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Can Ingredion's T&HS Solutions Sustain Growth Momentum in 2026?
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Key Takeaways
Ingredion's T&HS posted 5% sales growth and 7% volume growth, marking a ninth straight quarter of gains.
Solutions demand, innovation and launches drove growth across EMEA and APAC, while starches performed well.
T&HS operating income rose 5% to $117M, while higher tapioca costs and price mix may temper margin gains.
Ingredion Incorporated (INGR - Free Report) continues to gain traction with its solutions-led growth strategy in Texture & Healthful Solutions, supported by customer demand for clean-label ingredients, texture solutions, sugar reduction, and protein and fiber fortification. Reformulation and innovation activity across these areas remained robust during the second quarter of 2026, helping sustain the segment’s growth momentum.
T&HS net sales increased 5% year over year to $627 million, while net sales volumes rose 7%. This marked the ninth consecutive quarter of volume growth for the segment. Solutions and clean-label sales remained strong in EMEA and APAC, while the company continued to benefit from customer innovation activity and new product launches.
Profitability also advanced despite input cost pressures. Segment operating income increased 5% to $117 million, representing the second-highest quarterly operating income in T&HS history. Operating margin improved to 18.7% from 18.5% a year ago. Volume growth and favorable foreign exchange were partly offset by an unfavorable price mix and higher tapioca costs.
The volume strength was not driven by customer restocking or demand being pulled forward ahead of pricing actions. Solutions continued to grow faster than the rest of the business, while native starches also performed well. Ingredion has been working with large CPG companies, private-label manufacturers and insurgent brands through its revamped solutions-selling model and project pipeline.
For 2026, T&HS net sales are expected to rise in the mid-single digits, while operating income is projected to increase in the mid-to-high single digits. However, higher tapioca costs and an unfavorable price mix could limit margin improvement even as solutions-led demand remains strong.
How IFF and ADM Are Sustaining Solutions-Led Growth
International Flavors & Fragrances Inc. (IFF - Free Report) is seeing broad-based volume growth across its core businesses. The company reported Taste sales growth of 4% to $688 million and Health & Biosciences growth of 5% to $601 million in the second quarter of 2026, while EBITDA rose 6% in both segments. IFF is also benefiting from clean-label, high-protein and food-biosciences opportunities. However, modest input cost inflation and some pricing lag could weigh on International Flavors & Fragrances’ near-term margin flow-through.
Archer-Daniels-Midland Company (ADM - Free Report) is building momentum in Nutrition through Flavors, Specialty Ingredients and natural colors. Archer-Daniels reported Nutrition operating profit of $172 million in the second quarter of 2026, up 51%, while Human Nutrition operating profit increased 51% to $139 million, driven primarily by Flavors. ADM also reported 20% year-over-year Flavors growth in Asia Pacific and continues to target mid-single-digit medium-term Flavors growth, with operating profit expected to grow somewhat faster over time.
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Can Ingredion's T&HS Solutions Sustain Growth Momentum in 2026?
Key Takeaways
Ingredion Incorporated (INGR - Free Report) continues to gain traction with its solutions-led growth strategy in Texture & Healthful Solutions, supported by customer demand for clean-label ingredients, texture solutions, sugar reduction, and protein and fiber fortification. Reformulation and innovation activity across these areas remained robust during the second quarter of 2026, helping sustain the segment’s growth momentum.
T&HS net sales increased 5% year over year to $627 million, while net sales volumes rose 7%. This marked the ninth consecutive quarter of volume growth for the segment. Solutions and clean-label sales remained strong in EMEA and APAC, while the company continued to benefit from customer innovation activity and new product launches.
Profitability also advanced despite input cost pressures. Segment operating income increased 5% to $117 million, representing the second-highest quarterly operating income in T&HS history. Operating margin improved to 18.7% from 18.5% a year ago. Volume growth and favorable foreign exchange were partly offset by an unfavorable price mix and higher tapioca costs.
The volume strength was not driven by customer restocking or demand being pulled forward ahead of pricing actions. Solutions continued to grow faster than the rest of the business, while native starches also performed well. Ingredion has been working with large CPG companies, private-label manufacturers and insurgent brands through its revamped solutions-selling model and project pipeline.
For 2026, T&HS net sales are expected to rise in the mid-single digits, while operating income is projected to increase in the mid-to-high single digits. However, higher tapioca costs and an unfavorable price mix could limit margin improvement even as solutions-led demand remains strong.
How IFF and ADM Are Sustaining Solutions-Led Growth
International Flavors & Fragrances Inc. (IFF - Free Report) is seeing broad-based volume growth across its core businesses. The company reported Taste sales growth of 4% to $688 million and Health & Biosciences growth of 5% to $601 million in the second quarter of 2026, while EBITDA rose 6% in both segments. IFF is also benefiting from clean-label, high-protein and food-biosciences opportunities. However, modest input cost inflation and some pricing lag could weigh on International Flavors & Fragrances’ near-term margin flow-through.
Archer-Daniels-Midland Company (ADM - Free Report) is building momentum in Nutrition through Flavors, Specialty Ingredients and natural colors. Archer-Daniels reported Nutrition operating profit of $172 million in the second quarter of 2026, up 51%, while Human Nutrition operating profit increased 51% to $139 million, driven primarily by Flavors. ADM also reported 20% year-over-year Flavors growth in Asia Pacific and continues to target mid-single-digit medium-term Flavors growth, with operating profit expected to grow somewhat faster over time.