vitafoods europe - european trends

Communicating benefits is key to growth in 2016

Vitafoods Europe 2016:European Trends in Nutritional Ingredients

Vol. 1, Issue 1January 2016 €36

www.vitafoods.eu.com

2 vitafoods.eu.comVitafoods Europe 2016 | European Trends in Nutritional Ingredients

CONTENTS

January 2016

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VIEWPOINTby Chris LeeLooking to explore new ingredients that will drive product ideation in 2016? This special report is designed to do just that.

EUROPEAN TRENDS IN NUTRITIONAL INGREDIENTSby Paul GanderThe functional ingredients sector appears to have the ability to gain traction in 2016 by remaining mindful of consumer desires and trends, toeing the line with regulations, and partnering with companies in NPD to develop finished products that truly meet market needs.


Prepare to Explore Nutritional Ingredients at Vitafoods EuropeEurope’s nutrition landscape moves quickly and

changes fast. It is influenced by evolving consumer

needs, and shaped by new regulations that can help

and hinder in equal measure.

Such a dynamic environment presents significant

business challenges, but also creates huge

opportunities. Nutrition companies that find the

perfect recipe for success will reap the rewards in the

form of increased sales, greater consumer loyalty and

long-term profitability.

Vitafoods Europe, the global nutraceutical event,

offers nutrition companies a unique opportunity to

find solutions to the challenges they face and to

maximise their business potential. It is where the

industry comes together as one to share and discover

the latest ingredient innovations, to hear fresh

insights into trends and regulations, to learn about

the latest scientific developments, and to meet with

contacts old and new.

Produced in partnership with our

colleagues at Natural Products INSIDER,

this new report is the perfect companion to

your visit to this year’s Vitafoods Europe,

which takes place in Geneva, Switzerland, from

10-12 May 2016. We’ve spoken exclusively with

several leading ingredients suppliers and independent

experts to bring you the latest knowledge in the key

areas that matter most.

All of the companies featured in the report, plus a

host of independent experts, will be among the

exhibitors at Vitafoods Europe 2016, providing you

with the opportunity to find out first-hand what

the issues we’ve identified mean for your business.

I hope you enjoy reading European Trends in

Nutritional Ingredients as much as we’ve enjoyed

creating it. I look forward to seeing you at

Vitafoods Europe 2016 later this year. It’s set to be

our biggest and best show ever, and is definitely

not one to be missed!

Chris Lee

Vitafoods Portfolio

Director

Informa [email protected]

Viewpoint

Vitafoods Europe offers nutrition companies a unique opportunity to find solutions to the challenges

they face…

European markets for nutritional

ingredients face many forbidding

challenges during 2016 but, against

the “run of play,” some exciting

opportunities look set to materialise

from unexpected quarters.

Globally, dietary supplements

remain popular, and the functional

foods market “promises a bright

future,” according to Rudi De Man,

Vice President of Sales and Business

Development, NattoPharma. He

quotes Statista data showing

worldwide annual growth of 6

percent for functional foods

between 2011 and 2015.

On the challenges side, when it

comes to Europe, you need look no

further than probiotics to see the

evidence. Euromonitor International

cites figures showing that value

growth in probiotic yoghurt stood at

18 percent between 2002 and 2003

in Europe.

This compares with shrinking values

since the European Food Safety

Authority (EFSA) delivered its first

negative scientific opinions in 2010.

Euromonitor Health and Wellness

Associate Maria Mascaraque

commented: “This culminated in

value sales plummeting by 8 percent

between 2012 and 2013, when all

probiotic health claims were

banned. Sales have remained

negative ever since.”

Scrabbling around for a positive

angle, Euromonitor cites Swiss health

claims approved for probiotics, most

recently (in September 2015) for

Yakult’s Lactobacillus casei Shirota

regarding gut health. In 2014,

DuPont-Danisco had a Swiss health

claim approved for Bifidobacterium

lactis HN019, also for digestive health.

Earlier still, in 2013, Danone led the

field in Switzerland with approval for a

gut health claim in relation to the

Bifidobacteria in its Activia brand.

If anyone should doubt whether

health claims have an impact on

sales, Euromonitor quotes positive

growth for Activia in Switzerland

since the claim was approved,

compared with a sustained falling-off

in 20 EU countries researched by the

data company.

Are there any signs of optimism, or

of improved regulatory “transit,”

inside the EU? Patrick Coppens,

Director of International Food &

Health Law and Scientific Affairs at

EAS Strategies in Brussels, went out

on a limb, stating: “I believe a claim

for probiotics is likely to win a

positive opinion from EFSA during

2016. Effects have been

demonstrated, and past claims have

been rejected because of flaws in the

studies. The sector understood what

was needed, and the results of new

studies should be coming in.

“It will probably not be the most

exciting claim,” he continued. “We

are unlikely to see anything around

immune function, for example.” As

in the Swiss examples, the most

probable benefit area is likely to be

“something measurable” such as

gut health.

Vitafoods Europe 2016: European Trends in Nutritional IngredientsCommunicating benefits is key to growth in 2016

By Paul Gander

European markets for nutritional ingredients face many forbidding challenges,

but some exciting opportunities look set to materialise from

unexpected quarters.



Meanwhile, research and

development (R&D) work into

probiotic delivery systems carries

on in parallel with scientific work

around the benefits. At Chr.

Hansen, Marketing Specialist for

Human Health & Nutrition Mia

Casparij offers the example of a

soft gel supplement for pregnant

and lactating women. Combining

probiotics and Omega-3, this is

said to be the first soft gel

formulation worldwide that can

maintain a shelf-life of two years

for live probiotics. Casparij also

sees far more research into

probiotics now than in the past.

Evidence Paves the WayAs in other ingredient areas, this

reflects the new emphasis on

documented and evidence-based

science in the dietary supplements

and functional foods arena.

Hanneke Bouman is Sales

Manager at Dutch-based

Bioriginal, which describes itself as

a supplier of “plant- and marine-

based Omega solutions.” She said,

“We are seeing a trend towards

traceability, sustainability and pure

and natural concentrated oils.”

This means activity is particularly

intense around its plant-based

Omegas and Marine Stewardship

Council (MSC)-certified fish oils.

The days when Omega-3 was an

undifferentiated commodity

product are long-gone.

Segmentation now comes thanks

to certification, different sources

such as fish or krill, and increasing

consumer understanding of the

value of long-chain

docosahexaenoic

acid (DHA) and

eicosapentaenoic

acid (EPA). And as

the company

description implies,

there is also an

increasing emphasis

on other Omega

oils, such as

Omega-7.

Even though there

are still some gaps

in the science,

Coppens said,

Omega-3s benefit

hugely from their approved

nutritional health claims and from

the fact that they have recognised

disease-reduction effects in areas

such as cardiovascular health.

Supported by science,

understanding of the benefits of

particular nutrients among

consumers and professionals is

increasing all the time.

NattoPharma identifies “healthy

ageing” as a target area with

vitamin K2, which it supplies and

which is “almost completely void

from our food supply.”

The company carried out a

three-year human clinical study

into the bone-building credentials

of vitamin K2. But there are also

cardiovascular benefits. “Being

fearful about poor bone and

cardiovascular health can be a

hindrance for the growing

population of senior citizens

when engaging in activities, travel

and exercise,” De Man said.

In another study, NattoPharma’s

vitamin K2 was successfully

incorporated into yoghurt.

“Healthy patients received low

doses of vitamin K2 in a yoghurt

drink for three months, showing

that benefits can be obtained

through delivery systems other

than traditional dietary

supplements,” he said.

Another micronutrient that is now

better understood and appreciated

by consumers is vitamin D. “The

relevance of vitamin D deficiency is

not only to do with northern

European countries, but also

warmer regions,” said Maria

Pavlidou, DSM’s Head of

Communications for Europe. “It’s

also to do with the amount of new

science that has emerged around

vitamin D.”

Across vitamins more generally, the

company emphasises the

importance of innovative delivery

formats. Pavlidou cited Mintel data

confirming that capsules still


remain the most important delivery

format. But, she added:

“Consumers want supplements

and products which feel less like

medicines. These might be

gummies for children, drinks, shots

or multivitamin powders.

Consumers want products they can

consume on-the-go, without water,

sometimes with a playful element

to them.”

Meeting Consumer DemandsThere is still plenty of room for

innovation in the area of nutrition

delivery, and not only for vitamins

and minerals. Pavlidou describes

beta-glucans as “one of the

ingredients which correspond

most closely with consumer

trends.” Those trends include

concerns about diabetes and

cardiovascular disease, but they

could also be said to include

expectations about convenience.

DSM’s own beta-glucan product is

in a powder format that can be

easily incorporated into baked

goods. “We now know we can

include it in smoothies, and can be

supplied in a sachet to make

milkshakes,” Pavlidou said. In the

UK, it is also available as a

spoonable consumer ingredient.

Of course, other ingredient

suppliers pay equally close

attention to consumer trends—

and to priorities among different

groups of consumers.

For Lonza, one recent shift has

come about in relation to the

nutritional ingredient industry’s

target audience. “After focusing on

the baby boomer generation for

some years, now the Millennials

(aged 18 to 34) are back in focus,”

said Scientific Marketing Director

Ulla Freitas.

“With the continuing trend of

consumers buying dedicated sports

nutrition products, even if they are

not professional athletes, this is

certainly a focus area for us,” she

said. L-carnitine, which is Lonza’s

flagship ingredient, has been

shown to help with recovery

processes after strenuous exercise,

the company reported.

At Spanish botanicals company

Monteloeder, Head of Marketing

Fernando Cartagena noted:

“Sports nutrition—and particularly

recovery formulations—has

experienced massive growth

during the last five years, and it is

still strong.”

There is increasing interest in any

sort of natural positioning in the

sports sector. Consumer concerns

relate to the ingredients

themselves, but also the method

of extraction.

Cartagena offered an example. “In

sports recovery, we have a botanical

extract with extensive science

which, from a European regulatory

standpoint is very interesting, as it

comes from the well-known lemon

verbena plant and is extracted only

with water,” he said.

Along with sports nutrition,

Monteloeder sees beauty-from-

within as a growth area for

nutritional ingredients over the

coming year. “We will see an

increase in the number of

ingredient launches in these two

areas, although only those with

clear scientific evidence and a

transparent communications

Sports nutrition — and particularly recovery

formulations—has experienced massive growth during the

last five years, and it is still strong.


strategy to do with traceability and

manufacturing will be able to stay

in the market,” he said. He

believes this type of “honest

story” is of particular importance

to Millennial consumers.

EAS Strategies, too, sees sports

nutrition looming large in 2016,

though not always for positive

reasons. As of this year, sport is no

longer governed by the Food for

Particular Nutritional Uses

(PARNUTS) directive, Coppens

noted, but is now bracketed with

general food and supplements.

“This is not very helpful,” he said.

“Ingredients need to comply with

the general rules. But if the

products are intended for sports

people, many of those properties

will not be applicable to the general

population. How will labelling and

claims be handled? There may be

regulatory problems, and they

could well surface during 2016.”

In sports as in other more

mainstream categories, EAS

Strategies predicts protein sources

will continue to play a prime role in

NPD. “Unlike carbohydrates or fats,

protein remains the one

macronutrient with good

associations,” Coppens said. “Given

the approved claims for protein, it’s

hardly surprising that it’s finding its

way into new products for the

general population, as well as sports

people.”

He continued: “You can do NPD

with protein. It’s an area of

innovation that companies will

continue to work with, probably

more so even than with Omega-

3s, for example.” In this respect,

he said, protein’s benefits in terms

of technical functionality are

almost as important as its

consumer benefits.

Claims Impact InnovationOverall, nutritional health claims

will continue to have an impact on

innovation and marketing across

Europe during 2016 and beyond.

Lonza differentiates between

established ingredients, with a long

history of use and consumer

awareness, and newly-developed

ingredients. “The first group seems

to be only moderately affected by

the new regulation, because

consumers tend to know the

benefits,” Freitas said.

For the second group, it can be

extremely difficult to establish a

positioning without communicating

the benefits. “This certainly has an

effect on innovation,” she said.

“Trying to achieve

an EFSA health

claim is time- and

cost-intensive, and

even with multiple

gold-standard

studies, there is no

guarantee of

success.”

Bouman added:

“Customers are

focusing more on

the use of

ingredients where

EU health claims

can be made.

Sometimes an

entire product can

be created around the preferred

health claims. Ingredients where

health claims cannot be made are

of less interest. For EPA and DHA,

there are a relatively high number

of approved health claims, making

fish and krill oil especially

interesting for customers.”

But, as EAS Strategies points out,

there are areas such as immune

function where, even when an

ingredient can be seen to have a

probable effect, it is extremely

difficult to conclusively demonstrate

that benefit.

“If we see new claims over the next

few months, it is likely to be in

those health areas where we

already have recognised

biomarkers,” Coppens said.

He drew some further conclusions

about the EFSA health claims

process, noting the current research

and claims submission procedure is

extremely protracted. “As the years


go by, what are the economic

benefits to any given business?”

he asked. “By the time any claim

materialises, if it does, the world

has moved on. That is the most

important aspect in all of this to

stifle innovation.”

Meanwhile, EFSA’s role in the

implementation of the Nutrition &

Health Claims Regulation is not

going unnoticed elsewhere—

notably at sister body the European

Medicines Agency (EMA).

“There’s a strong push from the

pharmaceuticals side to keep health

benefits within the domain of

medicines,” Coppens said. “We

have recently seen a lot of

monographs from the EMA looking

at botanicals. And once a plant

molecule has a medicines licence, it

can effectively be barred from

being regulated as a food.”

But if EFSA’s influence has a

slowing effect on innovation in

foods and supplements, other

organisations also have a

responsibility when it comes to

communicating the benefits of

those ingredients that do have

health claims, Coppens believes.

There is still an entrenched view,

even among many academics, that

a balanced diet provides the

population with all the nutrition it

needs for good health. “In the

sense that you don’t die, that is

true,” argued Coppens. “But that

doesn’t mean there are no benefits

from supplementing that diet.”

He added: “Given the tremendous

difficulty in achieving a claim, or a

positive opinion from EFSA, the

process must have credibility. But

while individual negative studies

get reported without comment,

they should be reported in the

same way as positive studies.”

Rather than being treated with

scepticism by many in the scientific

establishment, approved claims

should be communicated,

Coppens said, not least through

the recommendations of national

health authorities.

In general, the ingredients sector

appears to have the ability to gain

traction in 2016 by remaining

mindful of consumer desires and

trends, toeing the line with

regulations, and partnering with

companies in NPD to develop

finished products that truly meet

market needs.

Paul Gander is a London-based freelance journalist and editor who writes for a range of food and ingredient-related business publications and websites. In the past, he has edited packaging and international confectionery industry titles, International Food Ingredients magazine and currently edits a packaging research newsletter. He has written for the nationals, including the FT and Independent on Sunday, as well as for magazines across a range of industries from hotels and travel to marketing and design.

Rather than being treated with scepticism ... approved claims should be communicated, not least through the recommendations of national health authorities.


Contacts

Chris LeePortfolio [email protected]

Daria SmithEvent [email protected]

Maria SidiropoulouEvents [email protected]

Rachael ShattockGroup Marketing [email protected]

Colin WilliamsSenior Marketing [email protected]

Carolina LindahlConference & Content [email protected]

Informa Exhibitions2nd Floor5 Howick PlaceLondon SW1P 1WGUnited Kingdom

Phone: +44 (0) 20 3777 3616

www.vitafoods.eu.com

Jon BenningerVice President, Health & [email protected]

Heather Granato Vice President, Content [email protected]

Danielle DunlapVice President, Marketing Services

Melissa EwingMedia Operations [email protected]

Darcey Saxton Art Director

Katherine Jackson Audience Marketing Director

Katie Egley Marketing Manager

Informa Exhibitions LLC3300 N Central Ave, Ste 300Phoenix, AZ 85012United States

Phone: +1 480 990 1101

www.naturalproductsinsider.com

Informa Exhibitions’ Global Health & Nutrition Network is one of the world’s leading knowledge providers. We create and deliver highly specialised information through events, digital media and publishing to provide business, learning and networking opportunities. Informa’s Global Health & Nutrition Network has an unrivalled offering within the health and nutrition marketplace for individuals, businesses and organisations around the globe.

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