Food Ingredients: Opportunities in Times of General Market Stagnation

AsiaNet 53929

FRANKFURT AM MAIN, Germany, Aug. 13, 2013 /PRN=KYODO JBN/ --

     - Despite unchanging food consumption - Food ingredients market in Europe

shows further growth

    The food and beverage market in Western Europe accounts for a whopping EUR

1.3 trillion per annum. Yet this figure cannot hide the fact that the latest

increase in volume was only minimal at 0.5 percent growth from 2011 to 2012.

This is not only due to potential market saturation, but is also caused, for

example, by the economic crisis hitting the Southern European countries. The

impact on consumer buying behaviour is clearly felt. To maintain or even expand

their share of the stagnating market, food producers must find the courage to

innovate and respond to the latest trends with great flexibility. The trade

fair, Food Ingredients Europe (19th to 21st November 2013 in Frankfurt am

Main), not only presents an overview of current food trends, but first and

foremost, is a forum where food producers can find a plethora of new ideas for

creating innovative, top-selling products. 1,500 exhibitors and 26,000

decision-makers are expected to attend the world's most important gathering of

the food industry this year. 25 percent of global sales in the food ingredients

segment are transacted here, with average spending per trade visitor amounting

to just under EUR 1 million.

    (Logo: http://photos.prnewswire.com/prnh/20130723/629764-a )

    Natural ingredients gaining ground in Germany

    Compared with its European neighbours, Germany is the biggest food

producer, and its food and beverages industry constitutes the country's fourth

largest industrial sector. This branch of the industry is characterised by some

6,000 small and medium-sized enterprises which produce goods worth EUR 163.3

billion in total.

    The developments which food and drink producers must keep an eye on are

primarily those brought about by demographic changes. Germany is home to a

growing number of older people whose consumption patterns are determined in

large part by changing physical needs. Health and wellness products play a

central role, as do functional foods which can help, for instance, to keep

diabetes, high blood pressure or cholesterol levels in check. The second major

development is the rise of organic products to the point at which they have

surpassed their initial status as a niche trend and have become a mainstay on

day-to-day shopping lists in Germany. This is clearly reflected by the current

market data - a volume of EUR 6.6 billion makes Germany the undisputed

front-runner in terms of production and consumption, and the largest market in

Europe by far.

    Food Ingredients Europe offers solutions to address precisely these trends.

The showcased palette includes organic food ingredients that make products

interesting for a target group that has developed an exacting awareness of the

provenance and natural content of foods. Exhibitors will also be presenting

ways to reformulate products, or to replace sugar or fats. These approaches

make it possible to create products that provide additional nutritional value

whilst maintaining taste, and thus meet the needs of an older demographic

intent on buying food products that contribute to a healthy lifestyle.

    European market figures reveal trends

    The developments in the German market are representative of Europe as a

whole. Despite an overall decrease in spending due to the protracted

depression, the situation also presents an opportunity for producers of food

ingredients. Companies are forced to rely on innovative ingredients in order to

retain their market share in the face of the current development. This has

introduced a welcome element of change to the market. The figures reflect the

natural foods trend. With a sales volume of EUR 563 million and an expected

3-percent growth rate, natural flavours are outselling artificial flavours,

having previously already attained a 40-percent share of the overall market in

this segment. Natural food colouring agents are also seeing increasingly

widespread use. Their share of the total colourant market has grown by 68

percent to EUR 551 million since 2005. Another possibility to produce foods

with additional nutritional value, fewer calories and the same intensive

flavour as before is to introduce sweeteners. Sweetening agents such as stevia

and sugar substitutes are used in an ever-growing number of soft drinks and

sweet foods. The market volume of sweetening agents as food ingredients has

grown to over EUR 257 million to date. The same applies to ingredients used to

replace fat. This market is worth EUR 241 million per year, and utilises

234,070 tons annually for the production of low-fat products. Forecasts

indicate a growth of 3.3 percent.

    Foods with additional health benefits are particularly popular with the

older generation. The market has already responded: Annual sales of vitamins

and minerals total more than EUR 138 million, of which vitamins account for EUR

79 million and 11,203 tons, while minerals respresent EUR 60 million and 6,526

tons.

    The German and European market for food ingredients has been shaken up.

This has created a situation in which opportunities exist for producers to win

market shares, provided that they read the signs of the times correctly and

orientate their activities on the latest trends. Specialised trade fairs such

as Food Ingredients Europe offer a wide range of information, products and

innovations, and many avenues to explore.

    Sources: "The Food & Beverage Industry in Germany - Issue 2012/2013,"

Germany Trade & Invest

    "The future for natural and health ingredients - Western Europe edition 1"

- RTS Resource, 2011

    About Fi ingredients Global - the trusted route to market since 1986

    Food ingredients was launched in Utrecht, The Netherlands, in 1986. Its

portfolio of live events, publications, extensive data, digital solutions and

high-level conferences, are now established throughout the world and provide

regional and global platforms for all stakeholders, in the food ingredients

industry. Over 500,000 people have attended our shows over the years with

billions of Euros worth of business created, as a result. With over 25 years of

excellence, our events, digital solutions and supporting products, deliver a

proven route to market, with a truly global audience.

    For more information about the Food ingredients Portfolio please visit:

http://www.foodingredientsglobal.com/europe

    About the Organiser

    UBM Live connects people and creates opportunities for companies across

five continents to develop new business, meet customers, launch new products,

promote their brands and expand their markets. Through premiere brands such as

Fi, NuW, MD&M, CPhI, IFSEC, TFM&A, Cruise Shipping Miami, the Concrete Show and

many others, UBM Live exhibitions, conferences, awards programs, publications,

websites and training and certification programs are an integral part of the

marketing plans of companies across more than 20 industry sectors. UBM Live is

a division of United Business Media (LSE: UBM.L, http://www.ubm.com), a leading

global B2B media provider with 6,500 staff in 40 countries. Incorporated in

1918 as United Newspapers Limited, we live by the motto: "We explore, we

exceed, you excel."

    For more information about UBM Live, please visit: http://www.ubm.com

    SOURCE: UBM Live