Global Food and Beverage Survey 2012: Private Label Manufacturing and Innovative Packaging, Trends and Opportunities, Budget Allocation and Key Growth Markets

London - April 30, 2012 - ‘Better price’, ‘better value for money’ and ‘better quality’ represent the top three demand drivers for private label products

According to food manufacturers, the top three demand drivers for private label products globally are “better price”, “better value for money” and “better quality.” Beverage manufacturers also identify “better price,” “better value for money” and “convenient package sizes” as important demand drivers. Global food and beverage industry buyers consider that their customers prefer private label products over branded products as they are generally available at a lower cost. Overall, global food and beverage manufacturers and suppliers identified “product quality,” “lower cost,” “customer demand” and “long term partnership with retailers” to be important prerequisites to engage in successful private label agreements.

‘Strategic partnerships with retailers’, ‘lower costs of production’ and ‘reduced promotional costs’ are key advantages of private labels to manufacturers
According to survey results, “strategic partnerships with retailers,” “lower costs of production” and “reduced promotional costs” are identified by global food and beverage manufacturers as key advantages of private labels to manufacturers. To compete with branded labels and for survival needs, private label manufacturers have entered into long term strategic partnerships with retailers. The partnerships with retailers help manufacturers to decide the pricing component of private label products to compete with leading brands. Some of the key concerns of private label manufacturers as identified by global food and beverage manufacturer respondents include “competition with national brands,” “declining margins,” and “efforts to lower production costs.” Even though private label manufacturers have grown over the recent years to increase their market share in terms of price, quality and brand loyalty, competition with national brands still remains a key concern.

Demand for private label product is expected to be high in the US, the UK and Canada
Overall, global food and beverage companies have identified the US, the UK and Canada as markets with the most demand for private label products in 2012. The US is expected to be one of the fastest-growing markets and is anticipated to record increased demand for private label products over the next 12 months, with products such as low salt and unsaturated variants, natural cheese, canned vegetables and nutritional products becoming significant. Survey results shows that 39% of respondents identified “Canada” as one of the leading markets projected to demonstrate an increased demand for private label products. Overall, various steps taken by retail supermarkets such as increasing shelf space for increasing ethnic customer division, refocusing on promotional efforts of private label products and enhancing customer loyalty programs are expected to increase sales margins.

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The Italian Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016

London, April 29th, 2012 – The annual defense budget of Italy in 2011 stood at US$27.34 billion, inclusive of homeland security, defense function and other non-essential expenditures of the military. The defense function budget of Italy’s armed forces recorded a CAGR of -2.41% during the review period and defense expenditure as a percentage of GDP averaged at 1.3%. However, in the forecast period, the country is expected to increase its expenditure in an effort to increase its defense capability and the defense budget is expected to increase 4.46% to value at 1.1% of GDP, by 2016.

The Italian government is keen to continue to modernize its military and equip its forces with the latest technology.  Over the forecast period, government efforts to restore the competency of its forces lost during the period of lower spending will support the national military budget.  Furthermore, The Italian government has awarded high priority to the peacekeeping operations of its armed forces, including UN and NATO missions. Italy is one of the leading contributors to global peacekeeping operations, and is the sixth largest contributor to the UN peacekeeping budget.

Defense imports to Italy fell sharply in 2008–2009, as the country faced high levels of fiscal deficit during these years and, subsequently, reduced its spending. During the forecast period, defense imports are expected to decline further, due to economic crisis in Italy and across Europe. This led to reductions in the defense budgets of many countries, including France, Greece and Poland, which are some of the top importing countries of Italian defense products.  The cuts will decrease the procurement expenditure of these countries and have a negative impact on the order book of the Italian defense industry.

Total defense expenditure as a percentage of GDP is expected to decrease from an average of 1.3% during the review period to 1.1% by 2016 due to cuts to the budget. The defense function budget is also expected to decline from 0.9% of GDP in 2011 to 0.8% by 2016. Despite this, Italian defense expenditure will continue to be driven by the modernization program of the armed forces and the country’s participation in NATO and UN peacekeeping missions.

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Sustainability in the UK Foodservice Operators' Industry 2011–2012 Market Trends and Opportunities, Forecast of Budgets and Profitability, Foodservice Operators' Procurement and Marketing Initiatives

London, April 25, 2012 – Different companies perceive sustainability in different ways. However, organizations need to understand the most-important initiatives that are required for a company to be labelled as sustainable in the foodservice industry. To understand how the foodservice industry perceives sustainability, the respondents were asked to identify the statements which best defines sustainability to their organization. A total of 69% of respondents from profit sector organizations perceive ‘responding to customer demand for sustainable products and services’ to be an important sustainability initiative, while 73% of respondents from cost sector foodservice operators perceive ‘increasing levels of local sourcing of ingredients and other supplies’ to be an important sustainability initiative (reference see figure 1 below).

Sustainability is emerging as an important business practice in the foodservice industry. In addition to the social and environmental benefits of a company adopting sustainable practices, these practices tend to bring cost savings to a company, which provides a financial incentive for companies to adopt these measures.

On average, foodservice operators in the profit sector expect to save 7% of their organisational expenditure through the adoption of sustainable practices, while foodservice operators in the cost sector expect to save 8%. Given the size of some foodservice operators’ organisational expenditure, these savings could be considerable. Furthermore, consumer demand for environmentally friendly food products is growing, which has provided a large incentive for foodservice operators to adopt sustainable practices.

Fairtrade certification ensures that people who grow and produce food are ethically treated. Due to this certification’s growing popularity, many operators now consider it as an important requirement, especially since the certification increases their social responsibility scores. For example, Sodexo, a major foodservice operator has committed to significantly increasing its share of products which are procured from fairtrade-certified sources. The company presently procures 174 ethically-sourced products which are certified by the Rainforest Alliance or with Fairtrade certification.

Companies expect to procure sustainable products only when they are certified or have third-party endorsements. This helps companies to market their products with higher credibility. For example, Pret A Manger procures chicken of High Welfare Standard, pork from British Farm Assures, and a specific variety of fish from British Retail Consortium accredited factories in China. The operator also uses free-range eggs and free-range cattle.


About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

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Global Oil and Gas Survey 2012–2013: Market Trends, Marketing Spend and Sales Strategies in the Global Oil and Gas Industry

London, April 23, 2012 – Of respondents across the global oil and gas industry, 57% are ‘more optimistic’ about revenue growth for their company over the next 12 months than the previous 12 months.

This optimism is based on the implementation of cost containment measures, the growth of profitable markets such as the South East Asian countries, as well as China and India, and positive changes in business strategies for driving sales.

Middle East, China and Brazil are the most important emerging markets in the global oil and gas industry
Global oil and gas industry respondents identify India to be the most important region for growth among emerging markets, along with China, Brazil and the Middle East. Furthermore, India and China are considered the two most important emerging markets by respondents from fossil fuel oil and gas generation companies, with strong economic growth in both countries, along with high demand for oil and gas, rendering them attractive to foreign investors. On the other hand, Singapore with Taiwan and Hong Kong, Canada and Australia are the developed regions with the highest growth potential, as identified by 45%, 42% and 41% of respective respondents from global upstream oil and gas companies. Additionally, according to 46% of respondents from midstream and downstream oil and gas companies, Australia will demonstrate ample growth in this sector.

Average annual marketing budget of suppliers is expected to increase
ICD Research’s industry survey 2012 reveals that the marketing budgets of global oil and gas industry supplier respondents are expected to rise by an average of 6.5% over the next 12 months. Noticeably, 46% of respondents expect an increase in marketing expenditure of between 1% to 10% in 2012, while only 3% of respondents expect a decrease between 1% and 10%.

Mergers and acquisitions in the global oil and gas industry expected to increase in 2012
Executives from the global oil and gas industry expect increased levels of consolidation, with 57% of respondents anticipating that there will be either a ‘significant increase’ or an ‘increase’ in  mergers and acquisition (M&A) activities over the next 12 months. M&A activity is expected to increase as a result of high growth in emerging markets and overcapacity in developed regions, and the need to develop new efficient technology solutions as a long-term priority for companies is also expected to drive M&A activities. Additionally, global oil and gas industry buyer respondents reveal that they will increase capital expenditure towards ‘machinery and equipment purchase’, ‘new product development’ and ‘IT infrastructure and development’ over the next 12 months.

North American companies most optimistic on revenue growth
Of all respondents, 69% from companies with operations in North America are optimistic about revenue growth over the next 12 months, as compared with 53% of respective respondents from Europe and the Rest of the World and 52% from Asia-Pacific. The credit worthiness of large integrated upstream oil and gas companies is set to improve in North America, driven by their oil-heavy upstream portfolios, sizable cash balances and reasonably low net debt levels.

About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

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The Global Military Radar Market 2012–2022

London, April 21, 2012 - The military radar market consists of four categories of radars; Ground-based, Airborne, Naval and Space-based radars. The value of this market is expected to increase at a CAGR of 2.57% until 2022.

The global economic slowdown has reduced the defense budgets of most leading spenders in the world, including the US, France, Germany and the UK. These countries have cut back on spending on various defense sectors such as space, aircraft and vehicles, but at the same time have diverted funds towards sectors where rapid technology development and deployment is possible such as radars, Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) and cyber-warfare. High growth markets such as the BRIC nations have been formulating continuous programs to procure the latest radar technology and establish total geographical surveillance over the review period and with continuous evolution and technological developments taking place in the military radar domain, this trend is expected to continue throughout the forecast period.

The demand for military radars is anticipated to be driven by internal as well as external security threats, territorial disputes and modernization initiatives undertaken by armed forces across the world. Cumulatively, the global market for military radars is expected to value US$81.8 billion during the forecast period. The global military radar market is expected to be dominated by the US during this period, followed closely by Europe and Asia-Pacific. Despite the economic crisis in Europe, Europe’s share of the global market is projected to increase due to the development of advanced missiles, and air and ground defense systems, for which radars are a key component, in addition to the modernization of naval war fighters such as destroyers and frigates.

The global defense industry is investing significantly in research and development (R&D) to increase the capabilities of modern military aircraft and naval vessels, which has led to the development of new and ground-breaking radar system technologies, which can enhance the detection capabilities, surveillance duration and resolution, incoming projectile defense capabilities, base and area protection capabilities and early warning system capabilities of the various types of military aircraft, naval vessels and ground-based forward forces.

In terms of categories, the airborne radar is expected to account for the highest proportion of spending in the global military radar market, followed by ground-based radar and naval radars. The demand for airborne radars is anticipated to be higher than other categories because of the increase in the number of aircraft modernization programs being developed by various countries around the globe.

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The Future of Retailing in France to 2016

London - April 18, 2012 - The French retail sales during the review period (2006 - 2011) grew from EUR358.5 billion in 2006 to EUR387.7 billion in 2011 at a CAGR of 1.58%. Canadean expects retail sales in the country to reach EUR438.3 billion in 2016 growing at a CAGR of 2.48% during the forecast period (2012 - 2016).

General retailers were the largest channel group, contributing 46.0% towards total French retail sales in 2011, or EUR178.2 billion in value terms. During the review period, online retailers were the fastest-growing channel group, with a CAGR of 9.82%. Online retailers are expected to remain the fastest-growing category group during the forecast period, at a CAGR of 8.45%.


In 2011, food and grocery was the largest category group accounting for 53.2% of total French retail sales, which represented a value of EUR206.4 billion. Music, video and entertainment software constituted the fastest-growing category group during the review period, registering a CAGR of 3.81% and is expected to remain the fastest during the forecast period with a CAGR of 3.40%.
This report, "The Future of Retailing in France to 2016" provides both top–level overview and detailed category and channel specific insights into the French retail industry environment. It is an essential tool for companies active across French retail value chain and for new companies considering entry into French retail market.

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The Argentine Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016

London, April 12th, 2012 – The Argentine defense budget stood at US$2.96 billion in 2011, the result of a CAGR of 16.55% during the review period and this robust growth was primarily driven by high personnel turnover in the armed forces. The government announced a 21% wage increase in the salaries of the armed forces in 2010. In 2012 the defense budget is estimated at US$3.64 billion and is expected to register a CAGR of 16.40% during the forecast period to reach US$6.68 billion by 2016. This robust growth is a result of the need to modernize the Argentine armed forces following decades of underinvestment after defeat in the Falklands war in 1982, and the collapse of the Argentine economy in 2001. The government intends to increase the defense budget of the country from 0.7% of GDP in 2011 to 1.5% of GDP and while the time period for doing so is unclear, it is estimated that the defense budget will increase to 1.2% of GDP by 2016.



During the review period capital expenditure was allocated an average of 3.6% of the defense budget and this low allocation was due to the high expenditure on salaries and pensions, which account for 70% of the defense budget. However, modernization plans are expected to increase capital expenditure to an average of 7.2% of the defense budget during the forecast period.

Argentine defense expenditure is relatively small and stood at US$2.96 billion in 2011, lower than large spenders such as its neighbour Brazil, which spent US$36 billion in the same year. Despite being the lowest spender in South America, Argentine defense expenditure is expected to reach US$6.7 billion, although this is still relatively low compared to the largest spenders worldwide.

Argentine defense imports peaked in 2007 but declined in subsequent years due to economic constraints forcing the government to postpone defense modernization plans. However, during the forecast period, imports are expected to increase with the resumption of the modernization plans.

The US accounts for the majority of imports, with countries such as Spain, Russia, Brazil and Austria also exporting equipment to the Argentine armed forces, although the US is expected to continue to dominate the market during the forecast period. Aircraft and sensors were the largest import categories during 2007–2011 and are expected to constitute the majority of imports over the forecast period. Russia is expected to enter the market through the supply of transport helicopters, the planned purchase of training helicopters from BELL, transport aircraft and fighter aircraft. The domestic defense industry possesses limited capabilities resulting in negligible exports.

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About Industry Review:
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The Belgian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016

London, March 5th, 2012 - The Belgian defense budget recorded a CAGR of -0.61%, driven by the implementation of defense plans to counter potential terrorist threats and participation in peacekeeping initiatives. The defense budget, which stood at 0.7% of GDP in 2011, is expected to decrease to 0.6% of GDP by 2016, due to defense budget cuts announced by the Belgian government. During the review period (2007 - 2011), capital expenditure allocation stood at an average of 22.4% of the total defense budget, and throughout the forecast period (2012 - 2016), this is expected to increase to an average of 24.6%. In addition to this, the defense budget’s share of revenue expenditure is expected to reduce from an average of 77.6% in the review period, to an average of 75.4% in the forecast period.

The graph below shows Belgian defense expenditure in 2007 – 2011:

During the review period, Belgium’s equipment expenditure experienced a CAGR of 5.18%, and this is expected to increase during the forecast period and register a CAGR of 5.48%. From 2013, equipment expenditure is expected to increase and reach US$762 million by 2016. This expected increase is a result of the fact that the Belgian government participates in EU collaborative equipment programs such as the A400M and the multinational space-based imaging system (MUSIS).

As a result of the global economic crisis and the high percentage of public debt in GDP, the Belgian government plans to reduce its fiscal budget over the forecast period, and this will result in further defense budget cuts. Consequently, there will be a decline in personnel expenditure as troop numbers are further reduced, leading to a predicted CAGR for personnel expenditure of 1.87% during the forecast period.

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About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

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The Global Military Simulation and Virtual Training Market 2011 – 2021

The global military simulation market is to show positive growth over the forecast period (2011 – 2021).

London – 2 April 2012 –The global military simulation market, which valued US$3.5 billion in 2011, is projected to grow at a CAGR of 6.75% over the forecast period (2011 – 2021) to value US$6.7 billion by 2021. Demand for military simulators is anticipated to be driven by both internal and external security threats, territorial disputes and modernization initiatives undertaken by armed forces across the world. Perhaps most importantly, demand will be additionally driven by the cost effectiveness provided by military simulators in times when defense budgets are being cut due to the economic difficulties being faced by the key markets including the US and Europe.

The chart below shows the expected military simulation market value during 2011–2021:

Cumulatively, the market for military simulators over the forecast period (2011 – 2021) is expected to value US$53.3 billion. Significant spenders include countries in the North American, Asia-Pacific and European regions, with the global military simulation market projected to be dominated by the US over the forecast period, followed by the Asia-Pacific, European and Latin American regions. Even though many of the European nations are facing an economic crisis, Europe’s share of the global market is projected to increase over the forecast period due to a shift from actual to virtual training, owing to the resultant cost savings.

Flight simulators are projected to account for the highest proportion of expenditure in the global military simulator market, followed by combat, helicopter and maritime simulators.
The demand for flight simulators is anticipated to be higher than other categories, largely due to an increase in the development and subsequent procurement of aircraft and unmanned aerial vehicles (UAVs). In the context of dangerous missions in Iraq and Afghanistan, governments are now considering the benefits of conducting military operations through UAVs in order to minimize the loss of life.

Demand for technology innovations in military simulators forecast to be on the rise
In order to increase the capabilities of modern military simulators, the global defense industry is investing significantly in R&D which has led to the development of technologies to enhance the stealth tracking capabilities and realistic image projection of the various types of military simulators. Current innovations are oriented towards making simulators as close as possible to the environments they represent. The US is developing the Collimated Display System which offers improved display performance over traditional products. The US is also developing an IED training simulator that simulates the same physical environment in which bombs may be found.

Global military simulator manufacturers are looking to venture into joint R&D programs and licensing agreements
The global financial crisis has reduced military expenditure worldwide, as a consequence of which a significant number of countries are establishing joint projects in order to share R&D costs. Partnerships between defense firms have also increased, as a significant number of countries are investing in the development of their domestic military simulator development capabilities by establishing strategic alliances and licensing agreements with global military simulator manufacturers. Examples of such joint ventures (JVs) and licensing agreements include Microsoft licensing its technology to Lockheed Martin in order to enable customers to create a virtual training space without developing the databases to train. Additionally, Scalable Display Technologies signed a licensing agreement with NEC Display Solutions, to enhance the distributorship and technologies of its products.

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Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

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