food&beverage overview · 2019-04-18 · thermal thermal processing plays a key role in keeping...

Food&Beverage Overview

June 2018

1Market Highlights

Source: Frost & Sullivan

The global antioxidants

market was valued at

$377m in 2016 and is

expected to reach $486

in 2021, a 5.2% CAGR

Antioxidants Market

Demand for Flavour

Delivery Technologies is

driven by the growing

need for slow release

solutions

Flavour Delivery

Technologies

The global curcumin 95%


$49m in 2016 and is

expected to reach $101

in 2023, a 12.6% CAGR

Curcumin Market

Demand for Food Safety

Technologies is driven by

increasing incidences off

foodborne illnesses

Food Safety

Technologies

The global personal care

active ingredients market

was valued at $3.5b in

2016 and is expected to

reach $5.6b in 2023, a

6.9% CAGR

Personal Care Active

Ingredients Market

Growth in Antimicrobial

Technologies is driven by

ongoing concern about

the level of healthcare-

associated infection

Antimicrobial

Technologies

The global prebiotic

ingredients market was

valued at $1.5b in 2016

and is expected to reach

$1.8b in 2021, a 5.4%

CAGR

Prebiotic Ingredients

Market

The global probiotics


$1.3b in 2016 and is

expected to reach $1.8b

in 2021, a 6.8% CAGR

Probiotic Ingredients

Market

Urban farming is

expected to help meet

the nutritional

requirements of a rapidly

growing population

Urban Farming

Innovations

Market Trend #1

Antioxidants Market

2


The global antioxidants market was valued at $377m in 2016 and is expected to reach $486 in 2021, a 5.2% CAGR; natural extracts

and new delivery & dosage forms are expected to offer opportunities

Size Technologies

Revenues, Global, 2016-21 Example innovations

New

Delivery

Forms of

Lutein and

Zeaxanthin

Antioxidants

Novel

Fungi-

based

Antioxidant

Derived

from

Mushroom

377,1

433,8

485,7

0

100

200

300

400

500

2016 2019 2021

5.2% CAGR 2016-21

Re

ve

nu

es

$ m

Market Trend #2

Flavour Delivery Technologies

3

Source: Agdot, CPL Aromas, Frost & Sullivan

Demand for Flavour Delivery Technologies is driven by the growing need for slow release solutions; UK start-ups have received

funding to support their research and commercialisation activities

Trends Start-ups

Example fundraisings

Demand for Long-lasting Effects

Encapsulation is used to make flavor providing ingredients

that are slowly released during the cooking process or while

chewing food products

Increasing Investments to Enhance Product Capabilities

With companies increasing their R&D investments toward

enhancing product capabilities, novel encapsulation

technologies are being developed

Preference for Signature Products

Consumers gravitate toward products that provide a distinct

flavor or fragrance, using unique and natural raw

ingredients, such as vanilla or ylang-ylang

Key drivers, Global

Focus on New Product Development

• In February 2016, Aqdot (UK) raised $6.7 million series A funding for the

commercialization of its Aqdot™ encapsulation technology platform. The

technology can be used for controlled delivery of fragrances in household

and industrial applications

• In August 2017, CPL Aromas (UK) launched a new R&D center worth $1.4

million in Brixworth (UK). The new R&D facility comes equipped with an

Encapsulation Lab for creating liquid encapsulated fragrances that can be

used in new perfume formulations

Europe

Market Trend #3

Curcumin Market

4


The global curcumin 95% market was valued at $49m in 2016 and is expected to reach $101 in 2023, a 18.1% CAGR; growth is

primarily stemming from supply-side innovations

Size Trends

Revenues, Global, 2016-23 Key drivers, Global

Drivers 1-2 Years 3-4 Years 5th Year

Increasing R&D

activity

Growing applications

as no side effects

Evidence of disease

prevention

43,9

68,7

100,8

0

25

50

75

100

125

2016 2020 2023

18.1% CAGR 2016-23

Re

ve

nu

es

$ m

Market Trend #4

Food Safety Technologies

5


Demand for Food Safety Technologies is driven by increasing incidences off foodborne illnesses; enabling intervention technologies

include bio-illumination, plasma and thermal solutions

Trends Technologies

Key drivers, Global Key enablers

Foodborne illness concerns driving authorities to promote new

regulations

According to the US Center of Disease Control and Prevention, foodborne

illness affects more than 48 million Americans each year, accounting over

100,000 hospitalizations and thousands of deaths

High

1

23

4

5

<1 >5

Low

3

High

1

2 4

5

<1 >5

LowShort term Long term

Bio-illumination

Molecular pathogen detection systems are based on isothermal DNA

amplification and ATP bioluminescence detection technologies

Plasma

Cold plasma is a non-thermal “green” technology that uses energetic,

reactive gases to inactivate contaminating microbes on meats

Thermal

Thermal processing plays a key role in keeping food safe from

contamination while remaining high in nutritional and sensory attributes

Market Trend #5

Personal Care Active Ingredients Market

6

Source: Geneu, Romy, Frost & Sullivan

The global personal care active ingredients market was valued at $3.5b in 2016 and is expected to reach $5.6b in 2023, a 6.9%

CAGR; technology has enabled the development of new beauty tools

Size Technologies


3,5

4,6

5,6

0,0

1,0

2,0

3,0

4,0

5,0

6,0

2016 2020 2023

6.9% CAGR 2016-23

Re

ve

nu

es

$ b

GeneU, England, and

and SKINSHIFT, US, sell

DNA tests that analyze

the skin

Romy, France, offers a

“beauty assistant” which

blends active ingredients

into a serum or cream

Market Trend #6

Antimicrobial Technologies

7


Growth in Antimicrobial Technologies is driven by ongoing concern about the level of healthcare-associated infection; companies are

developing uses for metallic ions across many application areas

Trends Metallic ions

Key drivers, Global Key applications

There is a growing use of polymeric and metallic

antimicrobial platforms

Healthcare-associated infection (HAI) continues to

be a significant global concern

Awareness about the use of natural ingredients (vs.

harsh antimicrobials) is growing

2

1

3

Industry Segment Application Areas

Medical DevicesCatheters, Implants, Endoscopes,

Touch Surfaces

Food & Beverages Food Grade Metal Coatings

Personal Care & Hygiene Handwash, Soaps

Industrial, Building & Construction HVAC, Metal Cladding, Paints


Consumer trends;

clean and clear label

Closing the fibre gap

Increasing R&D and

awareness of benefits

Market Trend #7

Prebiotic Ingredients Market

8


The global prebiotic ingredients market was valued at $1.5b in 2016 and is expected to reach $1.8b in 2021, a 5.4% CAGR;

prebiotics help consumers to close the fibre gap

Size Trends

Revenues, Global, 2016-21

1,4

1,6

1,8

0,0

0,5

1,0

1,5

2,0

2016 2019 2021

5.4% CAGR 2016-21

Re

ve

nu

es

$ b

Key drivers, Global

Market Trend #8

Probiotic Ingredients Market

9

Source: Vésale Pharma , Nebraska Cultures, Frost & Sullivan

The global probiotics market was valued at $1.3b in 2016 and is expected to reach $1.8b in 2021, a 6.8% CAGR; developments in,

for example, microencapsulation and stability are driving the market

Size Technologies


1,3

1,6

1,8

0,0

0,5

1,0

1,5

2,0

2016 2019 2021

Re

ve

nu

es

$ b

6.8% CAGR 2016-21

Vésale Pharma, a Belgian company, has developed a new

technology platform for microencapsulation of probiotics called

intelicaps

According to a scientific study by the University of Nebraska,

ProDURA by Nebraska Cultures (US) was able to demonstrate

superior heat resistance compared to other strains of Bacillus

coagulants

Market Trend #9

Urban Farming Innovations

10


Urban farming is expected to help meet the nutritional requirements of a rapidly growing population; greenhouse farming is one of

the main commercial urban farming solutions

Market Greenhouses

Key classifications Future prospects

Commercial Urban Farming

Vertical Farming

Aeroponics Hydroponics Aquaponics

Greenhouse Farming

Implementation of appropriate future technologies associated

with greenhouses including autonomous systems and

utilization of renewable energy will result in high return on

investment and will also enable optimum use of natural

resources to obtain high yield per acre inside the greenhouse.

These factors also increase the quality and longevity of the

crops cultivated

11

...

• TBC

Antioxidants Market

12Antioxidants stem from natural or synthetic ingredients; the former is the largest

($272m in 2016) and fastest growing (5.7% CAGR 2016-21) segment


Natural Ingredients

• Rosemary extracts are derived from Rosmarinus officinalis L. and

contain several compounds which have been proven to exert

antioxidative functions. These compounds belong mainly to the

classes of phenolic acids, flavonoids, diterpenoids and triterpenes

• Mixed tocopherols are defined as a source of Vitamin E derived by

the vacuum distillation of vegetable oils or their by-products

Synthetic Ingredients

• Butylated Hydroxyanisole is a combination of the isomeric

compounds, 2-tert-butyl-4-hydroxyanisole and 3-tert-butyl-4-

hydroxyanisole and used as an additive in food and beverages for its

antioxidant properties

• Butylated Hydroxytoluene is an organic compound derived from

phenol and is used widely in food and cosmetic products for its

antioxidant properties. Use of BHT prevents oils in foods from

oxidizing

• Tertiary Butyl Hydroquinone is derived from phenol and is

commonly used in food products

• Ascorbyl Palmitate is a fat-soluble form of Vitamin C derived from

ascorbic acid and palmitic acid and used as an antioxidant additive in

food

• Propyl Gallate is formed by the condensation of gallic acid and

propanol and used as an antioxidant in food products containing oils

and fats to prevent oxidation

En

d A

pp

licati

on

s i

n F

oo

d

Oil and Fats

Meat and Poultry

Bakery and Confectionery

Dairy

Others (frozen foods, desserts and salads)

13The market is buoyant thanks to the widespread use of antioxidants in animal feed

and increased demand from the pharma & cosmetics industries



Shifting consumer preferences for ready-to-eat food products M H H

Increasing consumption of meat products and significance of

antioxidants in animal feedM M H

Demand from pharmaceutical and cosmetics industries M M H

Restraints 1-2 Years 3-4 Years 5th Year

Stringent government regulations and bans impeding market

growthM M L

Lack of understanding and awareness among consumers on

the importance of antioxidantsM L L

Antioxidants Market: Market Drivers and Restraints, Global

Impact Ratings: H = High, M = Medium, L = Low

14Growth is also being driven by shifting consumer preferences; antioxidants are widely

used to avoid spoilage in popular ready-to-eat food products


Shifting Consumer Preferences for Ready-to-eat Food Products

• Antioxidants are used as additives and in a wide range of applications such as fats and oils

and in food processing industries to prevent food spoilage. Scientific evidences show that

spices and some herbs are good sources of potential antioxidants. Hence, they are added to

food containing unsaturated fatty acids in order to increase shelf life and prevent them from

turning rancid due to oxidation

• With changes in lifestyles, Southeast Asian countries are expected to record an average

increase of 25% in consumer spending by 2020. In line with a growing working population,

there has been a shift in consumer preferences toward ready-to-eat packaged food over

preparing and cooking a meal; with small families preferring single-serve packs. This

demand is expected to drive the volume of flexible packaged food in the market

• Ready-to-eat, frozen, dry, baked, and fresh food together accounts for 60% of the total

flexible packaging food market. As shelf life is accorded the maximum importance, the

extensive use of antioxidants in food products is expected to drive market growth

• This driver will have a medium impact in the short term. However, with population growth

and increasing preference for ready-to-eat food products, the impact of urbanization will be

high in the long term

15The global antioxidants market was valued at $377m in 2016 and is expected to reach

$486 in 2021 which corresponds to a revenue CAGR of 5.2%


Antioxidants Market: Revenue Forecast, Global, 2013–2021

CAGR, 2016–2021 = 5.2%

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

0,0

100,0

200,0

300,0

400,0

500,0

600,0

2013 2014 2015 2016 2017 2018 2019 2020 2021

Revenue 341,0 351,2 363,1 377,1 393,5 412,2 433,8 458,4 485,7

Growth Rate - 3,0 3,4 3,9 4,4 4,7 5,3 5,7 6,0

Gro

wth

Rate

(%

)

Rev

en

ue (

$ M

illio

n)

Year

16Europe is currently the largest regional market for antioxidants; the simplification of

the product approval process is expected to support their supply


Antioxidants Market: Percent Revenue

by Region, Global, 2016

Antioxidants Market: Percent Revenue by

Region, Global, 2021

Europe 37,2%

North America34,0%

Asia-Pacific24.4%

ROW4,4%

Europe37,0%

North America35,0%

Asia-Pacific23.5%

ROW4,5%

17From a competitive points of view, multinationals BASF, DSM and ADM dominate but

Milan-headquartered Indena is a notable market participant


Antioxidants Market: Competitive Structure, Global

Number of Companies in the Market 30 to 40

Competitive Factors Cost-effective and high-efficacy product innovations

Key End-user Groups Food

Major Market Participants

(share in revenue terms)BASF, Germany (16%); DSM, Netherlands (12%); ADM, US (11%)

Market Share of Top 3 Competitors 39%

Other Notable Market Participants

Kemin (US), Kalsec (US), Prinova (US), DuPont-Danisco (Denmark),

Vitae Naturals (Spain), Indena (Italy), Naturex (France), Vitablend

(Netherlands), Cargill (US)

18A continued focus on natural extracts and new delivery & dosage forms is expected to

offer opportunities for established players and challengers


Novel Fungi-based Antioxidant Derived from Mushroom

• ERGONEINE, a product developed by the French company, Tetrahedron, was approved by EFSA, after a

three-year-long evaluation.

• Mitigating suspicions that rising rates of inflammatory diseases were due to the consumption of the

company’s product, the EFSA declared the novel source as safe to be used in food and supplements

based on studies and evaluation.

• The product is manufactured using a patented synthetic process that involves a reaction of I-hercynine,

bromine and cysteine, and water.

New Delivery Forms of Lutein and Zeaxanthin Antioxidants

• DSM (Netherlands) and Kemin (US) launched new delivery forms of lutein and zeaxanthin, essential

antioxidants for eye health.

• The product OPTISHARP, which contains Zeaxanthin, is offered in powder form and is ideal to be used

in tablets, gummies, and chewable formulations. The other product, FloraGLO-OPTISHARP, is offered as

a suspension targeting soft-gel applications.

• Kemin, the manufacturer of these products, adheres to strict quality guidelines and all processes in the

supply chain, starting from seed cultivation to flower harvesting.

19

...

• TBC

Flavour Delivery Technologies

20Flavour delivery technologies are based on encapsulation, the process by which

active agents are entrapped within the walls of a carrier material


Outline of the Encapsulation Process

Encapsulation is defined as the process by which active agents are entrapped within the walls of a carrier

material, to form capsules with diameters ranging from a few nanometers to a few millimeters.

Encapsulation helps stabilize active agents, modifies the physical form of unstable compounds to convert them

into solid forms that are easy to handle, and increases the life of the compound being encapsulated.

Active agents can be in the form of solids, liquids, or gases, and they are released from the confines of the

carrier materials under specific conditions at controlled rater over prolonged periods of time.

What is

Encapsulation?

Active Material Carrier Material Encapsulant

• Physical

• Physio-chemical

• Chemical methods

Controlled Release of

Enclosed Agents

Activation Mechanism

Temperature

Pressure

Rubbing

Moisture• Wall rupture/

dissolution

Fragrance and flavor delivery technologies are based on encapsulation processes for effective delivery of active compounds

21Demand is driven by the growing need for slow release, with long lasting flavours key

to the success of products for cooking and/or consumption


Short Term

(1-2 Years)

Medium Term

(3-4 Years)

Long Term

(5-8 Years)

Demand for Long-lasting Effects

Encapsulation is used to make flavor providing ingredients that are slowly released during the

cooking process or while chewing food products Complex encapsulation processes are used to

make long-lasting fragrances that exhibit the full range of the fragrance’s notes.

Increasing Investments to Enhance Product Capabilities

With companies increasing their research and development (R&D) investments toward enhancing

product capabilities, novel encapsulation technologies are being developed. Process plants, mixing

systems, and handling techniques are becoming more refined.

Preference for Products with Signature Fragrance/Flavor

Consumers gravitate toward products that provide a distinct flavor or fragrance. Unique and natural

raw ingredients, such as vanilla or ylang-ylang, that help achieve this are integrated in a high

performing form into products through novel encapsulation technologies.

Increase in Health Conscious Consumers

Encapsulated flavors that help make healthy food more tasty, and encapsulated fragrances that can

be used in hygiene providing products are some of the key developments made to meet the

growing consumer trend for health and wellness.

Encapsulation of Flavors and Fragrances: Market Drivers, Global, 2017–2025

Impact: High Medium Low

22Market participants are innovating at each stage of the value chain (1/2)


ZoomEssence

(US)

Innovative Food

Processors

(IFP)

(US)

inprotec

(Germany)

GAT Food

Essentials

(Germany)

Stakeholder Key Developments Significance/Trends Technology Impact, 2017

Low

Low

Low

Low

High

High

High

High

Natural extracts can be converted

into a powder form that provides

enhance flavor experience to

consumers.

The formation of uniform coating

layers around encapsulated flavors

allows the release profile to be

improved.

The encapsulation process allows

compounds to be protected from

incompatible formulations.

Microcapsules can be formed

using natural and non-genetically

modified organisms (GMOs)

ingredients.

Zooming™: The no-heat spray drying process can be used to encapsulate

liquid flavors into a powder form, without affecting the fragrance’s integrity

while enhancing its stability.

Applications: Savory-condiments, snacks, confectionary

PrimeCAP® : These are encapsulated range of food-grade ingredients

made using the company’s patented tangential fluid bed technology.

Uniformly-sized multilayer coatings can be formed using the technology.

Applications: Beverages, savory-condiments, snacks

Matrix encapsulation: Fluid bed coating is used for converting oils and

fine powders into free-flowing granules. The process allows liquid loading

up to 50%, and protects sensitive compounds from oxidation.

Applications: Savory-condiments, detergents

wowCAPS®: The microencapsulation technology helps stabilize oils, oil

suspensions, and water soluble compounds by cross-linking polymers in

the active core ingredient suspension.

Applications: Beverages, dairy

23Market participants are innovating at each stage of the value chain (2/2)


Givaudan

(Switzerland)

Capsulae

(France)

Clextral

(France)

Etosha Pan

(India)

Stakeholder Key Developments Significance/Trends Technology Impact, 2017

The technology can be used for

developing oral care products

producing different flavors when

chewing.

Encapsulated ingredients in dry

form can be created using the

technology.

The stability and size of the droplets

formed can be appropriately

selected by configuring the

extruder.

The technology allows a

standardized flavor form to be

developed for addition into dry

products.

Toothpaste with Different Encapsulated Flavors: The company has

developed a toothpaste that contains microencapsulated gelatin or starch

grains. Edible plant oils are used as carrier materials.

Applications: Oral care

Prilling: The company has developed spray chilling machinery for

encapsulating active solids or lipophilic liquid in gelled polymer matrix to

form microbeads. The resulting compound has high thermal stability.

Applications: Snacks, savory-condiment

Twin Screw Extrusion (TSE) Process: Aromatic flavors in liquid form are

encapsulated continuously using TSE process. Temperature and screw

shear are appropriately controlled to form stable, small droplets.


Cyclodextrin Complexation: This is a molecular inclusion process for

flavor entrapment. The process allows liquid flavorings to be converted into

a non-hygroscope, powdered flavor form.


Low

Low

Low

Low

High

High

High

High

24In Europe, R&D efforts are focused on developing encapsulation processes that

extend to applications for fragrances in household and skin care


NA Companies Depend on Partnerships for R&D Purposes

R&D activities by companies are predominantly conducted internally. The companies work along with their clients

throughout the entire product development phase to provide customized encapsulated ingredients. On the other

hand, encapsulation equipment manufacturers form partnerships with companies that have access to R&D facilities

for improvising the ingredients manufactures. R&D projects in the NA region is largely focused on flavor

encapsulation technologies for use in packaged foods.

Europe has Company-sponsored Research Initiatives

Companies such as Giract (Switzerland) are sponsoring university programs on flavor encapsulation research to

facilitate the development of novel encapsulation processes. Such initiatives propagate Europe’s position as the

fastest growing market for encapsulated flavors. Research on fragrance encapsulation technologies is concentrated

on applications in the household care and skin care industries, demonstrating the consumer demand in Europe for

products that provide long-lasting fragrances.

APAC Region has University-led Research Projects

Research activities in Japan focus on the stabilization of exotic flavor ingredients, such a umami and soy sauce, for

use in snacks and savory-condiments. Research projects in APAC, especially in Japan, India, and Singapore, are

conducted by universities and research institutes. These projects are funded by grants from the local government.

Reflecting the region’s preference for subtly-scented fragrances derived from natural ingredients, research on

fragrance encapsulation focuses on encapsulating essential oils derived from ginger, eucalyptus, and citrus.

25CPL Aromas and Agdot in the UK are examples of start-ups which have received

funding to support their research and commercialisation activities


Funding Collaborative

Research Projects

• In January 2016, the National

Science Foundation (NSF) provided

$150,000 to InnovaNutra Inc. (US)

under the Small Business Innovation

Research (SBIR) project for the

development of natural and low cost

food-derived encapsulation products

with high stability and nutritional

benefits.

• Researchers from Harvard

University (US) and Cornell

University (US) have received

funding from P&G (US) and NSF for

developing long-lasting

encapsulated fragrances using bulk

emulsification processes.

Focus on New

Product

Development

• In February 2016, Aqdot (UK)

raised $6.7 million series A funding

for the commercialization of its

Aqdot™ encapsulation technology

platform. The technology can be

used for controlled delivery of

fragrances in household and

industrial applications.

• In August 2017, CPL Aromas (UK)

launched a new R&D center worth

$1.4 million in Brixworth (UK). The

new R&D facility comes equipped

with an Encapsulation Lab for

creating liquid encapsulated

fragrances that can be used in new

perfume formulations.

Foreign Investments

for R&D Center

Development

• In May 2017, Givaudan (Switzerland)

has invested in the development of a

500 square meter fragrance

encapsulation center in Singapore.

The new center is expected to be in

operation by mid-2018, and is meant

to serve applications in the detergent

and personal care industries.

• Since 2014, CPL Aromas (UK) and

Firmenich SA (Switzerland) have

developed state-of-the-art R&D

facilities in Indonesia. CPL Aroma’s

center focuses on fragrance

encapsulation while Firmenich’s

center focuses on flavor

encapsulation.

NA Europe APACKey Takeaway

• The NSF is a major

contributor for funding

collaborative research

activities by universities in

the US.

• In Europe, funding

initiatives are concentrated

on developing fragrance

encapsulation technologies,

illustrating the region’s

superior market position in

the fragrance industry.

• Funding activities in APAC

is leaning towards setting

up of new R&D facilities

that help companies with

bases in other regions form

collaborations locally-

situated customers.

26Moving forwards, the encapsulation technology roadmap is trending towards greater

customisation and a widening of the application landscape


20252017 20212019 2023

Thermally stable

encapsulated flavors and

fragrances

Enhancing the thermal stability of encapsulated products is a major challenge faced by the technology end-users. The development of strong carrier material that do not

alter the properties of encapsulated contents would help circumvent this challenge in the short-term. Spinning disk reactor technology, which is highly favored for making

stable multiple emulsions would be adopted in the large-scale over the next 2 years. While freshness inducing encapsulated fragrances are largely used in household

care applications, in future companies would develop odor shield technologies that contain radiant scents for breaking down odor causing oxygen, nitrogen, and sulfur

molecules. By 2025, low-cost, customizable microencapsulated products would be developed using 3D printing techniques. Fiber materials are expected to be used as

wall coatings for stabilizing the flavor or fragrance core ingredients.

Adoption of spinning disc reactor

technology for encapsulating flavor

oils and unstable essential oils

Encapsulated flavor

ingredients for non-food

applications, e.g.

encapsulated citric acid for

breaking down gums in oil

and gas industries.

Development of odor shield

technologies that help control

odor causing gases

Large-scale adopt of nano-

encapsulation techniques

Use of phase change

materials for encapsulating

fragrance oils

Synthesis of nanometer-sized

fragrance encapsulated with chitosan

as a carrier material

3D printed microencapsulated

products

27

...

• TBC

Curcumin Market

28Turmeric is the raw material used in the production of curcumin 95% which finds its

application largely in nutraceuticals (54%) and F&B (34%)


• Turmeric is the raw material used in the manufacturing of curcumin

95%, a standardized extract of curcuminoids in the form of oleoresins.

Curcumin 95% goes into formulations in the form of capsules and

tablets, and even external use in creams and lotions of herbal,

nutraceutical, dietary supplement, and cosmetic products

• The absorption and bioavailability of curcumin from ingested food is

limited for being effective in specific therapeutic applications.

Additionally, the concentration of curcumin in turmeric is low (2%–6%

by dry weight)

• Very large quantities of turmeric powder would have to be consumed

to result in any direct and significant therapeutic benefits. Thus, the

only logical and medically practical approach is to use a concentrated

extract of curcuminoids or curcumin, the main active constituent in

turmeric

• Curcumin 95% is a turmeric oleoresin extract that is standardized to

contain not less than 95% of the curcuminoids. Standardizing to 100%

curcumin is conceptually attractive, but not practical or justified, due to

highly escalated manufacturing costs

• The bioavailability of curcumin 95% can be reduced by the gastro-

intestinal tract and biochemical factors. Several technical strategies

have been adopted to make curcumin more absorbable and

bioavailable, by different developers and suppliers. Combining with

piperine (from black pepper) and formulating with lecithin

(phospholipids) are two of the popular methods

En

d A

pp

licati

on

s

Nutraceuticals

Food & Beverages

Cosmetics

Others (animal nutrition,

photovoltaics, and textiles)

Others (frozen foods, desserts and salads)

29Curcumin 95% can be safely used in large doses without producing side-effects and is

scientifically proven to prevent diseases and relieve pain


Curcumin Market: Market Drivers and Restraints, Global


Increasing R&D activity toward curcumin 95% extracts with value-added

propertiesH H H

Growing applications due to lack of undesirable side effects and safety in large

dosesH H M

Scientific evidence for disease prevention and pain relief by curcumin use has

been increasingH M M



Confusion among consumers about differences between turmeric and curcumin

hinder the marketH H H

Competition from low-priced extracts threatens standardized curcumin extracts

95%.M M L

Combination with cheaper, synthetic curcumin reduces true volume

consumptionM L L

30Growth is primarily stemming from supply-side innovations; manufacturers are

working to increase absorption by improving delivery mechanisms


Increasing R&D Activity Toward Curcumin 95% Extracts

• The major driver for the increasing use of curcumin 95% extracts in the global market is the keen R&D of

suppliers to improve its bioavailability profile through various innovative technological strategies.

• Curcumin 95% extract as initially produced tends to be poorly absorbed in the intestines.

• Manufacturers have worked effectively in increasing its absorption and bioavailability after oral intake in the

human gastro-intestinal tract.

• Some of the popular curcumin 95% ingredients have added piperine (from black pepper) e.g., C3

Complex/Sabinsa.

• Phopholipids/liposomes act as curcumin carriers in Meriva/Indena, while cyclodextrin forms a complex

with curcumin in Cavamax W*/Wacker Chemie.

• Other innovative patented solubilization and delivery technologies include the following:

‒ SLCP Technology in Optimized Curcumin/Longvida of Verdure Sciences (US)

‒ UltraSOL Nutrient Delivery in CurcuWin of OmniActive (US)

‒ Polar Non-Polar Sandwich Technology in CureIt of Aurea Labs (India)

31The global curcumin 95% market was valued at $49m in 2016 and is expected to reach

$101 in 2023 which corresponds to a revenue CAGR of 12.6%


Curcumin Market: Revenue Forecast, Global, 2013–2023 CAGR, 2016–2023 = 12.6%

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

0,0

20,0

40,0

60,0

80,0

100,0

120,0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Revenue 32,8 36,0 39,6 43,9 48,8 54,4 61,0 68,7 77,9 88,5 100,8

Growth Rate - 9,6 10,1 10,6 11,2 11,7 12,1 12,6 13,3 13,6 13,9

Gro

wth

Ra

te (

%)

Re

ve

nu

e (

$ M

illi

on

)

Year

Curcumin Market: Revenue Forecast, Global, 2013–2023CAGR, 2016–2023 = 12.6%

32Europe is currently the second largest regional market for curcumin; its growing use

as a therapeutic agent in cancer treatment will boost demand


Curcumin Market: Percent Revenue

by Region, Global, 2016

Curcumin Market: Percent Revenue by Region,

Global, 2023

North America35,1%

Europe30,1%

APAC24,8%

ROW10,0%

North America35,2%

Europe34,8%

APAC23,6%

ROW6,5%

33From a competitive points of view, curcumin extraction is centred in India but US

players such as Sabinsa offer value-added processing capabilities


Curcumin Market: Competitive Structure, Global

Number of Companies in the Market More than 20

Competitive FactorsPrice, product quality, enhanced bioavailability, brand strength, customer

service

Key End-user GroupsPrimarily herbal and dietary supplement manufacturers; functional food and

beverage manufacturers, cosmetics manufacturers


(share in revenue terms)

Arjuna Natural Extracts, India (33%); Sabinsa, US (30%), OmniActive, US

(12%)


Other Notable Market Participants Verdure Sciences (US), Organica Aromatics (India)

34Players across the supply chain are looking to increase the bioavailability and

improve the effectiveness of curcumin through product development


Curcumin Market: Value-Add Strategies, GlobalSupplier Curcumin Brand Technologies/ Value-Addition Strategies

Akay (India)/Bioactives American

(US)CurQfen Provides a formulation of curcumin with fenugreek galactomannans as curcuma-galacto-mannosides (CGM)

AQUANOVA (Germany) NovaSOL®The NovaSOL® biomimetic micelle is completely stable through the digestive process, delivering Curcumin to the

intestinal wall for maximum therapeutic effect

Arjuna Natural Extracts (India) BCM-95 Micronized formulation with curcuminoids, essential oils of turmeric and ar-turmerone

Aurea Biolabs (India) Cureit Uses Polar Non-polar Sandwich (PNS) technology and facilitates the smooth penetration of the ingredient into the

intestinal/target tissue's polar non-polar cell walls.

Indena (Italy) Meriva Employs a curcumin-phosphatidylcholine phytosome complex

Konark Herbals & Healthcare

(India)N-Curcusorb/ Nanocurcumin N-Curcusorb is curcumin in nano-particle size as nanoemulsion

OmniActive (US) CurcuWin Applies UltraSOL Nutrient Delivery System; converts lipophilic/ poorly absorbed nutrients to water-dispersible

ingredients for enhanced bioavailability

Sabinsa (US) Curcumin C3 Complex® Curcumin, demethoxycurcumin, and bis-demethoxycurcumin complex with the addition of piperine or Bioperine®

SV Agrofood (India) Liquid Nano Curcumin Nano-encapsulated curcumin in liquid form

Synthite Industries/ (India)/Unibar

(US)CurQnetic

Curcumin 95% with vanillin (from vanilla) and gingerols (from ginger). Vanillin and gingerol act as adjuvants that help

curcumin to bypass the glucuronidation reaction and increase absorption and retention

Theravalues (Japan)/Integrative

Therapeutics (US)

CurcuminRich®

Theracurmin®Fine granulation and suspension technology

Verdure Sciences (US) Longvida Optimized curcumin with patented SLCP™ (Solid Lipid Curcumin Particle Technology) technology

Wacker-Chemie (Germany)Cavamax W8 Curcumin

ComplexUtilizes a cyclodextrin-based curcumin complex technology

35

...

• TBC

Food Safety Technologies

36Primary safety technologies in the dairy food industry are those that are associated

with the prevention, detection, and elimination of contaminants


Food Safety in Dairy Industry: Technology Objectives and Focus, Global, 2017

Primary technologies are associated with the prevention, detection, and

elimination of contaminants in milk and other diary compounds. This includes

• Physical Separation of Contaminants

• Thermal/non-thermal intervention

• Packaging

• Coatings

• Biosensors

• Automated food processing

• Improve food safety

• Ensure consumer protection

• Boost consumer confidence

• Improve efficiency throughout the supply chain

• Benchmark parameters for food safety management

• Provide an action plan to counter various criticalities

• Production Scheduling

• Verification of Sanitation Effectiveness

• No chemical contamination

• HACCP principles

• Real-time monitoring

Supplementary technologies offer risk assessment that enables food product

suppliers, manufacturers, and consumers to identify the source and the intensity

of contamination, while prohibiting further spread. This consist of

• Technologies with electronic traceability

• Sensors and microelectronics

• Smartphones and mobile applications (Internet of Clean)

• Real-time scanning and monitoring

Primary Technologies Supplementary Technologies

Focus on Prevention, Detection, Elimination Focus on Risk Assessment

Technology Objectives Technology Objectives

37Demand is driven by increasing incidences off foodborne illnesses which, in turn, are

prompting the authorities to introduce new regulations


Food Safety in Dairy Industry: Drivers, Global, 2017

Foodborne illness concerns driving authorities to promote new regulations

• According to the US Center of Disease Control and Prevention, foodborne illness affects more than

48 million Americans each year, accounting over 100,000 hospitalizations and thousands of deaths.

• The Food Safety Modernization Act (FSMA) presents a new framework of food safety supervision,

calling to the application of the best available science and technology to address this concern.

• It is important to mention that in particular for the dairy industry, the Food and Drug Administration

(FDA) and state regulatory agents have worked closely with dairy farmers and processors during the

past years. This can be exemplified in the federal Pasteurized Milk Ordinance—a set of requirements

for milk production, milk hauling, pasteurization, product safety, equipment sanitation, and labeling,

which has worked efficiently. Indeed, less than 1 percent of foodborne illness outbreaks in the US

involve dairy products.

Beyond hazard analysis and critical control point systems

• The Innovation Center's Food Safety Operating Committee (FSOC) is advancing to a higher level, by

applying, in agreement with the FSMA’s statement more comprehensive food safety supervision

measures, and embracing an education and training program for controlling pathogens within dairy

processing plants. Food safety recalls compromising the reputation of the industry needs to be

avoided by providing processors and suppliers with food safety best practices.

• The program includes training for the entire supply chain, voluntary internal audits within a common

standard to be linked to the Global Food Safety Initiative, and annual exchanges between

government regulators and FSOC executives for continuous improvement.

Short term

Long term

Short term

Long term

High

1

23

4

5

<1 >5

Low

3

High

1

2 4

5

<1 >5

Low

43

Low High

1 5

<1 >5

2

Low

2

High

1 5

<1 >5

34

38Key primary enabling intervention technologies in the dairy food industry include bio-

illumination, plasma, thermal and non-thermal solutions


Key Enabling Intervention Technologies

Bio-illumination Technology

Molecular pathogen detection

systems are based on isothermal

DNA amplification and ATP

bioluminescence detection

technologies. Bioluminescence

platforms represent rapid and

sensitive detection systems that

combine nanotech and synthetic

biology approaches to detect live

bacterial pathogens in many

environments and sample types. By

combining both technologies,

microorganisms can be detected

before they reach end consumers,

thus re-shaping the food chain from

control to prevention.

Plasma Technologies

Cold plasma is a non-thermal “green”

technology that uses energetic,

reactive gases to inactivate

contaminating microbes on meats,

poultry, fruits, and vegetables,

enhancing microbial food safety and

quality, without compromising the

nutritional, functional, and sensory

characteristics of foods. Bactericidal

molecules (ozone, nitric oxides, and

peroxides) are generated with

minimal power under room-

temperature conditions in seconds to

minutes, with little or no product

heating.

Thermal Technologies

Thermal processing plays a critical

role in keeping food safe from

microbiological contamination, while

remaining high in nutritional and

sensory attributes. Thermal

technologies range from full

sterilization to milder pasteurization

heat treatments. The equipment and

environment used for thermal

processing, including continuous flow

heating and cooling systems, hot-fill

processes, and novel thermal

technologies (microwave, radio-

frequency, and ohmic heating), play

a key role in food safety.

Non-thermal Technologies

Conventional thermal food

preservation has the shortcoming of

possibility of adversely affecting food

quality, organoleptic properties and

nutrients. Non-thermal food safety

technologies have minimal effect on

the nutritional and sensory properties

of foods, while inhibiting or killing

microorganisms in food and

beverages. They comprise ionizing

radiation, pulsed X-ray, ultra-high

pressure, ultrasound, pulsed electro-

magnetic fields, high-voltage arc

discharge, pulsed light, high

hydrostatic pressure, and dense

phase carbon dioxide, among many

others.

39Established and emerging players are innovating across these areas (1/2)


ATP

Bioluminescence

Synthetic Biology

Bacterial

Bioluminescence

Chemilumine

scence

Engineered

Bacteriophages

• 3M

• Sample6

• Neogen

• Hygiena

• Millipore-

Sigma

• Celsis

• BioLume

• Assure

Controls

• MicroBio

Tests

• LuminUltra

• Biotrack

• NCIMB

Cold plasma

Atmospheric

plasma

Micro Plasma

Nano Pulsed

Plasma

Corona Discharge

• Advanced

Plasma

Solutions

• Phygen

Coatings

• Marshfield

Food

Safety

• Troy

Biologicals

• Plasma

Bionics

• VITO

• Adtec

Ultra High

Pressure

Pascalization/

Bridgmanization

Ionizing Radiation

Dense phase

carbon dioxide

• Hiperbaric

• Diversified

Technologies

• Certified

Laboratories

• Avure

• American

Pasteurization

Company

• Multivac

• Hain BluePrint

Thermal Spraying

Microwaves

Ohmic Heating

Infrared Heating

• Marlen

International

• MMC

• Procedyne

Corp

• Thermal Care

• Unitherm

Food

Systems

• Dimplex

Thermal

Solutions

• BV Thermal

Systems

• Nabertherm

Ultrasound Radio-Frequency

Heating

Bioillumination Plasma Technologies Non-thermal Technologies Thermal Technologies

40Bio-based and electronic packaging as well as protective and anti-microbial coatings

are important weapons in the fight to improve dairy food safety

Key Enabling Packaging Technologies

Bio-based food packaging

materials are elements derived

from renewable sources when

achieving suitable properties

(gas barrier, water vapor

transmittance, thermal and

mechanical behavior,

and so on.)

Corrosion due to extensive

use of high-pressure water and

steam, often in combination

with various corrosive agents,

increases the need for

protective coatings that meet

strict requirements of food

contact standards.

Polymeric edible coatings

incorporating natural nano-

encapsulated antimicrobials

that may be controlled

released through

multilayered nano-laminate

delivery systems in food

systems.

Providing greater

resolution and broader

visibility to the supply

chain, smart labels and

tags using RFID, sensors

and printed electronics,

have become significant

solutions in recent times.

Custom refrigerated

food temperature and

humidity labels coupled

with smart monitoring

solutions to ensure food

quality and safety

across the entire value

chain once packaged.

Nano-encapsulation and

multilayered delivery systems

are powerful tools to enhance

the functionality of edible

coatings, with the incorporation

of natural antimicrobial agents

and controlled release systems.

Active packaging involves

oxidation retardation,

respiratory process hindering,

microbial attack and moisture

infusion prevention, CO2 and

ethylene scavengers, aroma

emitters, time-temperature

sensors, and so on.

Advanced dispersion

adhesives are used for

laminating cardboard, thus

achieving different

features while providing

superior properties and

ideal processing

characteristics.

Intelligent packaging

comprises sensors to monitor

food quality and safety, such

as time and temperature,

integrity, and freshness

indicators. Nanotechnology is

the most powerful tool for the

development of intelligent

packaging.

Bio-based Packaging Protective Coatings Anti-microbial Coatings Electronic Packaging

Eco-friendly Adhesives Indicative Labeling Food-based Coatings Active Packaging Intelligent Packaging


41Established and emerging players are innovating across these areas (2/2)


Sustainable

Bioplastics

Modified Starches

CO2-based

Polymers

Regenerated

Cellulose

Microcrystalline

Waxes

• Metabolix

• Natureworks

• Coca-Cola

Company

• Novomer

• National

Starch

• Dannon

• Ecostar

• BASF

• Avebe

Spraying/Dry

Crumb

Application

Coating

Adhesion

Coalescence

Technology

Micro/Nano

Encapsulation

Chemical

/ Thermal

Stabilization

• Cardolite

Corporation

• AkzoNobel

• Jotun

• Phygen

Coatings

• Dampney

Company

• Sigma

• Metal

Coatings

Corp.

• Sika

• Hempel

• NSF

International

Antimicrobial

Films

Layered

Nanocomposites

Antimicrobial

Nanoparticles

Functional

Biomolecules

• BioCote

• Ai2

• Kastus

• Nanograde

• Curza

• HeiQ Materials

• Microbe

Investigations

• Matera

• Exigence

Technologies

• Kane Biotech

Edible Waxes/

Hydrocolloids

Biocomposite

Coatings

Polysaccharide-

based Coatings

Lipid Coatings

• Proinec

• BASF

• Evonik

• ZEON

• Mitsubishi

• Sinoplast

• Royal DSM

• Witton

Chemical

• MonoSol

• Lyle

• Tsukioka

Film

Surface

ModificationProtein-based

Coatings

Bio-based Packaging Protective Coatings Antimicrobial Coatings Food-based Coatings

42Moving forwards, market participants’ ability to interact with innovation developers to

deliver smart safety solutions will be a key success factor


Food Safety in Dairy Industry: Emerging Innovation Models, Global, 2017

Intelligent Traceability Solutions

On-site Environmental

Monitoring

Farm-to-Table Surveillance

Integrated Testing Services

Micro/ Nanotechnology and Advanced Materials (Smart Packaging,

Biosensors, Barcodes, etc.)

Internet of Clean (Smart Safety

Solutions, Big Data Analytics, Safety

management, etc.)

Life Sciences Testing Kits

(Bioillumination, PCR,

ELISA, etc.)

Engineering (Thermal/Non-

thermal Processing,

Pulsed-Light, etc.)

Innovation Hubs:

Companies, Institutes, Research Centers,

Foundations, Ventures, Legal and Regulatory Bodies, Government

SMART SOLUTIONS FOOD SAFETY ECOSYSTEMTECHNOLOGY SYNERGY

43

...

• TBC

Personal Care Active Ingredients Market

44Personal care products draw on active and inactive ingredients; the former represents

~35% of the market but this is expected to reach ~50% in 2023


Ac

tive

In

gre

die

nts

Anti-aging

Ingredients

UV Ingredients

Exfoliating

Ingredients

Others

Moisturizing

Ingredients

Moisturizing ingredients maintain the water level in the skin and prevent skin collagen deterioration.

Moisturizers create and maintain a barrier on the skin to retain water, humectants attract water from the

inner skin layers. Glycerol, hyaluronic acid, amino acids and ceramides are some examples of

moisturizing ingredients.

Antimicrobial

Ingredients

Anti-aging ingredients prevent biological aging such as wrinkling and roughness. The anti-aging market

segment mainly comprises the vitamins product range that fulfills anti-oxidative functions. Vitamin A, B3,

C, and E and derivatives are some of the anti-aging ingredients.

UV ingredients are specialty ingredients that reduce the production of melanin, which pigments the skin.

By restricting melanin production, the skin is given a lighter hue, while protecting it from

harmful UV radiation.

Exfoliating ingredients help replace weak skin cells with fresh cells. These are used in facial peel-off

masks, lotions, skin creams, and so on. Glycolic acid and lactic acid are two major types of exfoliating

ingredients.

Antimicrobials inhibit the growth of bacteria on the skin and ensure that body lotions and creams are free

of microorganisms during storage and consumption. The two main types of antimicrobials in the market

are triclosan and triclocarban products.

Other active ingredients included in the study are skin whitening, anti-pollution, and

soothing ingredients.

45Spending on skin, face and body care is closely correlated with GDP growth and

linked to growing awareness of issues such as protection from the sun


Personal Care Active Ingredients Market: Market Drivers and Restraints, Global


Growing economies H H M

Increasing demand for natural ingredients H H M

Growing awareness leading to an increase in consumer demand H H/M M



Increasingly stringent legislation will restrict innovation H H M

A highly price sensitive market will lead to price squeeze,

reducing revenues for manufacturersH M M

Presence of the informal market will negatively impact the market

share for multinational companiesM H H

46Growth in the number of consumers looking to avoid exposure to chemicals is leading

to demand for natural ingredients such as soybeans and neem

Increasing Demand for Natural Ingredients

• Natural ingredients are being demanded by the highly

aware consumers. They hold strong opinions against

personal care products with synthetic ingredients, as they

want to avoid exposure to harsh chemicals.

• Major sources of natural active ingredients are raw

materials such as soybean, neem, fish oil, and aloe vera.

• Preference for natural ingredients is particularly strong

among consumers from China and India, who have been

exposed to traditional Ayurvedic and Chinese medicines

respectively.

• The current share of natural active ingredients in the total

market is 25–30%, which is expected to double to 50–55%.

• The sheer market potential of natural active ingredients is

the reason for most active ingredient manufacturers to

focus on innovation and technology in order to handle the

instability of natural ingredients with other ingredients in the

formulation.

Personal Care Active Ingredients

Market: Natural Ingredients, Global,

2016 and 2023

25-30%

50-55%

2016 2023


47The global personal care active ingredients market was valued at $3.5b in 2016 and is

expected to reach $5.6b in 2023, a 6.9% revenue CAGR


Personal Care Active Ingredients Market: Unit Shipment and Revenue Forecast, Global, 2013–2023

Unit Shipment CAGR (2016–2023) = 6.3%; Revenue CAGR (2016–2023) = 6.9%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

0,0

1.000,0

2.000,0

3.000,0

4.000,0

5.000,0

6.000,0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Revenue 2.850,3 3.116,6 3.336,0 3.528,7 3.801,6 4.072,8 4.323,2 4.641,9 5.008,2 5.398,5 5.627,6

Unit Shipment 313,4 340,7 365,7 384,0 408,9 432,0 458,4 491,6 523,7 557,8 589,5

Re

ve

nu

e (

$ M

illi

on

)

Year

Un

its

(Kilo

To

ns)

48Growth in Europe is stable at a CAGR of 4.0% (2016-23); this will stem from the launch

of new ingredients as local players “look east” for opportunities


Personal Care Active Ingredients Market:

Percent Revenue by Region, Global, 2016

Personal Care Active Ingredients Market:

Percent Revenue by Region, Global, 2023

Europe35,4%

Asia Pacific32,4%

North America25,0%

Rest of World7,1%

Europe30,6%

Asia Pacific38,8%

North America21,4%

Rest of World9,2%

49From a competitive points of view, the market is relatively fragmented with 250+

players behind the top three multinationals; BASF, Dow and Croda


Personal Care Active Ingredients Market: Competitive Structure, Global

Number of Companies in the Market 250+ players with revenue greater than $0.5 million

Competitive Factors Price, product performance, brand reliability, and innovation

Key End-user Groups Personal care products and cosmetic manufacturers


(share in revenue terms)BASF, Germany (14%); Dow Corning, US (12%); Croda (10%), UK



Ashland (US), Evonik (Germany), AkzoNobel (Netherlands), Lonza

(Switzerland), Lipotec (Spain), SEPPIC (France), Symrise (Germany), and

DSM (Netherlands)

50Technology has enabled the development of new beauty tools such as mobile apps

that improve the efficacy/functionality of personal care products


Technology Trends

• For the end consumers, technology will boost additional consumption of personal care products. Technology has enabled the

development of new beauty tools such as mobile apps that improve the efficacy and functionality of the beauty routine. These apps

and tests provide customization to end consumers.

‒ GeneU (UK) and SKINSHIFT, Austin, Texas (US) sell DNA tests that analyze the skin and suggest a combination drawn from an

available pool of serums and nutritional supplements.

‒ Romy Paris’ (France) Figure “beauty assistant” blends encapsulated active ingredients into a serum or cream for the skin’s

specific needs, determined by a smartphone app.

‒ Feelunique (UK), a mobile make-up app, allows consumers to virtually try on products in different shades across brands. The

app uses face recognition technology.

• Another example of technological advances is the proliferation of digital media among consumers. Online retailing and social media

advertising has recorded a CAGR of 20% during 2010−2015, being expected to record a robust CAGR of 12−15% during

2016−2023. The Internet has created several platforms for the consumer to be more aware of product ingredients. To take

advantage of this social phenomenon, most of the cosmetic companies, especially the new entrants, are advertising their personal

care products on social platforms. Social media has also led to a rise in consumer activism, which is affecting the brands.

• Online Retailing: Another technology platform that has increased the sales of personal care products is Online retailing. This sales

model ensures easy purchase of personal care products for consumers.

51

...

• TBC

Antimicrobial Technologies

52Antimicrobial technologies are used to increase microbial resistance in

conventional (e.g. healthcare) and increasingly emerging areas (e.g. fabrics)


Summary of Key Antimicrobial Technologies, Global, 2017

Peptidomimetic systems with antimicrobial

functions are being increasingly used for coating

applications.

Polymeric antimicrobials comprise

polycarbonates, polyurethane,

polyphosphoester, polyvinylpyrrolidone, and

several other polymers that are used as

additives or antimicrobial coating formulations.

Phenolics comprise the use of one or more of

compounds such as triclosan, chloroxylenol, and

phenol for antimicrobial formulations. Derivatives

such as butylated hydroxytoluene (BHT) are used

as food additives in small amounts.

Quarternary ammonium compounds encompass

one or more of benzalkonium, octenidine,

cetylpyridinium, and other compounds that are

frequently used as antimicrobial additives and

disinfectant formulations.

Antimicrobial Polymers Antimicrobial Peptides Phenol and Derivatives

Quaternary Ammonium

Key Antimicrobial Platforms

Image Source: Frost & Sullivan

Natural antimicrobials components comprise

active ingredients derived from natural

substances such as honey and turmeric. The

compounds are often used as food additives

Natural Antimicrobials

Other compounds such as nitrofurans, acridines,

hydrogen peroxide, and polymeric metals are also

emerging as potent antimicrobials.

Metal ions such as silver, copper, selenium,

and zinc are frequently used in antimicrobial

coating formulations.

These antimicrobials encompass chlorhexidine,

hexamidine, polihexanide, propamidine,

dibrompropamidine, and other related

compounds, which are frequently used in coating

formulations.

Biguanides and Amidines Metallic Ions Others

53Growth is driven by ongoing concern about the level of healthcare-associated

infection and the use of new antimicrobial platforms to address this


Healthcare-associated infection (HAI) continues to be a significant global concern, hence

there is growing research for developing new antimicrobial platforms that can

significantly decrease the risk of microbial infections

There is a growing use of polymeric and metallic antimicrobial platforms for reducing

infections across diverse healthcare settings, especially for medical device coating

applications.

Increasing consumer awareness about natural ingredients and growing needs to address

adverse events that result from the use of harsh antimicrobials have fuelled the

development of natural antimicrobials.

54Metallic ions are emerging antimicrobial agents with elements such as silver, copper

and selenium often used in antimicrobial coating formulations


Overview

Chelating metal ions are potent

antimicrobial agents. This

technology platform usually

includes the use of one or more

compounds of silver, copper,

zinc, gold, palladium, titanium,

and selenium. Silver and copper

constitute some of the frequently

used metallic ions for

antimicrobial applications.

Mechanism of Action

Silver functions by interacting

with thiol groups within

microbial proteins and enzymes

present in cell membrane. The

interaction leads to the release

of potassium ions, which may

subsequently cause membrane

damage microorganisms.

Copper ions are known to

damage bacterial membrane

proteins and induce hydroxyl

radical formation, which

eventually leads to membrane

damage, oxidative

stress, and cell death.

Metallic Ions


55Companies are developing uses for metallic ions across application areas such as

F&B, medical devices, personal care/hygiene and construction

Technology Capability

Advantages

• Metals inorganic salts easily dissociate to

release bioactive metal ions, but tend to

be more toxic and less stable when

compared to their organic counterparts,

such as sulfonamides containing

ferrocene

• Effective against a broad spectrum of

microorganisms such as bacteria, fungi,

and viruses

Disadvantages

• Growing microbial resistance

mechanisms inhibit the antimicrobial

functions, For instance, frequent use of

silver has enabled the development of

resistance mechanisms in Salmonella

species

• Organic metal salts and metallic polymers

do not dissociate easily in microbial

environment, hence may be less effective

compared to inorganic salts.

Application Areas

Industry Segment Application Areas

Medical Devices

Catheters, Implants, Endoscopes, Touch

Surfaces in Hospital and Healthcare

Settings

F&B Industry Food Grade Metal Coatings

Personal Care & Hygiene Handwash, Soaps

Industrial, Building & Construction HVAC, Metal Cladding, Paints

Key

Companies

BASF SE, Germany

Bactiguard SE, Sweden

Microban, US

Sciessent, US

Microbecide, Singapore

PolyOne Corporation, US

DSM, Netherlands

BioCote, England

Dow Chemical Company, US

University of Sheffield, UK


56Bactiguard, in Sweden, is an example of a market participant which is deploying silver,

gold and palladium based coatings for urinary catheters

Stakeholder Application Area Key Technology

Speciality

Coating Systems,

US

Cardiac implants

The company offers the SCS microRESIST™ Antimicrobial Parylene Technology that

comprises vaporized coating and polymerization to enable vacuum deposition of parylene

on devices. The company’s antimicrobial parylene technology enables the unique

combination of biocompatbility with microbicidal functions for a wider application range.

Bactiguard SE,

SwedenUrinary catheters

The company has incorporated 3 metallic components (silver, gold, palladium) in its

Bactiguard Infection Protection (BIP) technology. This coating is applied to the BIP foley

catheter to impart antimicrobial properties. The efficacy of the coating lasts for 90 days. As

the technology platform incorporates three metallic components, the technology offers

enhanced antimicrobial functions.

Gelest Inc., US F&B industry

The company offers BIOSAFE antimicrobial technology that uses a silicon-based

polymer that offers unique non-leaching benefits. The company is pursuing food contact

approval from the US FDA.

BioCote, UK Healthcare

The company offers a wide range of BioCote® Antimicrobial Additives that include

silver, zinc, copper, phenolic, quaternary ammonium, and thiabendazole antimicorbial

additives for coating for several applications. The wide range of active ingredients enable

increased applicability across different industry sectors.

57In Europe, R&D efforts are focused on new novel packaging techniques such as the

use of nanocomposites in cosmetics and wound dressings

1

2

3

Funding

Scenario

Most research projects across Europe focus

toward the use of novel antimicrobial

technologies, such as nanocomposites, for

cosmetic packaging, medical device coating

and wound dressing applications.

Research

Trends

The European Commission has funded a

total of USD 31298061 approximately in

projects related to antimicrobial coating

technologies during the 2015-2016 period.

Emerging

Technologies

European countries, such as Italy and

Poland, are researching to leverage natural

antimicrobials, such, as essential oils, for

preserving cosmetics. Scientists in Spain

and UK are studying to use metallic

antimicrobial coatings to develop

multifunctional bone implants.

Summary of Key R&D Trends, Europe, 2017

Rising focus toward novel

packaging techniques and

growing need to enhance

hygiene are likely to drive new

innovations in this space.

58Moving forwards, the space will be shaped by a reduction in the use of toxic

compounds (e.g. nitrofurans) and a focus on biocompatible antimicrobials

Availability of new antimicrobial

formulations that leverage the use

of multiple antimicrobial

technologies for a wide range of

healthcare & industrial applications

Significantly reduced/negligible

usage of toxic antimicrobial

compounds such as nitrofurans

across the globe and growing use

of biocompatible antimicrobials.

Increasing use and availability of enhanced

peptide-based antimicrobial platforms

across healthcare, industrial, personal care,

and F&B settings.

Increasing focus on the development

and adoption of natural antimicrobial

technology platforms, especially

across cosmetic and skincare

applications.

2019-2022

2023-2026

2027-2030

2015-2018


59

...

• TBC

Prebiotic Ingredients Market

60Prebiotics for human nutrition include a range of substances of which GOS (54%) and

Fructans (insulin and FOS) are the key revenue contributors


Prebiotics• “A selectively fermented ingredient that allows specific changes, both in the composition and/or activity in the gastro intes tinal microflora that

confers benefits upon host well being and health” (Roberfoid, 2007)

FructansInulin and

Fructo-oligosaccharide

• Generally carbohydrates containing fructose

• Two of the most widely used prebiotics, having been existent in the market for many years

• Similar structure; however, inulin is a large molecule with a degree of polymerisation (DP) between 11 and 65, FOS comprises smaller

molecules with a DP ranging from 2 to 10.

• Inulin extracted from chicory root and FOS from tranfructosylation from sucrose or hydrolysis of chicory

Xylo-oligosaccharide

• Made up of beta (1-4) linked xylose

• Mainly manufactured by the enzymic hydrolysis of xylan

• Has a DP ranging from 2–6

• Sugar oligomers (xylose units) found in corncob, bamboo shoots, fruits, vegetables, milk, honey

• XOS has both GRAS status and an NDI with the USFDA

Soy-oligosaccharide

• Made up of a mixture of raffinose and stachyhose

• Gotten out of soybean whey

• Has a DP ranging from 3–4

Galacto-oligosaccharide

• Composed of 85% oligo-galactose and some glucose and lactose

• Produced from lactose by beta-galactosidase

• Has DP that ranges from 2–55

• Oligosaccharides resembling GOS occur naturally in human milk and may be one of the factors that protect human infants from gastrointestinal

pathogenic bacteria (Leena Niittynen, et al, 2007)

Isomalto-oligosaccharide

• Glucose oligomers, with α-D-(1,6)-linkages which are not easily hydrolysed and exhibit a digestion-resistant property,

therefore, partially digest in the upper gastrointestinal tract

61Prebiotics help adult consumers to make up their recommended daily levels of fibre

and are finding further applications in infant nutrition products


Prebiotic Ingredients Market: Market Drivers and Restraints, Global


Consumer trends in the F&B market - clean and clear label,

reduced sugar, and reduced fatH H H

Closing the fibre gap and complementary demand support due to

the strong demand for probioticsM H H

Increasing R&D and awareness of nutritional benefits of prebiotics M M H


Increasing competition M M H

Legislation and lack of official definition/ recommendation of

prebioticsM M M

Natural ingredients subject to price volatility L L L


62They are increasingly recognised for more than just their digestive health

functions with manufacturers marketing them as e.g. sugar replacements


Consumer Trends in the Food and Beverage Market—Clean and Clear Label, Reduced

Sugar, and Reduced Fat

Many food and beverage manufacturers are already responding to consumers’ increasing

demand for foods with clean labels, and reduced sugar and fat. The average food and

beverage consumer defines clean labelling as containing natural/no artificial ingredient.

Prebiotics are now marketed beyond digestive health and functions, include:

• Sugar and fat replacement

• Weight management

• Increasing mineral absorption

• Supporting immune health

• Improving taste and texture

All these means that the prebiotics ingredient market can reach a wider audience as the

ingredients have more benefits and consumers continue to consume food for various

reasons.

These trends will support revenue growth in the prebiotic ingredients market as they are

primarily from natural sources.

Therefore, the future of this market will be highly dependent on consumer trends.

63The global prebiotic ingredients market was valued at $1.5b in 2016 and is expected to

reach $1.8b in 2021, a revenue CAGR of 5.4%


Prebiotic Ingredients Market: Revenue Forecast, Global, 2016–2021 CAGR, 2016–2021 = 5.4%

3,5

4,0

4,5

5,0

5,5

6,0

6,5

0,0200,0400,0600,0800,0

1.000,01.200,01.400,01.600,01.800,02.000,0

2016 2017 2018 2019 2020 2021

Revenue ($ M) 1.354,5 1.427,7 1.506,6 1.588,4 1.673,0 1.758,4

Growth Rate (%) 5,6 5,4 5,5 5,4 5,3 5,1

Gro

wth

Rate

(%

)

Reve

nu

e (

$ M

illi

on

)

Year

64Demand for prebiotic ingredients is highest in APAC as the region seeks high quality

ingredients in infant milk, following a series of safety issues


Prebiotic Ingredients Market: Per Cent

Revenue Breakdown by Region, Global, 2016

Prebiotic Ingredients Market: Per Cent

Revenue Breakdown by Region, Global, 2021

North America27.1%

Europe19,7%China

19,2%

Rest of World18,1%

Rest of Asia

15,9%North

America26,2%

Europe19,2%

China19,9%

Rest of World18,3%

Rest of Asia

16.4%

65From a competitive points of view, the players tend to specialise, with Royal Friesland

a leader in the GOS category and Beno a producer of fructans


Prebiotic Ingredients Market: Competitive Structure, Global

Number of Companies in the MarketThere are approximately 40–50 manufacturers and primary suppliers in the global prebiotic

ingredients market.

Competitive Factors Cost, Quality, Investment in Research, Long standing supplier/customer relationship

Key End-user GroupsVarious food and beverage manufacturers including infant nutrition, Dietary Supplements

manufacturers


GOS – Royal Friesland Campina (Netherlands), Ingredion (US), Nissin Sugar (Japan), Yakult

(Japan), Promovita Ingredients/Dairy Crest (UK)

Fructans – Beneo (Germany), Sensus (US), Cosucra (Belgium)

XOS – Futaste (China), Ningbo J&S Botanics (China)


ADM (US), CBH Qingdao (China), Ciranda (US), DuPont (US), Fenchem (China), Kitozyme

(Belgium), New Francisco Biotechnology Corporation (China), Nexira (France), Olygose

(France), Solabia Nutrition (France), Tate & Lyle (UK), Sabinsa (US), A&Z Food Additives

(China), Shanghai Freemen (US), Novagreen (US)

66Kitozyme, Prenexus and Olygose are innovate companies which could offer

partnership opportunities for the more established prebiotic suppliers


Company Overview

Kitozyme (Belgium)

• Manufacturer of medical devices, food supplements, and wine treatment ingredients from non-animal chitosan and

chitin-glucan

• Product details: KiOtransine® is a novel prebiotic fibre made from fungi. The company recently published a study

that shows its prebiotic activity.

• The company already markets three digestive health products based on this technology.

• It also manufactures for private labels and is authorised to sell its products through out the EU-28.

• It is currently open to distribution partners across Europe.

Prenexus Health (US)

• Focuses on the production of natural prebiotic ingredients and cane-derived bioactive compounds in order to promote

health and wellness

• Product details: XOS95™ is currently going through the GRAS approval process and a rigorous clinical trial. It can

be used in food, beverages, and nutraceuticals.

• Non-GMO, organic, and the only solvent used in extraction is water

• Currently focused in North America; grown and manufactured in the US

Olygose (France)

• Develops and produces innovative ingredients from vegetable origin

• Product details: CRAVINGZ’GONE® and AlphaGOS® are alpha-galacto-oligosaccharides made from peas. Simply

put, these are soluble pea fibres.

• Apart from its prebiotic property, CRAVINGZ’GONE® is marketed for weight management, while AlphaGOS® is

marketed for sugar reduction.

• The company also manufactures P-GOS, which is a unique plant-based GOS for infant nutrition.

• According to the company, its products are used in markets such as infant nutrition, baby foods, and dietary and meal

replacements.

67

...

• TBC

Probiotic Ingredients Market

68Probiotic cultures are living microbial organisms which, when administered, benefit

the host by improving his or her intestinal microbial balance


• Probiotics are defined as live microorganisms which, when administered in adequate amounts, confer a health benefit on

the host.

• The main probiotic ingredients include Lactobacilli, Bifidobacteria, E. Faecium, Live yeast, Bacillus

• The target end applications are;

• Functional Food and Beverage: The majority of food and beverage products that include probiotic ingredients are dairy-

based products such as fermented (sour) milks and yoghurts. Many of these products inherently contain probiotic strains,

and/or have different strains that are commonly blended together to enhance efficacy. Non-dairy food and beverage

probiotic products are also included in this segment.

• Dietary Supplements: These are products that are orally ingested and contain nutrients or other dietary components

meant to supplement the diet. These come in many forms, including tablets, capsules, liquids, and powders.

• Other Human Nutrition: This segment mainly includes infant formulations, which are nutritional food products used in

place and/or in conjunction with human breast milk, for feeding babies and toddlers and are made from a mixture of dairy

products and other ingredients. The segment also includes other clinical nutrition products such as medical foods.

• Animal Feed: Feed additives that are ingredients added to animal feed to improve quality as well as boost animal health

and performance. Probiotics for animal feed are living bacteria that keep the animal’s colon healthy by protecting it from

harmful bacteria and providing overall health benefits.

69Digestive health lies at the core of “health & wellness” for many consumers and is one

of the principle reason why they opt for functional foods


Health and Wellness

• Health and wellness is now a

mainstream trend in the food and

beverage industry. The health

benefits of probiotics will, therefore,

increase both demand and market

growth.

• Furthermore, digestive health

remains a top reason for consumers

choosing functional foods.

More Research into

Additional Benefits

• There is now significant scientific

evidence to show that the benefit of

probiotics extends beyond digestive

health. Consumers are more willing

to consume products that have

multiple health benefits, as they are

perceived to be cost effective, since

payment is made for more benefits.

• Additional benefits cover weight

management, immune health and,

skin care.

Increased Use in Non-

traditional Segments

• The demand for probiotics now

goes beyond dairy and dietary

supplements. Demand from the

animal nutrition industry,

particularly for use in pet food, is

expected to increase.

Furthermore, the quest for organic

and natural ingredients in

personal care will support the

uptake of probiotics by this

segment.

70In addition, the pet food, personal care and household product segments are

expanding their use of, and therefore driving demand for, probiotics


• The probiotic ingredient market is demand driven and is expected to continue growing due to increased demand from various sectors. The

more traditional food and dietary supplements markets will continue to dominate. However, markets like the pet food and personal care

markets are gaining traction.

• For the pet food market in particular, market drivers include:

− Owners are becoming more concerned about their pets’ health and wellness, and they are paying increasing attention to the nutritional

values and benefits of pet foods. Extending the lifespan of pets and maintaining their health are the main drivers in the uptake of

probiotics. Pet owners are looking for high quality ingredients and manufacturing standards that are similar to those of human food

ingredients.

− Holistic veterinary medicine has been using probiotics for some time, even as traditional veterinary practices have been reluctant to

embrace this concept, until recently. More research on how pets may benefit from probiotics in recent years has started to change

opinions in traditional veterinary medicine and the use of probiotics is on the rise. Noted benefits include a better immune system

• Personal care and household products are also seen to be expanding their use of probiotics. Probiotics are now added to lotions and

deodorants to fight harmful bacteria.

− The number of personal care probiotic patents published from 2005 to 2015 increased by three times, indicative of the spurt in

innovations in the industry. The United States Patent and Trademark Office has filed the largest number of patents, with Nestec (Nestlé,

Switzerland) and L'Oréal (France) being the top patent owners

− For household products, the number of patents published from 2010 to 2015 increased by 83.6%. The largest number of patents was

filed in the United States, followed by the World Intellectual Property Organization (WIPO), Australia, and the European Patent Office

Probiotics Market: Ingredient Revenue Forecast, Global, 2016–2021

Revenue CAGR, 6.8%

71The global probiotics market was valued at $1.3b in 2016 and is expected to reach

$1.8b in 2021 which corresponds to a revenue CAGR of 6.8%


0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

0,0

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

1.600,0

1.800,0

2.000,0

2016 2017 2018 2019 2020 2021

Revenue 1.311 1.411 1.509 1.597 1.702 1.820

Growth Rate 7,6 7,0 5,9 6,5 7,0

Gro

wth

Rate

(%

)

Re

ve

nu

e (

€ M

illi

on

)

Year

Probiotics Market: Ingredient Percent Revenue by End

Application, Global, 2021

Probiotics Market: Ingredient Percent Revenue by End

Application, Global, 2016

72Functional Foods & Beverages will remain the main application areas


Functional Food and Beverage

57.7%

Dietary Supplements

28.5%

Other Human Nutrition*

2.5%

Animal Feed11.3%

Functional Food and Beverage

60.4%

Dietary Supplements

25.8%

Other Human Nutrition*

2.6%

Animal Feed11.2%

73From a competitive point of view, there is a separation between ingredient and

product players with limited vertical integration e.g. Chr Hansen


Probiotic Product Manufacturers:Human and Animal Nutrition

Probiotic Ingredient Manufacturers

Brand Owners

Retailed Products On-the-shelf or on-line

1

2

3

Probiotic Ingredient ManufacturersBioiberica (Spain), Canbiocin (Canada), Candioli (Italy), Cerbios

Pharma (Switzerland), Chevita (Germany), Chr Hansen (Denmark),,

Danin International (US), Deerland Enzymes (US), Dupont (US),

Ganeden (US), Lallemand (Canada), Lesaffre (France), Novus (US),

Probioferm (US), Probi (Singapore), Probiotical (Italy), Protexin (UK),

Pure Cultures (US), Sabinsa (US), Vets Plus (US)

Key Companies

Product Manufacturers and Brand Owners21st Century® HealthCare (US), Bayer Animal Health (Germany),

Bifodan (Denmark), Biocare Copenhagen (Denmark), Bioiberica

(Spain), Biogaia (Sweden), Candioli (Italy), Chevita (Germany), Chr

Hansen (Denmark), Daflorn (Bulgaria), Danone (France), Deerland

Enzymes (US), Food Science Corporation (US), NaturVet (US), Nestlé

(Switzerland), NOW Foods (US), Nutramax Laboratories (US),

Nutrascience Labs (US), Nutri-Vet (US), Nusentia (US), NWC

Naturals (US), Protexin (UK), Vesale Pharma (Belgium), Versele-

Laga (Belgium), Vets Plus (US), Vital Planet (US), Yakult (Japan)

1

2 3

Distributors

Supply Chain

Vertical IntegrationKey:

Probiotics Market: Value Chain, Global, 2016

Distributors

74Developments in, for example, microencapsulation, stability and controlled release

technologies are driving the market from the supply side


Heat and pH Stability: According to a scientific study by the University of Nebraska, ProDURA® by Nebraska Cultures was able to demonstrate

superior heat resistance compared to other strains of Bacillus coagulants on the market; hence, it is ideal for food processing applications. The strain’s

protective coating works only under optimum heat, pH, and moisture of the large intestine. It is a powerful shield for the probiotics to withstand extreme

conditions and manufacturing activities. The potency of the probiotic can be maintained for up to 3 years at room temperatures. A further benefit is that

it is scientifically proven to reduce total cholesterol and LDL levels and raise HDL levels in the blood. This supports weight management, which is one

of the top reasons consumers choose food.

Microencapsulation: Vésale Pharma, a Belgian company, has developed a new technology platform for microencapsulation of probiotics called

intelicaps. The innovation gives better protection, prolongs the probiotics’ viability in most presentation forms and enables easy food ingredient

combinations, even under extreme conditions. The technology uses a gentle extrusion method and a proprietary biopolymers blend as shell substrate.

Controlled Release Technology: Controlled release technology is very beneficial in the probiotics market as it improves nutrient availability, lowers

the chances of side effects, heightens product effectiveness, simplifies dosing and improves dosage compliance. BIO-tract®, Nutraceutix ( a brand of

Probi) protects the probiotics from gastric acid, while providing optimal release in the digestive tract. This technology provides a reliable and less

expensive controlled release solution to address a long standing challenge faced by the nutraceutical industry.

Optimised Probiotic Production: SynbioTech Inc.’s SYNTEK® is a probiotics optimising development system that designs the medium, incubation

conditions and coating materials for producing probiotics using its coating and freeze-drying technologies. The survival rate of powdered freeze-dried

probiotics is higher compared to other drying techniques. The high viability of dried probiotics is vital for the health-promoting effects of nutraceuticals.

75

...

• TBC

Urban Farming Innovations

76Urban farms utilise unused land and space to generate an abundance of food in urban

areas and also to create awareness about healthy living


Urban Farming

Commercial Urban Farming

Vertical Farming

Aeroponics Hydroponics Aquaponics

Greenhouse Farming

Personal Urban Farming

Container Gardening

Raised Bed Gardening

Urban Farming integrates several agricultural practices like animal husbandry, aquaculture, agroforestry and horticulture in a single system and also involves the

utilization of fewer resources as compared to traditional farming practices. Urban farming will be an important practice in heavily populated areas and also provides

access to more freshly produced local produce which reaches the consumers very quickly. This readily available access to locally cultivated produce by following

practices like vertical farming, green house farming, container and raised bed gardening eliminates the need for transporting food over long distances and also

maintains the nutritional value of the product. Urban farms can also be built for educational and training purposes apart from the profit point of view but urban farms in

the future must also make deep inroads into communities which lack access to fresh foods due to lack of funds. The social benefits associated with urban agricultural

practices includes improved health and nutrition along with enhanced food security to the consumers.

Classification in Urban Farming, Global, 2017-2023

77Urban farming is expected to help meet the nutritional requirements of a rapidly

growing population and to address concerns about food security


Certain types of crops tend to grow faster and healthier in certain regions of the world. This is due to

various reasons, such as the differences in soil, season patterns, rainfall, and temperatures. Owing to this,

generally crops are transported to regions with unavailability using different means of transport. With

increasing fuel prices, the cost of the vegetables and fruits drastically increase. This critical situation has

led farmers to devise methods and apparatuses that enable localized production of various crops that

reduce the logistics cost and other shortcomings of traditional farming practices.

According to the United Nations, The world urban population which stands at 3.968 billion is expected to

grow upto 6.419 billion by 2050. The nutritional requirements of the massive population will increase the

demand for healthy vegetables and fruits. Urban farming can meet the demands by providing opportunities

to produce food locally according to the needs of the user’s diet. It also reduces the need for refrigeration

and storage facilities and the time and distance from farm to plate.

• Freshness of the produce• Automation-enabled farming • Enables local growing and local distribution• Controlled environment that aids in year-round cultivation• Reduced consumption of resources• Higher yields and reduced impact on the environment in comparison with traditional farming practices

Need

Background

Benefits

78Vertical farming is one of the main commercial urban farming solutions


Vertical Farming

Future Prospects

Implementation of appropriate future

technologies associated with greenhouses

including autonomous systems and utilization

of renewable energy will result in high return

on investment and will also enable optimum

use of natural resources to obtain high yield

per acre inside the greenhouse. These

factors also increase the quality and longevity

of the crops cultivated in the greenhouse.

Gravity Fed Aeroponics for Tubers

Utilization of gravity fed aeroponic systems to cultivate seed yams. The

gravity fed systems do not depend on energy for continuous production.

The seed multiplication ratio of yams is improved using aeroponics.

Potato cultivation in the tropics

High-quality potato production using aeroponics which is based on the

influence of electrical conductivity of the nutrient solution. This system

enables growth of potatoes even in tropical climates.

Automatic aeroponic systems

Digitization of sensors for precise measurement of temperature and the

level of nutrients in solutions, pH, and electrical conductivity in aeroponic

systems, which prevent irrigation malfunctions and increase crop yields.

Customizable Aeroponic Module

Aeroponic cultivation with integrated misting systems consisting of fine

mist nutrients available directly to the roots in a scalable and customizable

module.

79NASA is leading innovations in vertical farming, conducting experiments on the ISS to

enhance cultivation of crops with no soil and less water


National Aeronautics and Space Administration (NASA) has conducted several experiments in the International Space Station

(ISS) to enhance cultivation of crops in space with no soil and less water. NASA has partnered with Agrihouse (US), Aerogrow

International (US), and North Carolina State University to achieve advancements in the growth of foods in space. Aerogrow

International’s seed pod technology was the best suited on the ISS to grow lettuce, vegetables, herbs, and indoor flowers.

The National Horticulture Board set up by the Government of India provides assistance for the establishment of futuristic

production units based on aeroponics. Various organizations are eligible for this assistance from the Indian Government if it

practices open cultivation in 4 hectares or for 1000 square feet in a protected environment. Hi-tech equipment including

precision farming, smart irrigation, and fertigation systems will be provided under the Production and Post Harvest Management

of Horticulture Crops program.

Vertical Farming

1The Yam Improvement for Income and Food Security in West Africa (YIIFSWA) will utilize aeroponic systems to transform yam

cultivation in Ghana and Nigeria. This program will also aid small-scale farmers in West Africa to produce high-quality yam with

improved income and food security. This program is also financed by the Bill and Melinda Gates Foundation and the

Governments of Ghana and Nigeria. This project will improve the lives of 1.6 million people in West Africa who are dependent on

the yam value chain. Soil less aeroponic systems were utilized to eliminate several soil borne diseases associated with yam

production in West Africa.

2

3

80Greenhouse farming is one of the main commercial urban farming solutions


Greenhouse Farming

Future Prospects

Implementation of appropriate future

technologies associated with greenhouses

including autonomous systems and utilization

of renewable energy will result in high return

on investment and will also enable optimum

use of natural resources to obtain high yield

per acre inside the greenhouse. These

factors also increase the quality and longevity

of the crops cultivated in the greenhouse.

Geothermal Energy based Heating Systems

Renewable energy synthesized from geothermal sources are known as

ground source heat pump systems (GSHP). These heating systems are

less expensive in terms of conventional fossil fuel heating systems and

also reduce OPEX.

Bionanocomposites

Utilization of Bionanocomposites as a growing medium provides prolonged

bacterial resistance to the crops and also increases the yield and shelf life

of the crops in greenhouses.

Automation of Greenhouses

Wireless communications and sensing technologies will enable the

monitoring of the environment inside the greenhouse. This ensures optimal

environmental conditions which will increase the yield of crops.

Unmanned Ground Vehicles

Monitoring of the environmental variables like soil, moisture, and

temperature will be facilitated by the use of unmanned ground robots.

81The US Forest Service has collaborated with the State of Alaska’s Energy authority to

cultivate crops in biomass heated greenhouses


The United States Forest Service, an agency of the United States Department of Agriculture, has collaborated with the State of

Alaska’s Energy authority to cultivate crops in biomass heated greenhouses. The produce from these greenhouses will be used

in school lunch programs and utilizing renewable wood energy promotes self sufficiency. The greenhouses also provide

employment to the local people and simultaneously improve both food and energy security. Vegetable production in organic

greenhouses is regularly practised by small-scale farmers.

The South Australian Government has been instrumental in providing the much needed funding for the development of hi-tech

greenhouses developed by Sundrop Farms which will help grow vegetables and fruits. The greenhouses will also use solar

thermal energy to desalinate the water used for greenhouse horticulture. The South Australian Government has provided a

funding of $6 million to Sundrop Farms. This will also provide employment to many rural communities in the northern districts of

the state of South Australia.

Greenhouse Farming

1

2

82Moving forwards, LED grow lights will push controlled environment farming to its

fullest potential, helping urban farmers to increase their yields


LED vs. CFL & HPS

• LED offers the following advantages

over CFL and HPS:

• Energy efficiency

• Longer lifetime

• 40% less power consumption

However, the cost of LED grow lights is

higher than the other two and the colors

emitted are not easy on human eyes.

Color Spectrum

• Each color emitted from the LED

is responsible for various plant

growth phenomena.

• However, most manufacturers

prefer to use the combination of

red and blue. Red stimulates

photosynthesis and stem

elongation inhibition while blue

stimulates stomatal opening, leaf

expansion and photoperiodic

flowering.

Significance

• LED grow lights are energy

efficient, thereby cutting down on

electricity bills. Also, less heat is

emitted from the light source as

compared to fluorescent lights,

resulting in eliminating or reducing

the cooling loads required.

• Fine-tuning of the wavelength of

light emitted as required by various

crops is made possible by using

LED grow lights.

• Increased yields and extended

growing seasons are the direct

impacts of using LED grow lights.

• LEDs offer more control over the

quality and structure of the crops.

Dynamics of LED

Grow Lights

• Light quality – For optimal plant

growth, the wavelength of artificial

light matters to photosynthetic

pigments. Most plants absorb

wavelengths between 400-700 nm,

depending on the photosynthetic

pigment.

• Light intensity – It is necessary to

study the amount of light required

by any plant grown with artificial

lights and it varies by age and type

of plant.

• Light duration – Light duration

refers to the amount of

uninterrupted dark periods and

light periods. It is the factor directly

impacting the readiness of the

crop, determining whether it can be

harvested or continue its

vegetative growth.

Artificial lighting is the answer for urban farmers who struggle for space and light

for their cultivation. Also, letting optimal light required for plant growth is very

essential. Hence, urban farmers started off using compact fluorescent lightings

(CFL) and High-Pressure Sodium (HPS) lights, but are making the move to light

emitting diode (LED) technology. The LED grow lights replicate the wavelengths

from daylight by emitting precisely the same wavelength required for the vegetative

growth of the crops. LED grow lights offer farmers the control of photosynthesis

during the day and breathing during the night for

accelerated and healthy growth of the plant.

83

...

• TBC

Appendix

84IoT in Urban Farming (1/3)The Internet-of-Things provides real-time monitoring of urban farming systems


Applications

• Plant profile management

• Power management

• Climate management

• Light management

• Nutrient analyzer

• Irrigation management

• Fertilizer management

Components

The components of an IoT enabled

urban farming system include:

• A doser unit to control the nutrient

dosage

• Environmental sensors to monitor

light, temperature and humidity

variables.

• Water sensors to monitor pH and

flow rate of water

• Control unit that manages

communication between all devices

• Dashboard

• Communication devices/ personal

activity trackers

Significance

• IoT mitigates the conventional

challenges of an urban farmer

through quick and automated

control mechanism based on

various farm variables.

• IoT in urban farming, saves time

and money, and reduces the

environmental impact by driving

sustainability.

• IoT gets rid of the ambiguity in

planting and harvesting by offering

growers invaluable visibility and

actionable insights through

predictive analytics.

Advantages

Real-time sensing and monitoring of

temperature, humidity, light intensity

and more, aiding improved production

rates.

Remote operations support enabling

the farmers to make informed

decisions regarding the planting,

fertilizing, and harvesting of crops.

Predictive and dynamic data

analytics to arrive at optimum

conditions for plant growth and

predicting growth and climate patterns.

Integration of components mitigating

the need for multiple monitoring

devices.

Preventive than reactive control

measures through real-time feedback

Autonomous operation of farming

achieved through actuators and robots

with zero to less human intervention.

Internet-of-Things (IoT) is a network of physical objects with embedded

electronics, sensors, actuators, connectivity, and software. It enables the sensing

and controlling of any object remotely through network connectivity. IoT in urban

farming involves the use of various IoT components to sense and measure farm

variables, enabling increased production yields. The aim of IoT is not only data

collection but to analyze the data to evaluate the needed control mechanism. The

application of IoT in urban farming results in smarter

produce by informed farmers.

The use of wearable personal activity trackers is on the rise among the urban

population. However, the integration of the same with urban farming is still in

development with commercialization expected in 2018

85IoT in Urban Farming (2/3)IoT in indoor gardens has the potential to enable connectivity with activity trackers


1 2 3 4 5 6 7 8 9

IoT enables urban farming initiatives that are simpler and easier to adopt and set up

inside their homes to grow clean and healthy food. With digital infrastructure in place,

cities utilize the power of IoT in indoor gardening to monitor and maintain gardens. Urban

farmers are subjected to a busy lifestyle and IoT simplifies the process of integrating

farming into their day-to-day life. This is achieved by caretaking the indoor gardens by

providing a control/monitor platform to the users through their smartphones or webpages.

With the advent of personal activity trackers, urban farmers are on the lookout for an

integration of urban farming and activity trackers to collect data from trackers and control

the farm produce accordingly to cater to the diet needs of the urban farmer.

Need for the innovation

• Sprouts.IO (US) caters to the indoor smart garden needs through its

microgarden known as ‘device’ and its mobile app known as ‘SproutsIOGrow’.

The integration of the microgarden with the mobile delivers a personalized

produce based on the nutrition facts delivered to the garden through personal

activity trackers.

• Foop (Japan) is a hydroponic based indoor garden, offering rich experience

through its sleek design of gardens and feature rich mobile app. The features are

customized and available in three variants – standard, lite, and premium.

Stakeholders

Significance

• Real-time garden growth data and predictive growth cycle and harvest scheduling that

can connect to personal activity trackers, meal planners and calendars so the produce

can be customized and be made more healthier according to the diet needs of the

urban farmer.

• The farmers receive real time notifications in their smartphones and personal activity

trackers while at home, work or play.

• IoT enables seamless integration of the devices such as smartphones, smart indoor

gardens and personal activity trackers and serves as a communication platform for

data exchange.

• Ease of monitoring and control through applications developed for multiple platforms

such as mobile phones, webpages, smart wearables and more.

Market Readiness Level

Impact

Integration of personal activity trackers with urban farming using IoT helps in

achieving increased produce along with personalized clean and safe food according

to the diet needs of the urban farmer.

Technology providers will adopt open API based IoT enabled

hydroponics and aquaponics system when there is increased consumer

awareness in the urban farming sector on the technology front.

86IoT in Urban Farming (3/3)Open API-based IoT in hydroponics results in cost reduction and customization


1 2 3 4 5 6 7 8 9

Since 2014, there has been an influx of IoT enabled hydroponic and

aquaponic gardening systems offering superior automation and control over

various parameters. However, the adoption rate has been slow due to the

high capital costs involved in the automation of the farms. The key

contributor to the cost is the Application Programming Interface (API)

developed for the monitoring and control operations using IoT. Additionally,

the APIs are predominantly closed natured, restricting any customization of

the control and monitoring systems.

Need for the innovation

Open Aquarium and Open Garden by Cooking Hacks is built on an

open API platform to automate control and monitoring of various

gardening parameters with the use of sensors and IoT-enabled devices.

It is mainly aimed at improving the scalability of the solutions based on

IoT for urban farming.

Stakeholders

Significance

• Cost reduction – Automation is the crux of hydroponic and aquaponic

systems and the high initial cost associated with the integration of

devices using IoT can be drastically reduced with the use of open APIs.

• Scalability – open APIs render ease of scalability in the automation of

devices when the urban farmer is scaling the farm. The required changes

can be integrated with minimal effort through a web application hosted by

an open sourced platform.

• Ease of adding/removing control devices – If open sourced API is

adopted, the farmer can add/remove a measuring device and it can be

easily interfaced with the software for improved control measures.

Market Readiness Level

Impact

The cost of automated hydroponic and aquaponic systems is expected

to drastically reduce by adopting open APIs. This also offers a rich user

experience, allowing the urban cultivator to customize the software

according to his/her needs.

87Circular Economy (1/3)The ideal waste management hierarchy dictates that food should only be diposed of as a last resort

Reduction in food waste

• Food waste production can be reduced by using better infrastructure and reducing unwise consumption patterns

Diversion of excess food

waste

• Concepts such as food banks are handy in the management of excess food. Food unfit for human consumption may be used as feed for livestock

Conversion of food waste into

outputs

Disposal of food waste

• Disposal is the final option for food waste management and should be given the least priority

• This involves the extraction of valuable outputs such as energy and chemicals from the remaining food waste.


88Circular Economy (2/3)Companies such as Marks & Spencer are working with app developers to divert excess to food banks

A food bank itself is an efficient concept to curtail food waste. It is

finding greater adoption in the developed world and slowly attracting

attention in the developing world too with the benefits it presents.

The success of the model is highly dependent on coordinated

functioning among its stakeholders. Food banks globally follow

different models of operation.

Food bank usage is found to be especially high in countries such as

Germany and France. The United Kingdom (UK) also saw a drastic

rise in the number of food banks from the 2000s. Food banks have

been recognized as agents of social change by addressing the dual

issues of hunger and poverty. Food banks are major support

systems for the lower income working class in many developed

countries.

Marks & Spencer (UK) has a commitment for reducing food waste by

a fifth by 2020. The company plans to distribute surplus food with the

aid of a social networking app, which will act as a link between its

stores and local charities, inclusive of food banks in the UK. The

company has been testing various ways of operating the scheme.

The scheme will be executed using the app called Neighbourly,

developed by Neighbourly (New Zealand).

Stakeholders

Individuals

NGOs

Charities

ConsumersGovernment

Industries

Food Bank ModelDiversion


89Circular Economy (3/3)Dublin Institutie of Technology is leading research to convert waste into ingredients like beta glucan

The School of Food Science and Environmental Health, Dublin

Institute of Technology, Ireland is conducting research to extract

food ingredients from food waste such as beta glucan from spent

grain of breweries; chitin from mushroom waste; glycoalkaloids from

potato peel; and probiotics and probiotic beverages from various

types of food wastes.

Recovery of biomolecules is also being considered by many

organizations.

Pineapple processing waste is being considered as a source of

enzyme bromelain. Research on this has been conducted at a

number of universities such as Mae Fah Luang University, Thailand

and East Point College of Engineering and Technology, India,

among others.

Outputs

Enzymes

Organic acids

Food additives

Pharma products

Functional foods

Selected outputsConversion


90Principal abbreviations

APAC Asia Pacific M Million

B Billion NA North America

CAGR Compound Average Growth Rate NASA National Aeronautics and Space Administration

CFL Compact Fluorescent Lighting NSF National Science Foundation

EFSA European Food Safety Authority OPEX Operating Expense

EU European Union PHMB Polyhexamethylene Biguanide

FDA Food and Drug Administration R&D Research & Development

FSMA Food Safety Modernization Act ROW Rest Of The World

HAI Healthcare-Associated Infection TSE Twin Screw Extrusion

HPS High-Pressure Sodium UK United Kingdom

IOT Internet Of Things US United States

LED Light Emitting Diode USD United States Dollar

91

...

• TBC

For further details on Frost & Sullivan’s coverage and services,

please contact Livio Vaninetti, Director of Frost & Sullivan Italy

[email protected]

June 2018

[email protected]

for further information about this report please contact

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