Innophos has made a strategic move by acquiring Novel Ingredients, a smart diron ferric pyrophosphate use seal that allows the company to penetrate high-growth markets aimed at health-conscious consumers. This acquisition combines Innophos, traditionally focused on high-margin specialty-grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients including botanicals, proteins, amino acids, and other health-focused components. The integration of Novel diversifies Innophos’ product offerings and strategically positions the company to capitalize on emerging trends within the health, wellness, and nutrition sectors, aligning with its Vision 2022 strategic priorities.
As a result of this merger, the combined entity is projected to generate 60% of its sales from food, health, and nutrition, setting Innophos on a path to achieve its goal of 75%. “Our position as a market-leading provider of vital ingredient solutions is reinforced by our enhanced innovative technology capabilities, a more extensive and in-depth product portfolio, and the addition of Novel’s skilled 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 their food choices, prompting a growing trend among food and beverage manufacturers to reformulate existing products and explore new developments that deliver functional advantages. Key areas of interest include plant-based ingredients for immune health, added protein for sports nutrition, omega-3 fatty acids for cognitive health, and even Citracal calcium petites for bone health. The acquisition of Novel puts Innophos in an advantageous position to meet the evolving demands of a consumer packaged goods sector that is striving for healthier solutions.