TopGum brings functional gummy format to US with stateside subsidiary
15 Feb 2021 --- Israel-based functional gummy manufacturer TopGum Industries is tapping into the rapidly growing market for confectionery supplements with a new subsidiary in New Jersey, US, called TopGum, Inc.
The venture will bring the company’s gummy delivery format to US nutraceutical brands wishing to offer consumers an attractive way to take supplements.
“The US is a strategic market for us as it has a well-established gummy supplement market that is open to innovation and expansion,” says Amichai Bar-Nir, TopGum CEO.
The expansion to the US is a second feather in the cap for the confectionery company that began in 2004.
In 2018, TopGum launched its first functional gummy portfolio, following years of R&D and a sizable investment in a new facility.
Innova Market Insights reveals that the top health positioning in the US for gummies is immune health.The rise of gummies in the US
TopGum sees a clear opportunity in the US market for functional gummy delivery formats.
Multiple sources place annual global gummy supplement sales at US$5-6 billion, with North America accounting for nearly half, notes the company.
Moreover, Innova Market Insights reports that gummy supplement launches increased by more than 33 percent of average annual growth in the US from 2015 through 2019.
Over half of the gummy supplements in the US are vitamins or minerals, making it the largest subcategory. This is followed by probiotics, botanical supplements, hair, skin and nails, and “women specialty.”
Furthermore, Innova Market Insights reveals that the top health positionings in the US are: immune health, skin health, bone health and mood health.
New hands on deck
To facilitate bringing TopGum into the rapidly growing US supplement market, the company recruited two high-profile dietary supplement industry leaders to head business development.
Christopher Lamb joins the new subsidiary as vice president of sales and will lead its go-to-market activities.
Jennifer Toomey, meanwhile, joins as the director of new product development and will head the R&D force in the US.
“TopGum’s gummies can make a large impact on the way functional ingredients are made available to the consumer,” Toomey affirms.
Ingredient suppliers bolster gummy formats
Some of the latest ingredient launches and NPD have highlighted gummies as a delivery format to reduce pill fatigue.
Lipogen’s new ingredient, Cognolipid, is positioned to reduce stress in women and is suitable for gummy applications.
FrieslandCampina Ingredients’ latest Biotis launch also poises the product for chewable gummy applications.
Last month, HUM Nutrition unveiled a vegan anti-stress gummy, which the company says can reduce insomnia and anxiety symptoms.
Edited by Missy Green
