates a safe

product.

Negative Environmental Factors

Shipped Product

Distribution

Channel

Distribution

Channel

Received

Product

• Work was under development to create a way

for the inks to be “turned on.”

• Activation devices were in final-stage

development by SIRA Technologies in 2010 for

use with weigh scales, printing press add-ons,

production line systems, bench-top printers, and

hand-held devices.

Food Safety—Implementation Challenges Persist

(continued)

Key takeaway: The barcode was actually two barcodes (a SIRA code and product code) that were joined together.



Sullivan

0

5,000

10,000

15,000

20,000

25,000

2012 2017CAGR (2012 -

2027)

Revenue 13,275 19,978 8.5%

Re

ve

nu

e (

$U

S M

)

Biosensors, safety software, and toxin, contaminate, and genetically modified organism (GMO) testing products are the key product segments supporting overall

market growth during the forecast period.

Total Food Safety Products Market Overview

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

Total Food Safety Products Market Revenue Forecast,

Global, 2012 – 2017 • The key growth driver in this

market is the growing concern over food security breaches among governments that react by passing more stringent regulations on food manufacturers, who are in turn forced to adopt new products and services that helps them assure the safety of their production processes and logistic activities.


Sullivan

Total Food Safety Products Market—Selected

Country Trends

United States

• Increasing reliance on food imports

• No supply chain map for traceability

– food quality inspection system has

major flaws

• Loss of consumer confidence due to

increasing numbers of food-borne

disease outbreaks

United Kingdom

• Concerns over saturated fat, sugar and salt levels in foods

• Concern over the rigor of risk analysis for cloned animal products from animals

– should be as thorough as drug research

• Consumers have increasing confidence in food safety and the Food Standards

Agency (FSA)

China

• Distrust of retailers and manufacturers since

melamine scandals began in 2007

• Complete overhaul of food surveillance system

needed, and implementation of farm to fork

traceability scheme for food

Global Response

• Harmonization of standards between developed and developing countries

• Increased international focus on food safety and standards development

• Need for both industry education and a recognized global food safety standard

Brazil

• Issues with food safety controls in meat and fish products. Foot &

Mouth Disease problems. More defined traceability controls

needed

• Misuse of antibiotics, growth hormones and pesticides.

• Discrepancies in animal slaughter processes between Brazil and

developed countries

Source: Frost & Sullivan research.


Sullivan

Sustainability


Sullivan

Being Green—What is it? Optimization of the 3

bottom lines over time

Ch

an

ge

in

Bo

tto

m L

ine

Time

Ch

an

ge

in

Bo

tto

m L

ine

Time

Yesterday’s Objective Today’s Objective

With the growing power of external constituents that demand increasing social and environmental responsibility, companies now must adopt business practices

that meet these additional objectives.



Sullivan

Zero

Emissions

from Cars

Zero

Accidents

Zero

Breaches of

Security

Zero

Crime

Rates

Zero Waste/

Emissions

Complete

Recyclability from

Households

(Cradle to Cradle

Concept)

Zero

Defects

and Zero

Faults

Carbon

Neutral

Factories and

Retail Stores

Carbon

Neutral Cities

Source: Frost & Sullivan Analysis

Innovating To ZERO”: Snapshot of a “Zero Concept” World in 2020 Emerging Technologies Innovating to Zero Breaches of Security, Accidents, Fatalities,

and Emissions in 2025

Photo Credits: Dreamstime

Zero

Corporate

Debts

Zero

Emails


Sullivan

Green, Safe, and Healthy—Industry Challenges


The purpose of third-party verification is to qualify inherently intangible product quality attributes that in turn enhance and satisfy end-user demand.

Raw Material Supplier


Distributors and

Retailers

Final Consumers

Finished Good

Manufacturer

We Are Still

Green, Safe,

and Healthy

Are Green,

Safe, and

Healthy?

Is this Green,

Safe, and

Healthy?

Distributors and

Retailers

Final Consumers

Finished Good

Manufacturer

Raw Material Supplier

We Are

Green,

Safe, and

Healthy

We Are

Green,

Safe, and

Healthy

We Are

Green,

Safe, and

Healthy

We Are

Green,

Safe, and

Healthy

3rd Party Verified

Without a clear industry icon…

With a clear industry icon…

We Are

Green,

Safe, and

Healthy

Product Flow

$ and Feedback Flow


Sullivan 46 46

Presentation Guide



– Urbanization



– Sustainability

3. Q&A


Sullivan

Thank you!


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49

Gustavo Ferrari Research Analyst

Chemicals, Materials & Food

+55 11 3065-8462

[email protected]

Lead Consultant

Contacts

mailto:[email protected]