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Why functional drinks are likely to grow post-pandemic

Bright future for beverages

Much of the healthy drinks market saw extended growth since the start of the COVID-19 pandemic as a result of growing consumer interest in health and immunity. Consumers are now prioritizing condition-specific benefits in their beverages, and general wellness and hydration claims may no longer be enough to lure them.

What do prospects for healthy beverages look like post-pandemic? The market is likely to embrace a more diverse array of functions. And, as consumers get back to their regular routines, product convenience will once again become paramount. Here are some of the emerging trends shaping the market.

The determination to take ownership of one’s health is driving better-for-you beverages. Consumers’ desire to make healthier choices paved the rise of products like low- and no-alcohol drinks and less-unhealthy soda, points out Erin Costello, communications associate for beverage developer Imbibe (Niles, IL). Expect to see that trend continue.

“Categories with health halos are predicted to experience significant growth,” Costello says. “The American dairy alternatives market has a projected compound annual growth rate of 12.5% from 2021 to 2028, according to Grand View Research. We expect to see most new products positioned as offering more than just hydration.”

Immunity-supporting beverages are especially booming. Market researchers have witnessed a meteoric rise of immune-health beverages, Costello notes, while survey data gathered this year by ingredient supplier Glanbia Nutritionals (Chicago) showed that 46% of consumers are interested in beverages naturally high in immune-health ingredients. Meanwhile, 30% are seeking beverages fortified with such ingredients.

Despite several pre-pandemic years of strong and consistent growth, the ready-to-drink (RTD) market did stagnate during the pandemic. Although the RTD market posted strong numbers in the three years leading up to the pandemic, consumers have spent much of their time at home since early 2020, says Ranjana Sundaresan, lead research analyst for food innovation intelligence firm Spoonshot (St. Paul, MN).

“References to ‘on-the-go’ food and drink declined 40%,” Sundaresan says. “Even though parts of the world are opening up, it doesn’t look like there’s much interest in consuming food or drink while on the move. That’s not surprising, since this would require removing masks and juggling with packaging in public, crowded places.”

But there’s hope. Ready-to-drink coffee products could be the first segment of the RTD market to rebound. One Imbibe survey found that 67% of adults purchased an RTD coffee beverage between 2020 and 2021.

Imbibe’s Costello cites further market research data from IRI (Chicago). “Refrigerated RTD coffee beverages experienced close to 20% growth in the 52 weeks ending May 17, 2020, according to IRI. Although consumers are still enjoying creating the coffee shop feel at home, refrigerated RTD coffee posted USD $487 million in sales in total U.S. convenience stores and MULO [multioutlet channel] for the 52 weeks ending May 17, 2020. In our business, we’re on pace to see RTD grow by at least 8% through the end of 2021.”

Nutraceutical products fortified with botanical ingredients are one of the fastest-growing product categories. Why? Consumers want natural, great-tasting products with added health and sensory benefits, says Leigh Anne Vaughan, global strategic marketing director, Taste for Kerry (Tralee, Ireland).

Vaughan points to supporting data from market researcher Innova Market Insights’ product launch database. “From 2017 to 2020, there has been a 46% growth in the number of beverages containing botanical extracts. Importantly, 69% of consumers say it is important for foods and drinks to be 100% natural. The COVID-19 pandemic has also raised public interest in ingredients that have a health halo.” As luck would have it, “Botanicals have this reputation among consumers” of being healthy.

Clean-label and environmentally friendly products matter to consumers, pushing progress in the beverage market. Vaughan notes, “Kerry’s 2021 Sustainability in Motion survey found that 84% of consumers believe it’s important for people to contribute to sustainability. About half of consumers consider sustainability when buying food and beverages. This often shows up as an increase in consumers buying plant-based beverages, as plant-based is widely perceived to be very sustainable.”

The healthy drinks market is well positioned to recover from the COVID-19 pandemic. While RTDs suffered losses, botanical drinks and beverages with immunity-boosting ingredients are in high demand. The beverage sector’s recovery may be uneven, but it is nonetheless underway.

Articles

Here’s what analysts say to expect of healthy drinks as consumers return to their normal schedules post-pandemic.

Bright future for beverages? Why functional drinks are likely to grow post-pandemic

Alissa Marrapodi is Industry Insights Contributor, Custom Content Editor, MJH Life Sciences.

Balchem Human Nutrition & Health (New Hampton, NY) will host an inaugural 2022 TrenDish Innovation Summit. Through this event, Balchem is seeking innovative technologies, ingredients, and products that can be used with or incorporated into its product line offering—including cognition, sleep, performance, and plant-based solutions. The event will take place via Microsoft Teams on Tuesday, March 15, 2022.

"This approach will increase the level of collaboration between peers in the business-to-business space to bring the most relevant innovations forward to the dietary supplement and food & beverage space,” said Jim Hyde, senior vice president and general manager of Balchem Human Nutrition & Health, in a press release. “Our transparency and clear direction will help suppliers focus their efforts in key areas that create synergy with Balchem core technologies and focus areas.”

Applications are being accepted and participants will be notified of their selection by Feb. 15, 2022. Deadline to submit is Dec. 22, 2021. For more information, contact InnovationSummit@Balchem.com.

Through this event, Balchem is seeking innovative technologies, ingredients, and products that can be used with or incorporated into its product line offering—including cognition, sleep, performance, and plant-based solutions.

Balchem to host 2022 TrenDish Innovation + Collaboration Summit

A new U.S. composition patent has been awarded to NXT USA for its flagship ingredient 

. U.S. Patent #11,147,850, titled: “Synergistic Composition For Osteoarthritis” was awarded in late October. The invention relates to the synergistic composition of 

 rhizome extract for several indications, including inflammation, joint function and collagen breakdown.

“This is a validating event for the researchers that created TamaFlex, for NXT USA, and also for TamaFlex consumers. It is a game-changer that this novel composition is recognized in a US Patent, because it supports the discovery, development and clinical substantiation that backs this exciting new ingredient,” said Eric Anderson, managing director for NXT USA, in a press release.

“TamaFlex is clinically validated in both healthy participants and participants with mild joint discomfort to provide benefits in just five days,” added Anderson. “In comparison, most joint products rely on data from folks with existing health conditions and need extended periods of time to provide efficacy.”

U.S. Patent #11,147,850, titled: “Synergistic Composition For Osteoarthritis” was awarded in late October.

TamaFlex from NXT USA awarded composition patent

Global leader of caramel colors for the food and beverage industries, Sethness Roquette (Skokie, IL), has selected IMCD US Food & Nutrition as the exclusive U.S. distributor of its caramel colors effective Jan. 1, 2022. 

“On top of sales to direct customers, distribution is critical for Sethness Roquette, which is committed to providing the highest quality caramel colors, along with an outstanding level of service,” said Andre Kwee, distribution manager USA, Sethness Roquette, in a press release. “We fully trust in the IMCD U.S. team’s abilities, technical resources, and highly-skilled teams to take over the promotion of our wide range of products.”

Tom Schufreider, president America of Sethness Roquette, said in a press release: “For more than 140 years, we have been delighted to support our customers through long-term relationships with the highest level of service required in the food and beverage industries. IMCD US is a fantastic fit for Sethness Roquette in the U.S. because they offer national coverage, dedicated in-house technical support and a highly trained Customer Service team. They will perfectly complement our sales network to direct customers.” 

Global leader of caramel colors for the food and beverage industries, Sethness Roquette, has selected IMCD US Food & Nutrition as the exclusive U.S. distributor of its caramel colors effective Jan. 1, 2022. 

Sethness Roquette, IMCD U.S. Food & Nutrition partner to distribute caramel colors in the U.S.

Arla Foods Ingredients introduced a patented method, milk fractionation, that separates milk into its different protein components that enable scientists, nutritionists, and health professionals to develop specialized nutrient-specific foods for infant formulas, sports products, and medical nutrition. 

“The method has been several years in development, and I’m delighted to see what was once a vision become a commercial reality with the power to completely revolutionize targeted nutrition for vulnerable groups,” said Henrik Andersen, CEO of Arla Foods Ingredients, in a press release. “As science-based innovators we are driven to invent and reinvent our processes to ensure we have the best possible products available and continue to lead the way in whey.”

The separation of milk’s different proteins from whey previously relied on cheese-making, as whey is a byproduct of this process—this new technology bypasses this process. 

“Traditional cheese-making demands significant quantities of organic milk to produce the volumes of whey we require to meet demand, and now that we’re not reliant on this we can significantly increase production and, at the same time, offer parents and guardians greater clarity of the provenance of the organic infant milk formula because just a few Arla farms supply the milk to our factory in Videbaek,” Andersen said.

Arla Foods is currently using the new technology to manufacture the organic Baby&Me brand for Arla Foods and expects to launch its first organic private-label infant-formula solutions based on the technology in 2022.

Arla Foods Ingredients introduced a patented method, milk fractionation, that separates milk into its different protein components.

Arla Foods develops new method that separates milk into its protein components

, an innovative bioscience skincare brand.

 has become a buzzword, with beauty routines as prevalent as they are varied. The fact is that the skin is the body’s largest protective organ—and we should be caring for it accordingly. Skincare regimens are often undertaken to address cosmetic concerns like wrinkles and dark spots, with many brands playing directly to those symptoms. But the skincare industry is largely focused on—and marketing to—cosmetic results, rather than the loss of skin health which is responsible for them. The truth is that we can’t achieve lasting cosmetic outcomes without first addressing the skin’s health. Treating for symptoms alone, like dryness, leaves underlying causes unaddressed.

As an industry, skincare professionals and brands need to shift their focus to caring for skin health with ingredients that treat the cause—those that will result in better cosmetic outcomes while also restoring and preserving healthy skin. Here’s how we can do it.

Key Components of Skin Health for Brands to Focus On

Healthy skin starts with the skin’s natural barrier. Composed of the sebum barrier, stratum corneum, and epidermal cells, this barrier locks in moisture and protects us from things like allergens and viruses. When damaged, this barrier allows healthy moisture to escape and toxins to pass through.

Free radicals are molecules produced by our metabolism, pollutants, and UV radiation from the sun. They can cause the skin barrier to break down, resulting in dryness, discoloration, and changes in texture. This damage is cumulative, adding on to previous damage, culminating in what we call aging.

Aging is associated with a decrease in vitamins, minerals, hormones, peptides, and loss of function. Peptides are active molecules that trigger cellular activity, cell growth, and the skin’s resilience to toxins. These molecules, composed of amino acids linked by peptide bonds, are incredibly important medically. As we age, our supply of peptides diminishes, which can lead to increased inflammation, loss of hydration, and wrinkling.

Ultimately, free radical damage produces inflammation that causes skin damage and breaks down our skin’s vital protective layers. The body’s defenses include naturally occurring antioxidants and anti-inflammatories that neutralize free radicals and bring inflammation under control—but as we age, our skin needs help maintaining these functions and fighting inflammation.

Ingredients Skincare Brands Should Use to Treat Skin Health Instead of Symptoms

According to the 500 Dalton Rule, molecules applied to the skin won’t penetrate (or, in turn, have any effect) if they weigh more than 500 Daltons. Because of this, any skincare brand claiming to improve skin health needs to be mindful of its ingredients: if they don’t conform to the Dalton Rule, they’ll be ineffective. Heavier molecules merely rest on the skin’s surface without causing any meaningful benefit.

To actually aid the cells’ natural self-repair process and boost skin health, brands should consider these Dalton Rule–conforming ingredients:

 Full of iodine, minerals, and antioxidants, sea kelp helps to soften and hydrate the skin by promoting moisture retention.

 By helping your body preserve water, hyaluronic acid keeps skin cells hydrated and healthy.

 A vital structural component of healthy skin, hydrolyzed collagen improves skin cells’ natural production process.

 Products instilled with peptides can trigger healthy cellular functions like detoxification, cell renewal, and collagen production. Adding them to a skincare routine can help preserve the skin’s youthful appearance.

 Growth factors are a key power-player in promoting skin health. They stimulate skin cells to multiply, firm up, and improve their overall performance.

Growth Factors that Skincare Brands Should Use to Promote Skin Health

Let’s take a deeper dive into growth factors, which have huge potential to boost skin health if added to skincare products correctly. Since our naturally occurring growth factors decline with age, we can supplement them through topical products. Here are five key growth factors:

 Aids in the growth and healing of the skin by activating collagen formation

 Protect cells from oxidative stress resulting from free radical damage and encourage healthy skin cell growth

 Defend the skin against injury and promote cellular repair

Responsible skincare brands should be using these health-promoting ingredients to treat the underlying causes of skin symptoms—the skin’s true health—rather than just addressing symptoms presenting visually. Much damage to the skin can’t be seen by the naked eye.

Treating underlying skin health is the future of effective skincare. We have the scientific knowledge of what our skin needs to be healthy. It’s simply a matter of applying it responsibly and industry wide.

To maintain skin health, brands need to treat causes instead of symptoms.

A doctor explains: Why the beauty industry needs to focus on underlying skin health rather than just cosmetic symptoms 

CK Ingredients (Ontario, Canada) announced that it has signed a Letter of Intent with The Protein Brewery (TPB; Breda, The Netherlands), a developer of value-added plant-based food ingredients, for the commercialization of its Fermotein ingredient in targeted sectors within the North American food and nutrition B2B market. TPB’s Fermotein ingredient is rich in protein, has an amino acid profile comparable to meat, contains essential fatty acids, vitamins, minerals, fiber, and is low in starch. CK Ingredients is collaborating with TPB to commercialize Fermotein in key human nutrition categories such as bakery products, extruded snacks, and breakfast foods.

“Fermotein is a truly exciting addition to our growing portfolio of innovative plant-derived ingredients. In today’s environment, novel plant protein sources are in high demand, and our clients are always looking for ways to differentiate themselves in a highly competitive market. The introduction of Fermotein really couldn’t come at a better time,” said Michael Chernyak, president of CK Ingredients, in a press release.

“We look forward to working with CK Ingredients to further commercialize our first, future-proof, high protein food ingredient Fermotein,” said Deb Anderson, director of new business development for TPB. “CK Ingredients is a strong fit for TPB. They are very well-established in North America, which is a key geographic region for us, and they have excellent relationships within food and nutraceutical markets, where Fermotein has terrific potential to add value.”

CK Ingredients is collaborating with The Protein Brewery to commercialize Fermotein in key human nutrition categories such as bakery products, extruded snacks, and breakfast foods. 

CK Ingredients signs Letter of Intent with The Protein Brewery to commercialize its Fermotein ingredient in North America

In a 2-ounce serving, pistachios contain 12 g of protein which is more than a similar-sized serving of halibut, 6 g of fiber which is three times more than a similar-size serving of broccoli, and 570 mg of potassium which is greater than one large banana.

https://www.agmrc.org/commodities-products/nuts/pistachios

Fun fact! In a 2-ounce serving, pistachios contain 12 g of protein which is more than a similar-sized serving of halibut, 6 g of fiber which is three times more than a similar-size serving of broccoli, and 570 mg of potassium which is greater than one large banana.

Nutritious pistachios

ACG (Mumbai, India) has signed a memorandum of understanding (MoU) with the government of the state of Maharashtra in India to set up what ACG says would be Asia’s largest manufacturing plant and research & development center. The manufacturing plant, which will be located in Aurangabad in Maharashtra will produce 40 billion capsules per year and serve both Indian and international pharmaceutical and nutraceutical companies.

“Our vision to be a future-ready solutions provider to the pharma industry anywhere in the world and our proposed investment of approximately USD$ 100 million (over INR 600 crores) in this state-of-the-art plant, is an integral part of ACG’s mission to double our capsule manufacturing capacity to 240 billion capsules a year,” said Karan Singh, managing director for ACG, in a press release. “This plant will play a key role in further cementing India’s position as the global hub of capsule manufacturing and will add to improved access to high quality, safe and affordable medicines and nutraceuticals globally.”

The plant will also employ key design principles from the internationally recognized Leadership in Energy and Environmental Design (LEED) and will be powered significantly by renewable energy. Setting new benchmarks for the industry, the plant will employ automation and industry 4.0 technologies to minimize resource intensity and ensure products meet and exceed the highest global manufacturing practices.

“We have a long history of operating in Maharashtra and are privileged to sign this MoU with Government of Maharashtra for this mega project which when ready by 2023 will create around 1000 direct and indirect jobs in the region,” said Nitin Desai, senior vice president for ACG.

The manufacturing plant, which will be located in Aurangabad in Maharashtra will produce 40 billion capsules per year. 

ACG to build Asia’s largest capsule manufacturing plant in the Indian state of Maharashtra

FrieslandCampina Ingredients (Amersfoort, The Netherlands) has entered the plant-based protein market with two powder solutions developed in collaboration with AGT Foods (Regina, SK, Canada), a leading supplier of value-added pulses, staple foods, and ingredients. Known as a leading dairy ingredients provider, FrieslandCampina’s first plant-based offering, the Plantaris range, was co-developed with AGT Foods using pulse ingredients.

The Plantaris range features Plantaris Pea Isolate 85 A and Plantaris Faba Isolate 90 A, both of which were designed to overcome common formulation challenges associated with plant-proteins, such as flavor off-notes. According to a press release, sensory panel tests have shown that products formulated with Plantaris have an overall cleaner taste than other products available on the market. Both ingredients are extracted using a gentle, chemical-free manufacturing process, and specially processed to ensure dispersibility, solubility, stability, and low dusting. Well suited for a wide variety of applications, the Plantaris range is also gluten free and a good source of essential amino acids, such as leucine and branch chain amino acids (BCAA).

“Demand for plant-based products is a trend that is shaping the future of how we eat. As consumers become more health and planet-conscious than ever, demand for plant-based proteins is increasing,” said Herman Ermens, president of FrieslandCampina Ingredients, in a press release. “More people are identifying as flexitarian, and therefore want a wider range of protein options, from plant and dairy sources, to suit their changing needs.

“At FrieslandCampina Ingredients, we know protein. It’s in our DNA. And because of that, we know we have value to add in this space. By partnering with AGT, a leading innovator in plant-based ingredients, we want to help our customers seize the opportunities in this growing market by presenting high-quality dairy and plant-based proteins, side by side. Our partnership opens up huge scope for innovation and the creation of precisely-targeted end-products for today’s consumers.”

“The world of food and nutrition reacts quickly to changing consumer demands. Collaboration and innovation are key elements for unlocking opportunities in the plant-based market,” added Murad Al-Katib, president and CEO of AGT Foods, in a press release. “This partnership was borne out of mutual desire to deliver an effective, sustainable solution for today’s health-conscious and environmentally aware consumers. By combining our knowledge of pulses as a healthy and sustainable source of protein, with FrieslandCampina Ingredients’ market understanding and formulation expertise, Plantaris is the ideal solution for brands looking to develop protein products with staying power as the nutrition market continues to evolve. We’re looking forward to our continued partnership and seeing how, together, we can serve the market better to help brands realise the full potential of plant proteins.”

FrieslandCampina Ingredients has entered the plant-based protein market with two powder solutions developed in collaboration with AGT Foods.

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Nutritional Outlook Names Its 2021 Best of the Industry Awards Winners!

Bright future for beverages