Bioactive substance a growing phenomenon in foodstuffs

China taking lead in producing novel chemical after it receives approval from regulator

Hyaluronic acid, a substance commonly found in skincare ingredients, has rapidly become a common ingredient in the food and beverage sector, including consumables such as functional water, dairy products and snack foods.

Manufacturers said they add hyaluronic acid into foods and beverages as recent research has shown it can make skin supple, smooth and sheeny.

In January, the National Health Commission approved hyaluronic acid as a new-type food raw material that can be applied to ordinary food additives. The approval will "bring great opportunities for food enterprises", said an industry insider.

The market for hyaluronic acid in foodstuffs is estimated to grow rapidly in China, attracting numerous enterprises to vie for market share, according to an industry report.

The report, issued by TF Securities, said that by May 2020, there were over 2,000 types of foods and beverages containing hyaluronic acid, among which 554 were commonplace consumables such as dairy products, cookies, candies and pastries. Furthermore, hyaluronic acid raw materials made in China have been used by global brands for years. The upstream industry chain for the chemical input in China is mature.

Hyaluronic acid is found in human connective tissues and is widely used in skincare and healthcare products, drugs and foods. China is the world's largest producer and seller of hyaluronic acid raw materials.

"In 2019, China sold over 80 percent of the world's hyaluronic acid raw materials. Bloomage Biotech, a leading producer and supplier of hyaluronic acid, alone took up nearly 40 percent of the market share," said Dun Yuting, a healthcare analyst at technology media platform 36Kr.

Previously, it could only be used as supplement additive. Now, its application range has expanded to dairy, beverages, alcohol, cocoa products, chocolate products, candies and frozen drinks.

Wu Wende, food and beverage analyst at TF Securities said: "Hyaluronic acid raw materials made in China have been serving international brands for years. After the new policy in China was issued, the application of hyaluronic acid in the food sector exhibited great potential."

According to iResearch, the global food-related hyaluronic acid market was worth 2.5 billion yuan ($385 million) in 2020, with an annual growth rate of 7.1 percent on average between 2016 and 2020.

Chinese companies are stepping up efforts to grasp business opportunities and gain more competitiveness in the consumption market.

"In recent years, new food and beverage brands emerged one after another, which mainly focused on product function, diversification and specialization. The application of hyaluronic acid in foods perfectly matches their product positioning. Besides, traditional companies now face fierce market competition. They are also considering how to upgrade their products," said Liu Zhangming, deputy head of the research institute at TF Securities.

Time-honored food and beverage brand Beijing Yiqing Holding Co Ltd has launched three types of drinks targeting females, all of which contain hyaluronic acid.

"Knowing the approval of the application of hyaluronic acid in foods, we were excited. For a food enterprise, this is a good selling point. Therefore, since then, we have been planning on subdivided drinks with hyaluronic acid added," said Wang Dong, general engineer at Beijing Yiqing.

Bloomage Biotech this month rolled out a new alcoholic fruit drink－Mr. Calm－which contains 10 milligrams of hyaluronic acid ingredients.

The move comes soon after the launch of Hyalur－a brand that offers snacks enhanced with hyaluronic acid, and claims to deliver vitality, sugar balance and a better sleeping experience.

In March, Bloomage launched a new type of bottle water that contains hyaluronic acid－Whater. The 420-milliliter bottle contains 83 mg of hyaluronic acid. The water sells for 7.8 yuan per bottle, which is two to three times that of ordinary mineral water.

Bloomage said in a reply to China Daily that functional foods are a new growth driver in addition to raw materials, medical retail and functional cosmetics.

The development of personal health consumer products has been the priority of the firm since last year. The company has also geared up collaboration with other leading fast-moving consumer goods producers as they have worked with nutrition brand Wonderlab, highend tea brand Lelecha and beverage giant Bright Dairy.

Zhao Yan, chairman of the board of Bloomage, said earlier it takes more education and guidance when introducing new substances into foods in which the key is focusing on science and technology to produce quality products.

More research projects with global top universities are in the pipeline for Bloomage, including products aimed to improve gastrointestinal health, lubricate joints and soothe the eyes, said the company.

"The upstream segment of the bakery industry is putting forth new ideas. Enterprises are thinking of developing cream and chocolate spreads with hyaluronic acid added," Dun from 36Kr said.

Meng Lilian, chief expert at the Sichuan Tianfu Health Industry Research Institute, said: "The application of hyaluronic acid into foods was introduced as a new member of the food additives sector. To create a new food category and gain consumer favor, enterprises should break barriers between products and consumers. As hyaluronic acid is already well-known among consumers, the application prospects are promising."

To ensure the sustainable development of the sector, Jin Xiaotao, head of the Chinese Medical Information and Big Data Association, said at an earlier forum, "Manufacturers should conduct solid research into the functions of foods and beverages with hyaluronic acid added, so as to offer a satisfying reply to consumers."

However, despite the recognition and wide use of hyaluronic acid in the aesthetic medicine market and in cosmetic applications, in the food sector, the full efficacy of the substance's applications in foods and beverages is still being debated.

Zhu Danpeng, a food and beverage analyst based in Guangzhou, Guangdong province, said these products are categorized as foods rather than healthcare products and thus they are not to be marketed as having qualities that improve looks or skin conditions.