Inventory Control

Ingredion's Texture & Healthful Solutions segment posted 5% net sales growth to $627 million in Q2 2026, marking its ninth consecutive quarter of volume expansion. The business saw 7% volume growth driven by demand for clean-label ingredients, texture solutions, and sugar reduction products across EMEA and APAC markets. Segment operating income rose 5% to $117 million, the second-highest quarterly result in T&HS history, despite higher tapioca costs. Operating margin improved slightly to 18.7% from 18.5% year-over-year. For 2026, the company expects T&HS net sales to increase mid-single digits, with operating income rising mid-to-high single digits. However, tapioca costs and unfavourable price mix could constrain margin expansion. Ingredion's growth reflects broader industry momentum in solutions-led businesses, with competitors like IFF and ADM also reporting strong performance in flavours, speciality ingredients, and nutrition segments.

Ingredion faces persistent margin pressure as rising input costs outpace pricing recovery. In Q2 2026, gross profit fell 11% year-over-year to $426 million, whilst gross margin contracted 300 basis points to 23%. Adjusted operating income dropped 5% to $258 million. Tapioca costs are the primary concern. Root prices surged over 40% from early 2026 due to weather-related supply constraints. The company is implementing price increases, though full recovery typically takes one to one-and-a-half quarters. Net sales rose just 1% to $1.85 billion in Q2, with volume gains offset by unfavorable price mix. The Zacks consensus estimate projects fiscal-year sales and earnings per share to decline 0.2% and 3.3% respectively. Ingredion shares have fallen 20% over the past year.

"APAC consumers want it all": Ingredion targets texture, health and affordability. Key takeaways. * Ingredion will spotlight texture, sugar reduction, and affordable formulation at Fi Asia Indonesia 2026 (Sep 16-18). * The company's research suggests nearly 80% of Indonesian consumers prefer products with multiple textures. * Fi Asia concepts include reduced-sugar drinks, non-fat ice cream, cost-efficient cheese, and lower-oil fried chicken. Ingredion will showcase food and beverage concepts designed to combine multisensory appeal with improved nutritional profiles and cost-effective formulation at Fi Asia Indonesia 2026 next week. The ingredient company is targeting the growing demand for distinctive textures, sugar reduction, and affordable formulation. Its showcase will include mochi daifuku, milk skin yogurt, stretchy chocolate sauces, reduced-sugar beverages, non-fat ice cream, and ketchup containing 50% less sugar and salt. It will also present batters and breadings designed to retain crispiness while reducing oil absorption. "Today's APAC consumers want it all. They are increasingly health-conscious and navigating emergent needs around affordability and convenience, yet they still continue to crave indulgent taste and textures," Mandy Zhang, director and marketing category lead for Texture and Healthful Solutions Asia-Pacific at Ingredion, tells Food Ingredients First. Texture takes center stage. Texture remains an important contributor to food enjoyment across the Asia-Pacific, but Ingredion's research indicates that it has particular significance in Southeast Asia. "While 60% of consumers across the broader APAC region prefer multi-textures, this preference jumps close to 80% in Southeast Asian markets like Indonesia," says Zhang. "Tapping into regional preferences, Ingredion's booth (Hall A1, Booth E28) will feature concepts that bring together unique mouthfeels and multi-textural creations, such as soft, chewy mochi daifuku, creamy milk skin yogurt, and stretchy chocolate sauces." For savory applications, the company will demonstrate batters and breadings designed to prolong crispiness for six to eight hours while reducing oil pickup by up to 18%.Mandy Zhang, Texture and Healthful Solutions Asia-Pacific at Ingredion. Ingredion also sees opportunities to introduce consumers to less familiar sensory experiences. According to the company, two in three Asia-Pacific consumers are interested in trying unique or unusual textures. "More than half of APAC consumers agree that texture directly drives overall food enjoyment. In fact, two in three APAC consumers want to try unique or unusual textures, which opens opportunities to innovate improved textures in food and beverages," Zhang explains. The supplier will demonstrate how sustainably sourced waxy tapioca can help create a creamy mouthfeel in applications, including mochi donuts and bakery fillings. Health claims command a premium. Sugar reduction is another major focus for Ingredion at the show. The company's 2025 proprietary research across India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam found that 85% of respondents were willing to pay more for reduced-sugar claims. "In Indonesia, the trend is slightly stronger, with approximately 87% of consumers willing to pay up to 30% more for packaged food and beverages with 'Reduced sugar' claims," says Zhang. "To address this demand, we will showcase our Healthful Solutions, proving that healthier options do not require a compromise in taste or texture through concepts, such as reduced-sugar drinks, lite tomato ketchup with 50% less sugar and salt, and indulgent non-fat ice cream." Across Asia-Pacific, more than 80% of consumers are willing to pay as much as 30% more for packaged products carrying "no added sugar" or "reduced sugar" claims, according to Ingredion. The figure reaches 81% for dairy products with sugar-reduction claims, while 77% consider reduced-sugar and low-sodium claims important when choosing packaged savory foods. However, removing sugar can affect more than sweetness. Manufacturers must also compensate for its contribution to body, mouthfeel, and other functional properties. "To help brands navigate the complex challenge of reformulation while meeting healthful requirements, we also offer our PureCircle Clean Taste Solutions. This innovative plant-based stevia technology enables brands to deliver a clean, sweet taste and functional build-back for sugar-reduced products," Zhang notes. Reformulating for affordability. Ingredient costs and pressure on household budgets are simultaneously shaping product development. More than 40% of Asia-Pacific consumers identify price as a leading consideration when choosing packaged food and beverages, Ingredion's research suggests.Ingredion will showcase ketchup containing 50% less sugar and salt. "Price remains a key factor in consumer purchasing decisions. For over 40% of APAC consumers, price is a top consideration when selecting packaged food and beverages, requiring ingredient solutions that are both high-performing and cost-effective," says Zhang. Ingredion will present a reduced-cocoa hazelnut UHT beverage and a cost-efficient mozzarella-style cheese formulated to retain melting and stretching properties. The showcase will also feature microwaveable sauces and fried chicken designed to remain crispy for longer while absorbing less oil. "Finally, affordability remains a major focus across the wider APAC market. We are highlighting smarter ways for regional brands to manage input costs through reformulation without impacting consumers' expected texture experience," Zhang adds. Looking ahead, Ingredion expects the combination of sensory appeal, nutrition, and cost management to create further opportunities for ingredient replacement and reformulation. "In Indonesia and the wider APAC region, brands have the opportunity to innovate through smart reformulation and ingredient replacement. Whether through boosting health benefits, enhancing texture enjoyment, or driving cost-effectiveness, brands can successfully respond to evolving consumer preferences, trends, and habits," concludes Zhang. "Turning formulation and manufacturing hurdles into opportunities through smart reformulation allows brands to meet the evolving demands of APAC consumers, who increasingly seek a seamless blend of functional wellness and sensory excitement."