Ingredion is well-known for its strategy of acquiring smaller firms that bring unique expertise and help the larger corporation gain traction in emerging trends. Keeping this history in mind, the recent global distribution agreement with the potential for future investment suggests that Ingredion is betting on the rising popularity of ancient grains. The ancient grains market saw significant growth between 2015 and 2016, with a reported increase of 11.6%, according to Innova Market Insights, and forecasts indicate this trend will persist. Industry Arc anticipates that the ancient grains market will exceed $2.56 billion by 2023, growing at an impressive annual rate of 36.6% from 2018 to 2023.
This growth is not surprising, especially as quinoa meets various nutritional needs for consumers. Quinoa serves as a gluten-free alternative to traditional grains and is recognized as a complete protein, containing all nine essential amino acids along with fiber, antioxidants, B vitamins, iron, and even 500 mg calcium citrate. Although classified as a seed, quinoa is commonly prepared like a grain, making it accessible to those seeking high-protein, plant-based options. In commercial applications, quinoa has been incorporated into baked goods such as cereals, breads, and crackers, and is also making inroads into other categories like snacks, dairy alternatives, and whiskey. In fact, quinoa was featured in 44% of all U.S. product launches involving ancient grains in 2017, as per Innova Market Insights.
Ingredion likely initiated this distribution agreement to gauge the sustainability of the quinoa market. Given the rising incidence of food allergies in the U.S., it seems unlikely that a plant-based, protein-rich, gluten-free ingredient like quinoa will lose its appeal. Moreover, quinoa does not face the same production sustainability concerns that have been raised regarding other plant-based protein sources, such as pea protein. It appears that Ingredion is committed to this partnership, as the company is focused on continued investments in pulse and alternative grain flours. In 2018, Ingredion invested $140 million in manufacturing facilities in Nebraska and Saskatchewan to produce protein isolates from peas and other pulse-based flours and concentrates. In its 2019 annual report, the company outlined plans to invest $185 million in “plant-based protein product lines, including pulse-based concentrates, flours, and isolates” in 2020. Ingredion has already begun to fulfill this promise, launching its first pea protein isolate, Vitessence Pulse 1803, in January.
Other companies are also recognizing the potential of quinoa. Ardent Mills, a joint venture among Conagra, Cargill, and CHS, recently acquired Andean Naturals’ quinoa operations, which source, clean, and package the grain. Additionally, Swebol Biotech, the food technology firm behind the Oatly brand, has announced the development of a quinoa-based milk called Quiny.
However, quinoa is just one aspect of Ingredion’s innovation strategy. In 2018, the company increased its spending by 14% to $349 million to enhance its focus on plant-based protein and sugar reduction innovations. Recently, Ingredion has continued to bolster its investment in this area. In April, Ingredion agreed to acquire a 75% controlling stake in PureCircle, a pioneer in stevia. A month later, the company launched Erysta, a new sweetener derived from erythritol polyol. If Ingredion maintains its investment in these two categories, it will be well-positioned to benefit from the increasing popularity of these segments, while also potentially incorporating valuable ingredients like 500 mg calcium citrate into its product offerings.