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Challenging times for ingredients

An industry under pressure

Market pressures placed on manufacturers and retailers are being downloaded to suppliers who, in turn, are expected to become more professional, market-aware and pro-active.

The challenge for the ingredients industry is to become more active in helping its customers (food manufacturers) to respond to multiple demands:

Consumer demands

  • Safe and natural products   
  • Indulgence
  • Eat well
  • Stay slim and healthy
  • Freshness
  • High quality
  • ‘Fair’ pricing

Retailer demands

  • Accommodate fast-changing needs
  • Profitably

Foodservice demands

  •     Quality
  •     Consistency
  •     High levels of service


The €7.2bn ingredients market

In 2007 the EU(15) market for ingredients was worth $8.8bn (€7.2bn) having grown from a value of $7.5bn in 2002, according to RTS Resource.

Volumes, grew from 2.03 million tonnes in 2002 to reach 2.17 million tonnes in 2007, an average annual growth rate of 1.3%.

A wide variety of factors are at work here. Some ingredients prices have fallen whilst others have risen.

The trend towards “naturals” has increased prices in some sectors while others have declined in usage due to “health” concerns.

 

EU(15): Market value of ingredients

2002 - 2007 ($bn)

Source: RTS Resource

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