Tate & Lyle and Ingredion discuss takeover amid personal care push

British ingredient supplier Tate & Lyle has confirmed that it is in talks with its US rival, Ingredion, over a potential takeover valued at £2.74 billion (US$3.7 billion). 

Both companies are primarily known for their activity in the food and beverage (F&B) industry. However, the potential acquisition would combine their overlapping portfolios and could strengthen their presence in specialty ingredients — a category with significant relevance in cosmetics.

The offer, according to Tate & Lyle’s statement, follows “a number of earlier approaches from Ingredion” to acquire the company. The two parties are still in discussions, and emphasize that “there can be no certainty that any offer will be made.”

Despite the deal’s uncertainty, investors reacted strongly to the news, with Tate & Lyle shares surging approximately 55% after the announcement. Ingredion’s shares, however, dipped 2.8% amid concerns over the acquisition costs and its integration risks.

Clean label crossover

Both companies have expanded their ingredient technologies into personal care and cosmetics in recent years, as manufacturers increasingly seek multifunctional and bio-derived ingredients.

Tate & Lyle has gradually shifted its operations away from its sugar business, bolstering its operations in the personal care sector through texture systems, clean ingredient solutions, and nature-derived formulation technologies.

Earlier this year, Tate & Lyle joined Personal Care Insights and Innova Market Insights on a webinar exploring naturally-derived alternatives to synthetic skin care thickeners, where the company highlighted its push into clean label beauty formulation technologies.

Tate & Lyle and Ingredion both supply specialty ingredients that are also used in cosmetic and personal care products.Moreover, in 2024, Tate & Lyle acquired CP Kelco for US$1.8 billion. The deal expanded the company’s access to fermentation-derived ingredients sourced from citrus peel and seaweed — materials increasingly explored in beauty and personal care product development.

Ingredion, while also primarily active in starches, sweeteners, and nutrition ingredients, also supplies biomaterials and starch-based technologies used in personal care formulations. Its offerings include texture modifiers and naturally-derived alternatives to synthetic ingredients. 

Demand and direction

Both companies reported slowing demand and weaker profitability in 2025 relative to their sweetener businesses, with Tate & Lyle citing pricing pressures in Europe and rising operational costs. Ingredion similarly reported that some of its legacy starch and sweetener categories saw a slowdown, as consumers seek healthier and plant-based alternatives.

According to analysts, the proposed takeover could help both companies speed up their transition toward higher-growth specialty ingredients with stronger margins. 

While no pivot has been announced, other companies operating across F&B and cosmetics have shaved off business arms to focus on beauty. Unilever earlier this year said that it will hone in on its home and personal care sectors as it unloads its Foods business on McCormick.

Focusing on the remaining Beauty, Wellbeing, Personal Care, and Home Care divisions will make it a higher-growth company, the multinational giant maintains.