Key Takeaways
- Lone Star Funds acquires Lonza's Capsules & Health Ingredients division in a landmark $3 billion transaction, signalling continued private equity appetite for nutraceutical supply chain assets.
- Indian FMCG and pharma giants snap up nutraceutical brands with three major deals totalling over $288 million in February, driven by the country's booming preventive healthcare market.
- Natural Products Expo West 2026 highlights GLP-1 supportive claims and gummy dominance as the supplement industry's biggest trade show reveals the trends shaping product development this year.
- Probiotic strain shows significant benefits for infant gut and immune health in a new randomised controlled trial, while beetroot extract demonstrates muscle-quality improvements in postmenopausal women.
- Global gummies market projected to reach $13.2 billion by 2036 as functional gummy supplements become the preferred delivery format for vitamins, probiotics, and botanical extracts.
Top Stories
Lone Star Funds has agreed to acquire the Capsules & Health Ingredients (CHI) division of Lonza Group AG in a landmark transaction valued at CHF 2.3 billion (approximately $3 billion). Under the terms of the deal, Lonza will receive upfront cash proceeds of CHF 1.7 billion while retaining a 40 percent equity stake in the business, with total undiscounted proceeds expected to reach at least CHF 3 billion. CHI is a global manufacturer of capsules and health ingredients serving both the pharmaceutical and nutraceutical industries, and the divestiture follows Lonza's decision in late 2024 to explore strategic options as part of a broader effort to streamline operations and focus on its core contract drug development and manufacturing activities. Lone Star will become the 60 percent majority owner upon closing, which is expected in the second half of 2026. The deal underscores continued private equity appetite for health and nutrition assets at scale. BioSpace | Private Equity Wire | Nasdaq
A wave of acquisition activity is reshaping India's nutraceutical landscape, as major FMCG and pharmaceutical companies move aggressively to acquire health and nutrition brands. In February alone, Marico purchased a 60 percent stake in plant-based protein and superfood firm Cosmix for $25 million, Hindustan Unilever announced it would acquire full ownership of OZiva for $90 million, and USV Pharma agreed to acquire a 79 percent stake in Wellbeing Nutrition at a valuation of $173.9 million. The deals are driven by a fundamental shift in consumer behaviour toward preventive healthcare, with India's nutraceutical market valued at $30.37 billion in 2024 and projected to grow at a CAGR of 13.6 percent through 2030. Industry observers note that nutraceutical companies offer faster growth rates, stronger direct-to-consumer capabilities, and portfolio synergies that traditional FMCG and pharma businesses increasingly covet. NutraIngredients
Natural Products Expo West 2026 wrapped up this week in Anaheim, California, with more than 3,000 brands exhibiting across the food, beverage, beauty, and wellness sectors. The dominant trend on the show floor was the proliferation of GLP-1 supportive and GLP-1 approved claims, with brands across categories positioning their products to complement the growing wave of weight-loss medications. Gummy supplements were ubiquitous, with companies like Bloom distributing creatine and greens gummies and Gruns showcasing individual gummy packets from a standout booth. Protein remained the star ingredient, appearing in everything from crackers to pizza to ice cream, while prebiotic, probiotic, and gut-health positioning was prevalent across the floors. For brands formulating with ingredients like multispore probiotics, the Expo West trends confirm that gut health continues to be a central pillar of consumer demand. Wellthy/Substack | Nosh
Business and Investment
The Lonza-Lone Star transaction represents one of the largest deals in the nutraceutical supply chain this year. CHI operates globally from its Basel, Switzerland headquarters, manufacturing capsules and health ingredients used across pharmaceutical and nutrition markets. By retaining a 40 percent minority interest, Lonza maintains exposure to the health ingredients sector while freeing capital to invest in its core CDMO business. For Lone Star, the acquisition adds a significant healthcare and life sciences platform to its portfolio, with the standalone business positioned to pursue strategic growth initiatives under new ownership. Seeking Alpha | PE Hub
In the CPG investment space, protein bar company Mezcla announced a $9.5 million Series B funding round led by Bluestein Ventures, timed to coincide with Expo West. Meanwhile, Suja Life, owned by Payne Schwartz Partners, has filed an S-1 with the SEC, signalling the exploration of a potential $1 billion M&A transaction or IPO. Skincare brand Starface secured a $105 million strategic investment from Asto Consumer Partners, further illustrating the flow of capital into health and wellness-adjacent consumer brands. Nosh
The broader supplement industry continues to attract significant consumer spending, with 75 percent of US adults now taking supplements, up from 58 percent before the pandemic. Thorne, one of the industry's leading brands, has doubled its manufacturing capacity with a 549,000-square-foot warehouse to meet surging demand for products like creatine and berberine, driven in part by endorsements from health influencers such as Andrew Huberman and Peter Attia. Business Insider
Science and Research
A 12-week randomised, double-blind, placebo-controlled trial published in Frontiers in Nutrition has demonstrated that daily supplementation with Bifidobacterium infantis YLGB-1496 significantly improved gastrointestinal health in infants. The study, involving 119 healthy infants, found that the probiotic reduced the incidence of stomach ache and diarrhoea while producing positive changes in immune markers including sIgA, cortisol, and inflammatory cytokines. The findings suggest meaningful benefits for gut barrier function and immune development in early life, adding to the growing evidence base for targeted probiotic interventions in paediatric populations. For adults seeking to support their own gut microbiome, science-backed formulations such as Multispore Probiotic offer a multi-strain approach to digestive wellness. Frontiers in Nutrition
New research published in Nutrients has found that beetroot supplementation may help counter age-related declines in muscle function in postmenopausal women. The study demonstrated that 12 weeks of nitrate-rich beetroot extract improved muscle quality, strength, and neuromuscular performance in women aged 60 to 85, offering a potential natural intervention for sarcopenia. The findings are particularly relevant for ingredient suppliers and formulators targeting the growing healthy-ageing demographic. NutraIngredients
A clinical trial reported by The Indian Express has found that broad-spectrum micronutrients, including vitamins and minerals, can significantly reduce severe irritability in teenagers. Led by researchers Julia J. Rucklidge and Angela Sherwin, the study showed the strongest effects in teens diagnosed with disruptive mood dysregulation disorder (DMDD), offering a safe and accessible alternative to conventional psychiatric treatments. The research reinforces the importance of comprehensive micronutrient intake for mental wellbeing, a principle that underpins products like the Vitamin B-Complex, which supports energy metabolism and nervous system function. The Indian Express
New Product Launches and Formulation
Expo West 2026 served as the launchpad for a wave of new products across the supplement and functional food categories. Bloom showcased its creatine and greens gummies, while Gruns debuted individual gummy supplement packets in a high-profile booth. Wilde Brand's introduced protein-packed crackers designed to compete directly with mainstream snack brands, and Loopini's unveiled a lupini bean-based frozen pizza delivering over 50 grams of protein and 20 grams of fibre per serving, now available at Whole Foods and Wegmans. David Bar teased a new protein ice cream line, Chomps expanded with three new chicken SKUs, and Sweet Loren's launched protein-forward breakfast baked goods. Wellthy/Substack
Boops Pets, an NASC-audited pet wellness company, is launching a new Calming & Stress Relief supplement for dogs featuring KSM-66 Ashwagandha, the clinically studied ashwagandha extract. The product represents the continued expansion of evidence-based human supplement ingredients into the rapidly growing pet wellness market, where demand for science-backed formulations is accelerating. Ashwagandha remains one of the most versatile adaptogens available, and its benefits for stress management in humans are well-documented through formulations like CALM. Pets Plus Mag
Swiss online retailer IntroDrink has expanded its mineral supplement portfolio with nine new formulations, including magnesium citrate, ionic zinc, and selenium drops. The products are designed for high bioavailability and address growing European consumer demand for targeted mineral supplementation. Separately, Otsuka Pharmaceutical will launch a renewed version of its Calorie Mate JELLY nutritional product on March 16, featuring improved taste and redesigned packaging in Apple, Grapefruit, and Yogurt flavours. Florida Times-Union | Otsuka
Regulations and Quality
Kanin energy shots have achieved Informed Sport certification, the global banned substance testing programme widely regarded as the gold standard for sports supplement quality assurance. The certification confirms that Kanin products are tested for over 285 substances banned in sport, providing athletes with a higher level of confidence in product safety. The move reflects the broader industry trend toward third-party certification as a competitive differentiator in the sports nutrition segment. Delaware Online
InstantGMP has released an update to its inventory management software, InstantGMP INV, expanding bin location tracking to five layers. The enhancement provides more precise control over material storage and movement, which is particularly beneficial for supplement manufacturers operating under strict GMP compliance requirements. The update addresses a growing need for advanced traceability systems as the industry faces increasing regulatory scrutiny around supply chain documentation and quality control. Florida Times-Union
The FDA has released a new draft guidance on three-year new clinical investigation exclusivity for drug products, clarifying the criteria for eligibility and providing model language for requesting exclusivity. While primarily focused on pharmaceuticals, the guidance has implications for supplement companies developing products that straddle the drug-supplement boundary, particularly those investing in clinical trials to support novel ingredient claims. Hogan Lovells
Marketing and Consumer Trends
The global jellies and gummies market is projected to grow from $7.8 billion in 2026 to $13.2 billion by 2036, according to a new report from Future Market Insights. The 5.4 percent CAGR is driven by consumer demand for enjoyable and convenient wellness delivery systems, with functional gummies, clean-label ingredients, and plant-based formulations identified as key growth drivers. Manufacturers are increasingly positioning gummies as delivery vehicles for vitamins, probiotics, and botanical extracts, a trend that was highly visible at Expo West this week. Morningstar/ACCESS Newswire
The personalised nutrition and supplements market continues its rapid expansion, with online pharmacies and e-commerce channels expected to account for 53 percent of the market by 2030, reaching $12.15 billion. The growth is driven by convenience, wide product selection, and the integration of loyalty programmes and health campaigns that enhance consumer engagement. Meanwhile, the US complementary and alternative medicine market is projected to reach $656.9 billion by 2035, growing at a 28.6 percent CAGR, with direct sales accounting for 56.7 percent of distribution methods. The Business Research Company | Market.us
On the raw ingredients front, the supplement ingredient market remained largely stable this week, though some creatine manufacturers have suspended external quotations due to heavy order backlogs, signalling tightening supply conditions for one of the industry's fastest-growing ingredients. Methylcobalamin (vitamin B12) has also seen a clear upward price trend due to strengthening demand and limited spot availability, a development worth monitoring for formulators and procurement teams. Nutriavenue
About the Author
Ben Law is the Founder of Love Life Supplements, a UK-based supplement company committed to delivering science-backed, premium-quality nutritional products. With a deep passion for health, wellness, and the nutraceutical industry, Ben curates this daily briefing to keep professionals and enthusiasts informed about the latest developments shaping the supplement landscape. Learn more about Ben's journey and philosophy on the About Ben Law page.