ACG exec argues transparency demands will shape nutraceutical industry

07 Sep 2021 --- Regulatory demands and product transparency will change the nutraceutical industry in the coming years. Additionally, the COVID-19 pandemic has exposed the fragility of a global supply chain.

This is according to Ilesh Desai, chief strategy officer of capsules at ACG, who speaks to NutritionInsight about shifting consumer preferences and how these have led to greater transparency.

In the global marketplace, nutraceutical and functional food has become a rapidly growing multi-billion dollar industry, comments Desai.

“There is a growing recognition of the potential role of nutraceuticals and supplements in reducing health risks and improving immunity and health.”

This growth is driven by several factors, including a rising number of developing countries with growing incomes and consumers that are increasing their awareness about nutrition. In general, people have become much more health-conscious because the information is readily available.The rising old-age populations, the increase of chronic diseases and the COVID-19 pandemic will add to the nutraceutical industry’s growth.

“The rising old-age populations as well as the increase of chronic diseases are other factors that add to this industry’s growth. Another factor is the COVID-19 pandemic, which has boosted the already vibrant industry of nutraceuticals, with immunity concerns taking center stage,” he adds.

Consumer preferences change capsule formulations
ACG Capsules offers a broad range of capsules that meet customer needs and consumer preferences because ultimately, customer needs are driven by the consumers, notes Desai.

“Hard capsules are made out of gelatin or hydroxypropyl methylcellulose (HPMC), which is a vegetable alternative. Customers have spoken about an alternative to hard capsules that are stable enough to hold liquid. Therefore, we have formulated a vegetarian range of liquid-filled capsules that meet customer preferences and requirements,” he adds.

The ACG engineering branch has various products like tablet compressors, capsule filling machines, blister packing machines and cartoning machines, which play a critical role across this value chain in conversion and formulation.

“If we are practicing the customer-centric philosophy, then all our efforts naturally converge to bring out products and services that are required by customers. For example, the clean label product we have is ACGcaps H+ and we make our products titanium dioxide-free.”

When speaking about dietary supplements, one cannot ignore an essential component of probiotics and enzymes, which align with the gut health trend. ACGcaps H+ has a modified release time, which delays the product release in the stomach. 

Future of the nutraceutical industry
The COVID-19 pandemic has exposed the shortcomings of global supply chain management. It has further underscored the vulnerability of over-dependence on a vendor from a specific country, comments Desai.

“I strongly believe that in the forthcoming three years, one of the initiatives that most of the nutraceutical segment will undertake is to protect themselves from this vulnerability and over dependence on a country,” he remarks.Ilesh Desai, chief strategy officer of capsules at ACG.

“Secondly, data being easily available will lead to more consumers becoming aware and informed of the products they purchase and consume.”

Once consumers become more informed, it’s natural for them to expect that the companies will be transparent. Consumers now expect products to be safe for the environment.

“This will force many brands in nutraceutical segments to open up and transparently talk about the product from the way it is made and whether it is biodegradable or not. Brands in this sector will have to modify their approach and cater to the consumer,” says Desai.

“Now people in the nutraceutical segment will have to really think out of the box, we’ll have to connect to the basic expectations of the consumers. Also, they will have to see how they can align and differentiate their products accordingly.”

Regulatory concerns and product life cycle
Product life cycles are expected to become shorter. This is due to new research and the discovery of novel health benefits, Desai adds.

Consumers will tend to choose a better product for them in contrast to what they would have consumed earlier, he notes.

“Also, regulatory concerns will shift the ingredients used in certain products. Consumers will demand high-quality immune support supplements, and this is going to continue to surge.”

In this space, consumers have voiced their mistrust in supplements as these do not always have accurate label claims and some are not scientifically validated.

In a video interview, Desai previously shared that the pharmaceutical company is an “integral part of the nutraceutical ecosystem.”

By Nicole Kerr