2020 Q2 | Ingredient Examiner
An old salesman told me years ago that the Food Industry was recession-proof. As it turns out, he may have been correct. We’ve experienced the Great Recession in the 2000's and we are experiencing a Bear market today. Everyone still needs to eat. Stock prices will go up and down, but most food manufacturing plants are still open. Most of the Food Industry at large is still working today. It may be at home with your kids running around or on the 3rd shift producing breakfast cereals, but many jobs and businesses are still intact!
The Food Industry was also one of the first industries to bounce back and continue growing after the recession in the 2000's ended. After an economic downturn, most Americans will not rush out to make large purchases. They won’t suddenly buy a new car or boat. One of the first positive economic indicators we see, is an increase in disposable income being spent on food. A candy bar, soda, or family dinner at a restaurant are some of the first discretionary purchases that historically occur after a recession.
Today, we have a Corona virus. I believe, similar to the Great Recession, the Food Industry will bounce back quickly and strongly. Due to the demands of consumers, many food manufacturers are experiencing surging demand and spot growth today. Many ingredient suppliers are struggling to keep up with demand. Neighboring personal care industries have rising demand for ethanol and other products to manufacture sanitizers as well.
We are lucky to be in the Food Industry. Soon, business will continue, tradeshows will resume, and we will get through this historic time together. If there is anything Ingredients Inc can do to support you, please just let us know.
Shortages & Cost Increases
Below are some snapshot opinions on what we see in the market today. Currently these items are experiencing Rising costs and reduced availability: Potato Flakes, Potato Granules, CoQ10, Jalapeno & NA Chiles, Pork gelatin, Lactic Acid & Lactates, Ethanol Products and Ocean, Air & Domestic Freight.
Hot Hot Hot!
Below are some of the most interesting new products which we want to share with you:
Carrot Fiber – this is one of our hottest new products. Carrot Fiber has a unique ability to absorb 26x its own weight in water and oil. It is a white, odorless, flavorless product. It can be added to solid foods to help add moisture content, prevent cracking in bars, and add swelling to meat and meat analogue products. It’s label friendly and available now.
Probiotics – We are now offering Probiotics, made in North America, which are suitable for almost any application. Heat Stable, Acid Stable, beverage grade, and food grades available. These diverse probiotics can be used in new and exciting development applications like never before!
Proteins – Ever heard of Adzuki Bean Protein? We’ve got it! Proteins are very popular, but most companies can’t tell you anything technical about them.
We supply multiple manufacturers, manufacturing styles, raw material COO, and vegetable types. If you’re looking for protein that can swell in food applications or water soluble solutions, we have both available.
Here is a partial list of some that we have available in Chicago:
Mung Bean 80% | Pea 80% | Chickpea 70% | Faba Bean 90% | Adzuki Bean 80%
Also, coming soon, “The Complete Protein” Quinoa Protein 80%.
We hope that all of our friends and colleagues around the industry are doing well, staying safe and healthy. Please feel free to contact us with any questions, and let our sales team send you samples of any ingredient you need.
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