"Health benefits, combined with favourable physicochemical properties of polyols offer significant opportunities for their use in a variety of applications which include confectionery, pharmaceutical and oral care products," notes Frost & Sullivan Research Analyst Kaye Cheung. "Notably, the sugar-free confectionery is one of the fastest growing application segments of the European polyols market."
The superior functional properties and health benefits of polyols have resulted in their increased use in food and pharmaceutical applications. Moreover, increasing consumer awareness of diabetes, as well as weight management has triggered interest and demand for low calorie/low glycaemic index (GI) foods containing polyols.
The European polyols market is now witnessing increasing competition from Asian manufacturers. Consequently, the market is turning to be price sensitive. This competitive scenario has increased the need for market participants to expand into new markets.
"Typically, Asian manufacturers focus on boosting their volumes in order to maximise their market strength, "explains Ms. Cheung. "In this situation, focusing on quality, customer service and novel products will help European companies cope with the competition arising from the low-cost products that are offered by Asian manufacturers."
Asian manufacturers are able to offer lower prices than European companies, which is adversely impacting the profit margins of local manufacturers. In the future, competition is expected to intensify further. Hence, European manufacturers will need to look for cheaper raw materials in order to bring down their production costs.
