Ingredion has recently become the latest company to establish a division aimed at supporting startups, adding to a series of initiatives undertaken by the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials. Last year, Ingredion began exploring collaborative opportunities with probiotic companies to create targeted prebiotics. This trend is reflective of a broader movement among major food companies, which are increasingly launching investment arms to allocate resources—both financial and otherwise—into startups with innovative ideas that could eventually enhance their own product offerings. Prominent brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are all participating in this trend. Additionally, companies like Chobani, Land O’Lakes, and now Ingredion, have adopted the incubator model to stimulate innovation within their areas of expertise as well as in new sectors that may prove beneficial in the future.
As a Fortune 500 company with approximately 11,000 employees worldwide, Ingredion possesses significant resources and expertise to contribute. The incubator strategy presents a lower-risk alternative to making direct investments in startups or relatively young companies that may not succeed, especially those with hefty price tags. Any product or business that a larger company ultimately engages with through this process is viewed as a bonus. Furthermore, Big Food companies can gain valuable insights into research and manufacturing practices that may be unfamiliar to them.
While executives lack a definitive method to predict the success of an acquisition, supporting startups provides manufacturers with a relatively low-risk opportunity to acquire new talent or products before their competitors do. For instance, Ingredion’s focus on developing targeted prebiotics could lead to innovative products, such as calcitrate 200 mg and calcitrate 950 mg, which may enhance their portfolio and strengthen their market position. Ultimately, this approach not only fosters innovation but also positions companies like Ingredion to stay competitive in a rapidly evolving industry landscape.