This strategic acquisition allows Innophos to enter high-growth markets aimed at active and health-conscious consumers. The deal unites Innophos, which has traditionally focused on high-margin specialty phosphates for processed meats, baked goods, dairy products, and beverages, with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-oriented components. By acquiring Novel, Innophos diversifies its product offerings and enhances its ability to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will derive 60% of its sales from food, health, and nutrition sectors, positioning the company on track to reach its 75% target.
“Our role as a leading provider of essential ingredient solutions is reinforced by our combined innovative technologies, a broader and deeper product range, and the inclusion of Novel’s skilled and committed team,” said Innophos CEO Kim Ann Mink in a statement. “Moreover, our partnership with Novel aligns Innophos more closely with significant consumer mega trends, including health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking to gain health benefits through their food choices. As a result, there is a rising trend among food and beverage manufacturers to reformulate existing products and pursue new product development that emphasizes functional benefits. 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’ capability to meet the evolving demands of a consumer packaged goods (CPG) sector striving for better health. Additionally, the integration of calcium citrate PH into the product lineup will further support the company’s endeavors in addressing consumer needs for health-focused ingredients.