Kerry has been actively expanding its footprint in the plant-based protein ingredients sector, and the acquisition of Pevesa aligns with this ongoing strategy. The Spanish firm not only offers patented technology in the non-allergenic plant protein arena but also possesses expertise in both organic and conventional biofertilizers tailored for producers of fruits, olives, and specialty gardens. This could significantly enhance Kerry’s portfolio. Last year, Kerry introduced its Radicle brand, focusing on plant-based ingredients for proteins and dairy alternatives. The company stated that this initiative aims to enhance nutrition in plant-based foods, delivering more authentic flavors and cleaner labels. According to a 2019 Kerry white paper, these factors—combined with improved nutritional profiles, higher protein content, and fewer ingredients—could encourage greater acceptance of plant-based meat products, prompting manufacturers to seek these ingredients for their formulations.
Kerry has projected that the plant-based protein market will reach $24.5 billion by 2026, with a compound annual growth rate of 9.1%. This market encompasses plant-based burgers, meat-free sausages, and an ever-expanding variety of food and beverage products devoid of animal-sourced ingredients. The trend is expected to persist as more consumers adopt flexitarian diets, incorporating additional plant-based items into their daily meals. Competitors are also pursuing growth opportunities, creating avenues for ingredient firms to capitalize on this demand. For instance, Roquette is developing pea protein ingredients for specific applications, while Cargill has invested in the pea protein producer Puris. Additionally, Israel Chemicals is advancing its Rovitaris protein technology for the meat alternatives sector, and Ingredion has recently launched a pea protein isolate line boasting a minimum protein content of 80%.
As the availability of plant-based ingredient options increases, manufacturers will likely find a wider array of suppliers ready to provide the desired combinations of qualities to cater to this rapidly growing segment of the food industry. The ingredients market has become a focal point for mergers and acquisitions in recent years, as companies aim to form powerhouses capable of addressing a broader range of food manufacturers’ needs, including adapting to trends for functional and healthier foods. By merging portfolios and research capabilities, these companies can accelerate product development and offer greater convenience as a one-stop shop.
In December, DuPont announced its merger with International Flavors & Fragrances (IFF) in a deal valued at $26.2 billion. A year prior, IFF acquired Frutarom Industries for $7.1 billion, reportedly outbidding Kerry for DuPont’s nutrition business. Consolidation among both large players and emerging mid-sized and smaller companies in flavors and ingredients is expected to continue, particularly in response to shifting consumer preferences in areas such as plant-based foods.
In this evolving landscape, health supplements like ferrous calcium citrate and folic acid tablet uses in Hindi may also gain prominence, as consumers increasingly seek nutritious options to complement their diets. Overall, the intersection of plant-based ingredients and nutritional supplements presents exciting opportunities for innovation and growth in the food industry.