Large corporations partner with start-ups to develop novel delivery systems

By Katie Bird

- Last updated on GMT

Related tags: Delivery systems, Innovation, Dow corning

Delivery systems can differentiate products in a crowded market place and partnering with innovative start-ups can help large corporations keep ahead of the game, according to a recent market report.

According to Lux Research, novel delivery technologies that can help administer the active ingredient where and when it is needed, play a large role in a finished product’s success.

While chemical behemoths such as BASF, DSM and Dow dominate the development of raw materials used in the delivery systems, much of the innovative technologies are created by smaller start-ups, the market research company claims.

Partnering with the start-ups is therefore a good way for the larger corporations to keep their competitive edge, the Lux Research report claims.

Efficacy and convenience benefits

According to the lead researcher on the study Chananit Sintuu, there are numerous examples where delivery systems have provided a benefit in efficacy, convenience, cost or even a simply novelty, that help ensure the commercial success of the product.

“When a new delivery system really benefits consumers, a company will even lead the marketing with the news about the delivery system. For example, L’Oreal has been touting its INOA (“Innovation NO Ammonia”) product, which relies on its ODS (Oil Delivery System) technology to color hair without the need for smelly ammonia,”​ she told CosmeticsDesign.com USA.

Although the larger chemical suppliers do often have budgets for developing delivery systems, Sintuu explained that often these are used to buy or license technology from smaller players.

This has a number of benefits, she explained. Primarily it can help bring innovations to market that the smaller companies may not have the resources to do, but it can also benefit the larger corporations.

“Partnering and collaborating with these smaller developers increases the value of their products and offers an additional source of revenue for these large corporations,”​ she said.

In addition, adding more technologies to their portfolio can keep companies ‘from becoming a one-trick pony, and ‘allows them to easily expand on their expertise’, Sintuu added.

Delivery technologies can cross industries

The report also highlights the fact that many delivery technologies can be used in cosmetics, pharmaceutical and food products, and noted this can also help materials developers enter new markets.

Some examples of partnerships highlighted by the report include BASF’s partnership with OrganoBalance and Dow Corning’s agreement with Elevance.

Related topics: Formulation & Science

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