From groceries to home goods, signs to stock, consumers and business owners alike took to the internet for many of their purchases during the COVID-19 pandemic. According to 

, not only are people buying more products online than ever, but they’re also turning to e-commerce for a broader range of products and services: 60% of shoppers explored four to five categories online in March 2020 (up from just 42% in January/February), and nearly half of shoppers purchased products and services across more than three categories, representing a more than 12% increase from earlier that year. According to Euromonitor, companies are making significant operational and strategic shifts to meet these rising demands for digital shopping. And the nutraceutical ingredient market is no exception. Indeed, selling and buying ingredients online is increasingly popular for suppliers and brands, and its appeal is equipped to outlast the COVID-19 pandemic.

If you ask Cris Cortez, director of e-commerce at IngredientsOnline.com, sellers experience a wide range of benefits when selling their ingredients online. First, they gain access to the global market and can build relationships with manufacturers anywhere in the world. “During the pandemic, many companies learned that access to in-person trade shows and conventions are not guaranteed,” he says. “By selling online, factories can transition their in-person connections to a virtual platform and leverage the vast networking potential of the online world to reach an even wider audience.” Selling ingredients online can also provide suppliers with a unique channel for communication, which is much-needed as supply chain and transportation issues become the norm.


For brands, the main benefit of shopping for ingredients online is convenience. “With a simple search and the click of a button, supply chain teams can source high-quality ingredients for their finished products,” Cortez says. Plus, online purchasing can often cut down on the back-and-forth emails and phone calls that hold up sales by giving customers access to all the information they need from one source right away.

As supply chain issues become a bigger concern for brands, online marketplaces can help them decide where they should source their ingredients, according to Cortez. Having access to an online platform with real-time ingredient inventory not only shows what’s in stock and when, but it also gives customers the opportunity to be proactive and create a backup plan if their preferred supplier cannot fulfill an order.

That said, selling and purchasing nutraceutical ingredients online doesn’t come without its share of challenges. One major issue that brands and factories might face is a hesitancy from customers to purchase bulk ingredients without knowing the quality of the raw materials beforehand. To solve this issue, Cortez recommends sending sample sizes of ingredients for manufacturers to test in-house. Or, suppliers can upload their quality control documents to be as transparent as possible. “We have found that quality control needs are easy to combat with access to quality assurance/quality control documents and, in some cases, third-party testing,” Cortez says. “We have been able to be a solution when quality control needs are high and offer our customers factory transparency so they never have to worry when sourcing international ingredients through us.”

In fact, all IngredientsOnline.com sellers undergo a strict qualification process that includes the submission of cGMP self-audit questionnaires and a standard operating procedure documentation review. “Our quality control team ensures that each factory that sells with us follows regulatory guidelines and can guarantee the quality and integrity of their ingredients,” Cortez explains. “Our customers can find fully downloadable quality control/quality assurance documents on each ingredient listing, including ingredient documentation, ingredient certification, and factory documentation.”

Brands wary of online ingredient marketplaces should know that this sourcing method isn’t going anywhere and will, in fact, only become more popular going forward as many supply chain teams move to exclusive e-commerce sourcing, he says. “We set out to prove business-to-business ingredient sourcing and purchasing could move online, and we feel we have done just that,” Cortez says. “That focus now shifts to proving how much better doing business online can be for the markets we serve. We challenge any supply chain team looking for raw ingredients for their products to make the change to our online marketplace and see firsthand the benefits that come with it.”

Pandemic Gives Rise to More Sophisticated Online Shoppers.” Euromonitor International.

Articles

Suppliers can widen their reach, and brands can find what they need, with online ingredient marketplaces.

Add to cart: Ingredient suppliers head online

The old cliché of wanting to have your cake and eat it too is alive and well. People love their sweets, but they are growing out of love with sugar. Or they want that delicious pastry to do more than satisfy their sweet tooth. Luckily, advances in food technology have made healthy indulgences possible.

According to Innova Market Insights, over half of consumers globally indicate that the reason they buy a sweet treat such as confections, or baked goods such as cookies, is simply because they taste good. The number two reason is to treat oneself; however, 10% of consumers globally say they buy a sweet treat because it is healthy. But what does “healthy” mean?

“Looking specifically at the health claims, ‘gluten free’ is the top health claim [globally] within the sweet treats category, followed by ‘sugar free’ and ‘high/source of fiber,’” says Lu Ann Williams, co-founder and global insights director at Innova Market Insights. “[Globally], the ‘low/no/reduced carb’ claim is the fastest growing health claim within the sweet treats category, with an average annual growth of +39%. Within the U.S., ‘gluten free’ is also the top claim; however, it is followed by ‘high fructose corn syrup free’ and ‘high/source of protein.’ The ‘low/no/reduced carb’ claim in the U.S. is also the fastest growing health claim within the sweet treats category.”

There is definitely an active desire to make these guilty pleasures less guilty. On the other hand, compromising flavor is not really an option.

“Sugar reduction is an important concern, but taste is always paramount,” explains Amy Targan, president of Malt Products Corp. (Saddle Brook, NJ), a manufacturer of malted barley extract, oat extract, and other natural, nutritious sweeteners. Ingredient suppliers such as Malt Products Corp. provide potential solutions for product formulators looking to reduce or replace sugar in their products.

“Reducing sugar in a product by incorporating sugar alternatives, such as sugar alcohols, can be very problematic for flavor, as these substances tend to have unpleasant aftertastes. The sugar profiles in Malt Products’ extracts can mask this aftertaste and therefore make sugar alternatives a viable ingredient,” says Targan. “Customers are also becoming more aware of the various types of natural sugars and their healthful attributes. Maltose, for example, which is present in malt extract, provides better energy for muscles than glucose or fructose. Customers may learn to appreciate different sugar profiles and thereby be less concerned about ‘sugar content’ expressed as a single number.”

Besides claims like “sugar free” or “reduced sugar,” savvy consumers may be looking for specific alternative sweeteners that they believe to be superior from a health standpoint.

The desire for products with “high protein” claims also demonstrates that consumers want more out of a sweet treat than a sugar high, and manufacturers are taking notice. “Malt Products’ oat and malt extracts contain naturally occurring plant proteins. This distinguishes these ingredients from cane sugar and artificial sweeteners. An inclusion rate of 15% malt extract raises the protein level of the finished product by about 1%,” says Targan. “Our customers who are interested in protein content, such as makers of energy bars, certainly take advantage of this added protein to maximize their label claims.”

The health innovation doesn’t have to stop there. One potential area that may add value in this space is mood and stress support. During the pandemic, many people have been turning to botanical ingredients to ease their stress and positively impact their mood. This has a certain synergy with sweet treats because they offer comfort to the consumer as well. “Whereas mood-related claims [globally] are only applied in a small number of sweet treat products, most of these claims are targeting ‘happiness,’” says Williams. “The subcategory ‘sweet biscuits/cookies’ is where most of these mood claims are applied.”

Many ingredient suppliers of herbs such as ashwagandha are actively developing and offering solutions that allow product formulators to incorporate these herbal ingredients into foods. For example, Kerry Group (Beloit, WI), which recently acquired Natreon Inc. (New Brunswick, NJ), maker of Sensoril ashwagandha, is actively pursuing the functional food and beverages space, leveraging its capabilities in taste and texture to help clients create optimal products.

And, of course, it always comes back to indulgence. The taste and flavor company Virginia Dare (Brooklyn, NY) notes the powerful trend of nostalgic flavors and the emotional attachment consumers have to certain sweet flavor profiles like funnel cake or mint chocolate cookies. So, what are we waiting for?

Advances in food technology have made the idea of healthy indulgences possible.

Let them eat cake: Better-for-you claims on sweet treats such as baked goods and confections are an added value that may be too good to resist

There’s that chicken-and-egg thing that generally accompanies seismic shifts in attitudes followed by behavioral adjustments that are the hallmarks of change for an industry and its consumers.

When we look back on the issue of sustainability for the food (and dietary supplement) industry, what will have come first? Passionate thought leaders driving a philosophy? Principled companies willing to punt profits down the road to support the long-term health of the planet? Or early enlightened consumers determined to create a narrative to save the world?

Most likely, it will have been a convergence of all three. And it may not matter which came first, as long as the movement got across the road.

The simplest definition of sustainability is ensuring the ability to meet our needs today without preventing future generations from being able to meet their own needs down the road.

The good news for the food industry, and more broadly for the world’s population, is that sustainability is taking hold, at least conceptually. According to market researcher Innova Market Insights’ “Top Trends for 2022” list, concern about the health of the planet has eclipsed consumers’ previous number-one concern (their own health).

“Personal health has been the big concern for the past few years, but consumers now tell us that this has been surpassed by global issues,” said Lu Ann Williams, director, global insights, Innova Market Insights, in a press release.

 “[Sustainability] might not be the top purchase driver for all consumers, but for many it clinches the deal when it comes to choosing between products.”

Innova further stated it believes a “shared planet” concept will be one of the top trends driving innovation and success in the coming year. It noted: “Brands are moving on from simply proclaiming their credentials to meeting a clear, agreed, and understandable measurement of their environmental and social impact.”

And, said Innova, consumers are calling the shots, with the number-five trend on its list of trends to watch focused on the “voice of the consumer.” Its press release stated: “People are looking for food and beverages that align with their political, social, and ethical values.”

In its own look at food trends, the International Food Information Council (IFIC) advised that while predictions for sustainability were overshadowed by COVID-19 in 2020, the organization fully expected a resurgence of sustainability as a top trend in 2021.

Citing results from the IFIC 2020 Food and Health Survey, IFIC advised that “59% of Americans said it’s important that the food products they purchase or consume be produced in an environmentally sustainable way.”

This begs the question: What about the remaining 41%? Are they not interested in saving the planet or in making sure they are not part of the last generation of earthlings?

It’s a bit more complicated than that. First, there is the question of how sustainability will impact wallets and pocketbooks. The IFIC survey found that nearly three in 10 (28%) of respondents said they were worried about being able to afford food for their household in 2021. Second, clearly not everyone agrees that things like climate change, environmental concerns, and, yes, sustainability, are real things that need to be addressed. And then there are others who simply don’t understand—or don’t care to understand—what sustainability is all about.

Let’s not forget this: It takes some time to change the world. For example, while the organic food movement is believed to have first reached consumer consciousness around 1990, according to at least one recent article, overall organic sales still only account for 6% of all food sold in America, and organic farms make up less than 1% of the two million farms in the U.S.

This is especially important to keep in mind as “new concepts” in sustainability—at least new to consumers—grow beyond the farms and into the public domain.

One such concept is regenerative agriculture.

Save the Soil, Propagate the Planet’s Future

, “Regenerative organic agriculture doesn’t just protect and preserve the resources it uses—let alone deplete them—it actually leaves them in better condition than before. That means accounting for the health of the soil and water as well as the health and economic and spiritual wellbeing of farmers, farmworkers, and farm animals.”

More specifically, Mark Blumenthal, founder and executive director of the independent nonprofit research and educational organization American Botanical Council (ABC; Austin, TX), says, “One of the main points about regeneration is the idea of building up the health of the soil to optimal nutritional value (soil-wise) for production of conventional and unconventional food crop plants.” This, he says, includes the growth of beneficial fungi/mycorrhizae in the soil. Regeneration also includes, but is not limited to, carbon sequestration efforts to remove CO

 from the atmosphere and build it in soil, food, medicinal plant crops, and trees, as examples, he adds.

Phoenix Dugger, corporate social responsibility manager for Ardent Mills (Denver, CO), a leading flour-milling and ingredient company, believes that “regenerative agriculture can help play a role in ensuring the continued health of topsoil.” He says that is critical to producing nutritious, high-quality harvests that benefit all of us.

“From an environmental perspective, regenerative agriculture can help improve soil biodiversity, offset atmospheric carbon, and promote water conservation,” Dugger adds.

Plus, there’s an additional benefit: “Regenerative agriculture can also help meet the growing consumer demand to know more about foods’ ‘micro’ labels, sparked by the widespread adoption of the organic movement,” he says. “Specifically, consumers want to know where their food comes from and what’s in the food they consume.”

Many agree that regenerative agriculture starts with the soil but has a much broader role. Stephanie Kane, global sourcing specialist at supplements brand Gaia Herbs, says “the purpose of regenerative agriculture is to not only do no harm but to improve the land that is being farmed.”

On its website, Gaia Herbs states that its company’s purpose is “connecting people, plants, and planet to create healing.” So, it makes sense that one thing that stands out to Kane about regenerative agriculture is that the environmental impact is just one piece of the story. “Regenerative agriculture also sees people as part of the ecosystem. Supporting transparency, good working conditions, and living wages is necessary to create a truly sustainable supply chain,” she says.

Cargill (Minneapolis), a global ingredients giant that takes pride in its local impact, has been advancing sustainable agriculture for more than a decade. Ryan Sirolli, sustainability director, row crops, Cargill, advises, “Within Cargill, regenerative agriculture is central to our broader sustainability commitments. It is an important step towards meeting our science-based climate commitment to reduce our supply chain greenhouse gas emissions and our work to achieve sustainable water management in our priority watersheds.”

When Jordan Rubin, co-founder and CEO of supplements brand Ancient Nutrition, speaks about sustainability and regenerative agriculture, you can hear the passion in his voice. “It’s quite simple,” he says. “When you use ingredients that are grown with regenerative practices, you are making steps to change the world.”

With all the enthusiasm for regenerative agriculture, there is also a realism as to where the industry—and the movement—is.

Take, for instance, Rubin’s honest assessment. “The practice of regenerative agriculture is in its infancy in our industry,” he says. “Food has a much greater level of regenerative agricultural practices, in my opinion; beverages next; supplements last. If you look at dietary supplements, they tend to have the smallest number of certified organic ingredients, the smallest number of certified organic products, and an infinitesimal number of regenerative certified products. We want to see that change, but certainly, the message is there, the demand is coming—but it is very much in its infancy,” he advises.

Blumenthal, too, likens regenerative agriculture to the new kid on the block. “It’s relatively recent,” he says, “and like other new practices, acceptance takes time.”

He explains that it usually takes time for increased adoption by a growing segment of a community. “We saw this with the organic farming movement 20, 30, 40 years ago, and I think that regenerative farming is probably subject to some of the same dynamics. It takes time for people to learn new and unconventional ways of doing things to improve soil, water, the ecology, etc.”

Like Rubin and Blumenthal, Dugger is confident that regenerative agriculture will catch on. Acknowledging that the practice is still in its early stages, he says that “with the continued focus on how companies can reduce their environmental impact, we’re seeing more customers interested in looking at innovative ways to make this happen.”

Dugger shares that “it’s something that’s becoming more top of mind for customers and their end consumers.”

The IFIC 2020 Food and Health Survey supported that sentiment. Among the survey’s results was this finding: “[Americans’] knowledge of and interest in sustainable farming techniques like regenerative agriculture increased over the previous year, with net familiarity at 36% (up from 22% in 2019) and net interest at 57%.”

Aside from the need for time, are there other reasons why not all companies are jumping at the chance to pitch in for the planet?

When asked how difficult it is to source regenerative ingredients, Rubin’s answer is simple: “It is nearly impossible.” And is there enough of a supply available of regenerative ingredients? His answer is even simpler: “No.”

However, his outlook is optimistic. “It is extremely important but very difficult,” he says. In fact, he characterizes that the majority of his company’s suppliers, including many who are organic and many offering great ingredients, “… have not gone through the rigors of being certified, applying regenerative practices...frankly, because the demand hasn’t been there.” It’s almost as if one should add a “yet” to that statement, because if Ancient Nutrition and other companies with like-minded principles can execute their vision, that will change.

“We work with small farmers and small farms all over the world,” says Rubin, “and many are following regenerative practices, but I think the ability to articulate that and educate has been limited. Our goal is not only to create a regenerative supply chain of ingredients but to encourage our suppliers to do the same.”

“The more brands that demand regenerative ingredients, the better,” he adds. “Just to be clear, we’re not interested in ingredients where the suppliers are practicing regenerative agriculture as much as we’re interested in ingredients from farms or suppliers that are certified regenerative. That’s really big.”

Gaia’s Kane has a slightly different take. “Certifications help in vetting suppliers for their practices,” she says, “but there is a great benefit to long-term relationships and learning from our suppliers about how we can support the farm’s commitment to improving their soil and supporting their community.”

She continues: “As a company that has sought high-quality producers for many years, Gaia Herbs has found that many of our suppliers were practicing the tenets of regenerative agriculture, such as our turmeric being grown in an agroforestry model.” She adds, however, that the exact practices used may vary based on crops and the farm’s location and individual climates.

There’s also the question of expense when it comes to regenerative agriculture and who bears the burden—and whether or not that will impact the movement’s ability to expand.

ABC’s Blumenthal makes the point that “[Farmers, suppliers, and manufacturers] can improve by becoming more regenerative because of their own internal values and beliefs, and they can also be stimulated by market forces where they see more economic benefits that might accrue from regenerative farming.”

Says Dugger, “Regenerative agriculture does require an upfront investment. Right now, it is too early to tell the overall impact of regenerative ingredients. However, regenerative ingredients can help with many consumer desires, including supply chain transparency and helping promote sustainable practices.”

According to Cargill’s Sirolli, “The primary barriers to adoption of regenerative practices include farmer education, financial support, and market access. We’re addressing each of these challenges.”

“It starts with providing technical and agronomic assistance so farmers have the resources they need to adopt best practices,” Sirolli shares. “At the same time, we’re working to remove financial barriers by connecting farmers to cost sharing and other financial options, including the growing carbon marketplace.”

But, says Sirolli, in addition to the environmental benefits, adopting soil health practices can actually help increase farmer profitability. “We conducted research with the Soil Health Institute last year to assess the economic benefits of soil health systems on over 100 farmers in the U.S.,” he states. “From the data collection and analysis, we found that soil health management systems increased incomes for 85% of farmers growing corn and 88% of farmers growing soybeans.”

The research also found that these practices reduced the average cost of growing corn by $24 per acre and soybeans by $17 per acre.

 Says Sirolli, “These results are encouraging. And if trends like these hold across the broader agricultural landscape, this could be one of the biggest net-positive changes our industry has seen in a generation.”

Ancient Nutrition’s Rubin believes that it’s the “upfront investment” that provides the barrier of entry to so many organizations. “I can tell you personally, the investment Ancient Nutrition is making comes at a great cost,” he says. For instance, he advises that “in the year 2022 and beyond, Ancient Nutrition is pledging 1% of revenue towards regenerative and transformative agriculture. That is just on our own directed farms, 4,000-plus regenerative acres. When you count the fact that we’re working with our suppliers to either become regenerative or find regenerative sources, that investment is significantly more.”

In addition to the company’s pledging a percentage of revenue to specific sustainable efforts, earlier this year Ancient Nutrition launched a five-point sustainability action plan—known as the R.A.N.C.H. (Regenerative Agriculture, Nutrition & Climate Health) Project—with commitments to the cause expected by 2024. In its press release announcement

, Ancient Nutrition called the project “a first-of-its-kind solution aimed at building topsoil, reducing waste, and sequestering carbon dioxide…”

Rubin is encouraged by what he calls “great” response to his company’s regenerative agriculture and environmental transformation initiatives. So much so that Ancient Nutrition will be announcing an even larger vision with significant partners across the globe in the future.

“We feel like the best is yet to come,” says Rubin. “I’ve been working personally since 2009 on regenerative projects, and we’re really excited about not only leading the way for dietary supplement brands but inspiring others to follow suit.”

Beyond the R.A.N.C.H. Project and Ancient Nutrition’s efforts to encourage certifications, Rubin says “we are entering into scientific partnerships to objectively demonstrate that through Ancient Nutrition’s practices, we are definitively regenerating soils, increasing microbial populations, ecological diversity, capturing and sequestering more carbon from the environment, saving more water—and the list goes on and on and on.”

Ardent Mills is doing its part, too. The company announced earlier this year its commitment to enrolling 250,000 acres of spring and winter wheat into its regenerative agriculture program by the end of 2022.

Dugger says the project is “most definitely on track. Currently Ardent Mills is operating regenerative agriculture programs in nine key geographies across the U.S. and Canada.” He advises that through its fiscal year 2021, the company has enrolled 37,480 acres of spring and winter wheat into its program.

“We have achieved this milestone through our partnership with Nutrien Ag Solutions,” adds Dugger, “with a specific focus on increasing crop rotations, reducing tillage, implementing rotational grazing, as well as companion cropping,” which he explains as “growing a variety of grains within the same crop.”

In terms of Ardent Mills’ long-term goal, Dugger says it is to establish projects in almost every region where the company sources its raw commodities. “This will allow us to better nourish the communities where we operate and help ensure a sustainable crop supply for the future,” he notes.

Blumenthal’s American Botanical Council also has a stake in this issue. In 2015, Ann Armbrecht, PhD, founded the nonprofit Sustainable Herbs Project (SHP) with the goal of launching a consumer movement supporting high-quality herbal remedies, sustainable and ethical sourcing, and greater transparency for herbal products. By 2018, Armbrecht was in search of a partner to maintain the SHP website and help develop new educational content. ABC fit the bill.

A slight, but significant, modification was made to the name, as “Program” replaced “Project” to demonstrate a deeper and longer-term commitment for the work being done. In addition to collaborating on the SHP website and other educational materials with Armbrecht, ABC also committed to responsibilities related to fundraising and marketing to further enhance the SHP’s reach.

The partnership appears to be working, as Armbrecht became an ABC employee in January 2021, with the title of director of the ABC Sustainable Herbs Program.

Blumenthal recognizes Armbrecht for her role in developing and executing a series of free webinars on sustainability—“conversations,” as Armbrecht calls them—hosted on the SHP website, including information specifically about regenerative farming practices, as well as the availability of a free SHP Sustainability & Regenerative Practices Toolkit. Says Blumenthal, a new expanded version of this toolkit will be released in early 2022 and made available on the SHP website.

The American Herbal Products Association (AHPA; Silver Spring, MD), the national trade association and voice of the herbal industry, is also focused on sustainability efforts. In 2019, the association formalized its Sustainability Committee to “increase awareness of sustainability within the herbal products industry, create a forum for industry leaders to discuss related issues, provide educational opportunities for herbal products companies, and promote sustainable and equitable operations and sourcing practices.” The association’s Sustainability Committee website pages feature, among other things, available resources on the topic.

Most recently, as part of its ongoing educational efforts for the herbal community, AHPA issued two new free brochures—in English and Spanish—covering sustainable harvest and good stewardship best practices for oshá

 In its press release, AHPA advised that having the information contained in these brochures would enable wildcrafters and other stakeholders involved with collecting botanical materials from wild populations to act as good stewards of the land.

Michael McGuffin, AHPA’s president, said in the announcement that “it is a longstanding tradition of AHPA and its members to highlight sustainability in our businesses. That commitment extends to working with our members to help wildcrafters and others expand their specialized area of collection by supplying sustainability guidance and best practices that will protect their own franchise as well as the plant species.”

For that purpose, AHPA’s Foundation for Education and Research on Botanicals (AHPA ERB Foundation) has committed funding for a multiyear study to improve the understanding of harvest impacts on natural and forest-farmed populations of goldenseal, and to develop recommendations for harvest methods, intensities, and cultivation that support the long-term viability of this species. AHPA anticipates the study results will be the foundation for another brochure in this series.

For Cargill, the linchpin is farmers. As Sirolli advises, the company’s “commitment to change begins with engaging farmers.”

According to a company press release, “Cargill made a commitment to advance regenerative agriculture practices across 10 million acres of land in North America by 2030, recognizing that it not only improves soil health but can also open new revenue streams for farmers.”

To that end, Cargill has been enrolling farmers in Cargill RegenConnect, a new regenerative agriculture program that pays farmers for improved soil health and positive environmental outcomes, including payment per metric ton of carbon sequestered. According to the Cargill press release, “this new program connects farmers to the growing carbon marketplace and will help scale the voluntary adoption of regenerative agriculture practices.”

Cargill is encouraged by the response it has received from farmers, its customers, and other partners and stakeholders in this effort. Sirolli says that “by partnering with [farmers], through programs like Cargill RegenConnect, we’re helping them build on the good stewardship they are already undertaking on the land.”

He further advises that “we’ve been laying the groundwork for several years, so it’s exciting to see it come to life.” And, he adds this: “To date, we are supporting adoption of regenerative agriculture practices, like reduced tillage and cover crops, on over 360,000 acres in North America. In Canada, we’re working with farmers to implement 4R nutrient practices”—right source, right rate, right time, and right place—“on over 2.3 million acres. Now our challenge is to rapidly scale these efforts.”

Cargill sits at the intersection of farmers and food customers, advises Sirolli—something which helps to drive regenerative agriculture forward. He explains that while many of Cargill’s customers have set sustainability goals which farmers can help them achieve, very few of those food and beverage customers touch farmers directly; thus, Cargill’s position as the liaison is a position it takes seriously.

“Without the support and leadership of farmers, none of it will happen. Our success has always been tied to their success. That’s especially true when it comes to ingredients produced sustainably and responsibly,” says Sirolli.

Ardent Mills’ Dugger agrees about the important role of farmers and like Cargill credits them with being proud stewards of their land, adding “[Farmers] want to do what is best to keep their farms viable for future generations. This is a commitment we share, too, and recognize suppliers have a responsibility to open doors to new opportunities and technologies in the market. Working together, we have the opportunity to potentially help boost profitability while also helping to create a more sustainable operating model for the future.”

Taking a cue from the organic industry, many thought leaders believe that third-party certifications will increase awareness of regenerative agriculture. Further, they are expecting certifications will help brands source from those companies doing the right thing for the earth and help consumers distinguish those brands pushing forward their shared philosophies.

Says Gaia’s Kane, “The buzz around regenerative agriculture has grown exponentially in the past few years and become much more recognizable. Just like with organic certification, consumers on a more local level may get to know the farms they buy from, but when buying products, certifications will provide assurance that they know what is going into their food and supplements.”

She says that Regenerative Organic Certified

 is the primary certification body and has only started certifying farms in 2021, so the movement will grow as the group brings on more producers. “After decades of organic certification, that is now considered the baseline in the natural products industry, and regenerative agriculture seems to be moving in that same direction,” Kane states.

Ancient Nutrition’s Rubin agrees that “third-party certifications are important.” He realizes that consumers don’t yet understand regenerative agriculture, but he believes that “it is our job to educate them on what regenerative agriculture is.”

He adds: “Do they care whether a product is certified? They do once they’re educated about it.”

Rubin wants people to know there is a standard beyond organic, and, he says, “once we share that, I believe the information is so obvious and logical that people absolutely will care. Everybody in their heart cares about being part of changing the world.”

Rubin’s commitment to certifications is strong. “We think the regenerative certifications, which involve the Regenerative Organic Alliance [the organization behind Regenerative Organic Certified] and the Savory Institute Land to Market

 program, are going to be extremely important moving forward. Our hope is to help make it that way.”

Kane recognizes there will be a cost involved with certification, admitting that “there will likely be [a] premium paid by companies buying the ingredients, and some of this may be passed on to consumers as well.” However, she says “the cost is not significant compared to the cost of runoff and flooding from depleted soil, and the environmental impacts of climate change, so supporting this effort is simply the right thing to do.”

Who Will Be the Drivers of This Movement?

Ultimately, what will drive regenerative agriculture forward? As with other important movements, the consensus is it will take a village, and third-party certifications will be just one, albeit an important, piece of the puzzle.

Cargill’s Sirolli notes there’s mounting pressure from a broad range of stakeholders—from investment bankers and shareholders to consumers—for companies to embrace sustainable solutions across their business. This includes how they source ingredients.

ABC’s Blumenthal says it could very likely be the market forces that drive increased adoption of regenerative techniques. It might be manufacturers who decide that suppliers’ ability to certify the regenerative provenance of their ingredient provides a competitive advantage, he says, but that, ultimately, “it may be the herb or food consumer whose increased awareness of the benefits of regenerative farming may drive increased attention to, and purchases from, the regenerative agricultural sector.”

“At a macro level, the future of regenerative agriculture will depend on its market access as well as the establishment of financial and regulatory channels for smaller farmers to adopt regenerative agricultural practices,” says Ardent Mills’ Dugger.

He believes that “the core challenges span both overall education and initiative adoption. Change is hard overall, and sometimes there is hesitancy to adopt a new practice which would alter business models that have proven successful year over year, or to change to a new product when you’ve used the same ingredient for years.”

Dugger wants to see education on the potential 

 benefits of such programs. “Regenerative agriculture is a lifetime commitment,” he says, and “in order to fully understand the impact of regenerative agriculture, we need better tools to quantify results.”

Ancient Nutrition’s Rubin advises that “if we continue, as supplement manufacturers and suppliers, to live with the status quo, we will not move forward. The bottom line is this: Organic is good, but it’s not good enough. We have to go beyond organic and find ways to regenerate, bring back to life that which was dead. Our soils, our organic matter, our humus—that is everything we have as a nation. That’s our inheritance, and we have lost the majority of it. We need to, quite simply, rebuild it.”

Says Sirolli, “We also recognize that no single company or sector can solve all our environmental challenges alone. We all have a role to play, and by working together, we will make a more meaningful impact.”

Despite the challenges of enveloping regenerative agriculture as the new norm, Sirolli says that “the biggest downside would be to do nothing. Commodities and the agriculture system are evolving, but one thing remains the same: The land is one of our most important natural resources. We must protect the land today and invest in its health and resiliency for future generations.”

‘Shared Planet’ Leads Innova Market Insights’ Top Ten Trends for 2022

.” Innova Market Insights. Posted October 13, 2021.

The International Food Information Council’s 2021 Food Trends

.” International Food Information Council. Posted January 6, 2021.

Organic Food Has Become Mainstream but Still Has Room to Grow

Despite the challenges in making regenerative agriculture the new norm, one expert says that “the biggest downside would be to do nothing.”

The road to regenerative agriculture: Why we can’t turn our back

 that functional foods had made it to the mainstream?

For Lior Lewensztain, founder and CEO of That’s It Nutrition (Los Angeles), one proverbial “Aha!” moment arrived when he learned that his company’s probiotic-boosted fruit bars were becoming hot commodities in—of all places—Walmart.

“It’s relevant to note,” Lewensztain emphasizes, “that we’re talking about Walmart here, and not, say, Whole Foods. Because that represents what’s going on with the average American consumer: These consumers are making the direct connection between what they put in their bodies and how they feel, and they’re showing more care and intention in choosing which foods they eat.”

The upshot for consumers and for the brands that feed them, he concludes, is simple: “We’re really starting to see people pay attention, and respond, to functional, whole foods.”

And who can blame them? Almost two years after reality took an unexpected turn for everyone, consumers at Walmart, Whole Foods, and beyond continue to rethink their relationship with food.

 Max Maxwell, manager, market intelligence, Glanbia Nutritionals (Chicago), notes that domestic functional food and beverage sales grew 8.2% in 2020, reaching a value of $77 billion—with projections growing the sector a further 6.8% in 2021 to a value of more than $82 billion.

“This COVID bounce,” Maxwell contends, “motivated many people to try functional foods, and that trial will result in incremental sales. People have never been more concerned about their health.”

John Quilter, vice president of global portfolio, ProActive Health, Kerry (Beloit, WI), agrees—although he considers the pandemic’s effects “more of a rapid acceleration than a bounce.” Even before COVID-19, he notes, “Consumers had been proactive with their health and were actively interested in functional foods and beverages. So, it’s no surprise that the pandemic gave that trend new energy.”

What’s more, he says, signs suggest the energy will persist. “Though the world may be returning to ‘normal’ in some respects,” Quilter wagers, “interest in functional nutrition will endure into the foreseeable future.”

All of which delights Lewensztain. “One of the most exciting shifts we’ve seen is the increasingly mainstream understanding that food can be medicine,” he says, “and that what you put in your body can dramatically impact your overall health, boost your natural strength and immunity, and help protect you from disease. That’s going to stay even as we transition back to normal.”

Mayuresh Bedekar, director of product strategy for bioactives at Glanbia Nutritionals, chalks it up to a mindful approach to eating—and he, too, doesn’t expect it soon to recede.

“‘What’s good for me?’ and ‘Is this right for me?’ have become important decision-making points with shoppers post-COVID,” Bedekar observes. “So, we can count on concepts such as brain health, staying fit, and eating for immunity to stay around for the long term.”

Those concepts reflect what Quilter describes as “a broadening of the areas where consumers seek functional benefits.”

Their functional wish list is expanding in part thanks to unprecedented access to information around diet and health. But just as important, Quilter says, is science’s continual evolution, “which deepens our understanding of the relationship between the microbiome, the immune system, the brain, and more. That’s driving research, product development, and consumer interest in functional ingredients.”

Consider the obvious interest in immune health. According to FMCG Gurus’ March 2021 “How Has COVID-19 Changed Consumer Behavior?” report, 65% of global consumers claimed to be more conscious of immunity because of COVID-19.

Kerry’s 2021 global consumer survey reinforces their awareness. “We presented consumers with a list of health areas and asked them which were among their reasons for buying healthy-lifestyle products,” Quilter explains. The kicker: 58% percent of respondents identified immune support as a compelling purchasing factor, putting it ahead of healthy bones and joints, digestive health, heart health, and improved energy. “Four in 10 consumers had even used an immune-health product over the past six months,” Quilter notes.

Beyond immunity, “Consumers have grown more in tune with their mental and emotional wellness needs as they cope with the pandemic’s significant lifestyle shifts,” observes June Lin, vice president, global marketing, health and wellness, ADM (Chicago). Per FMCG Gurus’ 2021 survey, 48% of global consumers claimed to be more conscious of their mental wellbeing courtesy of COVID-19.

And while cognitive health—mental health’s brainier cousin—took a backseat to matters of mood during the pandemic, “Indications are that interest in cognitive health is bouncing back, and not just with seniors,” reports Ranjana Sundaresan, lead research analyst, Spoonshot AI (St. Paul, MN).

Spoonshot analysis shows that media references to cognitive health jumped 22% from January to September of 2021, compared to mental health’s jump of 16%. “In addition,” Sundaresan continues, “the concept of improving cognitive health is becoming important among new consumers, particularly those looking for focus and faster decision-making—students, gamers, athletes, and even office workers.”

One functional ingredient she suspects will catch on in this space is green-oat 

 extract, made from the immature aerial parts of the plant. Used for centuries in traditional medicine, it enjoys the backing of recently published clinical trials showing “significant positive effects on cognitive functions such as improved performance speed, executive function, working and episodic memory, attention, and quantitative function,” Sundaresan claims. Of interest to formulators, the extract is also water-soluble and “could potentially offer consumers alternatives to coffee or caffeine for helping them focus,” she adds.

Bedekar has also watched brain health, cognition, and even eye health ascend the priority ladder now that “working from home and long screen times have become the norm,” he says. As far as associated ingredients go, he notes that L-theanine, L-glutamine, choline, ashwagandha, 

ginseng all contribute to mental performance, while vitamins C and E, zinc, lutein, zeaxanthin, and omega-3 fatty acids show potential in formulations addressing eye health, he says.

Quilter notes that research is mounting vis-à-vis probiotics’ role in promoting cognitive health, mental wellbeing, and mood, adding that Kerry’s recent global survey showed that 25% of consumers had used a probiotic product over the past six months—up from 21% in 2019.

But cognition and mood are hardly probiotics’ only functional bailiwicks. “With holistic health top of mind,” Lin says, “consumers are increasingly aware that the gut microbiome is central to wellness. Our research finds that 58% of global consumers are aware that bacteria in the digestive system have potential benefits on overall health.”

Indeed, adds Sundaresan, “There’s a growing body of research showing just how important gut health may be for overall health, since it appears to impact so many parts of our body. We’re expecting to hear more about topics like the gut-brain axis, gut-lung axis, and oral-gut axis. Even immunity has a strong relationship to gut health.”

But with consumers focusing on their microbiomes—and seeking out probiotics to support them—Quilter stresses the importance of formulating with strains “backed by high-quality science.” Kerry’s spore-forming 

 GBI-30, 6086, strain, for instance rests on a research record of 25-plus published papers demonstrating its support for immune and digestive health, as well as better protein utilization

“And the development of resilient, spore-forming strains has allowed for the introduction of probiotic benefits into a much wider range of products than were previously available,” Quilter adds, “including everything from teas and coffees to muffins, nutrition bars, and peanut butter.”

But because not all probiotics are spore formers, many can still be finicky ingredients to handle. As such, “There will be greater focus in the coming years on the emerging class of postbiotic ingredients,” Sundaresan predicts, “to address some of probiotics’ challenges, such as heat sensitivity and safety.”

Case in point: HT-BPL1, the heat-treated postbiotic counterpart to ADM’s BPL1 

 CECT 8145 probiotic, can withstand processing conditions as harsh as the high heat of baking, Lin says.

“Ingredient solutions like these are becoming more important as people look for products with functional ingredients in convenient formats that meet their day-to-day needs and work with their lifestyles,” Lin notes. “More than ever, consumers want convenience, flexibility, choice, and variety.”

And brands are taking note. As Bedekar says, “Functional is everywhere these days. It’s not only in bars but has also expanded into a broader ‘healthy-snacking’ category. This includes cereals, bites, extruded snacks, and more.”

That said, the Ingredient Transparency Center’s 2021 Consumer Functional Food Survey of 1,000 U.S. consumers found that when asked about the specific use occasions where they’re most likely to be looking for a food with functional benefits, consumers surprisingly ranked snacks and beverages “well below the major meal occasions,” notes Traci Kantowski, communications director, Trust Transparency Center (Spring, TX), “indicating that consumers expect functional benefits at major meals, and that snacking is not strongly associated with products with functional benefits.”

Even so, Lewensztain remains unfazed. “I think bars will continue as one of the most popular functional-food formats,” he declares. “Especially as we begin transitioning back to on-the-go living, you can’t beat their convenient portability. However, I believe that supplements and whole foods in general will also continue gaining popularity and momentum.”

So, too, will foods that deliver a touch of fantasy to leaven their functionality.

“As the pandemic’s prolonged effects continue,” Lin says, “people are beginning to shift from impulsive to purposeful indulgences, seeking offerings that deliver rich, decadent flavors and textures as well as positive nutrition.”

Brands can check those boxes by “leveraging botanical, spice, and nostalgic flavors to elevate fortified snacks, bars, and confections,” she suggests. “The winter months, for example, provide opportunities for spices like cardamom and ginger, and classic flavors like vanilla and salted caramel. And botanicals like carob—which is sweet, and a great ingredient for adding fiber—can enhance products with flavor

It’s proof that good-for-you needn’t come at the expense of just-plain 

. “Our dark-chocolate truffles are a perfect example,” Lewensztain says. “They’re decadent and delicious but also vegan and made with only four ingredients. They don’t need all the dyes, added sugars, and unnecessary ingredients. It’s possible to make delicious comfort foods from natural, minimal inputs—and there’s huge opportunity for brands that recognize this.”

In fact, Lewensztain continues, “There’s so much opportunity for brands to innovate in this space. Consumers are looking for functional foods, and the brands leading the movement will feel that impact. But where there’s opportunity for brands to position themselves positively, that also comes with the responsibility not to mislead. If brands are doing their jobs and using clean ingredients, this won’t be difficult. It might even make their lives easier.”

Bacillus coagulans GBI-30, 6086 improves amino acid absorption from milk protein

Consumers’ growing search for brain health, immune health, mood support, and more will continue driving functional foods long after COVID-19.

Food to feel good about: Functional food prospects post-pandemic

 Best of the Industry awards this year, we are highlighting four winners for their contributions in 2021.

Our 2021 Industry Leader is NOW, whose testing of dietary supplement products sold on Amazon.com showed how one supplement company can roll up its sleeves to try to improve the state of the market. This is the second time 

 has named NOW a Best of the Industry award winner. Back in 2011, 

 for a rapid adulteration-screening method that the company shared with the rest of the dietary supplements industry. In 2011, the company set an example; 10 years later, it continues to lead.

Our 2021 Best of the Industry Ingredient Supplier is Seraphina Therapeutics for its groundbreaking work in odd-chain fatty acids and pentadecanoic acid. Seraphina’s story shows how innovation did not take a break, even in the most challenging of times.

In the Service Provider category this year, we are awarding the Botanical Adulterants Prevention Program (BAPP). Five years ago, 

 in our Best of the Industry awards. This year, BAPP celebrates its 10

anniversary educating and warning the botanicals industry about ongoing adulteration—a role that became additionally significant during the past two tumultuous pandemic years.

Finally, we celebrate Good Catch with our 2021 Best of the Industry award for Retail Brand/Product. Within the crowded plant-based alternatives market, Good Catch stands out for pioneering plant-based seafood.

Join us in congratulating our 2021 Best of the Industry award winners. Read their stories and listen to our December episode of 

 in which we take you beyond the page with one-on-one interviews with each of our award winners.

This year marks the 10-year anniversary of 

 Best of the Industry Awards. We can’t wait to see what excellence the next 10 years bring thanks to you, companies and individuals committed to making the natural products industry bigger and better each passing year.

Ingredient Supplier: Seraphina Therapeutics

Service Provider: Botanical Adulterants Prevention Program

In Nutritional Outlook’s 2021 Best of the Industry Awards, we recognize individuals, groups, and companies whose initiatives today are helping to shape, for the better, the state of the dietary supplement and natural products industry.

Nutritional Outlook’s 2021 Best of the Industry Award Winners

 clicked through the endless pages of dietary supplements sold on Amazon.com and wondered just how many of those products are junk? For good reason. This past summer, U.S. FDA 

 to Amazon CEO Andy Jassy warning him that nearly 30 sexual-enhancement and weight-loss supplements sold on Amazon that FDA tested contained “undeclared and potentially harmful drug ingredients.” FDA said it was “concerned” that Amazon’s “filters” for catching unlawful products were “inadequate.”

Not all problems with supplements on Amazon rise to the level of drug spiking, but that doesn’t mean they aren’t concerning. Some products might not contain the amount of active ingredient promised—or might not even contain the ingredient 

—cheating customers paying good money for a product they’re relying on to support their health.

These problems also risk the reputation of the entire dietary supplements industry, an unfortunate reality that keeps responsible supplement brand leaders—of which there are many—up at night. But has any supplement brand actually rolled up its sleeves to find subpar products on Amazon—and then launched a public initiative to share those findings with the entire dietary supplements industry, with Amazon itself, and last, but not least, with FDA?

NOW has. Starting in 2017, the family-owned giant, now in its sixth decade manufacturing its global line of dietary supplements and other products, began testing select supplement products sold on Amazon.com. Many of those products competed with NOW’s own. The company has since tested finished supplement products in some of the most popular categories, including 

“NOW has been testing products purchased on Amazon for several years before we began this strategic program that involved making the results public,” says Dan Richard, NOW’s vice president of global sales and marketing. “We first tested a variety of products in 2017 and did our first category group of CoQ10 products in March 2018.”

The company focuses on testing products from lesser-known brands, often containing ingredients known to be pricey. “We chose categories in which the ingredients are expensive so there is more incentive for the cheaters to cheat. We chose brands that are unknowns, which we guessed would have lower quality-control systems,” says Richard. “NOW did not test larger natural brands because our experience has shown that these brands are typically made with good quality and adhere to FDA’s cGMP requirements,” he adds, referring to current good manufacturing practices.

NOW has vested interest in testing products that compete with its own. “We also chose products that NOW sells, where we saw NOW sales declining on Amazon to ‘no-name’ brands,” Richard says. “Our motive is to level the playing field with equal-quality brands competing with branding and value. We feel that NOW can win when competing fairly.”

Evening the playing field is what drove NOW’s efforts from the start. “Like many manufacturers, from time to time we do quality checks on many brands in the marketplace. It was obvious to us that many of the products sold on Amazon in the higher-priced categories, from brands no one ever heard of, could not possibly be what they claimed on the label. It was also clear many of them were not following the cGMPs as required by law,” Richard explains. “It was enraging, really, to see these unknown brands cheating customers and taking sales from legitimate brands that invest in quality and regulatory compliance. After several rounds of testing just to satisfy our curiosity confirmed our worst suspicions, we decided to strategically test more products in specific categories and share the results with the industry, Amazon, and FDA.”

NOW shows how an industry leader can expose bad products in the dietary supplement market, raise public awareness, and make a difference.

Nutritional Outlook Vol. 24 No. 10

Add to cart: Ingredient suppliers head online

Let them eat cake: Better-for-you claims on sweet treats such as baked goods and confections are an added value that may be too good to resist

The road to regenerative agriculture: Why we can’t turn our back

Food to feel good about: Functional food prospects post-pandemic

Nutritional Outlook’s 2021 Best of the Industry Award Winners

Nutritional Outlook’s 2021 Best of the Industry Awards, Industry Leader: NOW

Nutritional Outlook’s 2021 Best of the Industry Awards, Ingredient Supplier: Seraphina Therapeutics

Nutritional Outlook’s 2021 Best of the Industry Awards, Service Provider: Botanical Adulterants Prevention Program

Nutritional Outlook’s 2021 Best of the Industry Awards, Retail Brand/Product: Good Catch Foods

Bright future for beverages? Why functional drinks are likely to grow post-pandemic