Food Companies Push Further Into Protein and Convenience as Consumer Habits Change

The global food industry continues to adapt to changing consumer preferences, with protein, convenience and value-added products becoming increasingly important categories.

Hormel Foods announced this week that it plans to acquire Brakebush Brothers for approximately $1.05 billion, expanding its value-added chicken business and strengthening its foodservice operations.

Chicken becomes a strategic category

The deal reflects a wider trend in the food industry.

Consumers are increasingly interested in foods that provide convenience while also fitting into higher-protein diets.

Chicken has benefited from that trend because it can be used in ready-to-eat meals, restaurant products, frozen foods and prepared dishes.

For manufacturers, value-added products can also offer higher margins than basic commodity products.

Protein remains a major trend

Protein continues to influence product development across supermarkets and restaurants.

Food companies are introducing higher-protein snacks, drinks, breakfast products and prepared meals as consumers become more conscious of nutritional content.

The growth of GLP-1 weight-loss medicines has added another dimension to the trend, because consumers taking appetite-suppressing treatments may place greater emphasis on nutrient density and protein intake.

Candy and confectionery face a different environment

The industry is also seeing more cautious investment decisions.

Haribo has abandoned plans for a new factory in Germany worth approximately $337 million, instead choosing to retain and modernise its existing facility in Neuss.

The decision shows how manufacturers are reassessing major capital projects as costs and demand conditions change.

International expansion continues

At the same time, companies in emerging markets are looking for new sources of capital.

India’s Cremica Foods is preparing an IPO that would help finance international expansion, new product categories and wider retail operations.

The contrasting developments show that the food industry is not following a single direction.

Some companies are expanding aggressively, while others are focusing on efficiency and existing production facilities.

A more selective market

Food manufacturers are increasingly being forced to prove that new investments can generate sustainable returns.

Protein, convenience and international expansion remain attractive areas, but companies are also paying closer attention to costs, pricing and consumer demand.

The result is a food market that is becoming more specialised and more competitive at the same time.

Sources: Hormel Foods, Reuters, Food Business Middle East & Africa, food industry reports.