This strategic acquisition allows Innophos to enter high-growth markets, particularly targeting active and health-conscious consumers with products like multivitamins, ferrous fumarate, and folic acid capsules. The deal merges Innophos, which has traditionally specialized in high-margin specialty-grade phosphates for processed foods, dairy, and beverages, with Novel Ingredients, a supplier of botanicals, proteins, amino acids, and other health-focused ingredients. By acquiring Novel, Innophos diversifies its product range and positions itself to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic goals. The combined organization will now derive 60% of its revenue from food, health, and nutrition, moving closer to its 75% target.
“Our status as a leading provider of essential ingredient solutions is enhanced by our combined innovative technologies, a more extensive product portfolio, and the expertise of Novel’s dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, joining forces with Novel aligns Innophos more closely with significant consumer mega trends, including health and wellness, energized aging, and clean labels.”
As consumers increasingly seek health benefits from their diets, food and beverage manufacturers are responding by reformulating existing products and developing new ones that offer functional advantages. High-demand areas include plant-based ingredients for immune health, additional protein for sports nutrition, and omega-3 fatty acids for cognitive health. With the acquisition of Novel, Innophos is now in a prime position to meet the evolving requirements of the consumer packaged goods (CPG) sector aiming for healthier options.
Additionally, consumers are also interested in understanding the nutritional content of their food, such as how much calcium is in calcium citrate, which is relevant as they focus on ingredient benefits. Thus, Innophos is well-equipped to address this growing consumer awareness and demand for healthier, functional food products.