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Highlights
- New Zealand Coastal Seafoods has successfully commercialised a hydrolysed high-quality marine collagen powder to the expanding global nutraceuticals market
- The global collagen market was worth US$8.36 billion in 2020 and is expected to grow at a CAGR of 9% from 2020 to 2028
- On receiving commercial orders, NZS will manufacture marine collagen under contract processing agreements with partners
New Zealand Coastal Seafoods Limited (ASX:NZS) has ticked off an important milestone. The company has successfully commercialised a hydrolysed high-quality marine collagen powder, expanding its supply to the global nutraceuticals market. NZS is a marine biotechnology and nutraceuticals company, which produces secondary seafood products. It is based in New Zealand.
Collagen – a multibillion-dollar market
The commercialisation of marine collagen powder opens a significant market prospect for NZS. The global collagen market in all consumable forms and from all sources was worth US$8.36 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 9% from 2020 to 2028.
Collagen is gaining traction for its potential benefits to cell repair in organs and bones, musculoskeletal health and delaying ageing processes in the human body.
Collagen from Ling maw
New Zealand Coastal Seafoods Limited produces the marine collagen extracted from Ling maw. Ling maw is the swim bladder of the Ling fish species and is known to be one of the world's richest foods in protein. 90% of its content is made from collagen, and the hydrolysed collagen powder has now become one of the company's flagship products. Marine collagens are naturally free from contamination risks, unlike alternative animal sources.
Hydrolysis - Before commercialising the product, the company adopted extraction trials that were more efficient and less costly. Hydrolysis breaks down the protein sourced from Ling maw into smaller particles, making it more water-soluble, which helps it to get more easily absorbed into the body. It also eliminates non-collagen components from the raw material. Further, the process uses fewer chemicals and less energy than traditional processes.
Hydrolysed Ling maw product holds significant potential to increase revenue and earnings for the company. The company will also continue producing ready-to-eat Ling maw and other secondary seafood products.
NZS will manufacture marine collagen on receiving commercial orders under contract processing agreements with partners. As per the company's specifications, these partners will handle the extraction and processing steps, and the product will be distributed from the company's facility in Christchurch, New Zealand.
Stock information
At the time of writing this article (FRI 08 JUL 10:29 AM AEST), shares of NZS were worth AU$0.004 apiece.
