New Trends in Functionalizing Food-Adjacencies: Unlocking Human Health Potential

Words By Emily Smith |

Spread the love

 

Words by yet2 CEO Tim Bernstein 

Functionalizing food is not a new idea. However, this year, yet2 is seeing a new cycle of innovation in latest ingredients and new food formats.

The key to this new cycle of functionalizing food adjacencies, lies in developing food formats that not only enhance consumer health care delivery but also maintain sensory standards and compliance with regulatory standards.

Sensory experience can be both a barrier and an enabler; the introduction of functional ingredients often degrades sensory quality, making innovation in this area crucial. Brands are pushing traditional boundaries by incorporating sensory elements like popping, snapping, and enhanced mouthfeel to unlock the full potential of functional benefits. This also counteracts any sensory degradation due to the introduction of functional ingredients, for example supplemental food having health benefits but tasting like chalk.

We have clients in both spaces, consumer product companies and consumer health companies, interested in this innovation. Partnering with industry giants like Mondelez International (MDLZ) and Suntory, our clients are at the forefront of transforming food, beverage, vitamins, minerals, and supplements, and oral care products to deliver enhanced health benefits.

 

Cross-Innovation: The Future of Functional Foods

The trend towards functional foods is not just about adding vitamins and minerals to existing products. It represents a broader shift towards cross-innovation, where different industries collaborate to create new, health-enhancing consumables. yet2 is blessed and excited to be able to see this step change innovation from both sides, between traditional food and beverage companies and the burgeoning field of functional medicine.

As consumer demand for health-enhancing products continues to rise, the food and beverage industry and consumer health industries are poised for significant transformation. It is fascinating to see two large industries like this seeking common ground to deliver health-beneficial nourishing foods.

Recently, yet2‘s client was searching for novel fermentation technologies to develop next-generation fungal strains, particularly in the food and beverage space. The goal was to leverage precision fermentation to create sustainable, traceable ingredients like proteins, fats, and carbohydrates, addressing underserved market needs. This initiative emphasized collaboration with experts in food/protein chemistry and microbial strain development, aiming to co-develop innovative food and beverage ingredients.

yet2’s work in this space involves extensive collaboration with companies across various sectors. The last cycle of interest in this topic was about 6-8 years ago. With increasing demand pull from millennials, and with technological innovations we are seeing a spike in this innovation interest today.

We see that the regulatory landscape seems to be trending more challenging in the last 18 months and projected in the next couple of years, for those clients who want to make health claims unlabeled.

For instance, yet2 has collaborated with companies to develop health-functional gummies and with others to integrate systemic health benefits into oral care products. These projects aim to deliver health-enhancing attributes in non-over-the-counter (OTC) products, making everyday items more beneficial to consumers’ health.

One of our clients was seeking a partner to develop and manufacture a medicated antacid-based chew or gummy, with the goal of bringing these innovative products to market. Ideal partners had to operate within the EU OTC medical device or medicine regulatory framework, as companies focused solely on food supplements were not suitable. While the antacid of primary interest was calcium carbonate, other antacids with equivalent neutralizing capabilities were also considered.

yet2 is hearing from both food and health companies a renewed interest in delivering functionalized gummies, and thus we see both sides exploring next-gen technologies to overcome previous hurdles. Some of these hurdles they are tackling now include shelf stability, bioavailability, manufacturing complexity, and taste masking, and other sensory concerns.

These efforts underscore the depth of innovation trying to merge food and functional medicine, creating products that meet the growing consumer demand for health-enhancing consumables.

 

The Functional Food Revolution

Functional foods are no longer a niche market; they are rapidly becoming mainstream. Kraft Heinz recently launched its Crystal Light Immunity and Energy product lines, capitalizing on a growing consumer demand for functional benefits, which surged by almost 50% in 2023. While Kraft Heinz is not going all the way to health claims, they are moving in the direction of health benefits with Zinc, Vitamin C, and caffeine.

PepsiCo’s Gatorade brand and tea brands such as Celestial Seasonings and Twinings are also expanding into functional products, introducing gummies and teas designed to support immune health and improve sleep quality. These innovations reflect a broader trend in the food and beverage industry towards products that offer tangible health benefits beyond basic nutrition.

More client examples:

 

Overcoming the Hurdle of Sensory Experience and Customer Perception: Enabling Functionalizing Food

These innovations are designed to not only improve the immediate enjoyment of food but also leave a lasting positive impact on consumers’ mood and overall perception after consumption. The growing demand for such features is evident, as companies report increasing requests for out-of-the-box solutions that merge sensory elevation with health benefits.

Collaboration between the food and consumer healthcare industries is becoming increasingly important as companies are learning from each other to develop delivery platforms that offer benefits beyond conventional formats.

Interest in neurodesign and psychology for food and product design has resurged. Emerging precision tools such as EEG, fMRI, and advanced eye tracking are offering deeper insights into consumer reactions.

AI/ML is being used to analyze data patterns, while tactile cues in packaging and environmental factors are increasingly recognized as important influences on both food preference and purchasing behavior. Additionally, neurodesign principles are being leveraged to encourage healthier eating habits, with rewards and emotions like sweet taste linked to positive brand perceptions.

For example, natural ingredients like kiwi are being explored as functional food components with the potential to support weight loss and serve as companions to traditional medications. Backed by rigorous clinical data and scientific claims, these products are poised to address consumers’ growing interest in sustainable, natural solutions that align with regulatory standards.

In addition to these advancements, companies are exploring new platforms that improve the speed of delivery, taste masking, and portability. The ability to offer formats that are easy to consume—especially for children and older adults—while adhering to regulatory standards is key to the future of functional foods.

For example, with one client we saw that they wanted to use ice-cream as a delivery model that promoted mood-boosting properties, leaving a memorable and lasting experience long after consumption. Isn’t sugar already the ultimate mood-booster? In all seriousness, our client had serious intent.

This convergence of food science, healthcare innovation, and consumer demand is driving an exciting new era in the industry. Yet regulation remains a challenge to overcome in functionalizing food adjacencies.

 

Navigating Regulatory Challenges: The Importance of Non-Published Data

 The global regulatory landscape for functional foods and beverages is complex and constantly evolving. Companies we work with must ensure that their products not only deliver the promised health benefits but also comply with stringent regulations. This involves rigorous scientific validation and proof of concept. For OTC companies, this is core to their innovation capabilities.

Thus, the food and beverage companies we’re seeing enjoying initial success are all partnered with willing OTC partners. An interesting further note, with scientifically backed innovations, yet2 helps our partners greatly increase their success rates, bringing regulation ready products to market.

Access to non-published data is crucial in this innovative landscape. For example, yet2’s databases of non-published innovations allow us to develop scientifically promising functional food ideas. yet2 can develop scientifically promising functional food ideas and reach out to both consumer and OTC companies to explore viability.

PepsiCo was exploring the development of postbiotics derived from plant-based fermentations, focusing on sources like oats, rice, beans, and potatoes, using organisms such as lactic acid bacteria, yeast, and fungi to support functional gut health claims. As postbiotics are an emerging field with limited scientific validation, PepsiCo was seeking innovative methodologies to address several challenges.

These included identifying postbiotics with gut health benefits, establishing and validating metabolite screening methodologies, and ensuring batch-to-batch consistency in postbiotic production. They were also looking for strategies to conduct pre-clinical studies to support the functionality of these postbiotics.

Mondelez is actively exploring health-focused ingredients and technologies for integration into food products. They have initiated discussions with a co-creator on encapsulated actives for health and supplements, with potential applications in gum.

Sanofi is also investigating next-generation bioactive ingredients, particularly through fermentation and food-based actives. They are exploring how berry-derived actives might be incorporated into their portfolio.

Some other recent anonymous examples from both OTC and consumer clients:

  • Antihistamines in gummy format: rapid-relief chewable gummy format. [OTC company]
  • Exploring the use of food as a vehicle for delivering OTC drugs to address food sensitivities. [OTC Company]
  • Water-soluble dietary fiber which regulates intestinal microbiome, bowel movements, and blood glucose, anti-inflammatory [food and beverage company]
    • Colorless and odorless meaning it can easily be incorporated into foods, such as rice and udon noodles
  • Edible ingredients and supplements in ingestible forms that promote a variety of skin care benefits: hydration, stronger skin barrier against aggressions (UV, cold, bacteria, inflammation), etc. [consumer company]
  • Ingestible/edibles commercialized products with clinically documented oral care benefits (claimed and/or published) from start-ups and corporations. [consumer company]

 

Example Requirements:

  • Have clear path to regulatory approvals in key markets
  • Solutions must be backed by solid science (clinical studies)
  • Be able to deliver in multiple formats (capsules, chewables, liquids, lozenges, etc.)
  • Be available in high volume at a cost acceptable for food use
  • Have reliable quality and a sustainable source
  • Can be sourced from trusted regions
  • Have good physical and sensorial appeal

 

Conclusion

We see this activity in functionalizing food-adjacencies highlights the unique potential of cross-innovation to meet the evolving needs of health-conscious consumers. Sensory perception and stringent regulations are the main hurdles to overcome. By blending consumer and OTC companies, yet2 sees a future where everyday products contribute to better health outcomes. As the industry continues to innovate, we are excited to help play a role in it.

 

 

Image by Bing AI

 


Spread the love