Some analysts believe the nutraceutical industry could top $200 billion by 2017. Could Plant City — a city rich in agriculture and situated perfectly along a major interstate, snag a slice of that pie?
It’s no secret Plant City prides itself on its decades of agricultural heritage. With a variety of helpful factors at play, the Winter Strawberry Capital of the World is perfectly situated for the industry. Playing off its strengths, the city now is looking towards another type of product to grow alongside its ruby jewels: nutraceuticals.
The nutraceutical industry has been a topic brought up in meetings between the city, the University of Florida’s Institute of Food and Agricultural Sciences and the Economic Development Council of Hillsborough County for several years.
A combination of the word nutrition and pharmaceutical, the term may conjure up negative images of mutations and forced experimentations.
“We’re not talking about GMOs,” City Manager Greg Horwedel said. “This is a highly refined product that is derived from plant material.”
So what exactly are nutraceuticals, and what chance is there for the industry to lay roots in Plant City?
THINKING GLOBALLY
The term “nutraceutical” was first coined by Dr. Stephen L. DeFelice. In 1976, he started the Foundation for Innovation of Medicine, a non-profit organization with the purpose to accelerate medical discovery through a clinical research community.
A nutraceutical is a food or part of a food that has a medical or health benefit, such as the prevention and treatment of a disease. The effectiveness of a nutraceutical is tested through clinical studies.
This is where the lines can blur. Different countries have different laws regulating and defining nutraceuticals.
The popularity of nutraceuticals has been rooted in Europe, Asia and Canada. It is still fairly new in the United States.
In fact, in U.S. law, the term “nutraceuticals” doesn’t have an exact definition. Depending on the ingredients and the purpose or claim of the product, The Food and Drug Administration classifies a product as either a drug, a food, a food ingredient or a dietary supplement.
Nutraceuticals are classified into two groups — dietary supplements and functional foods.
A dietary supplement is a product that contains nutrients derived from food products. The ingredients can be vitamins, minerals, herbs, botanicals, amino acids and enzymes among other things. They are found in a liquid capsule.
Although dietary supplements don’t have to be approved by the FDA, there is some regulation. Companies must register their manufacturing facilities with the FDA and may only be marketed to support the structure or function of the body, and not claim to treat a disease or condition. In accordance with the regulations, dietary supplements must have a label that states: “These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.”
Functional foods are enriched foods through a process called nutrification. The practice restores the nutrient content in a food back to similar levels from before it was processed or adding additional complimentary nutrients.
A market report by Transparency Market Research forecasts the global nutraceutical industry to reach $204.8 billion by 2017. Another report by Global Information Inc. projects the industry to reach $250 billion by 2018.
ACTING LOCALLY
The idea of nutraceuticals in Hillsborough first came up during an EDC meeting with Biggins Lacy Shapiro & Company, an economic consultant. The firm mentioned the industry and the EDC noted it with the intention to research it further. That was several years ago. With such a large-scale undertaking, the idea is still a long way from coming to fruition.
“Nutraceuticals could potentially play a role in a larger, long-term economic development strategy, but we have not yet begun to actively explore opportunities within this emerging industry,” said EDC Vice President of Marketing and Communications Jennifer Mikosky.
In 2012, the EDC hired a dedicated project manager, Jake Austin, to drive job creation and capital investment in Eastern Hillsborough County.
“Our outreach has largely focused on manufacturing and distribution, as well as building relationships with existing local businesses,” Mikosky said. “As a result, nine companies have announced plans to expand, generating more than 200 new jobs and $105.6 million in capital investment.”
Many of the same attributes that has attracted new business also can entice a potentially blooming nutraceutical industry in Plant City.
“We have a long history of agriculture, a workforce, great access through airports, ports and our location on the I-4 corridor, transportation, low regulation requirements and tax burdens,” Horwedel said.
But, Horwedel agrees the project is a long way off and is under the primary direction of the EDC, which can coordinate with state agencies, as well.
“It takes a while for the plant to sprout,” he said. “With long-term economic development, you have to be patient.”
Contact Amber Jurgensen at ajurgensen@plantcityobserver.com.
TERMS OF THE TRADE
Nutraceuticals. Food or part of a food that has a medical or health benefit, such as the prevention and treatment of a disease, tested through clinical studies.
Dietary Supplement. A type of nutraceutical found in a capsule or liquid form that contains nutrients such as vitamins, minerals, herbs, botanicals, amino acids and enzymes derived from food products.
Functional Food. A type of nutraceutical that is an enriched food through a process called nutrification.
Nutrification. The practice of restoring the nutrient content in a food back to similar levels from before it was processed or adding additional complimentary nutrients.
Genetically Modified Organism (GMO). Organism such as bacteria, yeast, plants and animals whose genetic material has been changed through genetic engineering.