DuPont and Nutrition & Health (N&H) divest its alginates business to JRS Group, after the deal was approved by the European Commission (EC). The sale was a mandate established by the EC following DuPont’s acquisition of FMC’s Health and Nutrition (H&N) business in 2017.

United States: DuPont Nutrition & Health (N&H) is set to divest its alginates business to Germany-based functional ingredients firm JRS Group, after the deal was approved by the European Commission (EC). The sale was a mandate established by the EC after DuPont’s acquisition of FMC’s Health and Nutrition (H&N) business in 2017.

The sale includes the heritage DuPont N&H Alginates business, the portfolio of pectin-alginate blends, the business’s Landerneau production facility and the company’s customers.

DuPont is anticipating the transaction to close in the latter half of 2018. The company will continue to operate in the alginates market through the FMC H&N alginates portfolio.

The DuPont N&H business president, in a meeting said that receiving the regulatory approval to divest the heritage DuPont N&H Alginates business was a very crucial step for DuPont in completing the incorporation of FMC’s Health & Nutrition Business.

The team is devoted to creating value for the customers through the integration of new DuPont N&H product portfolio, which combines the heritage portfolios of DuPont N&H, FMC H&N and Dow Food & Pharma to bring unique offering in the food ingredients and pharma excipients market.

The President of JRS Group also said that the regulatory approval from the EU Commission to acquire DuPont’s Alginate business is a huge milestone in strengthening the Life Science Division of JRS Group. The company is continuously complementing their wide product portfolio to develop innovative solutions for global customers. JRS focusses on ‘Green Products’ made of renewable, botanical resources. Therefore, alginates perfectly fit in the product portfolio of excipients and hydrocolloids for pharma, food and personal care applications.

According to TechSci Research, the decision of N&H department of DuPont to divest its alginates business to JRS Group was a requirement established by the EC after DuPont’s acquisition of FMC’s Health and Nutrition (H&N) business in 2017. The move is expected to have a positive impact on the growth of the Global Alginate & Derivatives Market. Growing use of alginates in the pharmaceutical sector, growing innovations in food products, changing preference towards convenience foods and high demand for natural ingredients are likely to drive the growth of the market in the coming years. Hydrocolloids market is also expected to witness robust growth.

According to the recently published report by TechSci Research, “Global Alginates & Derivatives Market, By Type (Sodium Alginate, Calcium Alginate, Potassium Alginate, PGA & Others), By Applications (Food & Beverages, Industrial, Pharmaceutical & Others), Competition Forecast & Opportunities, 2013 – 2023”, Global alginates & derivatives market is projected to grow at a CAGR of over 6%, in value terms, during 2018-2023. Growth in industrial textile sector, increasing consumption of alginates in the pharmaceutical sector, changing preference towards convenience foods, growing innovations in food products, high demand for natural ingredients are some factors, that will propel the demand for alginates & derivatives over the next five years. North America is anticipated to remain a strong contributor in the alginates & derivatives market in the forecast period, owing to increase in demand for natural food additives. APAC is expected to register faster CAGR than any other region, backed by growing demand for growth in huge demand from textile industry.

According to the recently published report by TechSci Research, “Global Hydrocolloids Market, By Type (Gelatine, Xanthun Gum, Carrageenan, Alginates, Agar and Others), By Source (Plant, Microbial, Animal, Seaweed and Synthetic), By Function (Thickener, Stabilizer, Gelling Agent, Fat Replacer, Coating Material and Others), By Application (Bakery, Confectionery, Meat & Poultry Products and Others), By Company and By Geography, Forecast & Opportunities, 2023”, Global Hydrocolloids Market is expected to reach USD 7.76 Billion by 2023, witnessing growth at a CAGR of over 6%, in value terms owing to growing health consciousness among end-users who want to reduce the sugar consumption.  Moreover, the versatility of hydrocolloids that enables its wide adoption in various applications coupled with rising demands from the food & beverages will propel the growth of the market further. Based on the type, the pectin segment is expected to grow at the highest CAGR by 2023, due to the increasing demand of pectin as a thickening agent and a setting agent in a variety of food products like Jams, Jelly and others. Based on application, the bakery segment leads the market and is expected to maintain its position during the forecast period owing to the rising use of Hydrocolloids as thickener, stabilizer and gelling agent for a variety of baked items. North America is anticipated to grow at the highest CAGR during the forecast period due to a well-developed food-processing industry and government focus on R&D in constituent regions like the United States and Canada. 

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