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July 2026 F&B industry review.

July in review: EU Protein Plan backlash, MAHA reformulation, livestock heatwave risks

In July 2026, the EU’s Protein Plan drew criticism for prioritizing animal feed over human consumption. The debate came as businesses increased investment in protein diversification, while rising whey costs pushed formulators toward alternative proteins, blends, and processing solutions. In the US, Make America Healthy Again (MAHA) accelerated demand for natural colors, cleaner labels, lower sugar, and protein- and fiber-fortified products. Healthy aging also moved into mainstream F&B, creating opportunities for everyday products supporting mobility, nutrition, and long-term wellness.
California Natural Color colors on cupcakes.
Color innovation breakthroughs push natural shades beyond the performance gap
Natural food colors are evolving from imperfect substitutes for synthetic dyes into high-performing tools that can help food and beverage products stand out. As regulators intensify scrutiny of synthetic dyes and consumers seek cleaner, more recognizable ingredient lists, suppliers are applying fermentation, encapsulation, plant breeding, advanced extraction, and application-specific formulation to solve the industry’s toughest performance problems.
Man biting into burger.
How Afyren’s bio-based organic acids can support food reformulation
Biotechnology company Afyren aims to support manufacturers in replacing fossil-derived organic acids with bio-based alternatives for food and flavor applications. The move responds to growing consumer demands for F&B products offering sustainable, traceable ingredients, while helping companies reduce supply chain emissions without impacting product performance. The France-based firm says its fermentation-produced ingredients can match conventional acids on purity, functionality, and processing performance, while delivering a carbon footprint “approximately one-fifth that of petrochemical equivalents.” 
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How AI Can Accelerate Reformulation with Natural Colours
Replacing synthetic dyes with natural colours is rarely a simple one-to-one switch. Discover how Döhler’s AI-supported colour-matching tool predicts achievable shades, identifies suitable blends and recommends precise dosages within minutes. The paper shows how digital colour modelling can reduce laboratory iterations, accelerate reformulation and support more confident and faster product-development decisions.This Technical Paper is brought to you by Döhler.
IFT First 2026 Ingredion video thumbnail: Ingredion trade show booth crowded with attendees, with three smiling representatives featured in a circular inset
IFT FIRST 2026: Ingredion walks us through its new AI-powered formulation platform

Larry Fernandes, chief commercial and sustainability officer at Ingredion, and Charlie Beall, VP of customer operations at Knowde, discuss Ask Ingredion — how it supports formulation, ensures answer accuracy, and combines AI with expert guidance. The conversation is followed by a demo from Leaslie Carr, senior director of texture and healthful solutions and customer innovation at Ingredion.

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IFT FIRST 2026 review: Cleaner labels and stronger functionality
IFT FIRST 2026 in Chicago, US, highlighted a shift toward cleaner-label, higher-protein, and more functionally targeted F&B. Exhibitors showcased high-value ingredients made from precision fermentation, new transparent yeast- and plant-based proteins, and high-performing natural colors. AI also played an increasing role in optimizing formulas. Key priorities included GLP-1-focused nutrition, sodium and sugar reduction, improved shelf life, better mouthfeel, and cost reductions. Across categories, innovation centered on delivering stronger nutrition and performance without compromising taste or familiarity.

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C16 Biosciences enters food ingredients market with precision-fermented cocoa...
Chocolate on tray.
C16 Biosciences is entering the food ingredients market with Palmless Cocoa Butter Equivalent. The precision-fermented ingredient is designed to help chocolate manufacturers address supply volatility, price uncertainty, and performance variability. The launch marks the first food application for the company’s Palmless platform. “Cocoa butter is fundamental in making chocolate a luxurious experience: it’s responsible for the perfect snap on the first bite, the reason chocolate melts exactly at body temperature, and it leaves [a] smooth aftertaste,” says Shara Ticku, founder and CEO of C16 Biosciences. 
Hershey profitability rebounds as higher prices pressure confectionery demand
Outside a Hershey chocolate factory.
Lower commodity costs, pricing, and productivity gains helped rebuild Hershey’s profitability in the second quarter of 2026. However, steep volume declines underline the pressure on chocolate manufacturers to balance ingredient costs with consumer affordability. Hershey’s adjusted gross margin reached 41.6% in the second quarter, up 350 basis points from last year and 120 basis points from the first quarter. The growth was supported by lower net commodity costs, price increases, and supply chain productivity savings.
Protein under pressure: Solutions for rising whey costs
Rousselot booth at IFT FIRST 2026
Whey demand is outpacing supply, pushing prices upward as consumer interest in protein continues to boom. As many as 80% of consumers said they “pay attention to protein” in their diet, according to a 2026 Innova Market Insights survey. Just over half said a “high in protein” claim was their most important consideration when choosing food and drinks as protein sources.
dsm-firmenich Taste, Texture & Health growth accelerates as animal nutrition...
pink dsm-firmenich logo on tablet
dsm-firmenich’s Taste, Texture & Health business accelerated in the second quarter of 2026, supported by beverages, baking, dairy, and revenue synergies. The ingredients supplier also expects to complete the divestment of its Animal Nutrition & Health business at the end of 2026.
Symrise gains Q2 momentum on strong demand for savory and natural solutions
People eating around the table, Symrise.
Symrise reported improved organic sales growth in the second quarter, as momentum accelerated across its business after a slower start to the year. Robust demand for its F&B ingredients helped offset a challenging macroeconomic backdrop, with the company maintaining its full-year guidance for 2026.
PharmaLinea sees China shifting from nutraceutical manufacturer to innovation...
Woman checking supplements in store

Nutrition Insight

The Chinese nutraceutical market is increasingly relevant for international brands and manufacturers, says supplement manufacturer PharmaLinea. The company observes opportunities for international companies that want to expand their reach and connect with a large and increasingly health-conscious consumer base. Citing data from Innova Market Insights, PharmaLinea notes that more than 25% of Chinese supplement users have increased their intake over the past year, while 80% purchase supplements at least once a month. 
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Food Ingredients News
Spirulina blue gains ground in F&B despite stability,...
Blue spirulina-derived colors are increasingly positioned as promising alternatives to synthetic blue dyes, as F&B companies race to develop colors that meet consumer and regulatory demands for natural ingredients.
Couple shopping for fruit and vegetables, alternative proteins.
Food Ingredients News
Businesses step up investment in protein diversification...
F&B companies are increasingly confident about the commercial opportunities presented by protein diversification. However, they say greater policy support and investment will be needed to accelerate progress, according to the latest Business Breakthrough Barometer from the World Business Council for Sustainable Development (WBCSD).
US supermarket products.
Food Ingredients News
How F&B ingredient suppliers are navigating the MAHA...
The Make America Healthy Again (MAHA) movement has turned ingredient scrutiny into an increasingly concrete product development challenge for the US F&B industry. At IFT FIRST 2026 in Chicago, US (Jul 12–15), suppliers described growing customer demand for natural colors, recognizable ingredients, lower sugar, protein and fiber fortification, and the removal of additives that consumers perceive as overly chemical. The momentum is not being driven by policy alone. Innova Market Insights reports that 37% of US consumers say they avoid artificial food colorings, additives, and preservatives. Innova also reports that color ingredients under scrutiny, including petroleum-based dyes and titanium dioxide, appear in almost half of US F&B launches that use color ingredients. 

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Effective sweetener solutionsAug2026

Innova Market Insights data indicates that consumers are actively reducing sugar to eat healthier. As demand for healthier F&B options grows, brands are reformulating products and exploring new sw...

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New frontiers in protein Aug 2026

Innova Market Insights data indicates a 6% average annual growth in F&B launches with protein ingredients and high/source of protein claims between April 2021 and March 2026. The top subcategories were Cereal, Dairy, and Meat Substitutes. Soup and hot drinks with protein ingredients were emerging. The top protein ingredients were milk protein, pea protein, and soy protein isolate.

Trend analysis

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What’s next in Desserts and Ice Cream?Aug 2026

Innova Market Insights data shows that flavor still plays a vital role in ice cream and dessert choices, with the category growing at a 4% CAGR from July 2021 to June 2026. While ice cream accounts for the largest share of these launches, toppings and flavor combinations are becoming more creative areas for NPD. Sour flavors are also gaining attention in desserts, growing by 132% over the past five years globally.

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IFT First 2026 Ingredion video thumbnail: Ingredion trade show booth crowded with attendees, with three smiling representatives featured in a circular inset
Video06:47
IFT FIRST 2026: Ingredion walks us through its new AI-powered formulation platform

Larry Fernandes, chief commercial and sustainability officer at Ingredion, and Charlie Beall, VP of customer operations at Knowde, discuss Ask Ingredion — how it supports formulation, ensures answer accuracy, and combines AI with expert guidance. The conversation is followed by a demo from...

Keith Albright, Cargill
Video06:19
IFT FIRST 2026: Cargill maps the next wave of food and beverage trends
IFT First 2026 Almond Board of California video thumbnail: Representative pictured beside attendees gathering at the organization’s booth during a busy trade show.
Video04:38
IFT FIRST 2026: Almond Board of California CEO spotlights product development opportunities
Tyler Lorenzen, Puris
Video04:43
IFT FIRST 2026: How Puris makes pea protein work in everyday food and beverages
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