With the recent announcement by the FDA, Dreyfus’s large acquisition and organic projections, a future of robust health takes center stage.
“Healthy” transforms food labeling, an OU kosher-certified agricultural company of 18,000 chooses to enter the solution-based realm of plant-based products and organic projections rise. These three ingredient stories speak to the future of how food will be produced and consumed.
The FDA Speaks
The FDA has reexamined the word “healthy,” and redefined which foods can receive such a designation. Now, whole grains, fruits, vegetables, salmon, and seeds automatically qualify for the healthy label. Other Foods that have one of the food groups and fall below the ratios of sugar, saturated fats and sodium allowed, can also receive the stamp. However, highly sweetened cereals and yogurts that previously used vitamins to market health, will not be allowed to use the “healthy” label due to the high amounts of sugars. The rulings of the FDA are consistent with current food science.
Companies will be incentivized to produce healthier products and consumers will be less confused by labels based on the FDA’s new ruling.
Though implementation won’t occur until 2028, companies that seek the “healthy” label will already have to start contemplating an ingredient strategy. Consumers will benefit as well, since the basic healthy food groups will be clearly noticeable. About this, in a USA Today article, James Jones, the FDA’s deputy commissioner for human foods, said, that the purpose is to “help consumers find foods that are the foundation of a healthy dietary pattern.”
Furthermore, confusion about sugar ratios, saturated fat amounts, sodium levels and vitamin quantities will be easier understood. In relation to this, CNN quoted FDA Commissioner Dr. Robert Califf, who said, “It’s critical for the future of our country that food be a vehicle for wellness. Improving access to nutrition information is an important public health effort…”
Dreyfus’s Momentous Acquisition
Louis Dreyfus Company (LDC), one of the largest agricultural-based processors in the world, is expanding into the plant-based service sector. For a company of this size, that was solely invested in procuring agricultural raw materials and shipping them throughout the world, this new vision of manufacturing ingredients for clients worldwide is symbolic of how large companies are seeing a shift in the market to robust-based plant-based food.
The global behemoth, Louis Dreyfus Company (LDC), acquired BASF’s Food and Health Performance Ingredients business to become a solution-based innovator in the plant-based market.
The acquisition involves two OU kosher-certified companies, LDC and BASF. BASF has signed over its Food and Health Performance Ingredients business to LDC. As part of the deal, a production site, R&D center, three labs and approximately 300 employees will be transferred to LDC.
In a press release about this acquisition, Michael Gelchie, LDC’s Chief Executive Officer, said, “In line with our strategic plans for revenue diversification through more value-added products and growth in downstream markets, this agreement is an opportunity to accelerate LDC’s participation in the rapidly growing plant-based ingredients market.”
There were hints that LDC was moving in this direction. For instance, as Food Business News reported, they have already begun to build a pea protein isolate plant in Canada. Now, with the acquisition, they cemented their place as a solution-based company that will work with customers worldwide to provide first-rate plant-based ingredients.
Organic Market Projections
According to Global Newswire, in 2024, the organic market worldwide had a value exceeding $228 billion, with expectations to reach over $658 billion by 2034. The current U.S. market has a value of about $80 billion with expectations to reach over $255 billion in a decade.
The USDA is heavily investing in organic farming due to the nutritional benefits and sustainability effect.
The Mayo Clinic notes the health benefits associated with organic foods. They are markedly nutrient-abundant and organic meat can contain higher levels of omega-3 fatty acids.
Because of the level of nutrients, the USDA is investing close to $120 million to further organic farming. Dr. Chavonda Jacobs-Young, USDA Chief Scientist and Under Secretary for Research, Education and Economics, said in relation to this program, “We know specialty and organic crops add nutrition to our diets and value to sustainable agriculture systems.”
In weighing the notion that sustainable farming is aimed at reducing soil erosion and protecting the environment, its central role is already influencing future practices.
Conclusion
What “healthy” means has been redefined by the FDA. Manufacturers will now be incentivized to meet these standards and consumers will be spared from confusing labels. Already, a large acquisition by a major company to enter the plant-based arena illustrates that health is taking center stage in the economy. Further indications that healthy ingredients are in the future can be seen based on the rising organic market.