IIR Webinar: ESG Spending Strong for Global Food & Beverage Industry

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Researched by Industrial Info Resources (Sugar Land, Texas)--On Wednesday, Industrial Info presented a webinar on the global Food & Beverage Industry. Spending in the industry this year is expected to increase $6 billion from 2022. However, the types of projects and sectors in which spending is occurring are changing, especially as environmental, social and governance (ESG) initiatives increasingly make their way into the industry.

Industrial Info is tracking $231.3 billion worth of food and beverage projects in the planning and engineering phase with kickoff set for this year or next, including $126 billion worth set to start construction in 2023. About $115 billion worth of the spending for the two years is for grassroot projects. Automation is a key driver for in-plant capital spending to help plants run at optimal production levels and save on manpower.

ESG Spending
In the webinar, Randy Godet, Industrial Info's vice president of research for the Food & Beverage Industry, discussed some of the key ways that food and beverage companies are spending on ESG initiatives, which accounts for about $9.8 billion worth of food and beverage projects throughout the world. One of the biggest spending segments is for alternative energy to power plants, particularly solar power. Industrial Info is tracking more than $3 billion for renewable energy projects at food and beverage plants.

Other ESG spending involves growing crops for feedstock for renewable fuels production, such as ethanol, jet fuel and renewable diesel. Industrial Info is tracking about $2 billion of these projects. Additional ESG initiatives food and beverage manufacturers are taking at their plants include methane-collection systems on dairy and poultry farms, which is gaining increased interest, and closed-loop water treatment systems for water reuse and conservation.

Alternative Foods
While the alternative foods sector, particularly for plant-based meat and dairy products, has been a key driver in industry over the past few years, Godet sees this segment softening in the near term. Demand that was initially strong as products came to market has lessened as consumers face higher prices for alternatives as well as a difference in qualities such as taste and texture between these products and traditional meat and dairy products. Godet says he does not expect a near-term surge for cultivated meats (grown in labs) as this industry segment is still in its early days. Godet expects most new plants in this segment to be mid-sized or smaller.

Other Segments
Toward the end of webinar, Godet and Shaheen Chohan, Industrial Info's vice president of Global Analytics, discussed the outlook for other sectors of the Food & Beverage Industry, including agribusiness, dairy, meat and poultry, desalination and more. Of note was a slowdown in construction of warehousing and distribution facilities, which still account for about $20 billion in planned spending for this year and next. Fewer large facilities (1 million+ square feet) of this type are being constructed, while automation continues to be an integral part of planned facilities.

If you missed the webinar or would like to listen to it again, it soon will be available in Industrial Info's On-Demand Webinar Library.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).