European Enteral Feeds Markets

Reimbursement Regulations Impact Revenues and Stifle Innovation

The European enteral feeds market - comprising the institutional (namely hospitals) and the homecare market segments - is facing challenges caused by reimbursement regulations. The legislation in Germany, which was brought into effect in October 2005 and laid down the specific disease conditions that allow for enteral nutrition on a reimbursable basis, has had a negative impact on market revenues. Moreover, the homecare market segment is dependant on effective reimbursement and hence, adopting innovative strategies to promote the demand for enteral feeds in treating malnutrition and providing disease-specific nutrition, will prove beneficial. Additionally, efforts made to establish better links with the Association for Parenteral and Enteral Nutrition will enable enteral feed companies and manufacturers to effectively lobby the health authorities to drive new initiatives.

This Frost & Sullivan research service examines the European enteral feeds market, segmenting it into institutional and homecare market segments. It also discusses the various market trends and opportunities while providing in-depth analysis of market share, forecasts and market drivers, restraints and revenues. Strategic recommendations offered in this study enable companies to align their positioning strategies to benefit from the changing market conditions and obtain maximum return on investment.

Rising Healthcare Costs Lead to the Expansion of the Homecare and Community Market Segments

Increasing healthcare costs are placing immense pressure on hospitals to provide quality patient care. Additionally, the regulatory diagnosis-related group (DRG) system has led to a shift from extended hospital treatments to homecare operations. However, structuring a homecare operation requires the right resources and companies are entering into partnerships for this purpose. The success of homecare operations depends on the network of people available to deliver services and enable the efficient distribution of products. Increased awareness of the importance of therapeutic nutrition has also contributed to a rise in demand in the homecare market segment, which is expected to grow to $1,544.9 million by 2012 from $1,020.6 million in 2005.

As homecare operations will offer patients flexibility of treatments in their own homes, the homecare market segment is poised for growth and this is likely to encourage positive trends in the enteral feeds market. "However, the homecare structure cannot work in isolation and this has resulted in these operations providing enteral feeds and tube systems along with additional support to patients through a service infrastructure," says the analyst.

Increasing Focus on Disease-specific Categories to Boost the Growth of the Enteral Feeds Market

Companies are focusing on building strong pipelines with an increased focus on disease-specific solutions in the enteral feeds market, prominently for cancer, diabetes, HIV, Alzheimer's disease and cardiovascular diseases. While general feeds remain important, the demand for enteral feeds for disease-specific solutions is expected to increase with lifestyle changes and an ageing population.

Advances in science and technology are likely to further lead to the development of enteral formulas for specific clinical conditions. "Investing in good-quality clinical data to support the vital role of diet in health and disease prevention will enable successful reimbursement," says the analyst. Despite, clinical trials being expensive, the European disease-specific feeds market is a high value market segment expected to grow from $127.8 million in 2005 to $510.1 million by 2012. Investing in research and development (R&D) for new products will also enable companies to take advantage of the huge potential that exists in this market.