04.23.10
Despite estimated costs of more than $10 million to gain the right to claim that a food or drink product has a health benefit, investing is worthwhile, according to research from Business Insights. The report, “Key Players and Innovative Start-ups in Nutraceuticals,” has found that as consumers become more concerned and knowledgeable about their health they are “self medicating.” As a result, large food and drink players, as well as pharmaceutical companies are focusing on the potential of the nutraceuticals market, triggering an increase in investment and takeovers—a trend which will continue to accelerate in the next five years. This comes despite an increase in costs for clinical research needed to substantiate health claims made on both new and existing ingredients. In spite of the increased investment, a high proportion of the applications made in line with Article 13 health claim legislation are being rejected in the EU by the European Food Safety Authority (EFSA). New technologies such as the technology to extract and analyze bioactive components are continually being developed. It is the smaller innovative nutraceutical companies that have been driving this, and as costs are high for the development of new ingredients and technologies, they become the targets of licensing deals and acquisitions. The Coca-Cola Company and Pepsi-Co in particular have been actively acquiring companies that specialize in products such as fruit juices, flavored teas and waters with added vitamins, minerals and herbs that meet the needs of today’s marketplace. For further information: www.globalbusinessinsights.com.
