Competitor Strategies in Ingredients

Delivery

This report comes in PPT.

Key Findings

Ingredients companies innovate to keep pace with consumers' changing habits

Innovations have been key to growth in the ingredients industry, as consumers’ eating habits have evolved significantly over the past decade. Health and environmental concerns have increased the number of consumers trading up to naturally functional food with sustainable sourcing, leading ingredient companies to seek alternative protein sources beyond the popular soy, such as pulses.

M&As remain an important way of ensuring future growth for ingredients companies

The ingredients industry was quite dynamic in terms of M&A activities in 2019, with the merger of Dupont and IFF having the highest profile, due to the scale of the deal. To accelerate their growth in this highly competitive environment, international players have acquired smaller scale speciality companies to address evolving eating trends more quickly, or to position themselves better in emerging markets.

Growing interest in food origins and traceability leads ingredients companies to adopt a vertically integrated supply chain model

Ingredient origins and traceability have become more important not only for food manufacturers but also for end consumers, leading more and more ingredients companies to opt for vertical integration in their business, looking for greater control of the supply chain.

Asia Pacific sits at the centre of new investment, with its high potential for food consumption

With its substantial population, Asia Pacific leads food and beverage consumption, making it one of the first choices when it comes to expanding businesses. To capitalise on this demand, many major players in the ingredients industry are investing in Asia Pacific, either through M&A or by launching new products specifically targeting this region.