The Consumer Health division within Lonza’s Specialty Ingredients segment is uniquely positioned to address consumer needs in human and pet nutrition, personal care, and home and professional hygiene through our portfolio of powerful science-backed ingredients, formulation expertise and dosage form delivery capabilities.
billion capsules produced annually
(including capsules for pharma and consumer health and nutrition businesses)
The teams in Consumer Health are capitalizing on the evolving consumer trends toward healthier lifestyles that include food, beverage and dietary supplements, protection from dangerous viruses and other pathogens in hospitals, homes, at work and in all other surroundings, and the ability to look and feel their best.
Our consumer market-oriented, collaborative innovation approach and our world-class quality allow us to develop solutions for our customers that offer superior product efficacy combined with delivery forms that enhance the consumer experience. In addition, we have unique capabilities and expertise that we leverage from the pharma industry to the consumer world. This advantage means that our customers have the regulatory support to obtain registrations required by local governmental agencies. Our products are supported by science in order to make marketable claims that help deliver meaningful differentiation. We enable our customers to improve the lives of consumers by creating healthier environments, providing better nutritional support, improving vitamin and supplement delivery and bioavailability, and offering customer-focused hair-, scalp- and skin-care solutions through the Consumer Health businesses.
Health and Well-Being Solutions
Nutritional Supplements and Functional Food Offerings
Lonza’s health and nutrition businesses offer customers fully integrated solutions from concept through product commercialization. We supply branded health ingredients that address the key market segments in the nutritional supplement category, along with regulatory and commercial support. Differentiated benefits and a wide range of applications make our products attractive for the dietary supplement, food and beverage, and human and pet nutrition markets.
With the integration of the Capsugel portfolio in 2017, Lonza’s health and nutrition business has become a leading global solutions provider in nutraceuticals with our combined offering of science-backed ingredients, innovative delivery forms and integrated solutions for our customers. Lonza offers formulation know-how, delivery solutions, strong service capabilities and global regulatory expertise to help our customers take their innovative and differentiated nutritional products to market in the shortest possible time.
We apply our consumer market insights and our extensive experience in pharmaceutical-delivery science to help our customers improve the bio-availability, targeted delivery, swallowability, odor masking and taste of their nutritionals. Our technology enables us to develop unique combination products and visually appealing dosage forms that meet the expectations of today’s health-conscious consumers.
Personal Care Offerings
Our personal care business serves the global beauty and well-being markets as an established supplier of functional ingredients, such as specialty plant-based emulsifiers and aesthetic modifiers, and traditional and next-generation preservation and protection systems. Through custom-developed fermentation and technologies perfected for pharma, the personal care team is introducing premium-positioned bioactive functionals, which enhance the consumer experience and uniquely improve the performance of finished products. As a world-class manufacturer, we are among the global leaders in innovative hair- and skin-care formulations and ingredients.
Microbial Control and Hygiene Solutions
As a global leader in registered biocides, preservatives and antimicrobial formulations, the hygiene and preservative business offers home and institutional solutions for disinfecting or sanitizing trouble areas in schools, food-processing plants, restaurants, grocery stores, hospitals, operating theaters, health clinics and more. Our products offer broad-spectrum efficacy and extensive substrate compatibility. We provide industry-leading regulatory and toxicology expertise, supporting compliance with global regulatory regimes. Our robust data packages and innovative, market-focused research & technology offerings enable our customers to stay at the forefront of industry developments.
Highlights and Initiatives 2018
Specialty Ingredients’ Consumer Health division grew organic sales by 6.3% to CHF 1.1 billion in 2018. CORE EBITDA amounted to CHF 292 million, a 13.2% like-for-like increase with a 27.3% CORE EBITDA margin, which is an improvement of 170 bps on a like-for-like basis.
This division’s performance was driven by Lonza’s proprietary nutritional ingredients, innovative dosage forms and increasing demand for specialty polymers hard capsules, e.g. all-natural and clean-label products, as well as Lonza’s household and professional hygiene solutions. New, combined Lonza-Capsugel offerings experienced strong demand, and 2018 saw a series of product launches that brought together innovative nutritional ingredients, optimized formulations and tailored capsule-delivery technologies.
Additional growth momentum resulted from geographic expansion across all businesses and from further expanded offerings for health and well-being as well as microbial-control and hygiene solutions.
Health and Well-Being Solutions
Nutritional Supplements and Functional Food Offerings
The consumer health and nutrition businesses continued to build a robust launch pipeline of synergistic offerings, and consumer insight-driven concepts have been successfully introduced into markets. Throughout 2018 full integration of Capsugel brought healthy momentum, fueled by the strengthened global reach of the combined businesses, further geographic expansion, innovative product offerings and synergies. Our more than 30 new dietary supplement product concept launches that join Lonza’s specialty ingredients and former Capsugel’s innovative dosage forms continue to attract interest. Building on our geographical expansion, we launched our first liquid dosage form solution in South Korea and a first combination UC-II®/liquid dosage-form solution product in Russia, a key growth region in EMEA.
Examples of Lonza Nutritional Supplements Offerings Introduced in 2018
Vcaps® Plus capsules
Vcaps® Plus capsules Strong customer interest was noted in our innovative product offerings, including our specialty plant-based polymer Vcaps® Plus capsule offering efficacy, as well as other clean-label, vegetarian and vegan solutions, which are non-GMO and free of preservatives, allergens, gluten, sugar and starch.
Vcaps® Plus Spirulina Capsules
Vcaps® Plus Spirulina Capsules Lonza has also invested significantly in a range of certified vegetarian and vegan delivery systems, including our new Vcaps® Plus Spirulina capsules. The first of our next generation of innovative, vegetarian, food-colored capsules, Vcaps® Plus Spirulina capsules are designed to support manufacturers in creating true clean-label solutions for the sports nutrition market. An example of a new finished product concept that uses the Vcaps® Plus Spirulina capsule is the ZMA® mineral formulation.
Vcaps® Plus Purple Carrot Capsules
Vcaps® Plus Purple Carrot Capsules Harnessing the vibrant natural colors from food, Vcaps® Plus Purple Carrot was added to our plant-based capsule portfolio. Offering a true clean label, it combines the clean-label advantages of Vcaps® Plus, a plant-based hypromellose capsule, with the natural food coloring of purple carrots. We further expanded our offering with new Natural Colorant and TiO2-free Hard Capsules concepts and received a positive initial customer response.
On the ingredients side, the two leading actives – the UC-II® ingredient for joint health and Carnipure® ingredient in sports – were benefiting from high demand. In 2018 published research further validated Lonza’s UCII® brand as a leader in the joint health ingredient space. Discover more about UC-II® in our video.
The expansion of production capacity in Lonza’s Greenwood, SC (USA) site – to combine capsule production, ingredient production and finished dosage form development – is progressing as planned. Lonza broke ground for the expanded capabilities in September as part of an ongoing program to enhance production of our nutritional ingredients and dosage-form technologies. The facilities, due to open in mid-2019, will add approximately 50,000 ft2 (4650 m2) of new manufacturing space. The Greenwood site currently produces empty capsules and finished dosage forms for the global biopharma and consumer health and nutrition markets.
« The Greenwood, SC (USA) investment further demonstrates our commitment to providing high-quality products and services to our customers worldwide. Bringing together expanded manufacturing capabilities for our science-backed ingredients, with the production of our innovative dosage forms in one facility, allows us to offer a broader range of integrated, end-to-end solutions for our customers – from function through to form. »
Sven Abend, COO of Lonza Specialty Ingredients
Personal Care Offerings
With the launch of two Bioactive Functional ingredients, ScreenLight™ Block and XPressEV™, the Personal Care business demonstrated our commitment to investing in innovative solutions that meet our customers’ current and future needs. ScreenLight™ Block provides a proven, powerful defensive shield against the visible skin-aging effects of blue light and environmental stressors, such as UV light and pollution. XPressEV™ bioactive functional helps mitigate the visible effects of chronological aging, leading to the appearance of firmer and «fitter» skin, as demonstrated in independent efficacy studies.
The personal care portfolio was further strengthened with ongoing innovation initiatives, such as the latest research on our specialty polyglyceryl ester surfactants (PGEs). They are naturally derived emulsifiers that can be easily customized to suit the needs of the global personal care market for greener personalized cleansing formulations. The PGEs are proprietary and versatile alternatives to synthetic surfactants, and they offer excellent foam generation while maintaining mildness.
Microbial-Control and Hygiene Solutions
The businesses in professional and consumer hygiene performed well, boosted by the tighter regulatory landscape and demand across all regions for modern hygiene solutions and effective prevention against pathogenic micro-organisms.
Leveraging our global expertise in microbial control, Lonza is developing the next generation of preservative solutions in consumer products, anticipating the latest and upcoming regulatory challenges and changing consumer preferences.
As a trusted supplier to homecare formulators, Lonza offers a portfolio of biocides, many intended to be supported through the Authorization Process of the European Biocidal Products Regulation (BPR).
With the launch of NUGEN® – a new generation of low-streak, quat-containing disinfectant wipes, we set the standard for convenience and ease of use in professional markets.
NUGEN® NR Wipes developed for the North American markets are an ideal choice for control of norovirus and 13 other pathogens in food service facilities, schools, long-term care facilities and day-care centers. These cost-effective, quat-containing disinfectant wipes leave no harsh chemical residues; hence, surfaces do not require a potable-water post-rinse.