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BENEO invests more than US$50 million in Chile

InvestChile - April,13,2022

The German company has reported 20% higher global volume due to capacity increase of production facility in Chile by 2022.

BENEO, one of the leading manufacturers of functional ingredients, has announced a significant expansion for its chicory root fibre production facility in Chile by 2022, funded by an investment of more than US$ 50 million. The news comes following rising demand for chicory root fibres, inulin and oligofructose, as consumer interest in digestive health continues to grow.

World trend

The company, whose headquarters are in Germany and has presence in 80 countries, explains that consumers are paying more attention to their digestive health and are gaining further understanding of the intrinsic link between the gut microbiome and its beneficial effect on the overall well-being.

This, in turn, is leading to a rising interest in chicory root fibres from food and drink manufacturers around the globe, creating a high market demand for BENEO’s inulin and oligofructose ingredients.

Functional ingredients demand

Eric Neven, Commercial Managing Director at BENEO-Orafti comments: “The market demand for chicory root fibre continues to increase. In order to keep up with this rising interest, we are investing significantly into expanding our production facilities in Pemuco, Chile. With 20% more volume, BENEO can continue to ensure reliable and consistent delivery to our customers.”

As well as expanding production capacity at the Chilean plant, the raw material sourcing will be supported by additional surface (hectares) dedicated to chicory farming in the Ñuble region.

The existing plant already operates using 75% renewable energy. The recent investment will enable BENEO to make yet further strides against its aim to increase the use of renewable energy over the coming years.

Whats inulin? What is the oligofructose for?

Inulin and oligofructose are the only plant-based proven prebiotics according to ISAPP (International Scientific Association for Pro- and Prebiotics). They have been scientifically shown to support a range of functional health benefits, including a balanced gut microbiota and a person’s overall well-being¹.

There is a wealth of scientific evidence available (in excess of 150 high quality studies) and Orafti® Inulin even has an exclusive 13.5 EU health claim for its promotion of digestive health, which is proving successful in various countries. In fact, only recently, industry expert Julian Mellentin highlighted the potential for inulin, naming it a top ingredient for 2020 in the new New Nutrition Business report, “10 Key Trends in Food, Nutrition and Health 2020”.

Not only are prebiotic chicory root fibres helping to bridge the fibre gap, they are also being widely used in both food and beverages as they help to reduce fat, sugar and calories.

To learn more about foreign investment in the Chilean Food Industry, read the next article.

Source: Beneo

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Topics: German investment in Chile- Functional ingredients

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