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Citrus flavours are beloved for their refreshing zest, versatility, and ability to invigorate the senses. Consumers are drawn to them not only for their familiar taste but also for their perceived health benefits, with rising demand for natural citrus flavours driven by the clean-label trend.

Orange continues to be one of the most widely consumed citrus flavours in the world, yet despite its popularity, the global orange oil market is facing significant supply challenges due to factors such as crop shortages, poor fruit quality, and climate-related disruptions.

As demand for natural products continues to grow, driven by widespread use in food and beverages, cosmetics, and cleaning products, orange oil prices are expected to increase over the next 3-5 years.

In response these challenges, Flavorchem, a global flavour and ingredient supplier, developed taste mod™ orange, an innovative line of orange oil replacers, offering the zesty taste of citrus at a more affordable price.

“Our sweet orange oil replacers have been applied in easy-to-use flavour forms specifically designed for beverages,” says Niki Hernandez, Senior Manager Flavour Development. “Available in extract, emulsion, and spray dry forms, it comes in both TYPE and WONF versions and meets specific regulatory requirements.”

Flavorchem’s expertly crafted sweet orange oil replacers offer the bright, refreshing flavours your products require, while ensuring consistency, cost-effectiveness, and sustainability that today’s market demands. Taste mod™ orange delivers an authentic, true-to-fruit Valencia Orange flavour, labeled as “natural flavour” and ideal for clean-label products. Perfect for a wide range of beverage applications, it provides a reliable, high-quality alternative to traditional orange oils.

Capsoil Foodtech’s innovative platform converts bioactive oils into water-soluble powders

Product developers can now create new categories of functional foods and beverages thanks to Prodalim Resources, Ltd.’s new Capsoil Foodtech. The company advanced the capacity for mixing oil and water by developing ultra-fine, water-soluble powders out of natural oils. This breakthrough presents new possibilities for integrating beneficial nutritional oils, fat-soluble vitamins, and lipid-based nutrients into a broadened range of functional foods and beverages, as well as in new supplement formats.

The market for functional foods and beverages has grown exponentially as health and wellness have taken central stage, especially in the wake of the pandemic era. Concurrently, growing “pill fatigue” has consumers seeking their daily nutrient boosts more naturally through foods and beverages. However, beneficial oils such as omega fatty acids, MCT’s (medium-chain triglycerides) and fat-soluble vitamins A, D, E and K, have traditionally been confined to a narrow scope of food and supplement applications due to their lipophilic nature. Such nutrients also suffered from stability issues.

“Oil and water cannot mingle according to the laws of nature,” explains Itay Shafat, PhD, Scientific Director for Capsoil. “In Capsoil, we found a way of overcoming this barrier and created an advanced method for incorporating oil-based nutrients into water-based products. This opens the doors to products such as juices enriched with MCTs or ice pops fortified with omega fatty acids. Even hot drinks can get a ‘better-for-you’ upgrade by infusing them with beneficial oils, such as vitamins A, D, E, and K, or hemp oils. The possibilities are endless.”

Capsoil’s proprietary technology takes any oil compound and converts it to a self-emulsifying powder. Unlike conventional powders, this novel process results in a dry, free-flowing powder that dissolves easily in either hot or cold liquids.

Capsoil’s advanced production technology does not apply any form of extraction, solvent, or heat process, nor does it alter the nutrient profile of the oil. Capsoil powders contain from 30 % to 60 % of the oil and its bioactive compounds, and the emulsion’s nanostructured particles possess a large surface area, enhancing bioaccessibility and absorption of the encapsulated oil, leading to improved bioavailability. This can also translates into lower dose requirements.

“We are working with food and beverage companies to help them tailor new food and beverage applications, or find new novel delivery methods, for desired food oils or key fat-soluble nutrients,” adds Shafat.

Capsoil’s tech also targets the dietary supplement space, giving the formulators new capabilities for incorporating lipid-based ingredients such as omega 3 into dry pill, capsule, or sachet formats rather than as an oil or softgel.

“Many consumers find it difficult to ingest omega fatty acids in oil form, or they dislike the texture of soft gels,” states Nir Ilani, CEO of Capsoil. “Consuming high amounts of MCT’s, a key component of the keto diet, is also burdensome for many consumers. Our tech allows for oil-based ingredients to be enjoyed in low, manageable doses and easy-to-digest formats.”

“We trialed a broad spectrum of Capsoil powdered oils in various water-based applications, assessing such key parameters as bioavailability and stability of the actives with very encouraging results,” adds Shafat. “Further clinical trials are in the pipeline that will allow our innovative powdered formats to open the doors to new advances in functional product diversity.”

Capsoil FoodTech was established by Prodalim Group, one of the world’s leading producers of natural fruit extracts and concentrates (NFCs), as well as other natural ingredients for the F&B industry. Nir Ilani, who previously worked for Unilever, Frutarom, and IFF, along with Itay Shafat, PhD—a seasoned veteran of the dietary supplement market—were recruited to lead the new venture. The company’s R&D center is based in Israel, with production facilities in the US.

By acquiring Isobionics, an innovation leader in biotechnology which is serving the global market for natural flavors and fragrances (F&F), and through a cooperation agreement with Conagen, a leader in biotechnology research, BASF enters the market for natural F&F ingredients. Being known as a leading supplier of synthetic aroma ingredients, the company now broadens its portfolio with natural ingredients such as vanillin, nootkatone and valencene. BASF intends to advance the technology for biotech-based aroma ingredients by combining its own R&D excellence and broad market access with the know-how and expertise of Isobionics and Conagen.

“Reflecting the potential of changing consumer habits and the scarcity of natural ingredients, the strengthening of our biotechnology footprint is at the heart of BASF’s strategy,” says Melanie Maas-Brunner, who leads BASF’s Nutrition & Health division.

Acquisition of Isobionics

“The Flavor & Fragrance industry is experiencing an increasing need for natural ingredients,” says Julia Raquet, who heads BASF’s Aroma Ingredients business. “But fluctuating product quality, availability and sustainability are constant challenges for our customers. By entering the market with biotechnology-based aroma ingredients, we intend to provide our customers with high-quality products to respond to the current market challenges.”

“BASF is known for its high-quality standards, traceability and excellent regulatory know-how,” says Toine Janssen, founder of Isobionics. “By combining our biotech-based product portfolio and strong development pipeline with BASF’s expertise and its global market reach, we can provide the natural aroma ingredients market with even more innovations – and boost our growth.”

Isobionics is a biotech-based aroma ingredients company, located in Geleen, the Netherlands. The company develops and produces a wide range of natural ingredients for the F&F market with a focus on citrus oil components such as nootkatone and valencene. Isobionics, with all its employees, will become part of BASF’s Aroma Ingredients business.

Cooperation agreement with Conagen

Besides acquiring Isobionics, BASF signed a cooperation agreement with Conagen, a research leader in the field of biotechnology. Through this partnership, BASF will be able to serve the market with natural vanillin, one of the aroma ingredients with the highest market demand.

The natural vanillin that BASF initially markets is based on ferulic acid sourced from rice and therefore named Natural Vanillin F. With its clean vanillin character, Natural Vanillin F is ideal for all flavor applications, such as chocolate, strawberry and caramel, while maintaining an “all-natural” labeling.

Conagen has strong R&D and commercialization capabilities for fermented ingredients. Fermentation is an ancient cultural technique well known from processes like brewing beer and baking bread. It uses microorganisms like e.g. bacteria or fungi to convert one substance into another.

BASF’s Nutrition & Health division furthermore recently established a global business unit dedicated to the research and production of enzymes, which can be used as natural processing aids or ingredients for a large variety of applications in food, feed and technical industries.

Following the news that medicinal cannabis products are to be legalized, Aleksandrina Yotova, Consumer Analyst at GlobalData, a leading data and analytics company, offers her view on the likely impact in the drinks market:

‘‘This change in legislation for medicinal cannabis will spur further growth in the Cannabidiol (CBD) market in drinks, an increasingly popular legal form of cannabis.

‘‘CBD is a marijuana extract, which is not considered a controlled substance in the UK, and is therefore 100 % legal – as opposed to the psychoactive chemical Tetrahydrocannabinol (THC).

‘‘CBD has recently started to gain traction in the UK market as a functional ingredient in drinks. As CBD is non-psychoactive and there is a widespread belief in its medical value, it will keep rising in popularity, especially among consumers wanting to relax while remaining sober.

‘‘Holland & Barrett has been selling CBD oil as a food supplement since the start of 2018. The retailer has recently reported stable and growing sales of the format. Consequently in June, Holland & Barrett launched Love Hemp Water, a functional spring water infused with CBD. We expect to see more brands moving into this space.

‘‘Cloud 9 Brewing, a craft beer producer in the UK has recently launched its High Flyer Session IPA with Cannabis Oil Extract, marketed as offering “blissfully elevated drinking experience” and containing 0 % THC. A 330 ml bottle contains 10 mg of CBD extract, obtained from organic Cannabis Sativa.’’