OzScientific Pty Ltd is a company established in 2004 that provides knowledge-driven solutions in functional foods and nutraceuticals. It offers product and ingredient innovation, processing technologies, market intelligence, and a weekly newsletter. It also markets functional foods and nutraceuticals under its NUFOZ brand. Drivers for growth in these industries include aging populations, rising obesity and chronic diseases, unhealthy children, and increasing consumer awareness of food-health links. Regulations for nutraceuticals in Australia and New Zealand are set by the Therapeutic Goods Administration, while functional food claims are regulated by Food Standards Australia New Zealand.
2. Mission statement
To provide knowledge-driven, cost-
effective, customised solutions in
Functional Foods and
Nutraceuticals
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3. OzScientific Pty Ltd
Established in 2004
Proprietary Company registered under
Australian Security and Investment
Commission (ASIC)
Started as an research, innovation and
technical services company, recent
expansion into marketing of bioactive and
nutraceutical ingredient & functional foods
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4. OzScientific facilities
Sales and marketing office
Warehouse
Meeting/conference room
Food/ingredient testing and
product development lab
Access to library &
databases
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5. Profile – Dr Ranjan Sharma
Qualifications
PhD (Food Sc) (1993 - New Zealand), MBA
(2003 - Australia)
Experience
Over 20 years within food, dairy and
nutraceutical industries in Australia,
Denmark, New Zealand & India
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7. www.ozscientific.com
OzScientific® Innovations
Clients included Govt organisations and food
companies
Examples of projects carried out
Product & ingredient innovation – e.g. ingredients and
beverages with phytosterol, DHA (omega-3), beta
glucan, hydrolysates, fruits and vegetables
Food processing – e.g high pressure processing for
fruits and bioactive ingredients, UHT sterilisation
Market intelligence – e.g. market opportunities for
grain and dairy-based bioactive ingredients;
IP, regulatory, food safety (HACCP) and labelling
knowledge Knowledge-driven Solutions in
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8. NUFOZ® www.nufoz.com
Marketing of functional foods and nutraceuticals
New business unit – strong business focus
Focus on condition-specific ingredients &
consumer products supported by documented
research & knowledge
Heart health
Gut health
Bone health
Weight management
Diabetes management
Immune health Knowledge-driven Solutions in
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Etc
9. NUFOZ® www.nufoz.com
Expected to show strong growth
Increased incidences of lifestyle-related
diseases
Increased consumer awareness of self health
care and maintenance
New health-claim regulations coming in effect
in Australia and New Zealand
Supplements market will grow rapidly from a
small base
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10. www.functionalfoods.com.au
Functional Foods Weekly
OzScientific® Weekly Digest -
subscription-based, well-regarded weekly
newsletter on functional foods and
nutraceuticals
Corporate & individual subscribers in
North America, Europe, Australia and New
Zealand
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11. Drivers for functional foods &
nutraceuticals
Population demographics
Rising obesity - the health
condition/disease of the millennium
Increased incidences of non-
communicable, chronic diseases
Unhealthy kids
Consumer awareness of food-health
relationships
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12. Drivers for functional foods &
nutraceuticals
Population demographics
Rising obesity - the health
condition/disease of the millennium
Increased incidences of non-
communicable, chronic diseases
Unhealthy kids
Consumer awareness of food-health
relationships
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13. Population demographics
Population demographics
Ageing population
Increasing life expectancy
Increasing population of developing countries
and shrinking/changing population of
developed countries
Growing affluence and increased affordability
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14. Population trends - Australia
Australia - population by age groups (2005)
14000000
12000000
2005
10000000 0-9 years
8000000 10-19 years
20-64 years
6000000
65+ years
4000000
2000000
0
Australia - population by age groups (2050)
14000000
2050
12000000
10000000 0-9 years
8000000 10-19 years
20-64 years
6000000
US Census Bureau
65+ years
4000000
2000000
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0
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15. Understanding population demographics
and recognising market opportunities
Futures - 0-9 Years old
Most looked after segment
Wild card - 10-19 years
Rapidly growing and fast changing habits
Bulls - 20-64 years
Financial pillars of society
Bears - 65-100+ years
Senior citizens
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16. Life expectancy at birth
Major area 2000-2005 2045-2050
World 65.4 75.1
More developed regions 75.6 82.1
Less developed regions 63.4 74.0
Least developed countries 51.0 66.5
Other less developed countries 66.1 76.3
Africa 49.1 65.4
Asia 67.3 77.2
Europe 73.7 80.6
Latin America & Caribbean 71.5 79.5
North America 77.6 82.7
Oceania 74.0 81.2
UN(2005) World Population Prospects The 2004 Revision, UN, New York
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http://www.un.org/popin/data.html
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17. Drivers for functional foods &
nutraceuticals
Population demographics
Rising obesity - the health
condition/disease of the millennium
Increased incidences of non-
communicable, chronic diseases
Unhealthy kids
Consumer awareness of food-health
relationships
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18. Obesity a major factor in lifestyle
diseases
Diabetes
80%
Cancer
40% of uterine cancer
25% of kidney cancer
10% of breast
10% of colon cancer
Heart health
21% of heart diseases
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19. Adult overweight projection
Sex 2005
Country 2015
Australia Females 62.7 70
Australia Males 72.1 79
Canada Females 57.1 61.9
Canada Males 65.1 68.6
New
Zealand Females 68.2 79.2
New
Zealand Males 68.7 78.5
United
Kingdom Females 61.9 65.7
United
Kingdom Males 65.7 69.8
WHO, 2007
United
States Females 72.6 80.2
United Knowledge-driven Solutions in
States Males 75.6 84.5
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20. Adult obesity projection
Sex 2005
Country 2015
Australia Females 24.9 33.5
Australia Males 23.8 33.3
Canada Females 23.2 28.2
Canada Males 23.7 27.4
New
Zealand Females 31.5 48.1
New
Zealand Males 23 35.2
United
Kingdom Females 24.2 28.3
United
Kingdom Males 21.6 25.8
United WHO, 2007
States Females 41.8 54.3
United Knowledge-driven Solutions in
States Males 36.5 51.7
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21. Drivers for functional foods &
nutraceuticals
Population demographics
Rising obesity - the health
condition/disease of the millennium
Increased incidences of non-
communicable, chronic diseases
Unhealthy kids
Consumer awareness of food-health
relationships
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22. Diseases causing global deaths
global deaths by cause, 2005 (millions)
Diabetes
Chronic respiratory diseases
Cancer
Cardio vascular diseases
Malaria
Tuberculosis
HIV/AIDS
0 2 4 6 8 10 12 14 16 18 20
Deaths (millions) WHO 2005
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Total deaths – 58 million
23. Diseases causing global deaths
global deaths by cause, 2005 (millions)
Chronic
Diabetes
diseases
Chronic respiratory diseases
Cancer
Cardio vascular diseases
Malaria
Tuberculosis
HIV/AIDS
0 2 4 6 8 10 12 14 16 18 20
Deaths (millions) WHO 2005
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Total deaths – 58 million
24. Foregone income to deaths
by chronic diseases
Foregone income due to diseases (2005-15)
600
500
US$ (billion)
400
300
200
100
0
Brazil Canada China India Russia UK
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WHO 2005
25. Drivers for functional foods &
nutraceuticals
Population demographics
Rising obesity - the health
condition/disease of the millennium
Increased incidences of non-
communicable, chronic diseases
Unhealthy kids
Consumer awareness of food-health
relationships
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26. Unhealthy kids
US data
High blood pressure – 3 fold increase in last 10 years
Cholesterol – 10% of children with 200 mg/dL
Metabolic syndrome – 1 million kids
Overweight – 30% kids
AHA recommendations –
Begin monitoring blood pressure at age 3
Begin monitoring cholesterol at age 8 if there is a
family history
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Sloan, 2006 (FT April 2006)
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27. Australian data
60% of adults and 25% of children are
overweight or obese
25% of adults have diabetes or impaired
glucose metabolism
3.7 million have heart diseases
51% of adults have high cholesterol
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28. Drivers for functional foods &
nutraceuticals
Population demographics
Rising obesity - the health
condition/disease of the millennium
Increased incidences of non-
communicable, chronic diseases
Unhealthy kids
Consumer awareness of food-health
relationships
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29. Consumer research – consumer would
use food to prevent disease/health
condition
Disease/health condition %
Obesity 76
High cholesterol 67
Blood sugar imbalance 67
Heart disease 66
Diabetes 64
Lack of energy 58
Osteoporosis 48
Vision problems 38
Arthritis 35 Knowledge-driven Solutions in
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30. Australian consumer – top 5
health concerns
Cancer – 54%
Tiredness – 48%
Cardiovascular disease – 47%
Stress – 43%
Eye health – 41%
Health Focus, 2006
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31. Market intelligence – Australia &
New Zealand
AU NZ
Population, million ~21.0 ~4.3
Per capita GDP, US$ ~37,300 ~27,200
Retail food market, A$, billion ~107 ~12.0
Functional foods (without ~1200 ~220
health claims), A$, million
Nutritional supplements, A$ ~2200 ~400?
million
Nutraceuticals A$, million ~950 ~132
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Average/estimated from various sources
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32. Market intelligence – Australia &
New Zealand
Key players – food industry
Fonterra, Nestle, Goodman Fielder, Cadbury,
National Foods, Coca Cola, Unilever, Mars
Key players – nutritional supplements
industry
Blackmores Ltd, Healtheries, Thompson’s,
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33. Regulations – nutraceuticals
Separate administration in AU and NZ
Administered by Therapeutic Goods
Administration (TGA) in Australia
Nutraceuticals (Vitamins, minerals and
nutritional supplements) come under
Complementary Medicines and are regulated by
TGA under the TGA Act 1989
A complementary medicine is defined as a
therapeutic good consisting wholly or principally
of one or more designated active ingredients
each of which has a clearly established identity
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34. Regulations – nutraceuticals
Complementary Medicines
Herbal Medicines Ayurvedic
Traditional Chinese
Traditional Medicines
Other Traditional
Vitamins & Minerals
Nutritional Supplements
Homeopathic Medicines
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35. Regulations – nutraceuticals
Complementary medicines in Australia are not subject to
the standards and guidelines of the Codex Alimentarius
Commission
The TGA maintains the Australian Register of
Therapeutic Goods (ARTG)
<http:://www.tga.gov.au/docs/html/artg.htm>, a database
that includes details of all therapeutic goods that are
imported into, supplied in, or exported from Australia. It
is a legal requirement that, unless specifically exempt or
excluded, all therapeutic goods are included on the
ARTG prior to their supply. Therapeutic goods cannot be
included on the ARTG unless an application is lodged by
a sponsor for those goods.
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36. Regulations - Functional Foods
Food Standards Australia new Zealand (FSANZ)
A joint body responsible for food regulations and
health claims in Australia and New Zealand
Currently allowed label claims
Certain nutrient claims allowed, e.g. “this food is high
in fibre”
Currently, no health claims are allowed except a
benefits claims on maternal consumption of folate
and prevention of neural tube defect in a new-born
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37. Regulations - Functional Food
Health Claims
Increasing degree of regulation
General level claims High level
claims
Content claims General level
health claims
Absolute claims (e.g. Function claims Biomarker
“low fat”) claims
Comparative claims Enhanced function Risk reduction
(e.g. “reduced fat”) claims
claims
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38. Regulations - Functional Foods
New regulations coming in effect
Will see significant market opportunities
for bioactive and nutraceutical ingredients
in Australia and New Zealand
Will see new opportunities for functional
foods and beverages
Opportunities for health claims
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39. Functional food challenges
Current
Market
1 2 3 4
Success !!
Regulatory Benefits perceived Consumer acceptability Market
approval by consumers of flavour and taste competition
Future
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40. Contact details
Physical address:
1/29 Richards Road
Hoppers Crossing, VIC 3029, AUSTRALIA
Postal address:
PO Box 8018
Tarneit, VIC 3029, AUSTRALIA
Email: ozscientific_info@ozscientific.com
Web : www.ozscientific.com
Phone: + 61 3 8360 8360
Fax: +61 3 83608360
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