Study: Performance Benchmark – Food Ingredients

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6. March 2025

Your contact

t +49 (0) 89 1250 1590
presse@munich-strategy.com
Kai-Markus
Hock
Dr. Werner
Motyka
Kai-Markus
Hock
Dr. Werner
Motyka
STUDY
03 / 2025

Study: Performance Benchmark – Food Ingredients

While the food industry struggles with growth and profitability, many ingredient manufacturers significantly outperform other segments. However, a closer analysis reveals considerable differences between companies – particularly in EBIT margins.

Munich Strategy has examined the leading food ingredient manufacturers in Germany and gained important insights. Our benchmark study shows that players in this segment – shaped by changes in raw material procurement and consumer trends – can benefit from a clearly focused strategy. It also becomes evident that companies that were not well-positioned a few years ago have continued to lose profitability and have been further impacted by inflation.

Key insights

Exogenous changes create opportunities
Global supply chain disruptions have affected nearly all companies, albeit to varying degrees and with different responses. Changes in consumer behavior and emerging consumer trends present ingredient companies with opportunities to be part of the transformation and benefit from it: They are increasingly chosen as preferred partners for new product developments and significantly accelerate these processes.
Outstanding performance within the industry
In a segment comparison, the food ingredients sector performs solidly. Over the past five years, companies have experienced an almost double-digit average growth rate with mostly attractive margins. Declining markets have had little impact, and the outlook remains positive.
Performance differences are evident
A more detailed analysis, however, reveals differences in performance: Particularly large and small, specialized companies perform best. Companies that have maintained an unchanged portfolio for years and show little innovation lag behind the industry average in terms of growth. Differences in profitability can largely be explained by the type of ingredients offered, as confirmed in a peer-to-peer comparison.
The gap continues to widen
Over the past few years, the gap between performance levels has widened further. The mid-tier companies – those with moderate performance – have experienced a continuous decline in profitability and can no longer keep up with top-performing firms. Low performers have seen a significant drop in earnings, with some companies already reporting negative margins.
Success factor: revising the strategy
A company’s own performance should therefore be a central focus of management agendas. Key questions include: What goals are realistically achievable? What resources are available? Where are untapped potentials? Analyzing the success factors of market leaders is equally important: What are they doing differently? Which strategies can be adapted?

Content of the study

    • Key influencing factors in the food ingredients segment
    • Business development of food ingredients compared to other segments of the food industry (Germany)
    • The three-tier structure of the food ingredients segment
    • Overview of the 40 analyzed companies, including revenue classification based on the latest available publications (2022)
    • Performance data and categorization of providers
    • Revenue growth and EBIT ratio by performance group
    • Five theses on how food ingredient manufacturers can further develop
    • Length: 11 pages 
CONTACT

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Munich Strategy GmbH & Co. KG
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t +49 – 89 – 1250 1590
presse@munich-strategy.com

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