Ingredion banks on texture innovation as beverage sweetener demand cools
Key takeaways
- Ingredion posted record full-year earnings of US$11.18 per share despite a 3% drop in net sales, as lower input costs and share buybacks boosted profitability.
- The company’s texture and clean label business drove growth with a 16% rise in operating income, while its North American sweetener segment fell 16%.
- For 2026, Ingredion expects sales to grow by a few percentage points and per-share profits to land between US$11 and US$11.80.
Ingredion posted record full-year reported earnings per share of US$11.18 — up from US$9.71 in 2024 — despite a 3% decline in net sales to US$7.2 billion, as the company’s texture and clean label portfolio outperformed a struggling North American sweetener business hit by production setbacks and weakening beverage demand. For 2026, the company expects sales to grow by a few percentage points and per-share profits to land between US$11.00 and US$11.80.
The results underscore a strategic pivot that has been building over several years. Ingredion’s Texture & Healthful Solutions segment delivered full-year operating income of US$405 million — up 16% from the prior year — with fourth-quarter volume growth of 4%, driven by what CEO Jim Zallie describes as “strong demand for our clean label offerings and our expanding solutions portfolio.”
That demand aligns with broader market dynamics. Innova Market Insights’ research into global clean label trends shows that one in four consumers worldwide now say they’re eliminating processed foods from their diets, while Ingredion’s own ATLAS consumer research has found 73% of European consumers seek products made with recognizable ingredients.
Innova’s top trends for 2026 further point to texture-driven “multi-sensory experiences” as a key innovation frontier — territory where Ingredion has been investing heavily.
A specialty starch modernization upgrade at the company’s Indianapolis, US, facility opened during the fourth quarter, expanding capacity for texture solutions. Ingredion also partnered with biotech startup Cosaic in late 2025 to commercialize a fermentation-derived emulsion ingredient, offering dairy-like creaminess without animal-derived components — a move that signals growing appetite for novel texture platforms.
Sweetener segment under pressure
The contrast with Ingredion’s Food & Industrial Ingredients–US/Canada segment is stark.
Full-year operating income there fell 16% to US$315 million, dragged down by production challenges at a major manufacturing facility and what the company calls lower-than-expected beverage and food volume demand, “driven primarily by higher retail prices for canned beverages.”
The company wound down its RealSweet joint venture with Amyris in May 2025, retaining exclusive rights to manufacture and commercialize fermented Reb M. Nate Yates, CEO of PureCircle by Ingredion, spoke to Food Ingredients First at IFT First 2025 about evolving consumer sweetness preferences, noting a global shift toward “less syrupy” flavor profiles — a trend that compounds the challenges facing traditional high-fructose corn syrup volumes.
Ingredion’s Latin American F&II segment fared better, posting a 2% rise in operating income to US$493 million as market conditions improved. The company’s All Other segment — which includes its plant-based protein business — also narrowed losses from US$22 million to US$2 million, driven primarily by improvements in protein operations.
Sustainability as a differentiator
Larry Fernandes, Ingredion’s senior vice president and chief commercial & sustainability officer, recently outlined the company’s sustainable innovation program, which focuses on crop innovation, upcycled ingredients, and novel ingredients. Innova Market Insights data shows F&B launches featuring sustainable and ethical claims increased by 5% between July 2020 and June 2025.
The company also expanded its Benelux distribution partnership with Univar Solutions, bringing clean label starches, plant-based proteins, and PureCircle stevia sweeteners to 16,000 food producers across Belgium, the Netherlands, and Luxembourg. The move extends the partnership to 20 countries across the EMEA region.
Cash from operations reached US$944 million for 2025, with the company returning US$435 million to shareholders through dividends and share repurchases. Capital expenditures rose to US$433 million — up US$138 million from the prior year — reflecting continued investment in capacity and modernization.
