Beneo to expand chicory root production
Beneo, a private label ingredient partner, has announced it has made a large investment in its production capabilities. The company has announced a multi-million dollar investment program that will expand the production abilities of prebiotic chicory root fiber, one of Beneo’s primary offerings.
The first step will see more than $33 million USD (€30 million) invested at production sites in Pemuco, Chile and Oreye, Belgium. Beneo says the entire program will ensure a significant capacity increase of more than 40% of the company’s global chicory root fiber production to meet rising customer demand and drive further growth within the market. The work on both production sites is beginning in 2022.
The expansion comes after the company released research showing that many consumers aged 50 and up are focused on eating and drinking food and beverages that promote "positive aging."
“Beneo’s chicory root fibers meet key consumer needs of today and we are convinced that they will continue to play a central role in healthy nutrition in the future,” said Christoph Boettger, a member of the company’s executive board. “With increased capacity, Beneo continues to offer a secure supply to its customers and partners worldwide.”
Beneo says the investment in the two facilities will help keep up with global demand. Over the past four years, the number of new product launches containing chicory root fiber inulin has grown by 50% globally according to Beneo, with the market expected to reach roughly $11.5 billion in 2028. The company says that the investments will help decrease its carbon footprint, as well as add jobs at the facilities.
“As announced previously, in summer 2022 a second refinery line in Pemuco will already increase the production capacity significantly, but we won’t stop there,” said Boettget. “The recent investment decision will ensure that Beneo’s production capacity is further growing. On top of this capacity increase, CO2 emissions are being reduced. This means that the production site in Pemuco will be carbon neutral in a few years. Additionally, the site in Oreye will have reduced the specific energy consumption per ton of product by more than 50% by 2030."