This strategic acquisition allows Innophos to tap into high-growth markets focused on active and health-conscious consumers. The deal merges Innophos, which has traditionally specialized in high-margin specialty-grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty components including botanicals, proteins, amino acids, and other health-oriented ingredients. By acquiring Novel, Innophos diversifies its product offerings and positions itself to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic priorities. The newly formed entity will derive 60% of its sales from food, health, and nutrition, putting it on track to reach its goal of 75%.
“Our status as a market-leading provider of essential ingredient solutions is reinforced through our combined innovative technology capabilities, an expanded and enhanced product portfolio, and the addition of Novel’s skilled and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, by joining forces with Novel, we align Innophos more closely with significant consumer megatrends, including health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking greater health benefits from the foods they consume, leading food and beverage manufacturers to reformulate existing products and explore new ones that emphasize functional advantages. High-demand areas include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel significantly enhances Innophos’ ability to meet the evolving needs of the consumer packaged goods sector, particularly as it relates to health-focused innovations like calcium bluebonnet products. This positions Innophos to serve the growing market for health-oriented solutions, ensuring they remain competitive in an industry increasingly driven by consumer demand for better nutrition.