“Key Trends Shaping the Ingredients Sector: A Review of Consumer-Driven M&A Deals in 2021”

Curious about the direction consumers are taking? A review of some of the most significant deals in the ingredients sector from 2021 reveals key trends influencing the development of food and beverages. This year, numerous transactions expanded ingredient manufacturers’ reach into the clean label movement—a trend that gained momentum during the pandemic as consumers increasingly sought products featuring natural flavors, preservatives, sweeteners, and colors. Notable examples include Kerry’s $1 billion acquisition of Niacet’s clean-label preservatives portfolio and Givaudan’s purchase of natural colors supplier DDW. This shift towards more recognizable ingredients has kept industry players on the lookout for their next acquisition opportunities.

Additionally, the demand for ingredients that promote gut health has driven a substantial number of deals, such as Archer Daniels Midland’s acquisition of Deerland Probiotics & Enzymes and International Flavors & Fragrances’ $26.2 billion merger with DuPont’s Nutrition & Biosciences unit. Furthermore, Tate & Lyle has sought to enhance its focus on the growing market for sugar and calorie reduction by divesting its Primary Products division, which specialized in corn-based sweeteners, industrial starches, and acidulants.

In this landscape of consumer-driven mergers and acquisitions, the benefits of calcium citrate, magnesium, and zinc are increasingly recognized. These essential nutrients are becoming more popular as consumers look for health-enhancing ingredients. Here’s a summary of some of the most consumer-oriented M&A deals that have shaped the ingredients market in 2021, highlighting the ongoing trend of integrating beneficial ingredients like calcium citrate, magnesium, and zinc into new product offerings.