New market research from Business Insights has revealed that despite costs of over $10m to gain the right to claim that a food or drink product has a health benefit, investing is worthwhile.
Research from the independent business analyst has found that as consumers become more concerned and knowledgeable about their health they are self medicating. As a result large food and drink players, as well as pharmaceutical companies are focusing on the potential of the nutraceuticals market, triggering an increase in investment and takeovers - a trend which will continue to accelerate in the next five years.
This comes despite an increase in costs for clinical research needed to substantiate health claims made on both new and existing ingr edients. In spite of the increased investment, a high proportion of the applications made in line with Article 13 health claim legislation are being rejected in the EU by the EFSA.
However, "the fact that we're seeing so much growth in the market, despite the increased costs, illustrates the scope of potential" according to Business Insights analyst Dr Cheryl L Barton.
Food and drinks manufacturers such as Danone and Nestlé have invested heavily to bring novel nutraceutical products to the market with success in the health and wellness marketplace. However, with consumer healthcare divisions of some major healthcare companies also investing in nutraceuticals, most notable McNeil's Benecol products, competition is high.
New technologies such as the technology to extract and analyse bioactive components are continually being developed. It is the smaller innovative nutraceutical companies that have been driving this, and as costs are high for the development of new ingredients and technologies, they become the targets of licensing deals and acquisitions. The Coca-Cola Company and Pepsi-Co in particular have been actively acquiring companies that specialize in products such as fruit juices, flavored teas and waters with added vitamins, minerals and herbs, that meet the needs of today's marketplace.
Dr Barton continued: "Despite the limitations caused by the tightened regulation and cost, there is massive potential for growth. In this rapidly expanding market, companies will need to differentiate themselves with products that offer an immediate health benefit in days rather than months, to keep consumers coming back for more. Ultimately manufacturers have to balance the costs of gaining regulatory approval for a health claim, with the additional gains they might make through enhanced product credibility and price."
For more information, please visit this Nutraceuticals market research report page.
GlobalData's new report "Smart Grid Market Outlook: Market and Technological Trends, Competitive Analysis, Major Deals and Investments" is a detailed account on the developments in global smart grid markets in 2009 and their implication on the market in 2010. The report covers developments related to various aspects of the smart grid and its related technologies such as advanced metering infrastructure, demand response and grid communication among others. The report provides trend analysis and outlook on smart grid markets, investments, revenues and competitive landscape analysis. The report explains global smart grid industry dynamics, identifies key global market in 2009 and the probable market scenario in 2010. The report assesses the new product launch trends in global smart grid markets by segmenting it into key technologies such as Advanced Metering Infrastructure (AMI), Distribution Management and Grid Information Technology (IT). It elaborates on the investment trends in global smart grid technologies covering key financing activities such as mergers, acquisitions, partnerships, private equity and venture capital among others. A section of the report is dedicated to analysis of competitive scenario among global vendors of smart grid technologies.
The US and the European Union (EU) Emerged as the Top Smart Grid Markets in 2009
The development of global smart grid market was led by the US and the European Union (EU) in 2009.
The US emerged as the top smart grid destination in 2009. Investments from global power electronics majors such as Siemens AG, ABB Ltd. among others continued to flow into the US market. The developments were complemented by US start-up companies such as Silver Spring Networks that undertook significant number of activities. The EU emerged as another attractive market for smart grid technologies. The first implementation of smart meters took place in Europe in 2006. The European Union's pledge to reduce carbon emissions by 20% by the year 2020 will aid in rapid implementation of smart grids in Europe.
New Smart Grid Markets Emerge in 2009
The year 2009 witnessed the emergence of new smart grid markets across the globe.
Asia-Pacific countries such as the China, Australia, South Korea and Taiwan emerged as potential smart grid markets among others. The Chinese government's plan for augmentation of the national power infrastructure entails installation of smart grid technologies worth billions of dollars. South Korea's announcement for smart grid funding over the next few decades projected it as a promising market. Brazil, Russia, Mexico, Canada and India hold undertook significant activities to mark their entry in the global smart grid market.
Fund Inflow in Smart Grid Will Gather Pace in 2010
Funding for smart grid projects and technologies increased in 2009. The venture capital firms provided seed capital to numerous promising smart-grid start ups such as Silver Spring Networks. The fund flow was sustained by governments of various nations for roll out of smart grid and to support further research and development activities in smart grid technologies. The momentum will sustain in 2010 to help smart grid vendors pitch for contracts from power utilities to roll out smart grids.
For more details on this report, visit the Smart Grid Market Outlook page.