08 Nov 2023 --- With an upsurge in health-focused consumers scanning through labels with a keen eye, scientifically proven, affordable and natural ingredients that can support holistic well-being are fueling demand for functional ingredients worldwide. The trend has further translated into investments and proactive approaches to product development and functional formulations.

Elevating health concerns and awareness have projected the functional food ingredients market to reach US$154.37 billion in 2028, according to Bloomberg.

Consumer behavior speaks volumes about the popularity of these ingredients that foster sound health. More than one in four consumers in the US (27%) actively choose positive nutrition, while 40% of US consumers only trust functional foods with scientifically proven efficacy, Innova Market Insights’ data suggests. Protein fiber and omega 3 emerged as the most accepted functional ingredients based on the market research.

In the past year, the functional ingredients that dominated product launches included flax seeds (27%) in cereal, curcumin (16%) in confectionery, inulin in dairy (10%) and desserts (14%), hemp seed oil (20%) in oils and caffeine (30%) in sports nutrition.

Meanwhile, the FAO says that functional ingredients “shall be used according to the daily intake value” and cautions for preparation or processing established for each functional ingredient; and “two or more” functional ingredients can be combined. In this case, it should be verified that the safety and health benefits are maintained.

Some of the functional ingredients that the organization recognizes include terpenes, phenols, fatty acids and lipids, sugar and carbohydrates, fermentation microorganisms and amino acids and proteins.

Moving over supplements
Consumers do not view supplements as the only means to fulfill their health goals, and are slowly “shifting away” from them, flags Elena Sava, global marketing manager, health & nutrition at Givaudan.

“The shift away from supplements and toward more food & beverage types of applications has created many opportunities in the functional health space,” she tells Food Ingredients First.

“Consumers are eager to achieve well-being goals through applications such as gummies, shots, stick packs, functional coffee, etc. This means that ingredients need to perform in a wide variety of formats, taste great and delight consumers, while still maintaining all of the health properties.”

The statement is echoed by Ingredion’s global platform leader for nutrition, health & wellness, Lauretta Katsriku, who predicts that in the future, F&B brands will continue to act more like supplements and include functional ingredients traditionally found in supplements.

“As consumers continue to evolve toward maintaining their health through everyday routines, incorporating foods that can actively support their health while also tasting great will continue to grow.”

Consumers associate products with clean and simple ingredients and label claims with better quality and improved wellness. This suggests the demand for clean label products will continue to rise, and manufacturers will need to support innovation across categories with clear value propositions.

Food manufacturers are also observing an eagerness to know wher the food ingredients come from, showcasing a growing consumer focus on the nutritional quality and origin of functional ingredients, states Henrik Andersen, CEO of Arla Foods Ingredients.

“For instance, there’s more demand than ever for high-protein products, but at the same time people care wher the protein comes from, with 70% of global consumers focused on the sources of protein in foods and beverages.”

This is highlighted in Innova Market Insights data, which suggests that high/source protein ingredients constituted 31% of sports nutrition product launches between July 2022 and June 2023.

Restoring health and responsible sourcing
As per Sava, consumers are looking to “repair the damage” associated with the COVID-19 pandemic.

“They are highly interested in cognitive health and they are looking for benefits like cognition, energy, relaxation or sleep.”

“Cereboost, for example, is our natural adaptogen harnessing the power of American ginseng for cognitive performance. Three clinical trials have demonstrated Cereboost’s benefits for mood, attention and memory – and the science supporting it has earned multiple health claims.”

She argues that while responsible sourcing, ethics and quality are vital for all ingredients, the importance is “amplified” for functional ingredients wher health and efficacy are a priority.

“Givaudan sources its ingredients in line with the company’s larger Sourcing4Good approach that includes working closely with suppliers to ensure continuous improvement, promoting biodiversity and lowering our environmental footprint, as well as ensuring that growing communities benefit from working with Givaudan.”

She says the company’s ingredients are responsibly derived and often undergo “minimum processing” so as to maintain the authenticity of the natural ingredients.

Katrien Lambeens, marketing director at Galactic, concurs. She notes that consumers are leaning toward food products with simple, transparent ingredient lists that they can trust.

“Consumers want to know the source of the ingredients used inside their foods. This trend emphasizes using natural, less processed ingredients in food manufacturing, while avoiding chemical additives.”

She further tells us that the company uses sugar and non-GMO microorganisms to create natural antimicrobials and innovative food ingredients, which are “just as effective and go even further, guaranteeing products that are healthy for our health and the planet.”

Upcycling to bolster circular economy
Neil Morrison, head of global sales technical service at CP Kelco, says that manufacturers want to lessen their impact on the environment and see upcycling as a foundational way to “accelerate to a circular economy,” which is inherently more sustainable than the traditional, linear “take-make-dispose” model.

“With Nutrava Citrus Fiber and Genu Pectin, CP Kelco gives new life to citrus juice industry’s by-products by turning them into functional food ingredients. Even by-products from the ingredient process are returned to nature as animal feed and fertilizer for nearby farm communities,” he notes.

Upcycling will continue to grow as suppliers seek sustainable opportunities that help the environment, our communities and people everywher.”

Meanwhile, Katsriku states that Ingredion rescues materials that would have otherwise been discarded, such as sourcing citrus fibers left over by juice processors and utilizing broken rice grains in waxy rice starches.

“Potato-based starch products are also upcycled. We purchase leftover starch from companies cutting potatoes for fries or chips and develop it into functional ingredients.”

She further notes that Ingredion has invested in developing its supply chain to provide locally sourced and produced ingredients for its customers, which supports improved speed-to-market, the desire for local ingredients and reduced environmental impact. 

“Ingredion’s ESG program prioritizes ethical sourcing of the materials used for its ingredients and partners with agencies like Sustainable Rice Platform (SRP) to ensure ingredients align to best practices.”

Protein-rich is in
According to WHO’s report on dietary protein quality evaluation in human nutrition, the surge in world population is straining the land, water and food resources. It, therefore, urges manufacturers to aptly describe the nclick="updateothersitehits('Articlepage','External','OtherSitelink','Getting to the source: Experts flag importance of ingredient transparency and multi-functionality','Getting to the source: Experts flag importance of ingredient transparency and multi-functionality','337556','https://www.fao.org/ag/humannutrition/35978-02317b979a686a57aa4593304ffc17f06.pdf', 'article','Getting to the source: Experts flag importance of ingredient transparency and multi-functionality');return no_reload();">protein supplied by food ingredients, whole foods, sole-source foods and mixed diets.

It also deems the match between dietary supply and human protein to be “vital to support the health and well-being of human populations.”

Such assertions by authorities are leading F&B formulators to increasingly take note of consumers’ rising proclivity toward protein-rich foods and innovate accordingly.

For instance, from July 2022 to June 2023, of all the dairy product launches with nutraceutical & functional ingredients, 24% were either a source of or high in protein, Innova Market Insights’ data indicates. 

“The other factor that’s helping drive R&D is demand for novel, innovative ingredients,” underscores Andersen.

“One such ingredient is beta-lactoglobulin (BLG), a whey protein that offers a range of new opportunities in the sports nutrition space in particular. Our Lacprodan BLG-100 is a pure BLG ingredient with a unique nutritional profile.”

It is developed by employing Arla Foods Ingredients’ patented new separation technology and contains “45% more leucine — the main muscle-building amino acid — than commercially available whey protein isolates,” making it ideal for boosting muscle protein synthesis post-workout.

For its protein formulations, the company leverages precision fermentation, a technique that, when used in ingredients like proteins or other small molecules, is well-received by consumers when they balance taste, functionality and price.

Using methods like fermentation to formulate functional ingredients like calcium lactate can allow formulators to differentiate their products in a crowded market, stresses Lambeens.

She says that fermentation expertise helps Galactic turn the flavor creation into a “positive element,” coming up with a variety of ingredients matching the flavors of different food applications.

The flavor-functionality balance
Lambeens continues that while fermentation helps companies formulate natural, label-friendly and highly functional solutions, the process might come with a slightly higher cost and a flavor experience naturally attributed to the fermentation process.

She further highlights the “perpetual challenge” for food ingredient formulators, which is to match the food manufacturer’s expectation of a “one-stop solution” that combines naturalness, great taste, excellent functionality and low cost.

“Traditional additives are often cost-effective and offer high functionality, but are not natural, often not sustainable, and the taste might be a bit synthetic,” she add

Andersen agrees that tackling consumer’s sensory demands is a challenge.

“You have to be able to offer ingredients that provide a real functional benefit, while also meeting consumers’ sensory preferences. Reflecting that, a lot of our [Arla Foods Ingredients] recent R&D has focused on creating protein solutions that deliver appealing taste and texture as well as nutritional benefits.”

As challenges related to availability and affordability continue, manufacturers will need to develop products that offer multiple benefits, including reduced fat, added protein and lower sodium, without “compromising” the expected eating experience or affordability, underscores Katsriku.

“This will require innovation from suppliers for multifunctional ingredients that can deliver on the consumer needs as well as the business objectives.”

Sustainability and novelty on the horizon
A shift toward sustainability will drive innovation, highlights Morrison, who adds that CP Kelco envisions products in the future to require less water, land and energy to produce.

“We also expect increased transparency into the entire value chain as consumers seek more understanding of the products they purchase,” he adds.

Lambeens flags that novel ingredients and alternative protein sources will advance further. She underlines that Galactic expects the shift toward plant-based and alternative ingredients to continue in products like meat substitutes, dairy alternatives and baked goods.

“Emerging technologies such as 3D printing, precision fermentation and cellular agriculture have the potential to revolutionize food ingredient production.”