Food Ingredients
Feature:
New Developments in the Food Ingredients Business
Prinova, a company engaged in the sale and processing of U.S. food ingredients and which possesses a global network, was joined to the NAGASE Group in 2019, propelling NAGASE’s overseas expansion of the food ingredients business in a major way. A new Food Ingredients Department was launched in April 2020. We will pursue synergy between Group companies such as Nagase ChemteX Corporation, which has processed enzymes for food ingredients, and Hayashibara Co., Ltd., which became a subsidiary in 2012, and accelerate business development.
Ⅱ. Action
Target Food Ingredients Markets of the NAGASE Group
1. Expansion of Food Additive Lineup
Through Prinova’s participation in the NAGASE Group, our food additive lineup will be largely expanded, allowing for even greater business opportunities in the near future.
Up until now, the NAGASE Group has developed business in fields such as enzymes, manufacturing agents, preservatives, thickening agent and stabilizer mainly in Japan through collaboration with Nagase ChemteX and Hayashibara. The domestic food additive market is said to be roughly ¥300 billion. Yet globally, the market is expanding to roughly ¥4.7 trillion. Moving forward, we will accelerate business in the global food additive markets, including those markets in which Prinova is already developing.
Food Additive Market Overseas: ¥4.7 trillion Domestic: ¥300 billion(Source: IHS Markit)
2. Global Expansion of Premixes
The premix market, which supplies blended food ingredients, is currently said to be around ¥160 billion. Further global expansion is anticipated, as the market is expected to reach ¥230 billion in 2027.
At the NAGASE Group, for now we will focus on the nutrition business, including sports nutrition, with a focus on Prinova, and aim to expand our market share. In terms of each region, we intend to expand business in Latin America, China, and Southeast Asia. Following that, we will develop premixes with processed foods such as baked goods in China and Southeast Asia.
With regard to sports nutrition, we are also taking initial steps in the Japanese market. Moving forward, we will develop Japan’s sports nutrition market in collaboration with Hayashibara and Nagase ChemteX.
CitraPeak™, a New Product Made Possible by Group Synergy
Glucosyl Hesperidin, which is manufactured and sold by Hayashibara, has been proven to improve blood flow, which is why in Japan it is mainly used as a supplement to treat cold sensitivity. This effect was combined with the knowledge that Prinova accumulated in the field of sports nutrition to create CitraPeak™, a sports nutrition ingredient that increases body heat and enhances performance by ingesting it prior to exercise. Development was launched in the U.S. in late 2019.
Developed at Overseas Application Laboratory
In 2019, the NAGASE Group established a laboratory in Xiamen, China as a base to globally develop its food ingredients business. Then in 2020, it established a laboratory in Singapore as a base to provide solutions using the NAGASE Group’s food ingredients. We develop recipes and applications to meet the unique needs of each region and advance business around the world.
3. Outlook of the Food Ingredients Business
Recent sales for the NAGASE Group’s food ingredients business are nearing ¥130 billion (Estimated scale for the fiscal year ending March 31, 2021). However, in the next five years we intend to expand our business scope by expanding products, enhancing application development, expanding manufacturing functions, and focusing on growth markets.
Outlook of NAGASE’s Food Ingredients Business
Integrated Report 2020
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