Rapid changes in the food ingredient sector are being driven by evolving end-consumer and customer preferences (e.g., clean label) and the pressure to diversify down the value chain into Food Ingredients broader solutions. In such a dynamic and demanding global marketplace, processors turn to L.E.K. Consulting to help them win share.
L.E.K. has completed more than 100 engagements in the food ingredient industry and worked with many of the largest processors across numerous segments, including starches, sweeteners, edible oils, texturizers and stabilizers, cocoa, malt, flavors and fragrances, colorants, enzymes, dietary fiber, emulsifiers, fats and antimicrobials, phosphates and acidulants, seasonings and spices, antioxidants, vitamins, omega-3 and nutritionals, batters, breading and coatings, fruit/vegetable pieces and powders, and more. We also leverage our work across the value chain (e.g., producers, processors, CPGs, distributors, and retail and foodservice operators), in adjacent verticals such as Food & Beverage and Agribusiness, to deliver deep insights that lead to meaningful impact for our clients.
Key questions and challenges
Our experienced professionals have a deep understanding of food ingredient processors’ business challenges in today’s marketplace, and L.E.K. encourages these clients to ask themselves a few key questions:
- How are customer needs and product trends evolving in today’s marketplace? What are the implications for how we grow our business?
- How do we capitalize on key customer trends toward “clean label” and visibility into the supply chain? What impact might this have on our cost structure?
- Are there adjacent products and segments that represent growth opportunities for our company? Where do interesting M&A opportunities exist, and what real assets can we acquire?
- Should we consider downward integration into ingredient blending and solution development? Should we buy, build or partner to gain these capabilities?
- What ingredients and/or technologies can we offer that will provide breakthrough innovation to meet consumer demand, while also maintaining competitive advantage over other industry players?
- How and where do we expand internationally, where consumer, competitive and regulatory landscapes differ?