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Best Potential for Countering Threat from Asian Competitors for U.S. Vitamin A and Beta-carotene - Frost & Sullivan finds that the U.S. Markets for Vitamin A and Beta-carotene earned revenues of $258.1 million in 2005 and estimates this to reach $302.3 million in 2012.
Best Potential for Countering Threat from Asian Competitors for U.S. Vitamin A and Beta-carotene

 

NewswireToday - /newswire/ - San Antonio, TX, United States, 2006/04/27 - Frost & Sullivan finds that the U.S. Markets for Vitamin A and Beta-carotene earned revenues of $258.1 million in 2005 and estimates this to reach $302.3 million in 2012..

   
 
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The U.S. Vitamin A and Beta-carotene Markets are poised to enjoy growth in certain segments such as Food and Beverage and Dietary Supplements. However, the increasing amount of Asian competition expects to intensify price pressures already prevalent in this market and tighten margins further. Current manufacturers are increasingly looking to niche applications and joint venture agreements in order to remain competitive in these markets.

Frost & Sullivan finds that the U.S. Markets for Vitamin A and Beta-carotene earned revenues of $258.1 million in 2005 and estimates this to reach $302.3 million in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the U.S. Markets for Vitamin A and Beta-carotene, then send an e-mail to Trisha Bradley, Corporate Communications at trisha.bradley[.]frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. The brochure will be e-mailed to you upon receipt of this information.

“The most important factor driving the growth of the U.S. Vitamin A and Beta-carotene markets is the increased interest in preventative healthcare”, notes Frost & Sullivan Research Analyst Ashwin Sukumaran. “Driven by the changing demographic profile of the U.S. population, the highest growth for Vitamin A and Beta-carotene expects to be seen in the fortified food and beverage and dietary supplement segments.”

The ageing of the baby boomer generation in the United States means that one of the fastest growing sections of the population in the next few years will be those over 65 years old. This section of the population is concerned about losing their health and vitality as they age. Combined with recent outbreaks of disease and rapidly escalating healthcare costs, there is a huge increase of interest in preventative healthcare which is driving growth in the Food and Beverage and Dietary Supplement segments of the U.S. Vitamin A and Beta-carotene markets.

In addition to this, advances in technology such as micro-encapsulation are creating hitherto unknown possibilities in terms of applications within these segments. However, growth in these markets will not be easy to achieve without resolving certain major challenges faced by the industry.

The biggest challenge is that of increased Asian competition in these markets. There is already a fair degree of price pressure prevalent in these markets. However, with the entry of Asian manufacturers expected in the next two to three years, these price pressures are expected to intensify and drive down margins.

“The challenge for European and American manufacturers in the U.S. Vitamin A and Beta-carotene markets in the next few years will be to establish a strong cost leadership position in preparation for the entry of Asian competitors”, explains Sukumaran. “However, considering the difference in cost structures between European or American manufacturers and Asian manufacturers, the sustainability of such a position is questionable. Considering what has been seen in other vitamins markets, the question then becomes one of whether to remain in this market at all.”

One possible response to meet Asian competition is to move away from the mass market, where competition is price-based and identify segments or niches, which are sustainable. Customer service and product quality then become important tools with which Vitamin A or Beta-carotene manufacturers can differentiate their products. If manufacturers cannot compete on the same field as Asian companies, they will need to move into new playing fields that either match their core competencies or combine their core skills with those of their erstwhile competitors.

The U.S. Markets for Vitamin A and Beta-carotene is part of the CMFB-88 ---Food & Beverages and CM00-CM ---Total Integrated Chemicals, Materials & Food Solution, which also includes research in the following markets: U.S. Vitamin E Markets, U.S. Vitamin C Markets, European Markets for Vitamin A and Beta-carotene, European Market for Vitamin E. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Best Potential for Countering Threat from Asian Competitors for U.S. Vitamin A and Beta-carotene

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Publisher Contact: Trisha Bradley 
210.247.3870 trisha.bradley[.]frost.com
 
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