Rewind two years, and astaxanthin was the hottest nutraceutical in town, with sales “skyrocketing” following a slot on Dr Oz in which Dr Joseph Mercola described the potent red antioxidant as the “number one supplement you’ve never heard of that you should be taking”.
But has the novelty worn off, or is astaxanthin
still red hot? And what’s driving sales of the ‘king of carotenoids’?
Continued interest in its free-radical-busting credentials, or more
condition-specific claims driven by the latest science?
Consumers in the US aren’t buying astaxanthin for its antioxidant power
Given
how overcrowded the antioxidant market is, the trend is going in the
condition-specific direction, agrees Bob Capelli, VP sales and marketing
at Cyanotech, which grows astaxanthin from
Haematococcus pluvialis microalgae in closed culture systems and then puts them through a 'reddening' cycle in large open culture ponds in Hawaii.
Indeed,
while pure astaxanthin is still the biggest seller for Cyanotech’s
Nutrex supplements arm, an increasing percentage of revenues now comes
from condition-specific finished products under the MD Formulas brand,
says the firm, which posted a 46% hike in revenues in fiscal year 2012
to $24.63m and a 110% surge in net income to $3.6m.
“Astaxanthin has so many other validated benefits that its antioxidant activity has become secondary”, adds
Capelli, who says there is growing cynicism about marketing products on
the basis of competing in-vitro ORAC scores instead of human clinical
studies examining specific health benefits.
“The antioxidant
marketing position for astaxanthin is validated, as natural astaxanthin
is the strongest natural antioxidant found to date.
“But
consumers in the US aren’t buying it for its antioxidant power; for the
most part, they’re buying it for one of its other clinically validated
benefits, such as eye and brain health, skin health, joint health or for
the benefits it has for athletes and active people.
“There
is a huge following for pure astaxanthin capsules in the long-distance
runner and triathlete communities. They really value astaxanthin’s
incredible antioxidant activity, its joint, tendon and heart benefits,
as well its activity as an internal sunscreen, which is important for
athletes or anyone spending a long time in the sun.”
There is a huge following for astaxanthin in the long-distance runner and triathlete communities
Cyanotech: 'The best sellers in our MD Formula’s line are JointAstin and EyeAstin, with OmegaAstin coming in third'
He adds: “
It’s interesting that, while the science on
astaxanthin for cardiovascular health is very strong with lots of new
research, sales of CardioAstin are among the lowest of our
condition-specific formulas.
“But we expect this to change
as word gets out about all the new-found research on astaxanthin’s
positive effect on the cardiovascular system. The best sellers in our
MD Formula’s line are JointAstin and EyeAstin, with OmegaAstin coming in
third.”
There is also potential to market products containing
astaxanthin (which is shown to depress inflammatory markets such as
C-Reactive Protein) in a new breed of products that tackle systemic or
low-grade inflammation believed to be at the root of many chronic
diseases, he says.
“While the FDA has an issue with mentioning
‘inflammation’ or ‘anti-inflammatory’ when marketing supplements, many
people are finding out about astaxanthin’s activity in this area through
research being publicized as compared to astaxanthin marketers talking
about it.
“There is tremendous growth potential in this area in the future due to the severity of the diseases inflammation causes.”
Cardiovascular health and sports recovery
Israeli rival Algatech - which grows its
Haematococcus pluvialis
in a ‘closed’ network of glass tubes in the desert in southern Israel -
is also looking at more condition-specific research into astaxanthin,
and believes there is particular potential in sports nutrition/recovery
and formulations for an aging population.
Algatech grows its algae in a ‘closed’ system - a vast network of glass tubes in the desert in southern Israel
Says director of sales and marketing Efrat Kat:
“Most of the
clinical studies on astaxanthin were conducted on areas such as
cardiovascular system, sports recovery and skin health. Consumers,
doctors and opinion leaders are more and more interested in the detailed
protocols and results of scientific trials, which is to our advantage.”
The Dr Oz effect has not worn off
But what do the formulation experts say?
One
leading player is Florida-based Valensa International, which extracts
astaxanthin from biomass it buys in from various producers to produces a
branded astaxanthin product called Zanthin, plus several formulations
combining this with other ingredients.
President Dr Rudi Moerck says:
"The
Dr Oz effect has not worn off. We’re still seeing strong sales and
demand exceeds supply. We’re also seeing more condition-specific
applications and products targeting cardiovascular health or joint
health combining astaxanthin with other ingredients.
“We
see joint health as a big winner as it’s a huge market that’s dominated
by glucosamine and chondroitin which have questionable efficacy.”
While
taking a standalone astaxanthin supplement will do you good, it makes
more sense to combine ingredients, not least because consumers don’t
want to pop 10 different pills a day, he points out.
“Our biggest success recently has been a formulation called FlexPro MD [combining astaxanthin, hyalauronic acid, and krill oil],
which is marketed by Schiff Nutrition in its Move Free One product and the MegaRed joint care product.”
Tackling low-grade inflammation is a huge opportunity for astaxanthin
As it is poorly soluble in water, astaxanthin is optimally delivered
solublized in a lipid or oil-based form to enhance bioavailability and
delivered in a hard capsule with technology for protection from oxygen
given how unstable it is, says Capsugel
Dr Moerck also believes there is strong potential to market products containing astaxanthin on an anti-inflammatory platform.
“I
think that low grade inflammation is now recognized as a huge long-term
health issue in the US, and we think there is clear potential for
products such as our Zanthin-XP-3 formulation [which combines astaxanthin and perilla seed oil]
in this market.
“It’s a huge opportunity [for the nutraceuticals industry],
but
the average US consumer is totally uninformed about the long-term
effects of chronic inflammation, so a massive amount of education is
going to be needed from thought leaders to educate the public about it.”
Why hasn’t astaxanthin become a blockbuster in foods and beverages?
But what about astaxanthin in foods and beverages?
Both
Cyanotech and Valensa don’t see a great deal of potential here in the
short term, in part because of the technical difficulties in making a
stable product since astaxanthin oxidizes so easily.
However,
AlgaTech is much more optimistic, says Kat, who points out that it’s
still only just over a couple of years since astaxanthin secured GRAS
(Generally Recognized as Safe) status in the US.
“In Japan, a
number of major food companies have successfully launched products
containing AstaPure on beauty-from-within, sports activity,
cardiovascular health, and other platforms, and while it hasn’t taken
off in other regions yet, we have been contacted by some major food
companies in the US.
“For them, concerns about supply being
able to match demand are more of an issue than technical challenges,
which can be overcome.”
Is there room for new entrants to the market?
Valensa makes a 7% astaxanthin oleoresin called Zanthin, which
contains up to 90% astaxanthin, 2% lutein, 2% carotene and 6% of other
carotenoids. It is extracted using the firm’s proprietary DeepExtract
supercritical CO2 process and its O²B Peroxidation Blocker stabilization
technology
While the barriers to entry are high, new players will enter
the natural astaxanthin production market, predicts Valensa’s Dr Moerck.
Indeed
Valensa, which buys its astaxanthin biomass from several suppliers
including parent company EID Parry in India (it used to buy a fair
amount from Cyanotech until relations between the two soured over a
legal dispute), has identified several new producers it thinks could
succeed, and has struck deals with two new US-based suppliers (whose
names Moerck will not disclose - yet).
Meanwhile, several
companies investing in algae for biofuel production have come to realize
that they can’t make money this way and now see astaxanthin as a more
lucrative opportunity, given that it can fetch up to $12,000/kg, he
says.
However, Algatech's Kat notes that “
many companies have tried and failed [to produce astaxanthin on a commercial scale]”.
She adds: “
The
current shortage in supply attracts other companies but the fact is
that there are a very few companies in the world who actually succeeded
in commercial cultivation of microalgae.”
Meanwhile, Algatech is able to increase capacity to meet growing demand more rapidly than rivals, claims Kat.
"We
have a lot of land we can build on here in the desert. We’re expanding
astaxanthin production capacity significantly this year."
Algatech’s new owner British private equity firm Grovepoint Capital is also investing “
substantial”
sums to explore the potential of producing other nutraceutical
ingredients from microalgae, with several projects now in the pilot
phase, she adds.
Gerry is considered by most in the field to be the father of microalgae production
The biggest draw of the Kailua-Kona coast in Hawaii is the low
rainfall and year-round sunlight, which means you can produce for 12
months a year, says Cyanotech’s founder and chief science officer Dr
Gerry Cysewski (pictured left, next to sales and marketing VP Bob
Capelli). The temperature is also fairly consistent throughout the year
while tenants at the coastal facility also have access to cold,
mineral-rich seawater from a depth of 2,000 feet for use in the growing
and drying process, he says.
Cyanotech, which claims its open ponds are easier to clean than
Algatech's glass tubes and don’t have nooks and crannies where unwanted
organisms can lurk and proliferate, says it has seen “
many companies come into the category and try to produce it, only to go bankrupt and close their facilities”.
And if others try, says Capelli, Cyanotech is confident it will retain its market-leading position: “
Cyanotech
still has our founder, Dr. Gerry Cysewski, at the helm as chief
scientific officer. Gerry is considered by most in the field to be the
father of microalgae production after more than 35 years growing
Spirulina and Haematococcus among several other species.
"We
not only produce a stable product that always contains the full content
of astaxanthin on its label, which is a very serious problem in the
industry, but we also produce much higher volume than all our
competitors.”
Cyanotech has also invested in supercritical
carbon dioxide extraction equipment that will enable it to bring the
astaxanthin extraction process in-house by April 2014, reducing costs
and lead times, says Dr Cysewski.
Meanwhile, Cyanotech continues to explore the commercial potential of producing
“new high value products from microalgae”, he says... but won’t reveal what they are (yet).
So watch this space...
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