The increased demand for natural vitamin E will be the strongest driver in the growth of the European vitamin E market, according to new research from international market consultant Frost & Sullivan.
The market, beset with price sensitivity issues and antitrust investigations, has seen revenues decline in the past five years. But, this new study forecasts renewed growth of 5 per cent over the next six years.
Anna Ibbotson, food research manager with Frost & Sullivan, said: "The loss of revenues during the 1998 to 2001 period was as a result of a 15 per cent price loss during the three-year period that was not compensated by volume growth. In 2002, prices are expected to continue to fall with the increase of Asian competition, and market revenues are expected to stagnate. In 2003, a recovery in prices is forecast, and the market growth rate is likely to jump to 7.3 per cent."
The European market for vitamin E was valued at $84 million (€93m) in 2001 with natural vitamin E accounting for 42 per cent of revenues. By 2008 the market will be worth $118.5 million with natural vitamin E accounting for 56 per cent, the report predicts.
The key drivers for this renewed growth will be the demands for vitamin E by the health supplement and food industries, good news for the manufacturers since average prices in these areas are the highest owing to customers' demands for natural materials. These two sectors will, by 2008, account for 39 per cent of the total European vitamin E market, Ibbotson said.