Providing solutions through research, or solving processing and formulation challenges, branded ingredients’ uniqueness also makes a statement to consumers.

For those considering branded ingredients, scientific research, ease of use and product differentiation may come into consideration. But bottom line figures may push the final decision: According to IRI scan data, condition specific supplements account for 27 percent of MULO (multi-outlet) and are growing by double digits while commodity ingredients have declined or are flat.

“Several key trends continue to drive demand and growth of proprietary and branded ingredients,” said Seth Flowerman, director of business development with New Jersey-based PLT Health Solutions. “In a competitive environment, finished product marketing companies are constantly seeking to make broader and more substantial claims about their products to stand out on shelf. Combine that desire with a challenging regulatory framework and it is clear that strong claims require strong science and support.” 

As far as demand, consumers have greater access to information than ever before and are able to exert influence over buying behavior by sharing their own opinions online and through social media. “To satisfy skeptical consumers, strong claims are not enough, products need to be truly efficacious and live up to the brand promises,” Flowerman continued. “These trends are not new, but they have strengthened over the past several years. Proprietary ingredients are no longer a novelty; they are now a core building block to differentiate a formulation and continue to grow in importance in our industry.” 

Shaheen Majeed, marketing director with Sabinsa Corporation—Utah, agreed that the state of the market for proprietary ingredients is excellent, provided that the company manufacturing it has conducted extensive scientific research on the branded product. “That would include in-vitro, in-vivo pre-clinical data and human trials on its branded material,” he said. “Also, identification of key compounds in the product and standardization of the compounds in the product are mandatory.” 

While many of these studies and research have increased in the past few years, some are done via substandard methods and are cleverly worded for deceitful marketing, Majeed noted. “In these instances, those studies and brands don’t stand a chance for going across borders, whether it’s north to Canada facing Health Canada’s NHPD or Mexico’s Cofepris, where these agencies use strict drug-like testing and evidence for our type of nutraceuticals.

“We strongly feel that growth from overseas activities will increase and there are tremendous growth opportunities for which proper studies for branded ingredients can carry a lot of weight,” Majeed said.

There are other setbacks for branded products. “Over the last few years, branding of ingredients has lost some of its value,” said Gil Bakal, managing director with New Jersey-based A&B Ingredients, Inc. “Manufacturers are reluctant to list brands on packages and to marry themselves to specific ingredient brands, because they want to maintain as much flexibility as possible on sourcing and pricing. On the other hand, unique and patented ingredients are growing rapidly, but it falls on the ingredient manufacturers to do the research to support any nutritional or health benefits of their products.” 

A Different Story 

The motivations to purchase proprietary ingredients are diverse, but typically they are used to help provide a differentiated position or support the brand positioning of the finished product.

Kathy Lund, vice president of business development and marketing with California-based AIDP, said the company has two sets of branded products. “One set is research based, providing a pioneering solution to a health problem not easily addressed by a commodity product,” she explained. “These ingredients are normally developed via years of research and patented for both function and process. They are supported by animal and human studies and are guaranteed by the company for its high quality. These are typically condition specific. The other set of branded products are those that provide a unique solution to a processing or formulation challenge. These are typically proprietary in structure, function or in the manufacturing process. The brand owner guarantees its quality by putting their name behind it, instead of a commodity that can be provided by any supplier.”

Flowerman agreed that is an important aspect of choosing a branded ingredient—the relationship a consumer products company has with the supplier. “Where the ingredient comes from can be just as important as the ingredient itself,” he said. “A strong supplier partner provides ongoing support beyond timely delivery such as quality assurance, formulation support, marketing concept development and on-going scientific studies to enhance the image of that ingredient in the minds of consumers. Strong supplier support for a proprietary ingredient can be the reason consumers choose a formulation over the competition.” 

Mathieu Dondain, director of marketing and communication with France-based Nexira (and U.S. offices in New Jersey), noted that to be legitimate, a branded ingredient usually has scientific background that supports the health claims associated with it. “At Nexira, we offer several proprietary ingredients for different applications including weight management, digestive health and sports nutrition, for which we have strong scientific background with several clinical studies supporting the beneficial added value of our branded ingredients. Commodities available in quantities on the market only benefit from the general scientific related data,” he said.

“Moreover, a proprietary ingredient sometimes contains several extracts that have a synergistic effect.” This is the case for Nexira’s ViNitrox, a combination of apple and grape polyphenols. ViNitrox is a sports nutrition ingredient that have vasodilating properties by activating eNOs (endothelial nitric oxide synthase). “Both apple and grape polyphenols play a role in eNOs activation, but their action is increased when combined at the right dosage. Studies have shown that ViNitrox increases the eNOs activation by 43 percent,” Dondain continued.

“Finally, a proprietary ingredient will allow a higher consistency in quality,” he added. “Some commodities quality vary from an ingredient supplier to another and some important parameters will not be the same, such as grade, origin, standardization or active principle concentration, microbiological properties, contaminants, quality of the extract, etc.” 

In all, a brand allows companies ownership of their product source, benefits, science, uses, patents, processes and general IP as a premium ingredient, said Heather Thompson, global marketing manager for Missouri-based Stratum Nutrition. “Generic offerings tend to be more commodities such as vitamins, minerals, standard fibers, some proteins and even some probiotic strains—or ‘me-too’ products of a growing branded ingredient. A branded ingredient can offer a new idea with a story, a new alternative to a crowded category, with potential differing uses or science support—and the growth and acceptance of this new idea will likely be followed by generic offerings trying to get a piece of that proprietary pie.” 

The Trends 

The dominant trend in branded or proprietary ingredients in the natural products industry is that they are backed by better and more meaningful science. “This allows the development of on-label claims that motivate consumers to purchase,” said Flowerman. “A second trend is in the development of ingredients that have efficacy and that also respond to other consumer trends. These include, for example, the desire of the consumer for cleaner labels. As a result, we see more natural, organic, minimally processed and ‘whole food’ ingredients as up-and-coming trends in proprietary ingredients.” 

Dondain added that the top five applications for these new branded ingredients are weight-management, cardiovascular, women’s health, immune health and cognitive health. “With the growing market of sports nutrition, there is also a lot of new proprietary ingredients targeting this market,” he said. “However, the general number of sports nutrition branded ingredients is still lower than for the other applications mentioned before.” 

That is an area of continued growth for Stratum Nutrition. “Sports nutrition offers opportunity for proprietary ingredients in energy, endurance, recovery and diet,” according to Thompson, adding that the new oral health category has seen offerings such as probiotic BLIS K12 for oral and immune health.

Another trend Nexira spotted is cobranding (when the ingredient name of a finished product appears on the packaging). “Some successful stories of co-branding exist on the market (Intel Inside, NutraSweet, Teflon), but they are still rare, especially in nutraceutical market,” according to Dondain. “However, Nexira is establishing more and more co-branding agreements with its customers, as branded ingredients are more and more perceived by the consumer as a token of quality for the product.” 

Recently introduced is A&B Ingredients’ probiotic supplement PA5051, a novel, proprietary probiotic, which is much more stable when compared to traditional probiotics, according to Bakal. “The probiotic market has seen rapid growth over the last few years, probiotic sales within the U.S.—$30 billion in 2012 to $45 billion in 2017,” he explained. “Additionally, there is a need for more stable, next generation probiotics.” 

And proprietary natural ingredients have been known to set a standard. “We’re flattered that bioavailability has become such a hot issue, since we have been talking about it since we launched the patented bio availability enhancement ingredient BioPerine 15 years ago,” Majeed said.

Certain ingredients are seeing more proprietary offerings, and a hot ingredient with roots in ayurveda is certainly curcumin, “From the generic offerings to those branded as more bio-available, curcumin is a rising tide when it comes to the number of brands coming out,” Majeed noted. “Fortunately for the marketplace, the original Curcumin C3 Complex by Sabinsa still stands strong and is completely beating out the newcomers, with more new human clinical studies in different areas, from Alzheimer’s to osteoarthritis.” 

He added that Sabinsa has observed a number of proprietary offerings in the past for fish oil, a slight rise for those supplying krill oil. “We continuously see branded minerals in the marketplace; a surge is apparent in the sports nutrition category where many branded companies and ingredient suppliers are opting their brand in for ‘banned substance testing.’”

Innovations 

According to Majeed, Sabinsa is extremely active in exploring and publishing the chemistry and pharmacology of ayurvedic extracts. In particular, Sabinsa has conducted in-vitro and in-vivo studies, and has sponsored human clinical trials in major peer-reviewed journals. “Sabinsa extracts are backed by a wide intellectual property portfolio of patent applications and patents filed worldwide,” he said. “Sabinsa has sponsored cancer trials at the National Institutes of Health, testing its curcumin trademarked brand, Curcumin C3 Complex.

The company provides two dedicated websites explaining the science behind its curcumin products: www.curcuminoids.com and www.curcuminc3complex. com. “Sabinsa is also the leader in developing the science and identifying the key pharmacological compounds responsible for the health and medical properties of their other branded and patented dietary ingredients, including Silbinol, a standardized extract obtained from the heartwood and bark of Pterocarpus marsupium (Indian Kino) useful in maintaining healthy blood sugar levels, for example,” Majeed added.

Stratum Nutrition’s Thompson, said the company’s portfolio is based upon global partnerships developing branded ingredient innovations. “Each ingredient has a unique source, set of benefits, and category specific science support. While each ingredient is in a different phase of the product life cycle, each were launched to showcase their own distinctive values for supplement products,” she noted.

For its part, PLT Health Solutions markets mare than 20 proprietary, branded ingredients to the supplement/ natural products and the food and beverage industries. Some include: 

Benecarb Glycemic Balance Complex–Benecarb, based on molasses phytonutrients, can reduce the glycemic impact of a broad range of everyday foods and beverages– with particular advantages in carbohydrate- rich formulations. High in natural antioxidants, minerals and polyphenols, Benecarb has been shown to reduce the glycemic of index (GI) of foods and beverages by up to 20 percent at addition levels of 4 to 6 percent of total carbohydrate content.

Hytolive Olive Fruit Polyphenol–Hytolive is a natural, patented ingredient. It’s made by a solvent- free extraction of olive polyphenols from the by-product water of olive oil production. The primary constituent of Hytolive is hydroxytyrosol, an olive polyphenol that has been the subject of a significant body of research on the heart health benefits it confers.

AIDP, Inc. offers Magtein, is a proprietary, natural ingredient discovered by MIT professors searching for novel neurodegenerative disease treatments. For this reason, Magtein was extensively studied in cell culture, in animal studies for its mechanisms of action, its effects on brain function, as well as its safety. The ingredient just secured FDA (U.S. Food and Drug Administration) GRAS (generally recognized as safe).

Another AIDP ingredient is KoACT, a combination of collagen and calcium, which is clinically proven superior to traditional bone remedies in improving bone mineral density, as well as self-affirmed GRAS.

Showing the Science 

Solid, comprehensive science on a branded ingredient is one of the most important forms of support a supplier can provide a consumer products company—since this is often the basis of claims that attract the end-user.

The science backing PLT Health Solutions’ Zembrin product, for example, is illustrative of on-going support. Zembrin is the first patented, standardized and clinically studied extract of a unique selection of the South African plant Sceletium tortuosum, according to Flowerman.

In 2011, Zembrin was studied in a randomized, double-blind, placebo controlled cross-over study with 20 healthy adult subjects to examine whether 25 mg of Zembrin taken once a day enhances cognition in normal subjects, Flowerman explained. Statistically significant improvement for the Zembrin group was seen in two cognitive domains: cognitive set flexibility and executive function including processing speed. Despite conducting the study on a healthy non-depressed population, a positive effect of Zembrin on mood was noted. This study formed the basis for Zembrin’s initial introduction and sales of the ingredient to a broad range of customers.

When choosing an ingredient, Dondain stressed that it is not the quantity of clinical studies available, but the quality. “It does not matter if there are a lot of clinical studies on a single ingredient when they are all designed on the same model. What is important is to have different clinical studies, even only two or three, conducted with different models and leading to the same global results to be sure to correctly support a claim,” he noted.

“At Nexira we have several clinical studies for a lot of our branded ingredients, conducted and designed with different models. We can help any brand manufacturer who wants to launch a product with the right dosage to use in the formulation of their product and the correct claims to accompany the packaging. Thanks to the support of our clinical studies, the brand manufacturers are able to ensure that they have an efficient product that truly works as promised, as long as they respect the correct dosage and include the correct labeling.” 

When Nexira’s ingredient logo is used prominently with the customer’s marketing and visibility campaign, the company has steps to ensure that the communication (logo, study results, claims, dosage, etc.) is respected, Dondain added. “First and foremost we sign a co-branding agreement with our customer. We then provide every piece of information needed to our customer to communicate and accompany the products. Our customer provides us their packaging or other communication support where our branded ingredients are cited, and in response we check that the logo, the dosages, the claims and benefits, the clinical study results and everything related to our ingredient is correct before launching the product,” he said.

By handling it this way, Nexira can ensure that all information that appears on the product or packaging is in accordance with its study results and global communication to insure the product delivers the best message to final consumers. “It is very important, particularly within the weight-management market, not to make a product appear as a miracle solution to a problem. Claims need to be realistic with proven clinical results to support them,” Dondain added.

Conducting the most research to date of any ayurvedic supplement and cosmeceutical company, with supporting intellectual property, patents, trademarks, etc., Majeed said Sabinsa also has a library of supporting documentation on its main websites and their various product specific websites. The company is always open to providing all documentation and questions to ensure that vendors, customers and product developers have enough information to make appropriate purchasing decisions and have ample follow-up support.

Thompson added, “In the case of our branded ingredient portfolio, we continually work toward furthering the science support of our ingredients. Whether in-vivo, in-vitro, human pilot or clinical; completed by ourselves as the manufacturer or with finished product partners as independent support in their final product form—it all contributes to the efficacy and safety of our brands. We have had a number of studies publish on NEM brand eggshell membrane this year including in vitro completed by ESM as the manufacturer and an independent study in Germany with ongoing R&D always looking to further the substantiation for our original, proprietary ingredient.”

Capitalizing on Hemp

Cannabidiol (CBD) was first isolated in the 1930s and 40s. According to many scientists, physicians and researchers, CBD may be the single most important cannabinoid ever discovered.

According to Stuart Tomc, vice president of Human Nutrition with CannaVest Corp. in Nevada, the company’s PLUSCBD Oil will be studied via what’s known as “omics” technologies (e.g. genomics, epigenomics, proteomics, metabolomics), which are used to predict clinical outcomes. “Our work will focus on healthy people who are not taking prescription medications. Many preclinical studies using omics technologies, which are undertaken to elucidate biological features and mechanisms of action have been published. And retrospective studies applying omics assays to stored human bio-specimens have been conducted, to develop mathematical models that predict potential health benefits. We expect to do the same with a wide array of novel hemp derived compounds.” 

Tomc said the company is currently pursuing self-affirmed generally recognized as safe (GRAS) for its hemp CBD oils. The products are not unlawful under the Controlled Substance Act, because they are derived from legally imported hemp.

“Demand for legal hemp derived compounds like CBD and other phytocannabinoids is outpacing current market product offerings,” Tomc noted. “It’s a perfect ‘positioning’ storm for marketers to capitalize on the end of hemp prohibition. We foresee the organic development of an entire category of hemp-based supplements,” he said.

“The only thing the industry loves more than something new, is something new that really works.”

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