Demand for infant formula containing SN-2 palmitate – an ingredient that mimics the fatty acid profile in human milk – has soared over the past decade and will continue to grow, Advanced Lipids says.
Advanced Lipids markets and sells INFAT®, a SN-2 palmitate fat ingredient that allows formula manufacturers to offer many benefits that are closer to mother’s milk.
INFAT® was clinically proven in several studies done both in Israel and China to increase fat and calcium absorption, improve bone matrix quality, improve stool consistency, and have a positive effect on the development of the intestinal microbiome. It was also shown recently to improve baby’s well-being and the quality of life of their parents by reducing crying time and increasing sleep duration.
The company, a joint venture between Enzymotec and AAK, is celebrating its tenth anniversary this year. At the end of 2007, when Advanced Lipids was founded, five infant formula brands incorporated INFAT®. Today, that figure has risen to over 150.
The global market for infant formula has almost tripled since 2006 and currently has a retail value of over $40 billion, with China accounting for 45% retail value (Euromonitor international, September 2016). Consumers in China place a premium on quality and have high awareness of the benefits of SN-2 palmitate.
Ronald van der Knaap, CEO of Advanced Lipids, said: “In 2007 Enzymotec and AAK made the decision to join forces. As a company that is looking into improving infant nutrition, we saw a great opportunity in this game-changing ingredient that supports formula manufacturers to replicate the benefits of mother’s milk as closely as possible. Over the past decade we’ve been part of huge growth in the infant formula market and witnessed soaring demand for high-end products containing SN-2 palmitate.”
Advanced Lipids believes regulatory and demographic changes in China will lead to further growth for the formula market, particularly for premium products containing SN-2 palmitate. The recent relaxation of the country’s decades-old single child policy has become a two-child policy, sparking a mini baby boom. Meanwhile new market regulations have put greater emphasis on quality.
Dr. Marcus Gliwitzki, Chairman of Advanced Lipids added: “Demand for infant formula in China has soared, and the signs we get from the market indicate that growth will continue. However, companies are now facing a tougher market where consumers and authorities both demand high standards. Over the next ten years, the focus will be on high-quality formula which contains ingredients such as INFAT®. Advanced Lipids will also put a strong focus on developing innovative INFAT® solutions in the coming years.”