Industrial food processors
Industrial food processors process food at large scale, where small material shortcomings can have far-reaching consequences for public health. This factsheet from the Regional Transition Agenda Manufacturing Overijssel breaks down the material value, supply risk and circular revenue models of industrial food processors.
What is an industrial food processor?
Industrial food processors process food at large scale. Small material shortcomings can have far-reaching consequences for public health, which is why the European Union applies strict rules. A change in materials carries through into the use phase: a different material type quickly requires different cleaning agents, which can have a stronger impact during use, shifting the problem rather than solving it.
Stainless (food-grade) steel makes up 69% of the weight, due to its corrosion resistance and durability in most food applications. Polymer materials and elastomers, together 5%, appear mainly in seals, gaskets, connecting rings, adhesives and lubricants, which must not come into contact with food.
Part of: the Regional Transition Agenda Circular Economy Overijssel, manufacturing industry · main project. Commissioned by: Province of Overijssel. Analysis: product footprint, material impact, supply risk and circular revenue models.
Product components
Six component groups together make up 95% of the total weight. Stainless steel in two grades, 304 and 316, carries the largest share of both weight and eco-costs. Martensitic stainless steel blades have the highest value per tonne.
| Component | Weight | Value per tonne | Eco-costs per tonne | Share of eco-costs |
|---|---|---|---|---|
| Vessels, pipes etc. in 304 stainless steel | 34.50% | €966.00 | €445.82 | 40.41% |
| Vessels, pipes etc. in 316 stainless steel | 34.50% | €862.50 | €436.56 | 39.57% |
| Electric motors | 11.00% | €1,222.22 | €71.48 | 6.48% |
| Insulation | 10.00% | €50.00 | €50.16 | 4.55% |
| Martensitic stainless steel blades | 5.00% | €2,500.00 | €69.14 | 6.27% |
| Polymer seals | 5.00% | €500.00 | €30.00 | 2.72% |
Environmental impact and supply risk
Chromium has the highest environmental impact; it is needed for stainless steel. Grades 304 and 316 stainless steel also carry a high impact: these are also the heavier components of the end product.
Critical material. Tungsten falls under new EU critical materials regulation. It is sourced mainly from China and used to harden steel grades and in blades. That makes supply security part of product strategy.
| Raw material | Risk | Explanation |
|---|---|---|
| Tungsten | high | under new EU critical materials regulation, majority sourced from China, used to harden steel and in blades |
| Molybdenum | supply security | critical in terms of long-term supply security |
Where is value retained?
The second-hand price is relatively low, partly due to the potentially high pace of innovation in the sector: after prolonged use, newer and more effective systems become available. The largest costs and highest energy consumption sit in the use phase.
Dilemma. Replacing equipment can make the work process more efficient and thereby reduce impact through lower energy consumption. But the replacement itself creates new impact during the production of the equipment.
The value-chain analysis compares the regional economic perspective by chain phase, from new materials to landfill.
| Chain phase | Regional economic perspective (€ millions) |
|---|---|
| Materials (virgin/new materials) | €95.75 |
| Components (new components) | €460.60 |
| Product | €1,359.00 |
| Reuse (product) | €543.60 |
| Repair (product) | €1,087.20 |
| Refurbish (product) | €951.30 |
| Remanufacture (secondary components in/for product) | €679.50 |
| Repurpose (components for or as another product) | €679.50 |
| Recycle (materials) | €47.87 |
| Landfill (lost) | €−95.75 |
Revenue models and scores
The lease model and the performance model apply best: food-processing machines can be deployed more effectively. An access model may become possible over time, for example when regional deployment of large-scale, high-value systems delivers a use-phase advantage across the full lifespan. The greatest economic potential lies in refurbishment.
Opportunities and points of attention for circularity:
- High potential for circularity: products have a relatively high price and a long technical lifespan.
- A high frequency of use for these machines.
- Machines are currently sold on the secondary market.
- The food system changes incrementally, so machines are not suddenly written off; the supply of new machines does evolve alongside it.
- Research is underway within the agri-food sector into chain collaboration and innovative revenue models with regional knowledge institutions.
Product properties that support circularity, scored from 1 (low indication) to 5 (high indication):
| Product property | Score (1–5) |
|---|---|
| Price per unit | 5 |
| Frequency of use | 4 |
| Predictability of demand | 4 |
| Recyclability | 4 |
| Modularity | 4 |
| Technical lifespan | 3 |
| Product simplicity | 3 |
Further reading
This factsheet belongs to the main project on circular revenue models in the Overijssel manufacturing industry and connects to New Economy’s broader services around product footprint and circular design.
Insights from this project
Frequently asked questions
Food-grade stainless steel in grades 304 and 316 makes up 69% of the weight, due to corrosion resistance and durability. They also consist of electric motors, insulation, martensitic stainless steel blades and polymer seals.
Tungsten carries a high risk and falls under new EU critical materials regulation; it is sourced mainly from China. Molybdenum is critical for long-term supply security. Chromium has the highest environmental impact.
Circularity potential is high: the products have a relatively high price, a long technical lifespan and an active secondary market. Refurbishment offers the most economic potential.
The largest costs and highest energy consumption occur during the use phase. Replacement can make the work process more efficient and reduce impact, but the replacement itself creates new impact during equipment production.
From factsheet to circular strategy
The analysis makes visible where material value, critical raw materials and revenue models converge. Product Footprint and circular design translate these insights into choices in design, procurement, service and reverse logistics.
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