Dramatic growth in the nutraceuticals market is set to be the biggest driver in the development of the flavonoids and isoflavones markets in Europe in the next six years, according to a report by market analysts Frost and Sullivan.
New research by the company reveals that the combined market, valued at $94million (€106m) in 2000 will grow to be worth $144million (€162.89) by 2008.
However, the European Phytonutrients report notes that this revenue growth does not directly correlate to their increased usage. In volume terms, over the same period, the market is forecast to more than double, from 276 tonnes to a staggering 570 tonnes.
Anna Ibbotson, Frost & Sullivan Food Programme Manager explains: "We forecast that the demand for these products in Europe will rise dramatically. If we look at what is happening in the United States where isoflavones and flavonoids are currently used extensively in functional foods, we would expect to see this pattern mirrored in Europe."
She continued: " However their use remains marginal at present. Isoflavones and flavonoids producers should be looking for an early positioning in breakfast cereals, beverages, bakery and dairy products."
However, it is not all good news for these markets. Improvements in extraction techniques, the lower cost of raw materials and the increasing availability of cheaper Asian supplies are driving the increasing price erosion of flavonoids. As for isoflavones, their competition with soy fractions on price, will continue to restrain their expansion.
The report also comprises an analysis of the phytonutrients market across Europe, covering the five most common phytonutrients groups: vitamin E, carotenoids, flavonoids, isoflavones and phytosterols.