The Top 10 Food and Drinks Ingredients Companies: Emerging R&D strategies, geographic expansion, portfolio alignment and SWOT analyses

This report profiles the major players in the global food and drinks ingredients industry and the issues affecting their performance. Typically, two sets of material inputs go into the food and drinks manufacturing process: the first set consists of base commodities such as milk, sugar, food grains, vegetables and fruits; the second set consists of ingredients such as preservatives, emulsifiers, seasonings, and flavor enhancers. This report focuses on the engineered or derived ingredients added to products to improve taste, texture or appearance, or add functionality.

This report analyzes the global food and drinks ingredients industry in terms of market size (based on value), key drivers and resistors, industry trends, and competitive positioning of the major players. It includes profiles of the major companies in the industry and also involves a brief write-up on other key players. These were assessed on the following parameters:

• each company's financial performance in the global food and drinks ingredients industry;
• each company's growth strategies and major acquisitions and divestments in this industry;
• key partnerships and alliances formed by these companies;
• business-related strengths and weaknesses of these companies, and insights into the opportunities and threats facing the ingredients companies.

Key features of this report

• Market dynamics of the global food and drinks ingredients companies during the period 2008–13.
• Key market drivers and resistors.
• Trends of the global food and drinks ingredients market.
• Identification of the major players in the global food and drinks ingredients market.
• Performance of the major food and drinks ingredients companies during 2004–08.

Scope of this report

•  Learn from the strategies of the top 10 food and drinks ingredients companies to target future growth markets effectively, avoid their mistakes, replicate their successes and learn of the threats they face.
•  Benchmark your performance against the leading food and drinks ingredients companies by comprehending their strategies.
•  Understand the major issues affecting the global food and drinks ingredients market.
•  Predict the key growth areas in the global food and drinks ingredients market arising from the change in customer’s preferences and global recession.

Key Market Issues

• Increase in regulatory compliances: Stringent regulatory developments require health claims to be backed-up with sufficient evidence that will increase the cost of innovation and may restrict the scope of new product development.
•  Climatic and social impact on food and drinks industry: The rise in input costs due to climate change and issues such as ethical procurement of cocoa from Ghana puts pressure on margins and the viability of such ingredients.
•  Aging population: Low population growth rates and rapidly aging population in developed markets such as Japan is pressurizing food and drinks companies to direct their resources towards development of health-oriented ingredients.
•  Rising health concerns such as obesity: Obesity has emerged as a serious public health challenge, particularly in developed regions such as the US and Europe, and food and drinks companies need to increase their focus on ingredients that facilitates weight management.

Key findings from this report

•  The global market for food and drinks ingredients was valued at approximately $37bn in 2008. The value of global food and drinks ingredients market is expected to grow at a CAGR of 2.8% during 2008–13 to reach $42bn in 2013.
•  Cargill, Kerry Group, CSM and Archer Daniels Midland are among the leading players of the global food and drinks ingredients market.
•  Increasing health awareness and the concerns of an aging population will promote consumption of fortified products and shift investments towards the development of new ingredients with health benefits for consumers.
•  Mounting pressure from governments and regulators to address food related health problems has opened up considerable opportunities for food and beverages companies. Most companies are seeking to address weight management issues by making healthier products such as fat and sugar replacers, and natural sweeteners.

Key questions answered

1. What was the market size of the global food and drinks ingredients market by value in 2008?
2. What was and will be the market size of the global food and drinks ingredients industry during 2008–13?
3. What are the trends in the global food and drinks ingredients industry?
4. Who are the major players in the market?
5. What are the growth strategies of the top 10 players in global food and drinks ingredients market?
6. What are the strengths of the major players in the global food and drinks ingredients industry?
7. What are the weaknesses of the top 10 players?

Table of Contents

The Top 10 Food and Drinks Ingredients Companies
Executive summary 
Industry overview 
Cargill 
Kerry Group 
CSM 
Archer Daniels Midland 
Südzucker Group 
Tate & Lyle 
Ajinomoto Group 
Corn Products International 
DSM 
Danisco 
Chapter 1 Introduction 
Introduction 
Methodology 
Chapter 2 Industry overview 
Summary 
Introduction 
Market dynamics 
Global food and drinks ingredients market size by value 
Drivers and resistors 
Competitive landscape 
Top 10 food and drinks ingredients companies 
Comparative analysis of top 10 food and drinks ingredients companies 
Trends 
Shift towards obesity and weight management products 
Emergence of ingredients applicable in functional food 
Switch to natural and exotic ingredients 
Chapter 3 Cargill 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
Targeting healthy food and drinks markets through natural sweeteners 
Expansion in Europe through capital investments 
SWOT analysis 
Chapter 4 Kerry Group 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
Increasing focus on product customization and cost-efficient ingredients 
Aggressively pursuing acquisitions to accelerate business growth rate 
Expansion in the markets for organic ingredients 
SWOT analysis 
Chapter 5 CSM 
Summary 
Company overview 
Financial performance 
Performance by business segments 
Growth strategies 
More natural and organic products 
Expansion in the US market through acquisitions 
Reorganizing production structure to improve margins 
SWOT analysis 
Chapter 6 Archer Daniels Midland 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
Focus on functional benefits 
Capitalizing on the growth potential of the chocolate sector 
Strengthening asset base in developed markets through acquisitions 
SWOT analysis 
Chapter 7 Südzucker Group 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
Developing ingredients applicable in healthy foods and beverages 
Expansion in starches and fruit extracts markets 
SWOT analysis 
Chapter 8 Tate & Lyle 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
Positioning ingredients portfolio in the health and wellness category 
Consolidating market share in EMEA through partnerships and alliances 
SWOT analysis 
Chapter 9 Ajinomoto Group 
Summary 
Company overview 
Financial performance
Performance by business segment 
Growth strategies 
Emphasis on developing customized ingredients 
Expansion in international markets 
SWOT analysis 
Chapter 10 Corn Products International 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
New specialty ingredients for health and wellness 
Strengthening ingredients asset base in Americas through acquisitions 
SWOT analysis 
Chapter 11 DSM 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
Aggressively developing ingredients applicable in organic, natural and functional food products 
Acquisitions to strengthen product development capabilities 
Partnerships and joint-ventures for expansion in international markets 
SWOT analysis 
Chapter 12 Danisco 
Summary 
Company overview 
Financial performance 
Performance by business segment 
Growth strategies 
Expanding production facilities to meet demand for functional products
Strengthening ingredients portfolio and development capabilities through alliances 
Consolidating share in international markets through acquisitions 
Re-alignment of sweeteners business to improve margins 
SWOT analysis 
Chapter 13 Other major players 
Associated British Foods 
Company overview 
Financial performance 
AarhusKarlshamn 
Company overview 
Financial performance 
AkzoNobel 
Company overview 
Financial performance 
Arla Group 
Company overview 
Financial performance 
BASF 
Company overview 
Financial performance 
DuPont 
Company overview 
Financial performance 
Givaudan 
Company overview 
Financial performance 
International Flavors and Fragrances
Company overview 
Financial performance 
McCormick 
Company overview 
Financial performance 
Royal Cosun Group 
Company overview 
Financial performance 
Chapter 14 Appendix 
Glossary 
Index 

List of Figures

Figure 2.1: Global food and drinks ingredients market size ($bn), 2008–13 
Figure 2.2: Top 10 food and drinks ingredients companies based on sales performance ($m), 2008 
Figure 2.3: Comparative analysis of top 10 food and drinks ingredients companies, 2008 
Figure 3.4: Cargill SWOT analysis 
Figure 4.5: Kerry financial performance ($m), 2004–08 
Figure 4.6: Kerry SWOT analysis 
Figure 5.7: CSM financial performance ($m), 2004–08 
Figure 5.8: CSM SWOT analysis 
Figure 6.9: ADM financial performance ($m), 2005–09 
Figure 6.10: ADM SWOT analysis 
Figure 7.11: Südzucker financial performance ($m), 2004–08 
Figure 7.12: Südzucker SWOT analysis 
Figure 8.13: T&L performance ($m), 2004–08 
Figure 8.14: T&L SWOT analysis 
Figure 9.15: Ajinomoto financial performance ($m), 2004–08 
Figure 9.16: Ajinomoto SWOT analysis 
Figure 10.17: CPI financial performance ($m), 2004–08 
Figure 10.18: CPI SWOT analysis 
Figure 11.19: DSM financial performance ($m), 2004–08 1
Figure 11.20: DSM SWOT analysis 
Figure 12.21: Danisco financial performance ($m), 2004–08 1
Figure 12.22: Danisco SWOT analysis 
Figure 13.23: ABF financial performance ($m), 2005–09 
Figure 13.24: AAK financial performance ($m), 2006–08 
Figure 13.25: AkzoNobel financial performance ($m), 2004–08 1
Figure 13.26: Arla financial performance ($m), 2006–08 
Figure 13.27: BASF financial performance ($m), 2004–08 
Figure 13.28: DuPont financial performance ($m), 2004–08 
Figure 13.29: Givaudan financial performance ($m), 2004–08 
Figure 13.30: IFF financial performance ($m), 2004–08 
Figure 13.31: McCormick financial performance ($m), 2004–08 
Figure 13.32: Cosun financial performance ($m), 2004–08 

List of Tables

Table 2.1: Global food and drinks ingredients market size ($bn), 2008–13 
Table 2.2: Top 10 food and drinks ingredients companies based on sales performance ($m), 2008 
Table 2.3: Weight management products from major food and drinks ingredients companies 
Table 2.4: Select functional food ingredients developed by major food and drinks ingredients companies 
Table 3.5: Cargill snapshot 
Table 3.6: Cargill financial performance ($m), 2005–09 
Table 4.7: Kerry snapshot 
Table 4.8: Kerry financial performance, 2004–08 
Table 4.9: Kerry business segment performance, 2008 
Table 4.10: Select Kerry acquisitions, 2007–09
Table 5.11: CSM snapshot
Table 5.12: CSM financial performance, 2004–08 
Table 5.13: CSM business segment performance, 2008 
Table 6.14: ADM snapshot 
Table 6.15: ADM financial performance ($m), 2005–09 
Table 6.16: ADM business segment performance ($m), 2009 
Table 6.17: ADM acquisitions of ingredient businesses, 2007–09 
Table 7.18: Südzucker snapshot 
Table 7.19: Südzucker financial performance, 2004–08 
Table 7.20: Südzucker business segment performance, 2008 
Table 8.21: Tate & Lyle snapshot 
Table 8.22: T&L financial performance, 2004–08 
Table 8.23: T&L financial performance, 2004–08 
Table 8.24: T&L partnerships for EMEA markets, 2007–09 
Table 9.25: Ajinomoto snapshot 
Table 9.26: Ajinomoto financial performance, 2004–08
Table 9.27: Ajinomoto business segment performance, 2008 
Table 10.28: Corn Products International snapshot 
Table 10.29: Corn Products International financial performance ($m), 2004–08 
Table 11.30: DSM snapshot 
Table 11.31: DSM financial performance, 2004–08
Table 11.32: DSM business segment performance, 2008
Table 11.33: Select DSM product launches, 2007–09 
Table 11.34: DSM acquisitions, 2007–09 
Table 12.35: Danisco snapshot 
Table 12.36: Danisco financial performance, 2004–08 
Table 12.37: Danisco business segment performance, 2008 
Table 12.38: Select Danisco alliances and partnerships, 2007–09 
Table 12.39: Select Danisco acquisitions, 2007–09
Table 13.40: Associated British Foods snapshot 
Table 13.41: ABF financial performance, 2005–09 
Table 13.42: AarhusKarlshamn snapshot 
Table 13.43: AAK financial performance, 2006–08 
Table 13.44: AkzoNobel snapshot 
Table 13.45: AkzoNobel financial performance, 2004–08 
Table 13.46: Arla Group snapshot 
Table 13.47: Arla financial performance, 2006–08 
Table 13.48: BASF snapshot 
Table 13.49: BASF financial performance, 2004–08 
Table 13.50: DuPont snapshot 
Table 13.51: DuPont financial performance ($m), 2004–08 
Table 13.52: Givaudan snapshot 
Table 13.53: Givaudan financial performance, 2004–08 
Table 13.54: International Flavors and Fragrances snapshot 
Table 13.55: IFF financial performance ($m), 2004–08 
Table 13.56: McCormick snapshot 
Table 13.57: McCormick financial performance ($m), 2004–08 
Table 13.58: Royal Cosun Group snapshot 
Table 13.59: Cosun financial performance, 2004–08