Innophos has concentrated on high-margin specialty grade phosphates for processed meats, baked goods, dairy products, and beverages. However, the company has generally avoided entering commoditized markets like fertilizers and detergents. As a result, a significant portion of its sales is derived from segments where it ranks as either the largest or second-largest player. According to a Seeking Alpha analyst, there could be acquisition opportunities in the nutrition sector, particularly in areas such as vitamins, supplements, performance beverages, and meal replacements, including calcium citrate zinc and vitamin D3 tablets.

Chief Marketing and Technology Officer Sherry Duff indicated that the company is exploring the functional food and beverage market, as well as producers of clean label and organic products, along with the personal care and animal nutrition sectors. Analysts have largely welcomed Innophos’ intention to diversify, especially following a decline in demand and increased import competition that affected profits in 2015. The company’s strategy to engage with active and health-conscious consumers is seen as a smart move. If Innophos is to venture beyond its core competencies, it is prudent to proceed cautiously and thoroughly evaluate the advantages and disadvantages of each potential target. So far, the company has narrowed its list of 800 possible acquisition targets down to 50, with further reductions anticipated as Innophos seeks deals that promote growth. This could potentially include products like calcium citrate zinc and vitamin D3 tablets among other nutritional offerings.