Dive Brief:
- Darling Ingredients is launching a new venture called Nextida, in partnership with Tessenderlo Group, to focus on collagen and gelatin businesses. This move aims to provide food companies with opportunities to enhance the health attributes of their products.
- Nextida, majority owned by Darling with an 85% stake, is expected to generate around $1.5 billion in annual revenue. The joint venture will concentrate on collagen-based health and wellness products, catering to the growing demand in the beauty and fitness industries.
- The collaboration between Darling and Tessenderlo will combine their respective collagen businesses, positioning Nextida as a key player in the functional ingredient market. The deal is set to be finalized by 2026 pending regulatory approval.
Dive Insight:
With the increasing trend of viewing food as medicine, ingredient companies are investing in innovative health solutions that bridge the gap between food and pharmaceuticals.
Darling is strategically positioning itself in the emerging collagen market, tapping into its popularity among consumers seeking anti-aging and muscle-building benefits. Collagen has the potential to become a prominent functional ingredient in food, akin to protein and probiotics.
CEO Randall Stuewe expressed optimism about the diverse applications of Nextida products, ranging from supplements to sports bars and beverages. The company is also exploring the weight loss potential of collagen through products like Nextida GC, which targets post-meal glucose spikes.
Collagen has been a significant growth driver for Darling’s food segment, with Stuewe highlighting its rapid expansion in recent years.
The collaboration with Tessenderlo will bolster Nextida’s production capacity, spanning across facilities in multiple continents. This strategic partnership is expected to enhance shareholder value for Darling, as the demand for natural and health-focused products continues to rise.
Other ingredient companies, such as Archer-Daniels-Midland Co., are also capitalizing on the trend towards health and wellness by introducing products that offer benefits like improved sleep and mood regulation.