Corbion to acquire Granotec do Brazil to drive further expansion in Latin America
Published Date | 2019 March 28
The plan of Corbion to acquire Granotec do Brazil will help in their business expansion in food additives industry which will influence the global food additives market in future timeline.
Global: Dutch food Ingredients Company Corbion plans to acquire Granotec do Brazil for $45 million to expand its Latin American business. Granotec do Brazil is a leading specialist in functional blends for the Brazilian bakery industry. The acquisition of Granotec do Brazil is expected to expand Corbion’s range of food ingredients in Latin America. The acquisition is reported to be part of Corbion’s strategy to expand its bakery business geographically, as well as further expand the North American Bakery solution provider model into Latin America. One of the key growth drivers of Corbion's 'Creating Sustainable Growth'-strategy is expanding the bakery business geographically and extending the North American Bakery solution provider model into Latin America, and this acquisition perfectly fits in this ambition. Once completed, Corbion will integrate Granotec do Brazil into its existing Brazilian operations. According to BlueWeave Consulting, The increasing consumption of packaged foods, expansion of the food and beverage industry and increasing demand for healthy food are key factors which would drive the global additive industry in next few years. Food ingredient which includes food additives, are substances added to foods for specific technical and functional purposes during processing, storage or packaging. Food ingredients provide convenience and allow food makers to produce a wide variety of foods that are safe, appetizing, uniform, nutritious and tasty. The main groups of food additives are antioxidants, colours, flavour enhancers, sweeteners, emulsifiers and stabilizers and preservatives. Food additives are used to reduce food spoilage, by keeping the food fresh thus, reducing food loss. It also prevents the growth of bacteria and fungi that cause food poisoning. Food additives can help maintain and improve the nutritional value of food that is sometimes lost during cooking and increase food varieties and convenience as well as improve sensory properties of food. Furthermore, it will help assure availability of wholesome, appetizing, and affordable food that meet consumers' demand. With the rise in food borne diseases coupled with consumers awareness about more health conscious will influence the global food additive industry in future timeline. According to BlueWeave Consulting‘s report, Titled-“ Global Food Additive Market by Product Type (Acidity Regulators, Sweeteners, Colorants, Flavoring Agents, Emulsifiers, Food Preservatives, Anti-Caking Agents & Others), by Source (Natural & Synthetic), by Application (Bakery & Confectionery, Meat & Meat Products, Beverages, Dairy Products & Others), by Region; Size and Forecast, 2018-2025”- Global Food Additive Market is expected to record a CAGR of 4.89% during 2018-2025 in terms of value. The market is expected to reach around USD 70 billion by 2025. This growth is driven by numerous reasons such as growing demand for processed and packaged food among consumers across the globe, coupled with technological innovation in the overall Food & Beverage industry. Moreover, rapid urbanization, and soaring population density with their increasing purchasing power has led towards rapid adoption of convenience food, thereby leading towards the demand of food additives in forecast period. According to BlueWeave Consulting‘s report, Titled-“India Bakery Products Market, By Product Type( Biscuits, Cakes & Pastries, Bread & Rolls, Rusks and others), By Biscuits Type( Cookies, Cream Biscuits, Milk Biscuits, Glucose Biscuits, Marie biscuits, Salt Crackers Biscuits, Non-Salt Crackers Biscuits and others), By Distribution Channel(Retail Stores, Specialty Retailers and Online Distributors), By Region(North, South, East and West), Size and Forecast, 2014-2025”- India Bakery Products market is expected to grow with a significant growth rate during the forecast period 2018-2025 owing to their pleasant taste and health-benefits as they are made from a variety of grains like maize, wheat, and oats. Rise in the innovation of bakery product offerings, increasing per capita household income, surge in consumer spending on food products will lead the market over the forecast period. Moreover, the consumers are more conscious than ever before and the movement toward healthy eating habits is one of the greatest influencers of the India Bakery Products industry.