Functional and specialty ingredients manufacturer Beneo revealed plans Tuesday to invest more than €30 million (about $34 million) to increase production capacity for prebiotic chicory root fiber by over 40% at its manufacturing facilities in Pemuco, Chile and Oreye, Belgium.
The company said in a release that its decision to invest in the expansion stems from a need to meet rising demand for the products in the food and feed industries. Euromonitor reported in September 2021 that the number of product launches featuring chicory root fiber inulin witnessed a 50% rise over the last four years.
“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,” Christoph Boettger, a member of the firm’s executive board, said in a statement. “With increased capacity, Beneo continues to offer a secure supply to its customers and partners worldwide.”
The funds will also be used to improve the sustainability profile of the two plants. Beneo expects its Pemuco site to reach carbon neutrality within the next several years, and the company will cut the energy consumption per ton of product at its Oreye facility by 50% by 2030.
Business insights firm Research and Markets forecasts that the market for chicory root fiber inulin will hit $11.48 billion in 2028.