Industry highlights “untapped potential” as energy ingredients shift focus toward mental performance

15 Jan 2020 --- A major shift is occurring within the energy ingredient space, with NPD addressing mental agility rising in popularity – for gamers especially. Industry-wide consumer concerns surrounding clean label and provenance are growing in prominence within this category, as companies increasingly turn toward marketing natural energy boosters that harness the power of botanicals. NutritionInsight speaks with key players to examine how industry is responding to this changing market.

“The energy ingredient sector is expanding from a focus on physical power into improving mental energy and focus. We expect demand to grow, especially with the rise in popularity of gaming, also known as e-sports,” highlights Marianne McDonagh, Vice President of Sales at Bioenergy Life Science (BLS).

Deborah Thoma, Marketing Manager at Nektium, echoes that the convergence of sports and e-sports is a key shift for industry. “While some years ago, sports nutrition was mainly oriented to professional athletes, the market has gone mainstream. Now energy bars are sold in the supermarket, while athletes and e-athletes are both very much aware of the importance of mental energy and ergogenic performance. Therefore, they are looking for products that improve focus and increase reaction time,” she explains.

Thoma also estimates that the gaming sector will outnumber traditional sports events in the near future. Therefore, she highlights that there is a particularly large market for energy ingredients as e-athletes require extreme concentration and reaction time. “Additionally, there is an increasing number of consumer products for sports, e-gaming, focus and energy already available on the market,” she adds. 

Deborah Thoma, Marketing Manager at Nektium, says that the convergence of sports and e-sports is a key shift for industry.According to Innova Market Insights, there has been a 23 percent average annual growth of food and beverage launches with a “sports and recovery” claim (Global, 2014-2018). Meanwhile, “energy/alertness” claims follow closely behind with 12 percent growth over the same period.

Nektium has joined these ranks with Zynamite, a botanical extract of Mangifera indica. Steve Fink, VP Marketing at PLT Health Solutions, explains how PLT launched Zynamite into the US market last year. “The ingredient enhances mental energy. Clinical studies of formulations containing Zynamite point to the rapid onset of enhanced brain electrical activity, with statistically significant improvement in reaction time and calculation performance,” he says. 

Addressing pill fatigue
PLT also offers a line of zümXR Targeted Release Caffeine ingredients, touted as enabling food, beverage and supplement formulators to design custom energy profiles into their products and deliver predictable performance for the consumer. “The flexibility of this technology allows targeted release caffeine solutions to be used in a broad array of applications, including beverage, supplements, stick packs, powders, gummies, bars and gels,” says Fink.

Thoma adds that popular delivery formats already on the market include sticks, sachets, pre-workout powders, beverages, shots, capsules and gummies. “The way we are consuming supplements is also in the process of being revolutionized. With the increasing pill fatigue of consumers, product formulators are getting more creative with the dosage forms they offer. The more versatile the ingredient – especially in terms of solubility and taste – the easier it is to include them in different formats,” she explains. 

Meanwhile, McDonagh expects low-dose products to gain traction. This is as industry finds more ways to quantify energy and measure the benefits of specific premium ingredients on the body’s energy pathways.

She also highlights RiaGev, BLS’s newest ingredient, which is touted as modulating metabolism while enhancing energy. “This is an untapped area with tremendous potential,” she affirms. The ingredient can be used as a dietary supplement, as well as in cosmetics and functional food and beverages, including fortified waters, protein shakes, nutrition bars, gum and chews. 

Caffeine gives way to botanicals
Consumers across sectors are increasingly concerned with accessing products with natural ingredients and clean labels. Within energy ingredients, this means that consumers are turning away from stalwarts such as caffeine and are exploring using botanical ingredients. 

“Traditional stimulants containing caffeine-like alkaloids are losing steam because of their negative side effects. As part of the growing sports-nutrition and e-sports market, botanical ingredients that activate the brain and improve physical performance are gaining popularity. This is creating a broad range of opportunities in the market, centered around mental health, relaxation, serenity and focus,” explains Thoma of Nektium. PLT launched Zynamite into the US market last year.

Thoma continues on to explain that consumers want to better understand the label of the products they are buying, while seeking out scientific proof supporting each product. In addition, consumers are paying closer attention to a product’s supply chain – in particular, sustainability and the defendability of its manufacturer’s carbon footprint. 

Fink of PLT adds that he is increasingly seeing origin stories for ingredients becoming an integral element in marketing strategies. “People want to know that an ingredient is natural, traceable, sustainable and is produced via fair trade,” he explains. Notably, “Storytelling” has been pegged by Innova Market Insights as the top trend for food and beverage products this year. According to Lu Ann Williams, Director of Innovation at Innova Market Insights, it is “absolutely critical” for market success in 2020.

Ironclad scientific backing
It is also important for consumers to be able to trust that a product works. McDonagh notes that although marketing has played a major role in the success of consumer products, this is starting to shift. “Although marketing is still important, consumers are starting to read these ingredient labels and question these products.”

Thoma also notes that clinical studies with convincing data are key to making a product unique and attractive for customers. “At the same time, the concern regarding the side effects related to the consumption of caffeinated beverages and energy drinks is growing,” she emphasizes. 

“One major issue to tackle is to move away from energy ingredients that – apart from stimulating activity – also have drawbacks for our health when consumed excessively. We see this move happening already. For example, an increasing amount of people fear caffeine and its side effects,” Thoma adds. 

For BLS, providing quality science with a limited budget is a key R&D challenge. “I see this becoming ever more challenging in the future because customers are expecting more science. Developing premium ingredients is a slow, complex process, and we are not willing to rush ensuring the safety and efficacy of our ingredients,” concludes McDonagh. 

By Katherine Durrell