Both parties will work together on joint health research and new product development.
The partnership will leverage Fonterra’s innovation in functional dairy proteins, Milk Fat Globule Membrane (MFGM) and probiotics and By-Health’s involvement in vitamin and dietary supplements.
In the space, Fonterra established a specialized Sports and Active Lifestyle Nutrition unit in 2019 to accelerate its growth in health and wellness nutrition, and By-Health acquired Life-Space Group to enable global expansion in dietary supplements.
Komal Mistry-Mehta, director of NZMP Sports & Active Lifestyle said consumers around the world are becoming more aware and proactive about health and wellness.
“Globally the probiotics market is seeing significant growth. With the market valued at US$40bn, Euromonitor forecasts the probiotics supplement segment alone to achieve 7% CAGR over the next five years. The growing consumer recognition of metabolic health, mental wellbeing and anti-ageing needs presents a significant opportunity for NZMP’s specialty nutrition ingredients, including dairy proteins, MFGM, and market leading probiotic super-strains BifidoB HN019TM and LactoB HN001TM,” Mistry-Mehta said.
Felix Zhang, By-Health research and development director, said, “Our strategy of providing nutritional solutions for consumers is underpinned by our collaborative R&D partnerships with materials suppliers, scientific research institutions, medical institutions and other stakeholders to build the industry’s capabilities to provide superior nutrition. Our strategic R&D partnership with Fonterra gives us access to valuable dairy nutrition expertise to develop high-quality and effective solutions for our customers.”