Advances in Food Antimicrobial Coatings -- Technology Investment Opportunities

Key Slides

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This research service will cover the following key points of food anti-microbial coating technology:

• Technology Snapshot and Assessment of value chain networks of food anti-microbial coatings.

• Key drivers and challenges that will affect large-scale adoption of food anti-microbial coatings.

• Identification of various technologies that are available for licensing.

• Investment Strategy Evaluation of various food anti-microbial coatings.

• Strategic Recommendations for food anti-microbial technology developers and investors.

• Key patents and contacts within the food anti-microbial industry encompassing product developers, researchers, and industry

experts.

• List of decision support database tables to substantiate the potential of food anti-microbial coatings.

The changing food preferences of people across the world has resulted in the steady growth of food industry. Also, consumers have

become increasingly conscious about food safety standards and issues. The recent outbreak of microbial contamination in fresh and

processed foods has resulted in increasing awareness about the need for food safety and preservation from microbial attack. While a

variety of antimicrobial food packaging (both flexible and rigid) methods are being developed, the use of plastics and other non-

renewable resources as a substrate for packaging has the potential to add to the growing landfill problems. Therefore, recent years have

shown a shift toward the development of antimicrobial food coatings that has the potential to reduce the need for many packaging layers

and also help in extending the shelf life of the food. Also, the use of antimicrobial additives help in preserving the food quality by reducing

the growth of microbes on the food .

This research service, “Advances in Food antimicrobial Coatings,” focuses on the identification of the various antimicrobial technologies

that are available for protection and enhancing the shelf life of food with a global focus. The scope of the research is limited to only

antimicrobial coatings for food and excludes surface treatments and coatings for food processing, equipment, storage, and packaging.

Scope of the Research

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Key Findings

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Licensing of technologies has been a trend in the industry. It is an ideal way of utilising the innovative

technology platforms developed by universities, and small companies. Licensing can enable quicker

commercialization through market agreements. Licensing has also helped industry majors to expand their

product and patent portfolios and retain their position in the market.

While various antimicrobial technologies are being developed, the use of metallic ions and synthetics is still

prominent with the natural ingredients quickly gaining foothold. However, there is a gap between widespread

commercial use and research efforts pertaining to the development of natural extracts as antimicrobials.

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The use of antimicrobials is mainly due to the increasing concerns about food safety issues and the need for

shelf life extendibility of food products. While antimicrobials are widely used in packaging applications, the use

of these in direct food coatings is still at a nascent stage.

3 Fresh produce such as fruits and vegetables are mainly protected using antimicrobial coatings as they are

highly susceptible to microbial attack followed by meat, seafood, and poultry products.

2

The selection of the active antimicrobial agent depends on the food product and required shelf life. However,

there’s a gradual shift toward the preference of natural antimicrobials when compared to synthetic ones. This

is mainly due to the growing preference toward the use of natural extracts for food processing and

preservation.

6

Polysaccharides and bacteriocins are widely used as natural antimicrobials followed by essential oils,

enzymes, proteins, and lipids. However, technical challenges need to be addressed for widespread adoption

across all sub-segments of food preservation.

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Contents

Section Slide Numbers

Executive Summary 4

Technology Trends and Investment Opportunities 7

Potential Technologies Available for Licensing and Stakeholders 17

Strategic Recommendations for Technology Developers and Investors 27

Key Patents 32

Key Contacts 38

Appendix 41

Decision Support Database-Tables 45

The Frost and Sullivan Story 52

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Technology Snapshot

antimicrobials are classified as food additives or preservatives. Their incorporation in food products is mainly to prevent and reduce the

growth of pathogens such as bacteria, fungi, and virus in food, thereby, extending the shelf life of the food product. They also help in

preventing chemical and biological spoilage of food, reducing surface damage, and acting as a barrier against undue ripening and

nutritional losses.

Food antimicrobials

Natural

Lipids

Oils, waxes and

Emulsions

Enzymes

Lysozymes

Proteins

Collagen, Gelatin,

Soy , Peanut

and Wheat Protein

Carbohydrates

Chitin(chitosan), cellulose, Pectin, Gum Polymers

Bacteriocins

Nisin and its derivatives

Aromatic and Volatile

Oils

Cinnamon and

Rapeseed

Synthetic

Sorbates, Nitrates, Sulfites,

Benzoates, Lactates, Acetates

Others

Silver

Zeolites

Application Areas

Processed and

Ready-to-eat Foods

Bakery

Products

Fruits and

Vegetables

Meat, Seafood,

and Poultry Confectionary Dairy Products

• Selection of food antimicrobial depends on the intended end product. For instance, Shellac , a wax-based antimicrobial needs a solvent, such as food

grade ethanol, to apply it. This is suitable for food products such as confectionary and could not be used for meat and seafood.

• The use of synthetic preservatives is more established in the food industry. However, consumer preference toward use of natural ingredients in food

products have resulted in increased use of natural antimicrobials for food preservation in the last five years.

• The use of antimicrobial food coating helps in the reducing the need for additional packaging, thereby, minimizing waste.

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Regulatory Scenario–Global Outlook

EU

EFSA (European Food

Safety Authority)

USA

US FDA (Food and Drug

Administration)

• The substance that comes in contact with food is considered as part of food not as an

additive if

o the substance is not considered or suspected to be carcinogenic.

o the substance corresponds to a dietary exposure of less than 1.5 micrograms per

person per day.

o the substance has no technical effect on the food it migrates into and the

atmospheric conditions of food doesn’t affect the migration levels of the substance.

• Exemption of regulations for food additives will prevail for the substance if it has a dietary

concentration of less than 0.5 parts per billion. However, data regarding the migration of the

food in terms of concentration vs. time should be provided to the FDA for consideration as

an exemption from food additives

• Regulated under surface biocides and as food additives depending on the type of anti-microbial used. • Only additives approved for direct contact for food can be used. • Clearly defined permissible levels and migration levels of additive and authorization criteria are present. • Depends on the requirement of food product and active packaging. • Specific Migration Limit (SML) for individual authorised food additive substances is fixed on the basis of a

toxicological evaluation. It is set according to the Acceptable Daily Intake (ADI) or the Tolerable Daily Intake (TDI) that is established by the Scientific Committee on Food, European Commission.

• Regulated as food additives under the Food Sanitation Law. • Only additives under the designated food additives list could be used. • Standards regarding the manufacture and preparation of additives should be followed. • A comprehensive list of permissible food additives to each food product (esp. fruits and

vegetables) have been compiled and should adhere. • Additives have been segmented into two broad categories: “List of food additives, for

which the standards for the use have been set” and “List of food additives, for which no standard for the use has been set.”

APAC-JAPAN

Ministry of Health

and Welfare

(MHW)

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Assessment of Value Chain Networks

Overall Value Chain Analysis:

• The value chain of the anti-microbial food coating industry is interconnected with the participants in each segment working closely with each other to develop the

final food product. Raw material manufacturers could range from small ingredient manufacturers to multinational distributors; the market becomes more consolidated

as the coating technology becomes more upscale.

• The coating technology developers consist of research universities, regional players, and large corporations. The presence of stringent global quality and regulatory

guidelines makes the coating market quality conscious. The development of anti-microbials depends on the availability and suitability of the anti-microbial to the

intended food product.

• The food processing and final product (food) companies might be the same one or a part of the integrated supply chain of the food company. The coating

technology is usually integrated in the food manufacturing and processing techniques so as to save time and to prevent cross contamination of the food product

during storage and handling.

• The coating of the food product before or after processing or in between depends on the type of food product, its intended shelf life, and the processing involved.

• Consumer demand and expectations are conveyed to all participants across the value chain as the industry is closely interlinked. This facilitates new product

development and value addition, and enables meeting the demands and requirements of the industry.

This slide represents the overall value chain of the food antimicrobial coating industry.

Regulatory Environment

Raw Material

Manufacturers Coating Developers

Final Product

Developers

Companies such as, BASF, DuPont ;

and Ingredient Suppliers such as,

IIC, IFF

Companies such as, BASF, DuPont,

EcoLab; Universities and Research

Institutes. Ingredient Suppliers such

as, IIC, IFF

Food Processing

Nestle, Weetabix, GreenCore, Arbital SA,

Pepsico, BonaFarm Group.

Stakeholders

Stakeholders include the investors in technology development such as venture capitalists and angel investors, and coating equipment and

food processing equipment manufacturers. Private research institutes and testing laboratories that help in determining the capability of the

coating characteristics and efficacy are also involved in the value chain of the industry.

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Investment Opportunities Evaluation–Opportunity Strategy

Evaluation

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5

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Lev

el O

f A

ttra

cti

ven

ess

Probability of Success

I

Prevent/Innovate II

Partner/Innovate

III

Stay Away IV

Protect/Innovate

G

C

F

E

A

D

B

HIGH MEDIUM

ME

DIU

M

LOW

LO

W

HIG

H

KEY

A–Proteins

B–Polysaccharides

C–Enzymes and Aromatic Oils

D–Bacteriocins

E–Lipids

F–Synthetics

G–Others

OSE GRID REPRESENTATION

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Strategic Recommendations for Technology Investors and

Developers Stages Involved in Developing a Licensing Agreement

Identification of Parties

Purpose and Nature of

Licensing

Licensor

Representations

Licensee

Representations

Effective date of Agreement

Whereas Clauses

Background of Agreement

Definition of Terms

Transferability

Right to Bring Action against

Infringements

Patent Marking

Patent and IP

Rights

Exclusivity

Sub Licensing

Royalties

Territory for

Licensee Terminations and Exit

Clauses

Rights in

Improvements

Licensor

Obligations Licensee

Obligations

Licensee Licensor

Usually Technology Developer/

University/Start-up/Industry

Participant

Usually Market Participant/

Industry Leader/Companies

Looking for Diversification