Nutrition industry explores evolving consumer demand to unlock novel nutraceuticals

In a booming nutraceutical market, companies leverage technology and scientific research to develop innovations that keep up with changing consumer trends and demands for targeted solutions. Lycored, Gencor, Ingredients By Nature and Lonza Capsules & Health Ingredients tell us how they keep up with market changes and challenges.

Tammi Higgins, senior commercial VP at Lycored, tells Nutrition Insight that meeting evolving consumer demands in shifting wellness trends requires challenging innovations. 

“There are always challenges to overcome when exploring novel nutraceuticals and innovative delivery formats to make solutions available in various applications. This is particularly true for nature-based solutions.” 

“For example, the naturally occurring carotenoids in Lumenato, an extract derived from Lycored’s breed of golden tomatoes, are highly sensitive to light and temperature. When developing our Lumenato Emulsion, we needed to develop a production process that would both protect carotenoid stability and maintain an effective ingredient for our customers, which we achieved.” 

Maggie McNamara, global marketing director at Gencor, asserts that the nutraceutical industry has seen “significant growth and innovation” in recent years as consumers continually gravitate toward supplements to support their health and wellness goals. 

She observes opportunities in market trends in personalized nutrition, clean label and plant-based nutraceuticals, targeted functional benefits, technological innovations, sustainability and ethical sourcing, regulatory focus and scientific backing. 

Booming consumer health awareness

McNamara points to DNA-based and microbiome-targeted products as the next frontier in personalized nutrition. “Personalized supplements based on individual genetic profiles are gaining popularity. Companies offer DNA testing to tailor supplements according to unique health needs.”

“Research into the gut microbiome has led to the development of nutraceuticals to improve gut health. Prebiotics, probiotics and synbiotics are increasingly personalized based on microbiome data.” 

She notes a demand for nutraceuticals with plant-derived, clean label ingredients, such as turmeric, ashwagandha and fenugreek, as consumers shift toward sustainable and plant-based diets. 

McNamara points to DNA-based and microbiome-targeted products as the next frontier in personalized nutrition.Targeted functional benefits are essential in cognitive health, anti-aging and skin health, adds McNamara. “Products supporting brain health, memory, focus and mood are still on the rise, especially in the wake of increasing stress and mental health concerns. Ingredients like omega-3s, nootropics and adaptogens are gaining popularity. Collagen supplements, antioxidants and vitamins targeting skin, hair and anti-aging are also rising as consumers seek beauty-from-within solutions.” 

In technological innovations, she highlights the emergence of nanotechnology and liposomal technology, which enhances the bioavailability of nutraceuticals, ensuring better absorption and efficacy of nutrients, such as vitamins, minerals and herbal extracts like curcumin. 

“Consumers demand transparency in sourcing ingredients, and they prefer sustainable, ethical and fair trade practices, especially for botanicals and marine-based products,” adds McNamara. 

At the same time, consumers demand that nutraceutical claims are backed by science. “Regulatory bodies are also tightening standards to ensure product safety and credibility,” she details.

Keeping up with innovations

Innova Market Insights data indicates that Europe leads nutraceutical innovations. From July 2023 to June 2024, 40% of nutraceutical launches occurred in Europe, followed by 34% in the US and Canada. This year, brain-mood health, energy and stamina and immunity claims accounted for the largest share of new product launches. 

“A key challenge for many manufacturers within the industry is keeping up their innovation pipeline with the rapid change in consumer trends,” highlights Rob Brewster, the CEO of Ingredients By Nature. 

“With trends evolving so quickly and consumers having limitless online shopping options, sometimes brands are too late to enter and end up playing catch-up.”  

Brewster predicts that AI will significantly impact the nutraceutical industry.Meanwhile, data by Innova Market Insights also suggests a substantial growth in microbiome claims in sports nutrition, increasing 100% CAGR from July 2019 to June 2024. Brewster highlights brands’ dilemma of finding suitable ingredient suppliers if they seek to enter the gut health market with an efficacious pre- or probiotic supplement while keeping costs low. 

“You will need someone who can provide you with the customization and unique differentiation you are looking for, has low minimum order quantities and has clinically backed probiotic strains so you are quickly ready to capitalize on this trend.” 

Brewster also expects AI to have a “massive impact on the nutraceutical industry,” which brands must keep up with.

“There is an exciting convergence happening with AI and personalized nutrition. In the past, we have seen the use of quizzes and general nutrition content to provide semi-personalized experiences. AI is about to change this for consumers drastically.” 

For example, he refers to VersaWare, which is set to launch this fall in the US. This smart kitchen appliance uses AI to “accurately show the nutritional breakdown of food as it is added to its appliances.” 

“In the future, I see these sorts of appliances integrating with health and wellness brands and recommending to consumers what type of nutrition is lacking from their diet and how they can supplement their diet with various vitamins and minerals. Younger generations, such as Gen Z and Millennials, are craving this sort of personalized nutrition.” 

Technological advances

Juliana Erickson, global product innovation manager at Lonza Capsules & Health Ingredients, asserts that the societal shift toward holistic health and well-being allows brands to develop nutraceutical supplements that target multiple health benefits. 

She highlights that technology is vital in developing products that meet evolving consumer trends and stand out in the competitive nutraceutical landscape. 

According to Erickson, technology can help manufacturers enhance supplements’ efficacy and overcome formulation challenges.“Capsule-in-capsule technology, such as Lonza’s Capsugel Duocap dual-release capsules, enables brands to create multi-ingredient, multi-benefit supplements that support consumers’ holistic health needs. This dual-capsule system allows brands to encapsulate chemically or physically incompatible ingredients within a single, convenient dosage form.”

Meanwhile, Erickson flags a consumer and industry need for “effective delivery of complex ingredient combinations.” Technology can help manufacturers to enhance supplements’ efficacy and overcome formulation challenges. 

“For instance, Lonzas Capsugel DRcaps designed-release capsule technology protects probiotics from degradation in the stomach, increasing their survival rate and supporting efficient delivery.”

Gencor’s McNamara adds that technology allows manufacturers to improve bioavailability, functionality and purity to improve the delivery format and results. “It also allows us to find better, sustainable ways to provide critical ingredients.” 

“For example, Rhodiola is well-known for its impact on performance energy levels. It has been used in natural products for centuries, with salidroside, its most studied bioactive, playing an essential role in its efficacy. However, due to its increasing demand, Rhodiola species are threatened by overharvesting. To ensure sustainable harvest and trade, they were added to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).” 

She highlights that Gnosis by Lesaffre has developed a sustainable, ethical way to harness the benefits of Rhodiola through an innovative fermentation process that bypasses the need to harvest Rhodiola from the wild. The company recently joined a distribution partnership with Gencor to distribute the resulting product, Landkind Pure Salidroside, which is inherently CITES-compliant and offers consistent purity. 

Lycored’s core ingredients, Lycomato and Lumenato, use 100% of harvested tomatoes.Formulating with nature

Higgins details that Lycored’s solutions are also rooted in nature and science, as the company tests and explores what can be discovered “from nature’s goodness.” The company focuses on naturally-derived, tomato-based ingredients that are backed by science. 

The company’s core ingredients, Lycomato and Lumenato, are sourced through a sustainable production process focusing on “100% utilization of harvested tomatoes,” resulting in zero waste. “Different tomato components are used throughout our portfolio, and the remaining seeds, stems, skins and vines are upcycled.”

In addition, Higgins underscores that quality and innovation drive Lycored’s work to harness nature’s potential based on science. The company offers its solutions in various delivery formats. “We’re continuously innovating new delivery formats through technological advances to open the door to new applications for our solutions.” 

She highlights: “Lycomato, our flagship wellness extract, offers the synergistic power of six standardized phytonutrients, including lycopene, to support beauty-from-within. Over 25 clinical studies demonstrate the wellness benefits of the Lycomato nutrient complex, along with a wealth of research supporting lycopene individually.”