Beneo, the world's largest producer of inulin, will significantly increase production capacity. An investment of millions should ensure that considerably more chicory can be processed in Belgium and Chile. According to the Dutch Sensus, it underlines the growth of the inulin market.
Beneo has announced that it will invest more than €30 million in an initial phase in its factories in Oreye (Belgium) and Pemuco (Chile). This will allow the company, part of Südzucker, to process 40% more chicory. By doing this in the northern and southern hemispheres, production is spread. Work at both production locations will start in 2022.
Confidence in growth in the inulin market
According to Beneo, the investment in production capacity is necessary to meet increasing customer demand and to stimulate further growth of the inulin market. In that light, René Schunselaar, agro manager at Sensus, calls Beneo's announcement a positive message. "It confirms the confidence that we also have in the continued growth of the inulin market." According to Schunselaar, the competitor's move is not a threat to chicory cultivation in the Netherlands, because demand is growing fast enough.
Sensus is a subsidiary of Cosun Beet Company and the second largest inulin producer in the world. Cosucra in Warcoing, Belgium, completes the top 3. Together, the three companies serve almost the entire online online market worldwide. China, among others – where inulin is still a relatively new product – is slowly trying to gain some market share. According to Bioway, approximately 2019 tons of inulin were produced here in 5.000. For comparison: in the Netherlands, production - based on area and average yield - is around 30.000 tons of inulin.
Corona gives the market an extra boost
Inulin is known as a sweetener with several health benefits. It promotes intestinal flora, strengthens the immune system and keeps blood sugar levels stable. It is therefore not surprising that corona has given the demand for inulin a further boost. For example, the annual growth rate of the inulin market would be 4% during the corona pandemic have more than doubled.
According to the Euromonitor, the number of new products containing inulin obtained from chicory has doubled in the past four years. The inulin market is expected to reach a value of $2028 billion by 11,48 (source: Research and Markets). It is therefore not surprising that the major producers are expanding their production capacity.
Area must grow accordingly
Sensus is also currently engaged in an investment round to scale up the processing capacity of the factory in Roosendaal. However, it does mean that the chicory area must grow proportionately. According to CBS, the Netherlands has more than five hundred growers who together account for 3.800 hectares. In Belgium - where most chicory is grown worldwide - the area covers approximately 8.500 hectares.
Sensus and Beneo expect that the demand for chicory will continue to grow between 5% and 10% per year in the coming years. In order to meet that demand eagerly awaited to arable farmers who want to include chicory in their crop plans. Especially after the disappointing harvest of the past two years. This year the cards have been better shuffled in terms of yield. Sensus assumes that this is around the multi-year average lies.