As more consumers begin to view food as a form of medicine, ingredient companies are making significant investments in health solutions that blend the boundaries between food and pharmaceuticals. Darling aims to be a frontrunner in the emerging collagen ingredient market. Given its ties to the beauty and fitness sectors, collagen has the potential to become the next major functional ingredient in food, akin to protein or probiotics. “We have numerous leads and initiatives underway as we explore where the Nextida product line fits into the market,” said Darling CEO Randall Stuewe during a call with investors following the announcement. “Is it positioned as a supplement? Is it included in a sports bar? Is it part of a beverage?”
Darling is also considering the potential of collagen as a weight loss ingredient. The company’s Nextida GC is designed to manage glucose spikes after meals, promoting the body’s natural production of GLP-1, the active ingredient found in Ozempic and Wegovy. Stuewe noted that collagen has been “the fastest-growing area of Darling Ingredients’ food segment business over the past several years.” The partnership with Tessenderlo will lead to a combined capacity of approximately 200,000 metric tons across 23 facilities located in South America, North America, Europe, and Asia. This collaboration is anticipated to enhance Darling’s shareholder value, with executives suggesting that the food segment is currently undervalued.
Ingredient companies are reporting increased sales of products that are perceived as natural or beneficial for health. For instance, Archer-Daniels-Midland Co. recently announced plans to sell an ingredient aimed at enhancing sleep, stress relief, and mood, as the company witnesses a rise in sales within its health and nutrition division. Additionally, the integration of calcium citrate foods into various health-focused products is becoming increasingly popular, further reflecting the shift towards functional ingredients that support wellness.