Analysis of European Medical Food Ingredients Market

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1 MEDICAL DEVICES PHARMACEUTICALS CHEMICALS FOOD & BEVERAGE ELECTRONICS Analysis of European Medical Food Ingredients Market VPG Publications, Consulting, Clients VPG Market Research Reports VPG Partner Reports VENTURE PLANNING GROUP 545 Eighth Avenue, Suite 401 New York, NY Phone Fax

2 Analysis of European Medical Food Ingredients Market Specialized medical food products are expected to have great growth potential in the market

3 Contents Section Slide Numbers Executive Summary 4 Market Overview 10 Total Medical Food Ingredients Market - External Challenges: Drivers and Restraints 16 Forecasts and Trends 23 Market Share and Competitive Analysis 32 Fibres Segment Breakdown 41 Omega-3 Segment Breakdown 50 Proteins Segment Breakdown 62 Others (MCT, BCAA, Dairy Peptides) Breakdown 73 The Last Word (Conclusions and Implications) 78 Appendix 81 Methodology 82 Additional Sources of Information 83 Learn More Next Steps 84 3

4 Executive Summary Market Overview The European medical food ingredients market is expected to grow from 2010 to 2015 at the compound annual growth rate (CAGR) of x.x per cent for its volume and x.x per cent for its revenue. In terms of revenue, protein (milk protein concentrate and soy protein) is the largest segment, accounting for a share of xx.x per cent in The revenue for soy protein isolate is expected to grow at a CAGR of xx.x per cent through Others segment (includes MCT, BCAA and dairy peptides) contributed xx.x per cent revenue share of the total market. Omega-3 and Fibres accounted for x.x per cent and x.x per cent revenue shares, respectively. Medical food ingredients market is still beset by challenges, such as: o Structuring of homecare operations o High barriers to entry of new participants o Reimbursement regulations 5

5 Executive Summary Market Overview (continued) The main drivers are: o Rise in aging population o Shift from institutional care to community care o Shift to enteral nutrition from total parenteral nutrition o Changing lifestyles increase risk of contracting diseases Specialised medical food products form a significant demand driver for medical food ingredients in Europe. Some of the large multinationals active in Europe include Danone, Nestlé, Abbott International, and Fresenius Kabi. 6

6 Market Overview Definitions Enteral feeding is used when patients cannot get their nutritional requirements orally, but they have an accessible gastrointestinal tract. Nutrition is administered in the form of sip or tube feeds using the gastrointestinal tract and helps fulfill patients' nutritional requirements. Enteral feeding is often used for certain conditions such as lung problems or prolonged infections. Enteral feeds have a consumer-goods focus, using food-based ingredients. Enteral nutrition is indicated even in patients without obvious under nutrition, if it is anticipated that the patient will be unable to eat for more than seven days preoperatively. It is also indicated in patients who cannot maintain oral intake above xx per cent of the recommended intake for more than ten days. In hospitals malnutrition affects xx per cent of all patients and in care homes it is even higher, at around xx per cent. The health-related costs of malnutrition in Europe are staggering, up to xxx billion euros per year according to ESPEN. ESPEN: European Society for Clinical Nutrition & Metabolism. 11

7 Market Overview Definitions (continued) The use of enteral feeding is increasing because o o o Simple and low risk procedures have been developed for the placement of tubes in the gastrointestinal tract, particularly percutaneous endoscopic gastrostomies and jejunostomies; A wide variety of commercial enteral feeding formulas is available; and enteral nutrition is generally less expensive than parenteral nutrition. The European enteral nutrition market is a fast-growing prospective market. Growth is mainly attributed to the increase in the aging population and the increasing incidence of malnutrition. The per capita consumption in Germany, the United Kingdom and the Netherlands is the highest in Europe. Southern European countries are showing strong growth (France, Spain, and Italy). Emerging markets in eastern Europe are much smaller, but show higher growth. The medical food ingredients covered in this study are Fibres, omega-3, proteins, and others such as branched chain amino acids, medium chain triglycerides, and dairy peptides. 12

8 Market Overview Key Questions This Study Will Answer Hypotheses Is the market growing? If so, how long will it continue to grow and at what rate? Are the existing competitors structured correctly to meet customer needs? Is this an industry or a market? Will these companies/products/services continue to exist or will they be acquired by other companies? Are the products/services offered today meeting customer needs? Is there additional development needed? How are the competitors positioned in the market and what are their shares in the market? 13

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