Enzymes Gain Importance as Process Aids in Food Applications, Finds Frost & Sullivan

LONDON, June 28, 2010 - During the economic slowdown in 2009, food enzymes were successfully
positioned as cost savers and process efficiency improvers in many
application segments. This strategy, along with increased R&D efforts, is
expected to continue to attract new applications such as interesterification
for the reduction of trans fats and as 'meat glue' (transglutaminases). While
the increased use of enzymes in applications such as fruit and beverage
processing and wine making could vitalize the market, the future of enzymes
in food applications depends on their acceptance as process aids that provide
better cost economies for food manufacturers.

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New analysis from Frost & Sullivan (www.food.frost.com), European
Market for Enzymes in Food Application, finds that the market earned revenues
of US$407.5 million in 2009 and estimates this to reach US$501.0 million by
2016. In this research, Frost & Sullivan's expert analysts examine the
following application segments: starch and sugar processing, bakery, dairy,
brewing, wine making, fruit and beverage processing and miscellaneous.

Food producers cannot underestimate the importance of reducing
manufacturing costs, and participants must clearly communicate the advantages
of using enzymes. In addition to offering higher product quality and lower
manufacturing costs, enzymes reduce waste production and energy consumption
by up to 50 per cent. "Better chemical selectivity and higher specificity
result in numerous commercial benefits, including higher-quality products,
fewer side reactions and harmful by-products, easier separation of products
and less pollution - all of which translate into lower cost for end users,"
says Frost & Sullivan Senior Research Analyst, Dr. Kaushik Ramakrishnan
Shankar.

However, despite cost-cutting measures, enzyme manufacturers must still
contend with considerable price pressure in most application segments. For
example, starch- and sugar-processing enzymes have become commoditised due to
consumers' greater negotiating power. Apart from commoditisation, a
competitive marketplace also intensifies price pressures, as in the case of
bakery enzymes, a densely populated segment.

Manufacturers can use novel materials and methods, such as cheaper and
non-traditional carbon and nitrogen sources to reduce their production costs
but they should also invest in R&D to distinguish themselves in the market.
In addition, strong distribution partnerships with other companies will help
manufacturers entrench themselves in the market.

"Strategic relationships between manufacturers should help synergise
company strengths while overcoming individual weaknesses," notes Dr. Kaushik.
"Such alliances have been successful for the largest companies operating in
this segment, and could be replicated by other participants."

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

European Market for Enzymes in Food Application is part of the Food &
Beverage Ingredients Growth Partnership Services programme, which also
includes research in the following markets: European Eye Health Ingredients
Market, U.S. Omega-3 and Omega-6 Markets, European Heart-Health Ingredients
Market, European Prebiotics Market, U.S. Digestive Health Ingredients Market,
U.S. Heart-health Ingredients Market, European Digestive Health Ingredients
Market. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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    European Market for Enzymes in Food Application
    M55B

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-4127, Fax: +48-22-390-4160, monika.kwiecinska at frost.com