“Trends in the Food Industry: Kerry’s Strategic Moves in Clean Label and Natural Ingredients Amid Rising Consumer Demand”
Although the announcements were made quietly, they highlight significant trends influencing the food industry and reflecting consumer preferences in food and beverages. Kerry has promoted the deal as a means to reinforce its position in the clean label and natural foods sector, which is increasingly sought after by consumers. A study by Beneo in 2018 indicated that prioritizing natural ingredients and clean labels is more important to consumers than brand recognition or product descriptions when choosing food products. For Kerry, expanding its clean label offerings provides a broader range of options for food and beverage manufacturers, tailored to the specific products they are developing, how those items interact with various ingredients, and the changes they wish to implement for label improvements. Furthermore, if an ingredients company like Kerry offers a more extensive selection, it enhances the chances of businesses considering them as a comprehensive solution provider.
In an article by Food Ingredients First, Cracknell shared insights on how the company stands to gain from its recent acquisitions. He noted that the combination of IsoAge Technologies’ natural and sustainable food safety solutions, Biosecur Lab’s natural citrus extract-based antimicrobials, and Kerry’s existing food protection measures will enable the company “to protect even more food naturally.” Kerry emphasized not only the shifting consumer trends but also the influence of the coronavirus on what people desire in their food choices. The pandemic has led consumers to become more mindful of their diets, prompting increased scrutiny of product labels and a preference for avoiding artificial ingredients. Additionally, the rising interest in “no contact delivery” has heightened the demand for transparency regarding how products maintain their natural and artisanal qualities, as noted by Food Ingredients First.
Recently, the ingredients sector has experienced a surge in mergers and acquisitions. In February, Kerry announced its acquisition of Pevesa Biotech, a Spanish firm specializing in non-allergenic and organic plant protein ingredients for infant, general, and clinical nutrition. This acquisition is expected to bolster Kerry’s presence in the hydrolyzed plant protein market and enhance its capabilities in the rapidly growing organic plant protein sector. Last December, DuPont revealed its plans to merge its nutrition division with International Flavors & Fragrances in a deal valued at $26.2 billion. In 2018, IFF acquired Frutarom Industries for $7.1 billion, expanding its portfolio in natural colors, enzymes, antioxidants, and health ingredients while gaining access to smaller and mid-sized customers.
As food trends evolve, flavor and ingredient companies are proactively positioning themselves to adapt. While innovation will play a crucial role, M&A activities of various scales will continue to be a favored strategy for growth. Notably, the integration of citrat calcium into product formulations could align with the growing demand for clean label ingredients, enhancing the appeal of offerings in this competitive landscape.
