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South Africa’s Steel Sector Opportunities Grow

Israel Ramps up Defense Spending

Tourism in Saudi Arabia Diversifying

Brazil: Exports of Beef Breaking Records

Mining Industry Opportunities in Canada

United States: Record Clean Energy Investment of US$64.2 Billion

in 2018

Australian IoT at Home Market Set to Boom

Biogas Technology Application in China

India’s Wedding Market Offers Opportunities for Foreign Players

Japan’s Growing Anti-aging Products Market

Vietnam: A Growing Market for Functional Foods

South Korea’s Major Growth Sector: Biomedical Industry

Taiwan Bids to Join the Comprehensive and Progressive Agreement

for Trans-Pacific Partnership (CPTPP)

Wallets Fattening Up in Central and Eastern Europe

France hosted the Paris Air Show in June, a Major Milestone for the

Entire Industry

Germany’s Plastics Industry

Uncertainty around Brexit Boosts Logistics in the Netherlands

IBG GLOBAL NEWSLETTER ISSUE NO 8 JULY 2019

FEATURED NEWS:

Opportunities globally

IBG QUARTERLY

IBG GLOBAL NESWLETTER 2/2019 Page 2

SUB-SAHARAN AFRICA:

South Africa’s Steel Sector Opportunities Grow INTERESTING PROJECT

South Africa is logistically in a continental leadership role in terms of infrastructure

technology leadership and as a natural location for steel distribution. Steel imports

have grown 250% from 2000 to the present. The Chinese share of the import

market grew from 12% in 2000 to 54% in 2016. Recent price increases from China will

open new avenues of competition from other exporting countries. South Africa is a

steel manufacturing country, producing mainly commodity steels for infrastructure and,

in turn, importing many specialty steel alloys for manufacturing. The SA

government is establishing a US$120 million Steel Development Fund to support

key downstream steel sectors/sub sectors

IBG Global Africa and IBG

Global Germany shared

management of a trade

mission in the Education and

Training Sector to Kenya 12-26

June 2019. The mission,

supported by the German

government, was successful in

implementing a one day

symposium, and a series of

group site visits and one-on-

one business meetings.

by Richard Zurba IBG Sub-Saharan Africa /

Zurcom International

MIDDLE EAST:

Israel Ramps up Defense Spending INTERESTING PROJECT

A recent report by ResearchAndMarkets.com posits that Israel's defense

expenditure as a percentage of its GDP is anticipated to increase to an average

of 4.5% annually through 2024. The Israeli defense budget currently stands at ca.

US$17.6 billion. Overall, Israel is projected to spend a total of US$68.5 billion on

the acquisition of military hardware between 2020 and 2024. This will include

investment in the physical security of critical infrastructure, land-based C4ISR

systems, infrastructure construction, Armored Personnel Carriers (APC), Multirole

Fighter Aircraft and Corvettes among others. As one of the largest defense markets

in the Middle East, Israel allocated a gross budget of US$20.3 billion in 2019 and is

likely to continue spending heavily on fortifying its defense and security apparatus.

A US-based supplier of

replacement parts for air force

trainer aircraft contacted IBG-

Middle East for a market

overview of that sector in Israel.

The 27-page report provided a

full overview of the Israeli

economy, the trainer aircraft

sector and details on potential

business partners for their

products.

by Sherwin Pomerantz IBG Middle East / Atid EDI Ltd.

SAUDI ARABIA:

Tourism in Saudi Arabia Diversifying INTERESTING PROJECT

In 2019, Saudi Arabia’s travel and tourism sector is expected to contribute US$70.9

billion to the country’s GDP. The backbone of this comes from religious tourism,

with over 17 million people expected to visit the country for the Hajj or Umrah in

2019. However, a number of significant projects are underway as part of the Vision

2030 transformation program, which aims to diversify away from relying solely on

religious tourism and instead looks to capture a portion of the luxury tourism

market. The Red Sea project, situated across 200km of coastline and 90 pristine

islands off the west coast of Saudi Arabia, aims to do just that by offering luxury

accommodation, tranquility and an unrivalled natural marine environment which will

add US$5.86 billion to the Kingdom’s annual GDP.

IBG Saudi Arabia’s head of

Market Entry services, Heather

Hopper, made her way to the

US during the month of April as

part of a business development

tour to 3 cities in the State of

Virginia, meeting with

companies and discussing

potential opportunities, ahead

of a planned trade mission to

Saudi Arabia in January 2020.

by Adam Hosier IBG Saudi Arabia / AEI Saudi

IBG GLOBAL NESWLETTER 2/2019 Page 3

BRAZIL: Exports of Beef Breaking Records INTERESTING PROJECT

Brazil's beef market continues to excel after the Brazilian Beef Exporters

Association (ABIEC) revealed that it closed the year with its largest-ever beef

exports by volume. The results showed that Brazil exported 1.64 million tons of

beef throughout 2018, an 11% increase in volume compared to 2017.

As one of the top three world exporters of beef, pork and chicken for the past

ten years, Brazilian animal protein processing plants value and invest in state-

of-art equipment with the latest technologies adding to an increase in

productivity at their plants.

IBG Brazil assisted a European

supplier of equipment for beef

processors in meeting the top 5

beef processing companies’

procurement teams, weeks

before IFFA Show in Germany.

The objective was to

understand their technical

needs in order to facilitate sales

during the show.

by Fabio Yukio Yamada IBG Brazil / Tradebrz

International Consultants

CANADA: Mining Industry Opportunities in Canada INTERESTING PROJECT

Canada ranks among the top five countries in the global production of 13 major

minerals and metals. In 2018, total Canadian mineral production reached a value

of US$36 billion, an increase of 4.3% in comparison to 2017. Canada’s top five

mineral products by value for 2018 were gold ($7.4 billion), coal ($4.9 billion), potash

($4.2 billion), iron ore ($3.7 billion) and copper ($3.4 billion).

TOP PROVINCES (US$ 2018)

Ontario: $10.5 billion

Quebec: $8.6 billion

British Columbia: $6.3 billion

Saskatchewan: $5.5 billion

Mining Spending Priorities

Environmental remediation services

Exploration, drilling, and mine construction services

Mining equipment replacement parts

Mining safety and security equipment and services

IBG Canada has solid

experience finding mining

industry opportunities for

international companies.

From Canadian contacts at

mine sites (e.g.

superintendents) to global

mining engineering firm

procurement, contacts have

been connected to client

companies. Clients in mine

ventilation and ceramic lined

processing equipment have

found success in Canada via

IBG Canada’s introductions.

by Ron A. Straatsma IBG Canada / CDA Market

Services

UNITED STATES:

Record Clean Energy Investment of US$64.2 Billion in 2018 INTERESTING PROJECT

With heavy investments of wind and solar farms in the United States, clean energy

investment rose by US$1.9 billion (from $62.3 Billion) in 2018 according to

BloombergNEF’s report. With China having over a 32% drop in the investment of clean

energy spending, global solar energy installed capacity rose to 109 GW in 2018, up 10

GW from 2017 thanks to the US, European, and other emerging markets’ heavy

investment in the sector. While declining capital costs for solar have reduced global

solar investments to US$131 billion (down 24%), worldwide wind

energy investment has risen to US$129 billion. Many world markets are taking

advantage of lower

solar prices with Europe increasing clean energy investments by more than 27% in

2018 ($74.5 billion) - specifically in Spain, the UK and Scandinavia. The trend shows

global energy storage is increasing at a record rate with storage additions to top 10

GW in 2019.

IBG US initiated a partnership

between French company

Decod, the leader in CGI

lifestyle imagery and US

company Marxent the leader

in augmented reality furniture

apps.

by Bruno Tateossian IBG USA / Ouino Consulting

IBG GLOBAL NESWLETTER 2/2019 Page 4

AUSTRALIA & NEW ZEALAND:

Australian IoT at Home Market Set to Boom INTERESTING PROJECT

As more and more homes embrace the new era of connectivity created by Australia’s

NBN and 5G networks, the home IoT market is forecasted to expand rapidly, rising

from US$762 million in 2018 to US$3.67 billion by 2023.

Australian IoT at home adoption grew by 57% in 2018;

This followed a 55% increase in 2017;

More than 5 million – over 50% of total households – have adopted IoT at

home devices, with a quarter of these heavily invested in the technology;

2018 increases were driven by a surge in adoption of smart speakers.

With ‘smart homes’ opening a new world of IoT-Commerce, vendors from every point

in the value chain are encouraged to stake their claim to this market.

In April 2019, IBG Australia &

New Zealand hosted the

Pennsylvania / Delaware Joint

Trade Mission to Australia and

New Zealand, which ran from 1

– 9 April. As part of the

program, we supported a total

of eight (8) participating

companies as well as

government representatives,

coordinating 70+ successful

B2B meetings on their behalf.

By Angela Foley IBG Australia & New Zealand /

Foley & Associates Pty Ltd

CHINA: Biogas Technology Applications in China INTERESTING PROJECT

Since the onset of global biogas application in the 1970s, biogas technology has

experienced periodical development in China. Since 1982, obligatory standards have

been enforced and applied in the construction of biogas plants. By the end of the

1990s, there were 9.8 million household applications in operation throughout China.

Two central policies to promote biogas technology were developed in 2003 by the

Ministry of Agriculture, and another one published in 2007 by the National

Development and Reform Commission (NDRC). They both formulate the goals and

methods of biogas promotion. The goal for the year 2010 posited that 40 million

households (about 16% of all rural households) will have been using biogas and

their number is to double to 80 million by 2020.

Since biogas is part of several strategies for China’s rural development,

technological and co-development collaboration from global partners are welcomed.

IBG China successfully

supported the Germany

Brandenburg Economic

Development Agency (WFBB)

executives and 7 companies on

their China mission to visit

Beijing, Langfang, Dingzhou,

Hengshui and Shijiazhuang

over 6 days. We arranged high

level quality B2B meetings with

the Ministry of Agriculture,

National Associations and

prominent dealers for each

company respectively, and

received enthusiastic positive

feedbacks from all participants.

by Annabel Rong IBG China / Alglory Investment

Limited

INDIA

Wedding Market Offers Opportunities for Foreign Players INTERESTING PROJECT

The Indian wedding market’s value is estimated at US$50 billion, second only to

the US market of US$70 billion. It is growing rapidly by 25 to 30% per year.

Approximately 1% of India’s population (1.3 billion) gets married every year. Less

than 1% account for “big fat” weddings. Unlike in the past, professional wedding

planners are employed with higher frequency and the use of technology in weddings

is becoming more popular allowing innovative startups to act as disruptors. Thus, the

sector presents huge opportunities for wedding planners and innovative products

from lighting and sound systems to decorative items and costumes, fashion

accessories for brides and bridegrooms and the like.

IBG India assisted a global

manufacturer of high-quality

personal mobility products with

market assessment and in-

country appointments. The

client visited 5 cities across the

Western and Southern States of

India.

by Supriya Kanetkar IBG India / SRK and Associates

IBG GLOBAL NESWLETTER 2/2019 Page 5

Japan’s Growing Anti-aging Products Market INTERESTING PROJECT

It is a widely known fact that Japan has the fastest aging society with its median age

reaching 47.3 years. The Japanese Statistics Bureau recently reported that in 2018 the

population had decreased by 0.21% as a whole but increased by 1.13% in the over-65

age group. In addition, the data revealed that, on average, net worth per household

becomes positive for people in their 50s and grows as they age. Thus, these age groups

have a significant and growing purchasing power. Indeed, Fuji Keizai reported the market

size of anti-aging skincare product grew by 9.4% from US$5.1 billion in 2017 to

US$5.6 billion in 2018.

Early this year, IBG Japan

assisted a Korean skincare

cosmetics company in

researching the Japanese

market and its opportunities.

by Yasushi Hasegawa IBG Japan / Fenetre Partners

SOUTH EAST ASIA:

Vietnam: A Growing Market for Functional Foods INTERESTING PROJECT

Vietnam is one of the fastest growing markets for functional foods in South East Asia.

According to the Vietnam Functional Food Association (VFFA), this sector has been

expanding by 9% to 10% per annum buoyed by the country’s growing middle-

income population, urbanization and rising awareness on health and fitness.

There is a rising demand for functional foods in the country that can help reduce

weight, offer nutritional supplements, support cardiovascular health, and

improve beauty. Furthermore, foreign functional food products are well received by

the local market for their quality and efficiency, making Vietnam a destination for

international suppliers and manufacturers.

Arranged business matching

meetings for a US-based

nutritional ingredient company

that was interested in

exploring the Vietnamese

market and meeting local

companies involved in

distributing nutraceuticals and

functional foods. The US

company is now ready to

choose a partner which will

market its dietary supplements

in the Vietnamese market.

by Sarath Menon IBG South East Asia / Orissa

International

SOUTH KOREA:

A Major Growth Sector: Biomedical Industry INTERESTING PROJECT

As the 4th largest economy in Asia, South Korea has put in extra effort to develop the

biotech and hospital systems sectors into a flagship industry as previously achieved

with semiconductors. South Korea will capitalize on Artificial Intelligence, precision and

high-tech regenerative medicine. Under this plan, the country aims to expand the

industry’s global market share from 1.8% in 2018 to 6% by 2030. In addition, South

Korea will be investing US$3.34 billion to create a big data platform to develop

new customized drugs and new medical technologies. With the increasing

investment into the biomedical industry, international biotech companies with

advanced technologies and experience should consider working with Korean

companies through partnership, licensing, and/or joint R&D and marketing.

IBG Korea completed a project

for a food focused trade mission

in May 2019 arranging a total of

230 individual business

meetings for 15 food suppliers

and 70 buyers and importers. In

addition, IBG Korea also offered

on-site facilitation services such

as a market briefing, retail tours,

translation, interpretation, and

follow-up services. Resulting

projected sales are to reach

US$9.5 million in the next twelve

months.

by Ken Yang IBG South Korea / Korea

Business Services, Inc.

IBG GLOBAL NESWLETTER 2/2019 Page 6

TAIWAN Bids to Join the Comprehensive and Progressive

Agreement for Trans-Pacific Partnership (CPTPP) INTERESTING PROJECT

To bolster Taiwan's bargaining chips to join the CPTPP, the Executive Yuan has passed the

"Amendment Draft for Customs Import Tariffs," reducing tariffs on 15 agricultural and

fishery products and processed foods, including five frozen aquatic products (scallops,

crabs, octopus, etc.) whose current rate of 10%-30% will be reduced by 2%-5.5%. The

tariffs for agricultural products and processed foods including yam, Wenzhou mandarins,

miso, curry paste, solid or powdered soups - currently ranging from 10%-40% - will be

further reduced by 5%-20%. At the same time, to promote the replacement of large

diesel vehicles, the components used in trucks of over 3.5 tons and passenger cars with

more than ten seats will see their import tariffs drop from the current 2.5%-15% to

zero.

During the first quarter of

2019, a market overview

compiled by IBG Taiwan in

adult incontinence products

successfully served as an

important reference for a US

company to set an effective

market strategy to position

their products for the

Taiwanese market.

by Irene Tsai IBG Taiwan / AIM

Development Corporation

CENTRAL & EASTERN EUROPE:

Wallets Fattening Up in the CEE INTERESTING PROJECT

Bloomberg reports that consumers emboldened by rising wages and government

spending helped propel the CEE economies to unexpectedly strong growth at the

start of the year. Preliminary data showed that gross domestic product rose by at least

twice the pace of the euro zone on an annual basis.

Domestic demand has replaced exports as the main driver of eastern Europe’s

convergence with richer western nations. Low unemployment is fueling salary increases

and governments are splashing out on everything from pensions to infrastructure. In

more tangible terms, the average CEE inhabitant is enjoying greater purchasing power,

and is spending more on fashion, consumer electronics, premium food &

beverages and luxury products.

In 2018, the best performers, the Czech Republic and Slovenia, reached 90% and 87% of

the EU28’s average (GDP per capita in purchasing power standard), respectively. This is

only a couple of percent behind Spain (91%) and Italy (95%).

IBG CEE recently assisted a

German company in assessing

market opportunities for

independent heating in the

Czech Republic, Slovakia,

Hungary, Romania and

Slovenia. For each country, the

report included detailed data

on the current vehicle stock

and predictions on its

development, overview of the

largest spare parts dealers,

profiles of new potential

customers as well as specific

information related to the

product provided by

interviewed stakeholders.

by Filip Korinek IBG CEE / EasyLink Business

Services

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Czechia Hungary Romania Slovakia Poland Bulgaria

4Q 2018 GDP (change y/y) 1Q 2019 Expected

IBG GLOBAL NESWLETTER 2/2019 Page 7

FRANCE hosted the Paris Air Show in June, a Major

Milestone for the Entire Industry INTERESTING PROJECT

From June 17th-23

rd, the 53

rd edition of the Paris Air Show was held at Le Bourget airport.

It is the world's largest aeronautics trade event, with 2,460 exhibitors and 142,000

business visitors.

The Show also hosted the 2nd

session of the Paris Air Lab with emphasis on industrial

innovations and startups: indeed, 150 startups from 22 Countries were to display their

projects - whose common denominator is the environmental and climate challenge –

notably in artificial intelligence, mobility and energy.

Besides breathtaking aerobatics demonstrations, revolutionary flying machines were

presented to professionals and the public, such as a flying taxi prototype (Alpha Two,

designed by Airbus Group) and the concept of a hybrid-powered airliner (Dragon,

designed by the French R&D Office in aeronautics, Onera).

IBG France is preparing a

learning expedition of Japanese

SME’s in the Paris Region, which

will be held early October. The

event is focused on the

entrepreneurial spirit and

growth ecosystem of French

Businesses, as Japanese

Companies wish to exchange

views and seek sources of

inspiration for their international

development.

by Brigitte Le Borgne IBG France / Lily-Perf

GERMANY’s Plastics Industry INTERESTING PROJECT

One of the most important industry sectors in Germany, the plastics industry generates

annual turnover of over US$90 billion. Germany is Europe's largest producer and

manufacturer of plastics. The country’s plastics industry value chain includes plastics

manufacturers and processors, machine manufacturers, application industries and the

plastics and rubber recycling industry. The industry enjoys more than a 6% share of

domestic industrial production and plays a major role in providing new and innovative

products and solutions to a number of key industries including the automotive,

mechanical engineering, packaging, electrical engineering, and construction industries.

Suppliers of raw materials can expect various opportunities for selling to German

manufacturers. The leading trade show for the rubber and plastics industry “K” will take

place in 2020 in its three year interval providing a platform to talk about business.

IBG Israel supported IBG

Germany in assisting a

German delegation of

creatives industries to Tel Aviv

last fall during the DLD Digital

Conference. The delegates

were able to gain market

intelligence and leads into

Israel’s innovative digital

industries.

by Dr. Linda von Delhaes-Guenther IBG Germany / AHP

International GmbH & Co. KG

NETHERLANDS / BENELUX:

Uncertainty around Brexit Boosts Logistics in the Netherlands INTERESTING PROJECT

In Q1 2019, the Netherlands scored +38% of new logistical projects, compared

with Q1 2018. The growth comes mainly from the increased level of interest in the

Netherlands from the US and the UK. Within Europe, logistical activity grew 143%,

which can be attributed to the UK and Brexit related insecurity. Many projects

coming in this year from the US and Asia are also Brexit related. The trend is an

increased demand of companies, wanting to shift their supply chain from the

UK to the Netherlands. Remco Buurman, General Manager of Holland

International Distribution Council stated: “We are seeing a stock split of companies

with a distribution center in the UK wanting to create inventory in the Netherlands

before Brexit becomes a fact”.

IBG Benelux assisted a young

(2016) UK company

manufacturing a lower cost

GoPro alternative with its

market entry into the

Netherlands. We set up pre-

qualified meetings with a large

camera distribution company,

a consumer electronics web

shop, a company handling

procurement, sales and

distribution for small and large

e-/retailers and a distributor of

all the large electronic brands.

by Peter E. Sanders IBG Benelux / psps

consultants

www.ibgglobal.com

IBG GLOBAL The International Business Group (IBG Global), founded in 2000, is a

Partnership of private commercial consulting firms with offices and staff

in 53 countries, covering a total of over 150 country markets in

the Americas, Europe, Asia-Pacific, Africa, and the Middle East.

Trade and Investment promotion in new markets

More than 40,000 projects completed

Global presence

GETTING YOU CLOSER TO YOUR MARKETS

.

IBG Global carries out high quality agent/distributor, end-buyer searches, research and in-country

support specific to your company or organization, industry and target market requirements.

IBG Sub Offices and major territories: Austria, Belgium, Bulgaria, Cambodia, Chile, Colombia, Croatia, East Africa Community, ECOWAS, Egypt, Estonia,

Hungary, Indonesia, Jordan, Kenya, Latvia, Liechtenstein, Lithuania, Luxembourg, Mauritius, Myanmar, New Zealand, Oman, Paraguay, Peru, Philippines,

Poland, Qatar, Romania, Russia, Serbia, Slovakia, Slovenia, Southern Africa Development Community, Switzerland, Tanzania, Turkey, UAE, Ukraine, Vietnam

IBG Partners: Australia, Brazil, Canada, China, Czech Republic, Germany, France, India, Israel, Italy, Japan, Mexico, Netherlands, Saudi Arabia, Singapore,

South Africa, South Korea, Spain, Sweden, Taiwan, United Kingdom, USA