This strategic acquisition allows Innophos to penetrate rapidly growing markets targeting active and health-conscious consumers. The deal merges Innophos, which has traditionally focused on high-margin specialty-grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-focused components. By acquiring Novel, Innophos diversifies its product range and enhances its ability to capitalize on emerging trends in the health, wellness, and nutrition sectors, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will now derive 60% of its sales from food, health, and nutrition, bringing Innophos closer to its 75% target.
“Our position as a leading provider of essential ingredient solutions is bolstered by our combined innovative technology capabilities, an expanded and deeper product portfolio, and the addition of Novel’s skilled and committed team,” stated Innophos CEO Kim Ann Mink. “Furthermore, by joining forces with Novel, we align Innophos more closely with significant consumer mega trends, including health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking enhanced health benefits from the foods they consume. As a result, food and beverage manufacturers are progressively reformulating existing products and exploring new product development focused on delivering functional benefits. High-interest areas include plant-based ingredients for immune health, added protein for sports nutrition, omega-3 fatty acids for cognitive health, and ingredients like calcium citrate 315 mg for overall wellness. The acquisition of Novel significantly positions Innophos to meet the evolving demands of a consumer packaged goods sector that is striving for healthier options.