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Latin American Trends and Their Impact on Food Industry

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  • 1. Latin American Trends and Their Impact on Food Industry June 2014 Presented to: Enfocando Chile 2014
  • 2. 29833-88 Confidential - Property of Frost & Sullivan Presentation Guide
  • 3. 39833-88 Confidential - Property of Frost & Sullivan 33 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
  • 4. 49833-88 Confidential - Property of Frost & Sullivan 44 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
  • 5. 59833-88 Confidential - Property of Frost & Sullivan About Frost & Sullivan
  • 6.      
  • 7. 99833-88 Confidential - Property of Frost & Sullivan 99 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
  • 8. 109833-88 Confidential - Property of Frost & Sullivan Mega Trends
  • 9. 119833-88 Confidential - Property of Frost & Sullivan 1111 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?
  • 10. 129833-88 Confidential - Property of Frost & 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?
  • 11. 139833-88 Confidential - Property of Frost & 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 $200Nutritional 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.
  • 12. 149833-88 Confidential - Property of Frost & 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 52 3 4 76 Low High Low HighFood Safety and Security Globalization and Changing Economics Low HighSustainability Low HighHealth and Wellness Source: Frost & Sullivan analysis. Green,Safe,andHealthy 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
  • 13. 159833-88 Confidential - Property of Frost & 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
  • 14. 169833-88 Confidential - Property of Frost & Sullivan Globalization & Changing Economy
  • 15. 179833-88 Confidential - Property of Frost & 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.
  • 16. 189833-88 Confidential - Property of Frost & 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
  • 17. 199833-88 Confidential - Property of Frost & 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
  • 18. 209833-88 Confidential - Property of Frost & 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
  • 19. 219833-88 Confidential - Property of Frost & 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
  • 20. 229833-88 Confidential - Property of Frost & Sullivan 159.8 145.4 197.3 204.9 180.0 241.3 39.8 69.4 0 200 400 600 800 2010 2020 PopulationinMillion 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 $800 2001 2010 2020 TotalAnnualPurchasePower($ billion) 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
  • 21. 239833-88 Confidential - Property of Frost & 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 $4.85 trillion Note: GDP and per Capita Income at Market Prices Source: IMF, World Bank, ECLAC, Frost & Sullivan Analysis. 0.4% 4.4% 6.0% 6.5%Latin America’s GDP vs. Population Levels, 1990-2020
  • 22. 24 Confidential - Property of Frost & Sullivan Health & Wellness
  • 23. 259833-88 Confidential - Property of Frost & Sullivan The functional food and beverages market will value US$ 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
  • 24. 269833-88 Confidential - Property of Frost & 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
  • 25. 279833-88 Confidential - Property of Frost & 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)
  • 26. 289833-88 Confidential - Property of Frost & 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. Source: Frost & Sullivan Cardiovascular disease is the most costly non-communicable disease in the world in terms of medical spending and mortality
  • 27. 299833-88 Confidential - Property of Frost & 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 CAGR,2012-2018,(%) Market Size, 2012 ($US Million) Growth Opportunity Analysis by Product Type, Global, 2012-2018 Note: All figures are rounded; the base year is 2012. Source: Frost & Sullivan Beta Glucan Omega-3 Phytosterols Soy Protein and Isoflavones
  • 28. 309833-88 Confidential - Property of Frost & Sullivan Osteoporosis by country 0 200 400 600 800 1000 1200 Cameroon China, Beijing Mexico Iran Japan Kuwait Argentina Singapore England Hong Kong Australia New Zealand United States Sweden Norway Age standardized hip fracture rates (per 100,000) Selected Countries/Regions Men Women Source: D. K. Dhanwal, C. Cooper, and E. M. Dennison, (2010) This suggests that diet and exposure to sunlight may be a key contributor to problems associated with osteoporoses-attributed hip fractures.
  • 29. 319833-88 Confidential - Property of Frost & Sullivan Women’s Health Ingredients Market— Opportunity Overview xxxxx The markets for calcium and iron nutritional supplements is mature and major segments ion the women’s health ingredients market. 0% 2% 4% 6% 8% 10% 12% 14% 16% 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0 CAGR,2012-2018,(%) Market Size, 2012 ($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
  • 30. 329833-88 Confidential - Property of Frost & 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. Source: Frost & Sullivan 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.
  • 31. 339833-88 Confidential - Property of Frost & Sullivan Global Vitamin and Mineral Ingredients Market— Product Attribute Selection Criteria Source: Frost & Sullivan analysis. Cost effectiveness, solubility, and stability are the key attributes for vitamin and mineral ingredient selection. 1 52 3 4 76 • 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 AttractiveKEY 
  • 32. 349833-88 Confidential - Property of Frost & Sullivan Food Safety
  • 33. 359833-88 Confidential - Property of Frost & Sullivan Confusion over the many different food standards and regulations impacts the implementation of effective food safety practices. Food Safety and Security—Industry Challenges Drives the Need for More Effective Solutions “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) Source: Frost & Sullivan Food Safety Standard Confusion and Redundancies Heightened Awareness of Food Security Breaches Retailer Demand for Safer Products Mistrust of Third-party Auditors
  • 34. 369833-88 Confidential - Property of Frost & 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 1,705 1,503 1,452 729 430 400 246 220 175 129 125 112 108 105 105 100 100 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 1,800 Faster Medium Slower Value Chain Speed Revenue($USB)
  • 35. 379833-88 Confidential - Property of Frost & 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. Source: Frost & Sullivan
  • 36. 389833-88 Confidential - Property of Frost & 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. Source: Frost & Sullivan analysis.
  • 37. 399833-88 Confidential - Property of Frost & 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. Source: Frost & Sullivan analysis.
  • 38. 409833-88 Confidential - Property of Frost & Sullivan 0 5,000 10,000 15,000 20,000 25,000 2012 2017 CAGR (2012 - 2027) Revenue 13,275 19,978 8.5% Revenue($USM) 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.
  • 39. 419833-88 Confidential - Property of Frost & 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.
  • 40. 429833-88 Confidential - Property of Frost & Sullivan Sustainability
  • 41. 439833-88 Confidential - Property of Frost & Sullivan Being Green—What is it?  Optimization of the 3 bottom lines over time ChangeinBottomLine Time ChangeinBottomLine 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. Source: Frost & Sullivan
  • 42. 449833-88 Confidential - Property of Frost & 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
  • 43. 459833-88 Confidential - Property of Frost & Sullivan Green, Safe, and Healthy—Industry Challenges Drives the Need for More Effective Solutions 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 Source: Frost & Sullivan 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
  • 44. 469833-88 Confidential - Property of Frost & Sullivan 4646 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
  • 45. 479833-88 Confidential - Property of Frost & Sullivan Thank you!
  • 46. 49 Gustavo Ferrari Research Analyst Chemicals, Materials & Food +55 11 3065-8462 gustavo.ferrari@frost.com Lead Consultant Contacts

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