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Higher Prices and Better Applications Will Boost the EU Digestive Health Ingredients Market Says Frost & Sullivan - Growing consumer awareness of functional foods fuels demand and boosts product availability for digestive health ingredients in the EU
Higher Prices and Better Applications Will Boost the EU Digestive Health Ingredients Market Says Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2009/12/09 - Growing consumer awareness of functional foods fuels demand and boosts product availability for digestive health ingredients in the EU.

   
 
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In 2008, digestive health was the largest product segment of the total EU approved functional food market, accounting for 68.0 per cent of sales. Rising product prices, coupled with the extension of application areas, will continue to enhance market prospects.

Recent analysis from Frost & Sullivan (food.frost.com) EU Digestive Health Ingredients Market, finds that the market earned revenues of $245.0 million in 2008 and estimates to reach $536.5 million in 2015. The following market segments are covered in the research: prebiotics, probiotics and digestive enzymes.

"The European market for digestive health ingredients is at the growth stage and new product launches are frequent and numerous," notes Frost & Sullivan Industry Analyst Sridhar Gajendran. "Products for digestive health are available in both the functional foods and the dietary supplement segments, with the former having a relatively larger share in terms of both volume and value in 2008."

Currently, functional foods for digestive health are available as dairy products, fortified beverages, baked foods, cereals and convenience foods. This category is poised for healthy growth in the coming years, primarily due to its significant potential to penetrate different application sectors.

"Increased prices have positively impacted market revenues," says Gajendran. "The extension of applications to meat and fish categories has further stimulated growth."

For instance, the global leader of inulin and oligofructose, Beneo-Orafti, recently increased prices for its range of BENEO products. Hikes of 6 per cent in the price of liquid products and 8 per cent in the price of powdered products were introduced in late 2007, with a subsequent 25 per cent increase following suit in November 2008. The company engaged in co-branding in meat products for the first time with its prebiotic ingredients in September 2008. In addition to its existing line of ingredients for meat-based products, it introduced new products, including canned fish in Germany and turkey steak in Spain, which both featuring Beneo-Orafti's ingredient branding for the first time.

Probiotic products are frequently priced higher than other nutraceutical products. The relatively high cost of probiotics may prove to be prohibitive, especially as EU consumers tighten their belts in response to the current economic meltdown.

"Nevertheless, the growing trend for digestive health and consumers' keenness to offset rising healthcare costs will likely counterbalance the negative effects of the economic recession," remarks Sridhar Gajendran. "Moreover, as demand and production volumes for probiotic products grow, manufacturing costs will decrease."

These cost savings can be passed onto the processors and eventually to consumers. Hence, high price is likely to act as a low-impact restraint, gradually having even less of an impact over the long term.

Another challenge relates to the high cost of clinical trials. As a result, only limited research has been conducted to date.

"Drawing attention toward informative marketing tactics to educate a wide range of consumers about the benefits of digestive health products will effectively boost consumption," advises Sridhar Gajendran. "At the same time, all available opportunities should be assessed to make more expansive claims when marketing products with strong digestive health credentials."

In the future, the digestive health ingredients market will likely be driven by the prebiotics segment, which continues to grow steadily. Dairy, bakery and cereals remain the most successful sectors.

Dairy accounts for 50 per cent of prebiotic products currently in the market. In addition, a growing number of breakfast cereal manufacturers use prebiotics as a way of promoting the 'feel good factor' to the consumer or to add extra fibre to biscuits and breakfast products.

If you are interested in more information about this study, please email Monika Kwiecinska, Corporate Communications, at monika.kwiecinska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

EU Digestive Health Ingredients Market is part of the Food & Beverage Ingredients Growth Partnership Service programme, which also includes research in the following markets: U.S. Digestive Health Ingredients Market, EU Food and Feed Antioxidants Market, U.S. Bone and Joint Health Ingredients Market and, European Heart Health Ingredients Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

EU Digestive Health Ingredients Market / M426

 
 
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Higher Prices and Better Applications Will Boost the EU Digestive Health Ingredients Market Says Frost & Sullivan

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