Organic claims see sharp increase as Arla Foods Ingredients sheds light on opportunities

19 Aug 2020 --- Although protein has been popular with consumers for decades, new organic opportunities are providing a way for companies to appeal to increasing demands for naturality. This is detailed by Joe Katterfield, EMEA Business Development Manager for Arla Foods Ingredients (AFI), who speaks to FoodIngredientsFirst ahead of next week’s webinar. The company recently launched its first organic ingredient, with more set to feature in future marketing concepts and applications.

“Consumers are increasingly seeking organic, natural and wholesome foods which also deliver functional and health benefits. Therefore, this is the perfect time – both for dairy manufacturers and health food producers – to enter the organic market or to extend existing product lines with organic options,” Katterfield states.

According to Innova Market Insights, there was 7 percent year-over-year growth (2018-2019) in food and drinks being launched with a health claim. Honing in on Europe specifically, there has been an 8 percent CAGR in NPD with health-related claims from 2015 to 2019. This is in comparison to 17 percent for Latin America and 11 percent for Asia, but just 3 percent for North America. 

Katterfield states that for health food manufacturers, this is an opportunity to tap into the growing active and healthy lifestyle segment, where consumers are turning toward  high-protein products that are also organic and functional. These include ready-to-drink beverages, powder shakes and puddings.

While the global increase for NPD with a health-related claim is relatively steady, organic claims are seeing a much steeper trajectory. Between 2018 and 2019, there was a year-over-year growth of 32 percent. Meanwhile, natural claims are also starting to take off, with 14 percent year-over-year growth from 2018 to 2019 – notably more than growth increases in previous years. 

Interestingly a 2019 Innova Market Insights survey found that 63 percent of global consumers believed that organic food and drinks are healthier than products that are not organic. When asked about natural products, this figure rose to 65 percent. This is closely linked with an increased desire to learn where ingredients come from, which is the reason for 41 percent of global consumers to seek out the story behind the products they buy. 

Over 60 percent of global consumers believe that organic food and drinks are healthier than products that are not organic.Overcoming production obstacles
However, he notes that historically, there have been some taste and functionality issues associated with organic proteins. The production methods and regulatory rules for producing organic ingredients, from raw material to final processing, are often more complex – and therefore also more costly – than conventional standards, he explains. 

“At AFI, we benefit from a model where our farmer-owners supply us with organic milk from cows in Denmark. This is then gently processed at our own organic-certified factory, also in Denmark. This means we have complete control over the entire process, with a short supply chain entirely in one country. In addition, with no external parties involved in the sourcing of raw material or production of the ingredient, we can offer markets an organic protein solution very competitively,” Katterfield details. 

Last week, the Denmark-based company launched MicelPure, which marks its first product available in an organic version. It is rich in native milk proteins and is suitable for food, functional health foods and active nutrition applications.

Katterfield explains that micellar casein isolate maintains a neutral taste profile. This means that when used to fortify high-protein products, manufacturers avoid the common off-notes that may be encountered when using organic whey or organic plant proteins in higher levels.

“It is also very heat stable, so when added to applications like organic high-protein ready-to-drink beverages, a high protein level can be achieved, while maintaining a low viscosity. Therefore, it is much easier to produce an organic protein beverage that is more refreshing for consumers to drink thanks to the smooth flavor profile and the beverage not becoming very thick and heavy,” he adds.

“MicelPure Organic has been in the pipeline since we made the decision to invest in organic production facilities more than two years ago. Producing high-quality organic milk proteins comes with two big challenges. The first is that you need organic raw material and separated and approved production lines,” Claus Bukbjerg Andersen, AFI’s Category and Application Manager, previously told NutritionInsight.

On August 27, AFI will host a webinar further discussing trends in the organic space, as well as potential applications for organic proteins in particular. Registration is currently open here.

By Katherine Durrell