Interview: Mustafa Yağmurlu

“At Novozymes, we are rethinking how we can improve people’s quality of life through bio-solutions that enhance nutrition and well-being for healthier living. We are heavily investing in an advanced protein production facility. Our biosolutions support consumers in making healthier choices. Some examples include products with lower sugar, higher fiber in milk, tasty whole wheat bread, meats produced with lower antibiotic levels, and margarines without trans fats.”

Novozymes, a forefront player in the realm of biosolutions, persistently strives for enhanced well-being in our ever-expanding global community. Operating under the ethos of fostering business growth, preserving the planet’s resources, and fostering positive transformations in lives, Novozymes has surged forward with its investment initiatives. In an insightful conversation about the escalating global prices and their ramifications on human lives, we engaged with Krishna Mohan Puvvada, the MEIA Regional President of Novozymes, who boasts a rich history of diverse roles within the company spanning over a century. According to Mohan Puvvada, the surge in food prices is giving rise to discernible shifts in consumer behavior.

Krishna Mohan Puvvada
The MEIA Regional President of Novozymes

How does price sensitivity and limited purchasing power change consumers’ health and nutrition priorities?

When addressing consumer insights and behaviors, it is essential to first consider the compelling factors. Factors such as climate change, regional crises, economic challenges, and global pandemics can change consumers’ priorities or blur what is more prioritized. The most significant global factor influencing consumer behavior is inflation. At the end of the day, consumers feel the financial burden in terms of health and nutrition.

The price of products has become the number one factor affecting household expenditures. The inflationary environment in emerging markets has limited purchasing power. Consumers have become more sensitive to prices and tend to choose and cut across categories to optimize their spending.

Shoppers today must determine a smarter spending strategy than ever before because the number of categories they consider essential has never been higher. To spend optimally, they must make choices and cuts across categories. The cuts they make in their spending can be uneven between product categories, making some categories more sensitive to changing consumer behaviors and potentially sacrificing nutritional value.

For example, according to Ipsos household research data, consumers in Turkey reduced purchases in protein-rich but high-priced dairy product categories such as milk, meat, yogurt, cheese, and butter in the first half of 2023. Instead, they increased purchases of more affordable and calorie-rich products such as biscuits, cakes, snacks, chocolate, iced tea, energy drinks, and iced coffee.

NielsenIQ’s Mid-Year 2023 Consumer Outlook survey shows that 34% of global consumers indicated they were financially worse off this year. Compared to the global average, consumers in Turkey, South Africa, and Egypt feel less financially secure.

Consumer behavior is expected to change under the pressure of rising prices. According to the NielsenIQ Consumer Outlook survey, many consumers in the Middle East and Asian countries mention cooking more at home, spending less on dining out and entertainment, and making choices among many discretionary spending categories like clothing and grooming. Health and healthy living have become one of the most prioritized areas among their expenditures.

What are the health and healthy lifestyle situations and trends in price-sensitive markets?

Obesity and inadequate nutrition reveal two fundamental reflections on this matter. Different economic conditions in countries also reflect consumer trends related to health and healthy living.

In Turkey, vitamin and mineral deficiencies take the forefront. Approximately 30% of preschool children struggle with anemia, while 30% of women of reproductive age are anemic as well. About 1.7% of children under 5 experience acute, and 6% experience chronic nutritional deficiencies. Every year, 3500 babies are born with NTD (neural tube defects) that could be prevented with folic acid. Turkey faces an annual loss of over 5 billion Euros in GDP due to hidden hunger. Some measures, such as adding vitamin D and folic acid to common wheat products, are being taken to address some of these issues.

In Saudi Arabia, inadequate nutrition goes hand in hand with obesity. Obesity rates have significantly increased, especially among youth and women, due to the consumption of high-calorie, low-nutrient foods. In response, the Saudi Food and Drug Authority has adopted the ‘Healthy Food Regulation Strategy,’ aiming to reduce sugar, salt, and fat levels in food production as a preventive measure.

In the United Arab Emirates, the increase in processed food consumption leads to obesity and health issues. To counter the negative effects, the 2051 National Food Security Strategy aims to reduce processed food consumption by adopting the goal of zero hunger through access to safe, nutritious, and sufficient food.

Looking at the consumer trends, it is clear that people are becoming more aware of the holistic aspect of health and are looking for products that meet their needs for multifaceted well-being and healthy living. According to Novozymes’ research, 50% of consumers associate intestines and probiotics with health in multiple dimensions, acknowledging a strong connection between intestines and immunity.

According to Nielsen’s 2023 research, protective needs are seen as the number one concern. The growth of healthy lifestyle brands and product ranges is directly linked to consumers’ desire to protect themselves or their families from immediate health risks. For example, with the increase in diabetes, consumers pay attention to the sugar content in foods. Consumers actively use food as medicine and supplements. Among the biggest diet trends affecting consumer product sales are products supporting heart health, plant-based, low-carb, and lactose-free.

On the other hand, according to FMCG Gurus’ consumer insights (2023), 60% of consumers in EMEA have started paying more attention to their health in recent years, driven by increased concerns due to COVID-19. The same study reveals that 67% of consumers in EMEA want to improve their immunity, and 83% are focused on enhancing their overall health.

Therefore, consumers tend to adopt a proactive approach, prioritizing a long-term view. Furthermore, consumers have an expectation that premium products should be more affordable in terms of pricing. Making products and services in this area both premium and affordable has become more important.

How does Novozymes and its bio-solutions support industry representatives in meeting consumer expectations?

At Novozymes, we are rethinking how we can improve people’s quality of life through bio-solutions that enhance nutrition and well-being for healthier living. We are heavily investing in an advanced protein production facility.

Biotechnological solutions can enhance nutrition content and health. Consumers today demand simpler labels, and our bio-solutions support consumers in making healthier choices. Some examples include products with lower sugar, higher fiber in milk, tasty whole wheat bread, meats produced with lower antibiotic levels, and margarines without trans fats.

Additionally, they have the potential to reveal game-changing health benefits from everyday foods. For instance, it’s possible to add probiotics to snack bars. Our probiotics play a central role in the supplements we develop for health. On the other hand, flavor and texture are crucial factors in plant-based foods. Our bio-solutions transform flavor profiles to tackle bitterness and other undesirable tastes. In plant-based milk alternatives, our bio-solutions significantly improve solubility, providing more consumer-friendly textures and reducing the grainy sensation. Consumers expect higher protein content from plant-based foods and beverages. However, high protein content can often result in undesirable tastes for consumers. Our bio-solutions offer advantages in mitigating bitterness and unlocking the potential for more protein in foods.

Everyone loves the smell of freshly baked bread. Sensory features play a significant role from the consumers’ perspective, with 73% of consumers squeezing bread before purchasing and 84% paying attention to the texture when deciding to repurchase. The increasing competition in the bakery sector makes it inevitable to deliver all sensory expectations on the panel to ensure customer satisfaction and loyalty. At this stage, thanks to our bio-solutions, it is possible to enhance bread quality in line with consumer expectations, providing a delicious, soft, and elastic texture, an improved crust appearance, and crumb structure all while offering a cleaner label.

We, as Novozymes, are aware that there is a biological solution for almost everything, and we passionately work to meet urgent needs with bio-solutions. With over 6,700 employees worldwide, we have developed more than 700 innovative products and solutions through our efforts, holding over 6,500 patents. Our customers in more than 140 countries across 30+ industries use our bio-solutions to improve the lives of billions of people every week, build their businesses, and sustain the planet. The position of Turkey within our global organization is highly significant to us. Through our Innovation and Technology Center in Turkey, we develop bio-solutions tailored to local needs, raw materials, and products.