Last Wednesday, the 20th September, in the early afternoon a friend sent to me a link by WhatsApp with the following comment: – See what has just been announced, another movement about what we talked about during FISA (Food Ingredients South America) at the end of August. The link was about the official announcement of the acquisition by Givaudan (a Swiss group world leader in Flavors & Fragrances) of the Brazilian company Centroflora Nutra, which produces and exports dehydrated vegetable extracts and fruits. The pharmaceutical division that produces phytotherapics remained in the Centroflora Group.
In the last decade, with a noticeable increase in the last 5 years, we have observed a race among the main suppliers of ingredients in investing in Natural Extracts. The increase in market pressure for “Clean Label” in processed foods is the major motivator of this movement.
The data point to a significant growth in the macro category Health & Wellness which reached $ 707 billion in 2016 according to Euromonitor and is expected to reach $ 1 trillion in 2021. It is subdivided into 5 subcategories – Organic, Free-from, Fortified-Functional (F / F), Best for You (BFY) and Naturally Healthy (NH). The Natural Extracts are considered within Naturally Healthy (NH). The subcategory NH closed 2016 with a value of $ 249 billion, with $ 165 billion of the contribution of “Clean Label” products.
In Brazil, the macro segment Health and Wellness in 2015 presented sales of $ 27.5 billion and is forecast to nearly double and reach $ 48 billion in 2019.
The universe of natural extracts, which in addition to conferring flavors and colors, present many different functionalities, such as antioxidant, thermogenic, vitamin, phytoterapic, etc., and covers all segments of processed foods. From guarana, acai and ginseng in beverages, through rosemary, turmeric, pepper and paprika in processed meats, by sesame, chia and amaranth in baked products, to vegetable extracts in dairy, the incorporation of these natural products in processed foods has grown exponentially.
Several players in the ingredients area have been heavily involved in expansions of their natural product lines, either by investing in new production lines or through acquisitions. As examples of plant expansion, we can mention the companies: GNT Colors, Naturex and Doehler.
Much more frequent has been the acquisitions movements:
source: companies’ official homepages
In the market, rarely the old saying works: ” The last will be the first”.
Who has not moved, needs to start worrying.
BSc. Chemical Engineering, MBA Marketing, MSc. Economics, Director of Profiler Business Consulting and Partner of PBC – Food & Beverages Consultants.