Greater Emphasis on Health and Technological Advances to Boost Uptake of Amino Acids in Europe
Increased preference for fortified foods in Europe is boosting growth in the amino acids market. Frost & Sullivan found that the European Amino Acids Market was valued at $1357.7 million in 2005 and estimates this to reach $1944.3 million in 2012. Advancements in research and development are increasing the application base of amino acids, notes Frost & Sullivan Research Analyst Ms. Arthi. For example, microencapsulation technology can help prevent the degradation of amino acids and this has led to a significant increase of amino acids in ruminant feed. Significant technological developments such as microencapsulation of feed-grade amino acids and the development of amino acid dimers for medical foods are helping to provide further opportunities for market growth. An increasing number of scientific studies illustrating the benefits of amino acids are encouraging their use across a number of varied application sectors. However, safety concerns over food additives and high product prices continue to hamper market expansion. Overall, the European amino acids market is likely to grow at a compound annual growth rate (CAGR) of five per cent, with the animal feed industry generating the highest revenues. The market has witnessed the entry of Asian manufacturers, particularly from China. Some European manufacturers are finding it difficult to compete with cost-effective amino acids imported from Asia. Amino acids imported from Asia, while being cost-effective also offer product quality similar to that of European products, says Ms. Arthi. In this context, European companies will benefit by entering into joint venture agreements that will enable them to distribute products manufactured in low-cost environments. Besides addressing the issue of achieving cost efficiency, acquisitions and joint venture partnerships with Asian manufacturers will assist companies in increasing market share and presence in other markets. Major participants such as Ajinomoto, Kyowa Hakko, Degussa, ADM, BASF, and Adessio currently possess significant market shares. In keeping with the growing competition, factors such as product differentiation, improved customer service and technological innovations will become crucial for continued growth. If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of the European Amino Acids Market, send an e-mail to Janina Hillgrub using the 'Contact' button below.
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