2012 – Ingredients Year in Review

Assessing ingredient innovation from throughout the year finds a number of trends still in effect. Health claims regulation has clearly hampered health ingredients innovation in the EU. The fact that Tate & Lyle’s salt reduction technology won the NuW Awards at this year’s HiE in Frankfurt signals that true innovation is mainly occurring in “passive” rather than “active” health. As the economic malaise continued to force manufacturers to cut back this year, the issue of cost reduction remained on the agenda. But two ingredients that have experienced massive price hikes were particularly up for replacement: eggs and guar gum.

21 Dec 2012 --- Further consolidation in the food ingredients industry was rampant in 2012, with DSM, DuPont, BASF and Naturex particularly keen to strengthen their positions. In a highly active year for DSM, the year came to a close with the news of its purchase of blending specialist Fortitech.

BASF and DSM have been particularly eyeing the omega 3 space this year, with both companies involved in a spate of buys. Most recently, BASF entered a €664 million deal to acquire Pronova Biocare, several months after acquiring Equateq Ltd. In recent months, DSM had significantly strengthened its own omega 3/DHA businesses, through the acquisitions of Martek Biosciences and Ocean Nutrition Canada.

DuPont has also been highly active in food, following its closing of the purchase of Danisco in early 2011. In 2012, it acquired full ownership of the Solae, LLC joint venture from Bunge. DuPont previously owned 72 percent of the joint venture, while Bunge owned the remaining 28 percent. Naturex announced the acquisition of Decas Botanical Synergies in October 2012 (its fourth in twelve months), a leader in cranberry extracts and powders for nutraceutical and pharmaceutical industries.

Assessing ingredient innovation from throughout the year finds a number of trends still in effect. Health claims regulation has clearly hampered health ingredients innovation in the EU. The fact that Tate & Lyle’s salt reduction technology won the NuW Awards at this year’s HiE in Frankfurt signals that true innovation is mainly occurring in “passive” rather than “active” health. As the economic malaise continued to force manufacturers to cut back this year, the issue of cost reduction remained on the agenda. But two ingredients that have experienced massive price hikes were particularly up for replacement: eggs and guar gum.

Natural, clean label and sustainability trends also remain dominant NPD drivers. A recent consumer study was conducted by market research company e-Research24.de within eight European countries for Kampffmeyer Food Innovation. The results show that naturalness is a decisive buying incentive and that most consumers are willing to pay more for products with a clean label. Almost three-quarters of respondents perceive a close connection between “natural” and “healthy.” The study also shows that both ingredients and manufacturing processes are perceived as natural if they are familiar to consumers as part of their everyday lives. Other exciting areas of development include “free from” ingredient solutions and ingredients to cater to the burgeoning demand for protein.

Functional Foods
• DuPont gained EU approval for a new proprietary vitamin K2 product as a novel food. This product is a new unique commercial form of vitamin K2, entering the range as ActivK S. Food products and dietary supplements containing the vitamin qualify for an EU-approved bone health claim. Benefits for cardiovascular health are also well-documented.

• UniK2, a natural vitamin K2 MK-7, from Frutarom Health, Switzerland, is now self-affirmed GRAS (Generally Recognized as Safe). UniK2 is highly suitable for functional foods, meeting food-processing demands including high temperature stability, dispensability and other common manufacturing processes.

• Lonza Group launched Memree, the company’s new line of phosphatidylserine (PS) products. PS is a cognitive health ingredient that has shown potential to improve memory, concentration, and learning in human clinical trials. The line includes phosphatidic acid that has demonstrated potential to reduce active levels of cortisol, a hormone associated with stress.

• Croda has launched its new omega 3 emulsion, Incromega 3mulsion. The 3mulsion is ideal for inclusion in convenient sachets or syrup applications. Just one single-serve sachet or a spoonful of the flavored emulsion will provide a full omega 3 RDA. Croda’s Incromega lipid range offers highly concentrated EPA and DHA ingredients with proven health benefits.

• Cargill’s arachidonic acid-rich oil (ARA) has been authorized as a novel food by the European Commission for use in infant formula and follow-on formula. ARA, an omega-6 long-chain polyunsaturated fatty acid is a natural component of human mother’s milk. It is considered important to infant brain and vision development when supplemented in infant formula.

• LycoRed Ltd has been granted a European patent for its proprietary extraction process of the Lyc-O-Mato oleoresin from tomatoes. Lyc -O-Mato contains a specific proprietary natural composition of tomato lycopene. Clinical studies demonstrate that greater intake of lycopene from tomatoes is associated with a lower risk of cardiovascular disease, and may also offer additional benefits in blood pressure management.

• Dow Wolff Cellulosics applied to the UK Food Standards Agency for approval to market a carbohydrate derivative known as methylcellulose. The applicant states that methylcellulose functions as a dietary fiber to promote a sense of fullness or satiety. Methylcellulose, which is produced from plant material, is approved as a food additive in the European Union as an emulsifier, stabilizer and thickener.