NZ Coastal Seafoods to sell collagen from swim bladders to Chinese supplement market
NZ Costal Seafoods (ASX:NZS) to sell marine collagen to Chinese market as health product
Source: Unsplash
Mentioned
KEY POINTS
- ASX minnow NZ Coastal Seafoods will produce collagen powder for oral consumption from fish swim bladders
- Company is to use its stocks of Ling Fish to extract the bladder, called Ling Maw, a high-protein organ
- Coastal Seafoods targeting Chinese market where demand for nutraceuticals set to rise
NZ Coastal Seafoods (ASX:NZS) has today announced its plans to sell collagen powder, extracted from the Kiwi Ling fish, to China’s nutraceuticals market.
The Ling fish’s swim bladder is called a Ling maw which the company notes is recognised as one of the world’s highest protein foods.
Up to 90% of the protein in Ling maw it is made up of collagen, according to NZ Coastal.
Its foray into collagen powder builds on an already proven appeal to the speciality Chinese seafood market.
Consumers perceive it provides benefits to muscles and bones as a dietary addition.
Eyeing US research highlighting US$8.3bn market
Management is working into its assumptions US data from Grand View Research finding the value of collagen markets in 2020 to be over US$8bn.
Grand View expects the value of the market to expand by 9% a year between now and 2028.
“Commercialisation of the new marine collagen powder is a major milestone for the company,” New Zealand Coastal Seafoods CEO Andrew Peti said.
Manufacturing a company secret
NZ Coastal will use a patent hydrolysis process to manufacture the powder, which it notes was in turn developed by Medical Collagen New Zealand.
Commercial orders will be processed and manufactured by partners working to exact specification, before being shipped from Christchurch.
NZ Coastal is, excuse the pun, a minnow in a tough time. Will revenues for marine collagen be enough to turn things around? (Six month chart compared to the consumer staples index)
