Press Release

Increase in Consumer Health Awareness and Nutrition Consciousness Ensures Greater Demand for Dietary Fibres

London, UK - 16th January 2006, With obesity a major concern among the European population, food fibres are gaining in popularity in the battle to stay healthy. While various scientific studies have advocated the role of fibres in controlling obesity and other diseases such as diabetes, a recent study carried out in Los Angeles demonstrated that women with a higher intake of dietary fibre have lower circulating oestrogen levels, a factor associated with lower risk of breast cancer. With an increasing prevalence of breast cancer, the health benefits of food fibres are drawing greater media and consumer attention, prompting food manufacturers to place greater emphasis on the nutritional and fibre content of their products.

"However, working within the framework of legislations on label claims represents a significant challenge for the European dietary fibres market," notes Frost & Sullivan (http://food.frost.com) Research Manager Kathy Brownlie. "The current European legislation restricts direct health claims on end-product labels and since food purchase decisions are often made at the shelf, a lack of product benefit description on the packaging could impact retail sales."

Also, companies in the European food fibres market are facing stiff competition from manufacturers in the far the East. Due of their lower labour cost, these companies are able to offer the same products at much cheaper prices, thereby posing a threat to European food fibre manufacturers.

In response to this challenge, companies will have to look at reducing their operating costs by improving operational efficiency. Backward integration is one such strategy that will not only ensure a steady supply of raw materials, but also help companies reduce input costs and time.

With respect to the individual fibre markets, the overall growth rate for the insoluble fibres market is low. Larger participants in the insoluble fibres market are introducing new and novel products in a bid to retain market share. With market concentration expected to increase in the future, survival of smaller participants is expected to be difficult. The total revenues in the European insoluble fibres market stood at €138.9 million in 2004 and are likely to reach € 212.1 million in 2011.

In contrast, the increasing popularity of prebiotics has substantially benefited the soluble fibres market. Prebiotics help in increasing the number of friendly bacteria in the body. In addition, Inulin possesses excellent water binding capacity (1:1.5), which allows its use in almost all moisture-containing products such as meatballs, cakes, bread and biscuits.

"Faced with increasing competition from alternative ingredients, it is imperative that dietary fibre manufacturers use research and development (R&D) to identify new applications for their existing product lines as well as improve the performance of existing ones," says Ms. Brownlie.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the European Food Fibres Market, please send an e-mail to Janina Hillgrub, Corporate Communications, at Janina.Hillgrub@frost.com, with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via e-mail upon receipt of the above information.

Title: European Food Fibres Market
Code: B407-88

Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

Frost & Sullivan Chemicals and Food Group is the strategic market consultant delivering insight and understanding to support business growth internationally. We identify and analyse the critical market challenges companies must address to become successful competitors in their industry. Our work is focused on these challenges in order to provide our clients with market strategies that enable them to increase revenues, market share and profitability.

The Group continuously monitors a comprehensive spectrum of chemical and food markets for trends, market measurements and strategies, and delivers powerful data via research publications, bespoke market intelligence projects and customised consulting.

Our team of expert analysts is structured around four key areas:
Food
Speciality Chemicals
Fine Chemicals
Performance Materials

Media Contacts:

Europe:
Janina Hillgrub
Corporate Communications
P: +49 (0) 69 770 33 11
E: janina.hillgrub@frost.com

Americas:
Trisha Bradley
Corporate Communications
P: 210.247.3870
E: trisha.bradley@frost.com

Asia Pacific
Donna Jeremiah
Corporate Communications
P: +603 6304 5832
E: djeremiah@frost.com

India:
Surbhi Dedhia
Corporate Communications
P: +91 22 2832 4705 Ext: 131
E: sdedhia@frost.com

Australia:
Sharmin Jassal     
Corporate Communications
P: + 61 2 8247 8900
E: sjassal@frost.com

List of key industry participants: Alimcarat, Alsiano, ALTAQUIMICA S.A., ALWolff, Avebe, BRENNTAG GmbH, CFF GmbH, Chimab, CNI, Cosucra, Creanutrition, Danisco, Deoxy Ltd, Fibred Group, Fiske Ireland, Fiske Ireland, George Breur Gmbh, JRS, Kalys, KAMPFFMEYER Food Service GmbH, LIMAGRAIN CEREALES INGREDIENTS, Lyckeby, M. C. TECHNOLOGIES, Meneba, My Fair foods, Nutrinova, ORAFTI Active Food Ingredients, Parrheim Foods, RFI Ingredients, Rhodia Food, Roeper, Roquette, Sensus, VELTRO CO

List of keywords in this press release: food fibres, soluble fibres, insoluble fibres, food ingredients, vegetable fibre, prebiotics, inulin, Europe, research, information, market, trends, technology, service, forecast, market share