Darling Ingredients is making a strategic move by creating a new company called Nextida in a joint venture with Tessenderlo Group. This venture aims to focus on collagen-based health and wellness products, providing food companies with more opportunities to enhance the health attributes of their products. Darling will own a majority stake of 85% in Nextida, with an expected annual revenue of around $1.5 billion.
Collagen, a popular ingredient in the beauty and fitness industries, has gained attention for its anti-aging properties and ability to promote muscle mass. The collaboration between Darling and Tessenderlo will combine their respective collagen businesses, with the deal set to be finalized in 2026 pending regulatory approval.
In a growing trend where consumers view food as a form of medicine, ingredient companies are investing in health solutions that bridge the gap between food and pharmaceuticals. Darling is positioning itself as a leader in the collagen ingredient space, recognizing the potential for collagen to become a significant functional ingredient in the food industry, similar to proteins and probiotics.
Darling’s CEO, Randall Stuewe, expressed excitement about the possibilities that Nextida’s product line presents. The company is exploring various avenues for incorporating collagen into different food and beverage products, including supplements, sports bars, and drinks. Additionally, Darling is investigating the potential of collagen as a weight loss ingredient, particularly through Nextida GC, which targets glucose spikes and promotes the body’s natural production of GLP-1.
Collagen has been a rapidly growing segment within Darling Ingredients’ food business, and the partnership with Tessenderlo will significantly increase the production capacity across multiple facilities worldwide. The collaboration is expected to enhance shareholder value for Darling, as the food segment is perceived to be undervalued.
The trend of consumers gravitating towards natural and health-focused products is evident in the success of ingredient companies like Archer-Daniels-Midland Co., which has seen increased sales in its health and nutrition unit. By offering products with perceived health benefits, companies are meeting the evolving demands of consumers seeking functional and nutritious options in their food choices.