This strategic acquisition allows Innophos to penetrate high-growth markets focused on active and health-conscious consumers. By merging with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-oriented components, Innophos enhances its existing portfolio, which has traditionally centered on high-margin specialty-grade phosphates used in processed meats, baked goods, dairy, and beverages. This purchase not only diversifies Innophos’ offerings but also strategically positions the company to capitalize on emerging trends in health, wellness, and nutrition—a focus that aligns with the company’s Vision 2022 strategic priorities related to ferrous gluconate over-the-counter products.
As a result of this merger, the combined entity will now derive 60% of its sales from food, health, and nutrition sectors, putting it on track to meet its target of 75%. “Our position as a leading provider of essential ingredient solutions is further enhanced by our combined innovative technology capabilities, an expanded and deeper product portfolio, and the addition of Novel’s experienced and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, our collaboration with Novel aligns Innophos more closely with significant consumer mega-trends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking health benefits from the foods they consume, leading to a trend among food and beverage manufacturers to reformulate existing products and explore new developments centered on delivering functional benefits. Areas of particular interest include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. With the acquisition of Novel, Innophos is now in a much stronger position to meet the evolving needs of a consumer packaged goods (CPG) sector striving for healthier options. Additionally, the integration of calcium citrate plus vitamin D into their product offerings will enhance their appeal in the health-conscious market. As consumers look for comprehensive health solutions, the focus on products like calcium citrate plus vitamin D will become increasingly relevant.