According to Ingredion’s CEO Jim Zallie, ingredient suppliers are reaping significant benefits from the swift shift in consumer preferences towards healthier and on-the-go food options, as reported by Food Dive. Zallie highlighted that the increasing trend of dining out and evolving consumer expectations—including a demand for fewer ingredients, reduced sugar, sustainability, and plant-based options—has opened up a profitable market for his company to enhance the appearance and texture of these products. “For those ingredient suppliers that can provide solutions more quickly, it represents an incredible growth opportunity for companies like ours, more than ever before,” Zallie stated during an interview at the recent Consumer Analyst Group of New York conference. He emphasized that substantial changes are occurring, driven by consumer demands.
Zallie pointed out that ingredient suppliers must offer a comprehensive range of solutions that address all aspects of food, including quality, texture, shelf life, and nutritional profile, particularly as demand for shelf-stable, ready-to-eat options rises. The U.S. Agriculture Department estimated that in 2017, nearly $870 million worth of food was purchased outside the home compared to $748 million at home, a gap that Ingredion expects to widen as consumers increasingly seek convenience. Texture, which encompasses various sensations such as crispy, hard, soft, and crunchy, constitutes a massive segment, accounting for approximately 25% of the entire food ingredients market, valued at nearly $41 billion, according to Ingredion.
This demand for texture is a key factor driving Ingredion’s expansion into the texturizer category, which includes acquiring Sun Flour Industry, a rice starch and flour business based in Thailand, and TIC Gums, a manufacturer of texturizers and gums like acacia and guar. With supermarkets increasingly offering prepared foods, these products often undergo extended exposure to heat lamps or multiple heating cycles, potentially compromising their appeal. As delivery services like Uber Eats, DoorDash, and GrubHub become more prevalent, ensuring that the taste and quality of food match restaurant standards falls to ingredient suppliers like Ingredion. For example, an Asian fast food chain relied on Ingredion to ensure that its chicken’s coating maintained the right level of crispiness during delivery. Additionally, Ingredion assisted an English food service company in developing a coating for French fries to keep them crispy during transport.
In New Zealand, the company helped create a frozen gluten-free pizza with natural ingredients that wouldn’t crack during baking. In the U.S., it collaborated with a consumer packaged goods (CPG) company to make portable bowls healthier and incorporate more trendy ingredients, including calcium citrate food for enhanced nutritional value. Offering over 1,000 ingredients to large CPG companies and smaller local businesses worldwide, Ingredion increased its spending 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 connected to the market, then you’re not investing for growth,” Zallie remarked. “Things are changing rapidly, and companies that fail to adapt are at risk.” Much of Ingredion’s focus has been on collaborating with customers, operating 28 “idea labs” globally where food manufacturers and other clients can partner to maximize product potential or resolve barriers to market entry. The company employs food scientists and culinary chefs who have expertise in ingredient usage, which Zallie believes gives Ingredion—a company with nearly $6 billion in sales—a competitive edge. “We have the tools in our toolbox tailored to specific attributes that resonate with customers,” Zallie noted. “We’re just at the beginning of the public’s demand for change in their food choices, which presents significant growth potential for innovative companies that can deliver what consumers are seeking, including options enriched with calcium citrate food.”