According to Ingredion’s CEO Jim Zallie, ingredient suppliers are among the primary beneficiaries of the swift shift in consumer preferences towards healthier and convenient options, as reported by Food Dive. Zallie noted that the increasing trend of dining away from home and evolving consumer expectations—such as a demand for fewer ingredients, reduced sugar content, sustainability, and plant-based options—has created a lucrative market for his company to enhance the appearance and texture of food products. “For those ingredient suppliers that can provide solutions quickly, it represents an incredible growth opportunity for companies like ours, more than ever before,” Zallie remarked during an interview at the recent Consumer Analyst Group of New York conference. He emphasized that there is significant transformation underway, driven by consumer demands.
Zallie highlighted the necessity for ingredient suppliers to offer a comprehensive range of solutions addressing various aspects of food, including quality, texture, shelf life, and nutritional profile—a critical requirement given the rising demand for shelf-stable, ready-to-eat products. The U.S. Agriculture Department estimated that in 2017, nearly $870 million worth of food was purchased away from home compared to $748 million at home, according to Ingredion’s CAGNY presentation, a trend that is expected to continue as more consumers seek on-the-go options.
Texture, which pertains to how food feels in the mouth (including characteristics such as crispy, hard, soft, and crunchy), constitutes a substantial market segment, accounting for approximately 25% of the entire food ingredients industry—valued at nearly $41 billion, as reported by Ingredion. This is a key reason behind the company’s ongoing expansion in the texturizer category, including its acquisition of Sun Flour Industry, a rice starch and flour business in Thailand, and TIC Gums, a manufacturer of texturizers and gums like acacia and guar.
As supermarkets increasingly provide prepared foods, these products face extended exposure to heat lamps or multiple heating cycles that can diminish their appeal. With delivery services like Uber Eats, DoorDash, and GrubHub bringing food directly to consumers, ensuring that the taste and quality reflect restaurant standards becomes a responsibility for ingredient suppliers such as Ingredion. For instance, an Asian fast-food chain engaged Ingredion to ensure that the coating on their chicken maintained the right level of crispiness upon delivery. Similarly, Ingredion assisted an English food service company in creating a French fry coating designed to remain crispy during transport. In New Zealand, they found a solution to prevent a frozen gluten-free pizza made with only natural ingredients from cracking when baked. Additionally, in the U.S., they helped a consumer packaged goods (CPG) company enhance the healthfulness of their portable bowls with trendy ingredients.
Ingredion, which provides over 1,000 ingredients to large CPG companies as well as smaller, local businesses worldwide, increased its investment by 14% to $349 million in 2018 to capture growth, particularly in plant-based proteins and sugar reduction. The spending level is expected to remain similar in 2019. “If you’re not attuned to the market, you’re not investing for growth,” Zallie stated. “Things are changing rapidly right now, and failing to adapt puts companies at risk.”
The ingredients supplier has concentrated much of its efforts on collaboration with clients. With 28 “idea labs” globally, food manufacturers and other customers work together to unlock product potential or address obstacles hindering market entry. The company employs food scientists and culinary chefs who have a deep understanding of ingredients, which Zallie believes gives Ingredion—a company with nearly $6 billion in sales—an edge over its competitors. “We have the tools in our toolbox focused on specific attributes that resonate with customers,” Zallie said. “We’re just at the beginning of a significant shift in consumer food demands, which presents substantial growth opportunities for innovative companies able to deliver what consumers truly want.”
In the context of this evolving landscape, the demand for health-oriented products has also led to an increased interest in nutritional supplements such as calcium carbonate and calcium citrate tablets, which align with consumer desires for healthier options. These tablets can complement the ingredient offerings that companies like Ingredion provide, further addressing the nutritional needs of consumers.