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Immune Health New Opportunities in Functional Beverage Markets

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Immune Health New Opportunities in Functional Beverage Markets Immune Health New opportunities in functional beverage markets ©2021 Prinova Europe Ltd. All rights reserved. prinovaglobal.com 01 of of 11 11 IMMUNE HEALTHHEALTH. NEWNEW OPPORTUNITIESOPPORTUNITIES IN IN FUNCTIONAL FUNCTIONAL BEVERAGE MARKETS BEVERAGE MARKETS Contents 02 Consumer thirst for functional beverages 02 Untapped opportunities? The pre- pandemic immune beverage market 03 How COVID changed the game 04 Innovation across a range of beverage applications 05 Trending immune health ingredients 06 Prinova: A range of solutions for immnue health and more 06 Vitamins and minerals 07 Botanicals 08 Probiotics 08 Perfect premixes 09 Prinova Europe: Your ideal immune health partner 10 References ©2021 Prinova Europe Ltd. All rights reserved. prinovaglobal.com 02 of 11 IMMUNE HEALTH. NEW OPPORTUNITIES IN FUNCTIONAL BEVERAGE MARKETS Consumer thirst for Untapped functional beverages opportunities? The pre-pandemic There is growing thirst for beverages with immune beverage functional benefits – a category that includes: market ENERGY SPORTS FUNCTIONAL JUICES Immune health is a concern for all of us, and DRINKS DRINKS BOTTLED WATERS nutrition plays a crucial role in supporting it. After a slight dip in value in 2020, the global Deficiencies in vitamins A, C, D, E, B2, B6, and functional beverage market is forecast to reach B12, folic acid, iron, selenium, and zinc can $158.28 billion in 2023, growing at a CAGR of all weaken our natural defences. Boosting 8.08%.1 our intake of such micronutrients through supplementation or the consumption of $158.28bn functional foods and beverages can increase resistance to infection.2 Consumer interest in the link between nutrition and immunity was high even before coronavirus became a household word. Research published in 2019, for example, noted that improving the body's immune system was already the top reason for consuming nutritional supplements.3 It is perhaps surprising, therefore, that the pre-COVID years did This is partly because health-focused consumers are now not see even more innovation when it came to beverages looking to everyday beverages to meet an increasing with immunity claims.4 range of needs. They’re not just seeking hydration, but also benefits in areas like cognitive performance and Between April 2017 and March 2020, the food and stress reduction. And in the current global climate, there is beverage launches targetting immune health claims particular interest in products that offer to boost our bodies’ was represented by: natural defences. In this white paper, the first in the series on functional beverages, we explore the growing demand for products with immune health benefits, and on-trend ingredients that can help meet it. DAIRY / PLANT SPORTS & JUICE HOT BASED DAIRY ENERGY WATERS DRINKS BEVERAGES DRINKS DRINKS 4% 3% 2% 2% 1% ©2021 Prinova Europe Ltd. All rights reserved. prinovaglobal.com 03 of 11 IMMUNE HEALTH. NEW OPPORTUNITIES IN FUNCTIONAL BEVERAGE MARKETS How COVID changed the game Unsurprisingly, the arrival of COVID-19 world’s biggest beverage manufacturers, including big and accelerated both interest in immunity and sales small brands6, some of which reportedly saw sales increases 7 of products with immune health benefits. of 500% in the early months of 2020. 6 in 10 500% looking for food and beverage products to improve their immune health Increase in early months of 2020 Research published at the end of 2020 found that six in ten With the effects of the pandemic widely predicted to be with global consumers had been increasingly looking for food us for years, or even decades, to come8 there is good reason and beverage products to improve their immune health, and to believe that this demand will continue long into the future. that the number of global food and drink launches with an According to Mintel, “Drinks that effectively communicate immune health positioning had grown to 1.65% (from just 1% how they can support immune health….will have a continued five years earlier)5. These included products from both the demand post-COVID-19.” 9 ©2021 Prinova Europe Ltd. All rights reserved. prinovaglobal.com 04 of 11 IMMUNE HEALTH. NEW OPPORTUNITIES IN FUNCTIONAL BEVERAGE MARKETS Innovation in the immune beverage space is taking place Innovation across the world, but has been particularly apparent in across a range Europe and Asia-Pacific. In 2020, according to Mintel data, 563 new beverage products in Europe, and 544 in of beverage Asia-Pacific carried a functional immune system claim.10 Immune support innovation is also taking place across a categories range of beverage categories: Functional waters Juices & sports nutrition drinks Immune Health Claims: The number of juice It is increasingly common for functional or “enhanced” waters products with immune health claims more and sports nutrition drinks to offer benefits beyond hydration. than tripled between 2018 and 2020. 2018 2020 In November 2020, for example, Pepsi added a new immune support line to its ‘Propel’ range of bottled waters 16 The European countries where they were most commonly seen are the UK, Russia and Germany11 Interest in bottled water with functional benefits. February 2021 - Base 2,000 internet users aged 16+ Secondary claims in the immunity juice category include: "I would be interested in bottle water that supports... Please select all that apply." Vitamin/mineral- Functional- Brain & No added ...the immune system 40 fortified nervous system sugar ...healthy skin 40 Juices often derive their immune health claims from fruits or vegetables ...gut health 34 rich in vitamins or minerals. However, alongside them, brands are ...energy levels 34 increasingly leveraging botanicals such as ginger and turmeric as natural immunity powerhouses.12 ...brain function 33 Drinks and sachets for Immunity boosters: gut health Sachets & shots There is growing awareness of the relationship between a healthy Ingredients for immunity - mainly vitamins & botanicals, gut and a healthy immune system. This has driven an increase are increasingly being incorporated into products that offer in products containing probiotics and prebiotics which make an energy boost: immune health claims as well as offering benefits for gut health. Spain, the UK, Italy and France, account for the largest share of this market, and the UK has seen Ginseng Blueberry, elderberry & blackberry the highest growth (50% over the 14 past three years). Shots & sachets product launches: Supplements in Powder and Sachet forms: 28% 33% Increase in Europe Increase in Europe (2018 and 2020) (2018 and 2020)15 Common active ingredients in immunity shot products include ginger, turmeric, berries, vitamins (such as B,C and D) and minerals (such as Nutritional and meal replacement drinks, including drinkable yoghurts and calcium and zinc), with probiotics and prebiotics also increasingly featuring. milks are the second biggest category, followed by kombucha. Commonly used probiotic strains include bacillus, lactobacillus and lactococcus. ©2021 Prinova Europe Ltd. All rights reserved. prinovaglobal.com 05 of 11 IMMUNE HEALTH. NEW OPPORTUNITIES IN FUNCTIONAL BEVERAGE MARKETS Probiotics Traditionally best known for their digestive health benefits, there is growing interest in the role probiotics play in the immune system. In the UK, for example, 40% of consumers now find “contains probiotics” an appealing claim on food and beverage products. 23 40% Trending immune In the 12 months to April 2020, 34% of global probiotic drink launches carried a digestive health claim, 14% carried an health ingredients immunity claim, and 9% featured both24. Probiotics are therefore an attractive option in functional beverages that offer multiple benefits. Naturally, 2020 and 2021 have seen a resurgence Botanicals of interest in ingredients with immune health Botanicals, a category that includes herbs, spices, and benefits. As Mintel puts it “Spotlighting genuine flowers, offer a number of benefits in functional beverages. immunity-boosting nutrients has never been As well as their natural, authentic positioning, and the appeal that comes from hundreds or thousands of years of more timely, and will continue to be relevant in traditional use, they can provide sophisticated flavours and the long term.” 18 functional benefits. Many botanical ingredients combine a halo of naturality with scientifically substantiated benefits On-trend immune health ingredient categories include: for immune health. Vitamins & Minerals Acerola Vitamins and minerals play a key role in immunity. For A source of vitamin C, for which approved health claims example, fat-soluble vitamin D helps modulate the immune can be made, and also contains beneficial carotenoids and bioflavonoids. system by inhibiting the production of cytokines IL-2 and INF-y19, and vitamin C supports various functions of both the Elderberry & Rosehip (Rosa Canina) innate and adaptive immune systems.20 Rich in vitamin C and other antioxidants. Reflecting this, a wide range of vitamins Echinacea and minerals – including vitamins C, A, Reduces the risk of recurrent respiratory tract B12, B6, D and zinc – have EFSA-approved infections.25 claims for immune system function. Spirulina It is unsurprising, therefore, that 14% of new product Inhibits viral replication and strengthens the immune system.26 launches with an immune health claim also have a “vitamin and mineral-fortified” claim.21 Although vitamins Other common botanical ingredients in functional beverages and minerals are already common in functional beverages, include ginger,
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