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Outlook 2022: Botanical extracts

Source:FoodPacific Manufacturing Journal Release Date:2022-01-11 2686
Food, Beverage & Personal CareFood & BeverageFood & Beverage Ingredients
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Arianto Mulyadi of Indesso talks about the growing botanical extracts market and the latest products from the company.

Raw material supply and price concerns restricted the growth of the global botanical extracts market in previous years, but consumer shift to healthier products has been shoring up the industry in recent months. The health and wellness trend, which picked up pace even more this pandemic, is also reshaping consumption patterns as more users veer away from synthetic products (amid greater awareness about their negative effects) toward natural alternatives that deliver more nutritional benefits.

 

PT Indesso Aroma, a world leader in clove oil and essential oils and their derivatives, believes Indonesia with its rich biodiversity can play a key role in the global botanical extracts segment. Asia, after all, remains one of the largest markets, if not the largest, for botanical extracts worldwide. The region’s rich supply of raw materials and the growing number of manufacturers of plant extracts have been crucial in fuelling the industry. The rise of functional foods and vegan F&B products is also spurring manufacturers to invest in more natural ingredients.


 

The Asia Pacific is expected to post the fastest growth in the global botanical extracts market, which itself is forecast to continue expanding despite the economic slowdown in many countries. Projections from MarketsandMarkets place the global botanical extracts industry at USD6.03 billion by 2022 at a CAGR of 9.0% mostly on the back of increasing demand for natural flavours in food applications.

 

While sustained market growth will push the market to USD1006 billion by 2028, according to Meticulous Research, at a CAGR of 9.2% from 2021.  

 

Arianto Mulyadi, Indesso’s corporate communications and sustainability director, sees steady evolution in this market. “People across the different countries have been adding botanical ingredients to foods and beverages for their health benefits. This has been a practice for so many years, except that in the past the technology was not as sophisticated. As the food and beverage industry evolves and manufacturers have access to better technologies and methods, there will be more innovative ways to develop products based on botanical extracts and with even better benefits for a wider array of applications,” he said.

 

Double-encapsulated botanical extracts for F&B 

Indesso’s range of double-encapsulated products from botanical extracts and essential oils under the Naturarte family, a portmanteau of Natural, Art and Technology, can be used for many applications such as nutritional goods, bakery items, snacks, and powdered and RTD beverages.

 

With its expertise in food ingredient manufacturing, Indesso adopts advanced extraction and spray drying technologies to encapsulate the natural extracts of herbs, spices, flowers and fruits from natural sources such as ginger, turmeric, lemongrass, rose, lavender, orange, guava, apple, yuzu and bergamot. Because the Naturarte range uses natural ingredients, it has high nutritional values and boosts the aroma and taste of the product it is applied to.

 

The range comprises Floralarte, which offers extracts from chamomile, geranium and lavender; and Fruitarte, which consists of products from extracts of apple, bergamot, kaffir lime, lemon, lemongrass, orange, pink guava, strawberry and yuzu. The Spicearte family includes products made from extracts of black pepper, cassia, coffee, ginger, nutmeg, pandan, red ginger, salam leaf, temulawak and turmeric. 

 

Naturarte uses Indesso’s double encapsulation technology to protect delicate and volatile molecules from oxidation and other factors such as temperature, light and humidity. The products, which come in powder form, are water-soluble and shelf-stable at room temperature.

 

“Spray drying produces high-quality products and maintains micro biosafety without losing active ingredients. This has enabled us to achieve a shelf life of up to two years for the Naturarte product line,” said Mulyadi.

 

Gingerarte, one of the popular categories in the Naturarte line, is an encapsulated form of ginger and based on red or fresh ginger extracts and oil.

 

“Gingerarte provides the benefits of ginger in a form that is easy to use for different applications. We all know that ginger is widely used for cooking and medicinal purposes. Besides its anti-inflammatory benefits, It reduces blood sugar, boosts immunity, treats nausea and digestive problems, and even prevents cardiovascular diseases,” Mulyadi shared.

 

Ginger is among the top medicinal plants produced in Indonesia, and remains a strong focus for many, according to Mulyadi. But he said the list of rhizomes produced in the country continues to grow and includes turmeric, Java cardamom and galanga.

 

Bolstering Indonesia’s botanical extracts market

Indonesia is among the world’s biggest growers of several key agricultural products. In 2020, the country ranked third in cocoa and vanilla production and fourth in coffee. It was seventh in tea production.  

 

“In these four categories alone – cocoa, coffee, tea and vanilla – Indonesia plays an important role in the global F&B industry. But being a biodiversity hotspot, Indonesia also has a huge potential in the botanical extracts market and the capability to meet global demand,” said Mulyadi.

 

As a leading food ingredient manufacturer for various industries, Indesso provides products with sustainable, natural-based ingredients toward also boosting the Indonesian market in the global arena. Indesso currently provides a diverse range of essential oils, aroma chemicals, extracts and seasonings for use in food, flavourings, fragrances, aromatherapy, cosmetics and pharmaceuticals. 

 

The company continues to improve its processes to yield better results. Its supercritical fluid extraction with CO2 technology, for instance, besides being environment-friendly, is able to obtain active ingredients with authentic results and without leaving harmful residues, resulting in extracts with a more complete profile.

 

Indesso’s latest extraction technology – wave vibration and pressurised hot solvent extraction – can boost the yield of active ingredients.

 

Broadening application, industry range

Extracts serve the F&B industry in many ways, providing authentic flavour and character, preventing sedimentation, and contributing to better product consistency and efficiency.

 

“With natural products being in such strong demand these days and the natural claim expected to a remain a major purchasing consideration, botanical extracts used in F&B products will enable manufacturers to say and position their products as being indeed natural,” said Mulyadi. 

 

Mulyadi shared that botanical and herbal product categories have been experiencing fastest growth in recent years, with a fifth of global product launches capitalising on the health and wellness benefits and the natural claim. Products that help users feel better or relax better are gaining traction in the Asia Pacific. 

 

COVID-19 has changed not just the market but consumer behaviour itself. End-users are now more aware about the importance of health and wellness and they prioritise these in the products that they buy. In their pursuit of a healthier lifestyle, consumers want a healthy diet, regular exercise and quality sleep, and they look for products that help them achieve all these,” he added.

 

Indesso acknowledges this is even more evident in the food and beverage industry, with more consumers looking for naturally produced items that have nutritional benefits and promote wellness. “They look for specific health benefits such as antioxidants and improvement in digestive functions. We must continue to innovate not only to meet the growing demand for products with these features but also, and more importantly, to be proactive and anticipate future needs,” said Mulyadi.

 

This is why Indesso is also looking to other areas where botanical extracts are starting to gain traction.

 

“In recent years, botanical extracts have been increasingly used for nonflavouring purposes, and products in these categories have been rising in popularity,” Mulyadi said.

 

Indesso sees botanical extracts as potentially bridging the gap among food, pharmaceuticals and cosmetics as products increasingly cut across these segments.

 

“Botanical extracts for nutraceuticals, nutricosmetics and cosmeceuticals applications could increase in volume in the years ahead as more consumers demand health and wellness benefits across different product categories, including products that they use on their skin, for example,” said Mulyadi.

 

With the prospects of new market segments for botanical extracts, Indesso notes the importance of pursuing new product development to create new categories and broaden not only its product portfolio but also market reach. The company itself has been expanding and reinventing itself to adapt to market needs and prepare for the the future. From distilling clove leaf oils, Indesso extended its manufacturing business to food ingredients in 1994 by producing botanical extracts. It continued strengthening this line by building an additional extraction plant, installing spray drying equipment, and innovating in extraction technologies and processes.  

 

“To be able to pursue our vision of being a regional and global leader in ingredients for the food, flavour and other industries where we have established a market presence, we know that we need to continuously invest in innovative technologies, improve our manufacturing and products, and see other areas where our products can make a difference. We also know that we need to practice sustainability across our supply chain,” Mulyadi shared.

 

Working directly with Indonesia’s farmers and their communities for its raw materials, Indesso knows the need for responsible sourcing programmes and providing transparency and traceability of raw materials. Besides working with the communities to improve their way of life, the company collaborates with universities to explore ways to achieve sustainability in manufacturing. To reduce its carbon footprint, Indesso uses alternative renewable energy and was, in fact, the first aromatic and food ingredients company in Indonesia to implement a large solar PV system. It also recycles water, implements zero-waste production and promotes afforestation in surrounding plantation areas.

 

“Consistent with our commitment to develop natural products, we actively work toward achieving sustainability across our business processes and supply chain. This is the only way to continue growing,” said Mulyadi. 


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