Functional Ingredients


“In addition to capsules, ashwagandha is also being added to newer applications including jellybeans, oral melts, oral strips and lozenges”


live decades or even centuries. This makes them a highly sustainable, yet low-maintenance crop. “We have conducted extensive fi eld research to attain a


full analysis of domestic trees and identify the most fruitful carob varieties, as well as optimum growing conditions. Our carob offerings are also fairtrade,” they add.


Cost factor The cost of functional ingredients can vary depending on factors such as sourcing, production methods, availability, and demand. Some functional ingredients may require specialised extraction or processing techniques, which can increase their production costs. Additionally, if the demand for certain functional ingredients is high or if their availability is limited, it can further drive up the cost. However, prices of raw sugar and cocoa touched 10-year


and seven-year highs respectively in April 2023, The Smart Cube reports, due to tight supply and rising demand for both commodities; meaning the move to functional and more natural ingredients may be the way forward. Nidhi Jain, Associate Specialist at The Smart Cube,


comments on what has caused the prices of these commodities to surge, as well as the impact this is set to have on the confectionery industry: “Sugar output has largely been impacted by variable weather conditions. In India, the likely fall in sugar production for the marketing year 2022/23 can be attributed to lower yields, as the key producing states were affected by unseasonal rain. In turn, this saw lower cane availability, causing early closure of sugar mills in the country. “Meanwhile, sugar output in China is estimated to drop


due to dry weather in the key sugarcane-producing province of Guangxi. Although Brazil is expected to witness a bumper crop this year – up 15 per cent YOY – ongoing logistical bottlenecks and supply chain issues are restricting sugar shipments from the country. Furthermore, rains have delayed sugarcane crushing in the country. “Energy prices are also expected to rise which could sustain


the price hikes, particularly regarding sugar. A bullish price forecast for Brent crude oil prices amid supply uncertainty following OPEC+ members’ surprise production cut of 1.16 million b/d (from May until the end of 2023) may help the upward trend in sugar prices, in addition to the limited supply of sugar. A rise in Brent crude oil prices encourages cane diversion towards ethanol production and restricts sugar supply. Furthermore, higher Brent crude oil prices will also increase transportation costs. “As sugar and cocoa form key ingredients for most


12 Kennedy’s Confection May 2023


confectionery items, price increases for these ingredients are anticipated to affect input costs of confectionery products, increasing the cost for consumers. For instance, sugar accounts for around 7 per cent of the total raw material cost in a chocolate muffi n, while cocoa’s cost share will be approximately 20%. “Short- to medium- supply


term


constraints are anticipated to keep


cocoa


p r i c e s h i g h , wh il e sugar


prices m a y d r o p when the Bra zil ian crop


enters


the market in the next one to two


months,


although sugar prices will still be high compared with the historical averages.”


Clean label opportunities Most of the new innovations are made with fat-free, sugar-free functional ingredients to support the confectionery products that aim to be positioned as being low in sugar, fat, and calories. The new sweeteners are usually cleaner and can shorten the ingredients list on the label. CarobWay explains: “Clean label refers to the use of simple


natural ingredients that consumers will recognise. Functional ingredients that are sourced from ancient sustainable crops instead of ‘factory produced’ ingredients will enhance the


KennedysConfection.com


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