Cargill’s US$35m investment marks its first move into soluble fibers in Europe

25 Oct 2019 --- Incentivized by growing customer demands for sugar reduction and fiber enrichment, Cargill is investing US$35 million in Europe to add a line of soluble fibers to its current portfolio of starches, sweeteners and texturizers. They will enable up to a 30 percent sugar reduction and fiber enrichment in confectionery, bakery goods, fillings, cereals, ice cream and dairy while maintaining the desired appearance, taste and texture.

The new patented proprietary technology is designed to offer a desirable flavor and mouthfeel in product development, according to the company. This move comes as reformulation efforts sweep across the continent, spurred by new governmental policy and increasing consumer awareness regarding sugar reduction.

“Investment in fibers complement the large sweetness and texture portfolio of Cargill. We therefore envisage, by adding fibers to our portfolio, we will bring a full range of products and solutions that will help our customers reformulate products with lower sugar and calorie content,” Jan-Peter Scheurwater, Global Strategy and Business Development Director of Sweetness at Cargill, tells NutritionInsight.

The investment is part of Cargill’s continued efforts to offer on-trend solutions and marks its first move into soluble fibers in Europe. The products are expected to be launched in 2021, then expanding quickly into other categories and adding more market innovations.

“This is a crucial investment to complement the broad portfolio of starches that Cargill makes available to its manufacturing customers. These include label-friendly functional and native starches, texturizers and sweeteners, ranging from full- to no-calorie. Our expanded offerings support the wide range of product formulations our customers need while helping them meet changing consumer preferences,” says Alain Dufait, Managing Director at Cargill Starches, Sweeteners and Texturizers Europe.

In addition to providing the functional characteristics necessary for sugar replacement and being low in calories, soluble fibers are label-friendly and have the ability to bring additional fiber content, generating numerous health benefits in various food applications.

Innova Market Insights notes an average increase in European product launches with fiber claims of 23 percent, with a 16 percent increase in products with sugar-reduced claims over the past five years. Low-sugar claims, in particular, are showing the strongest growth.

“Simply reducing sugars and calories in formulations will improve the nutritional profile but will also have an impact on the sensory characteristics. It is then necessary to compensate for the technical functionality that sugar brings in food applications. Soluble fibers can help restore it while maintaining the desired appearance, taste and texture,” adds Scheurwater.Sugar reduction is gaining momentum as health authorities communicate more about recommended dietary intake levels.

Growth predicted for Asia-Pacific fiber market 
Driven by health and obesity concerns, sugar and calorie reduction is a focus topic in western countries, says Scheurwater. “We notice a proliferating demand for foods containing soluble fibers to replace sugar and reduce calories as a result of growing awareness of consumers in these regions. Demand is also driven by higher income levels and the ability to spend on health and nutrition products in Western Europe and in the US.”

A rapidly aging population in the European countries will also increase demand in the years ahead for soluble fiber-based food as it provides important nutritional and health benefits, he predicts. “We also believe Asia-Pacific markets will follow with strong growth for fiber demand in the coming years as health awareness and population income increase.”

Scheurwater also notes that the sugar and calorie reduction trend is gaining momentum as governments and health authorities communicate more about recommended dietary intake levels, launch policies and impose taxes. The concern is based on the alarming increase of obesity rates in young people from western countries, which has led to higher health costs, thus placing a strain on medical resources.

Big strides in sugar reduction
Policies such as the UK’s soft drink levy have seen successful reformulation efforts, with sugar in beverages dropping by nearly a third since the tax was enacted. Additionally, Scotland is moving to become one of the first nations to propose restrictions to limit the promotion and marketing of food and drinks high in fat, sugar or salt at a national scale. 

Also in the sugar reduction space, Cargill recently invested US$5 million in its Mouscron, Belgium facility, to fund the development of a wide range of sugar replacers and the necessary dosing systems. Cargill’s 2019 study on global food and beverage trends reveals that sugar is the most avoided ingredient in food products and that 54 percent of consumers are willing to pay more for chocolate with no or reduced sugar. 

By Katherine Durrell