European consumer ingredients to benefit from US shift away from synthetics, Barclays says

Givaudan SA

08/07/2025 10:40

** Barclays sees upward trend for European consumer ingredients sector as Make America Healthy Again (MAHA) initiative propels shift away from synthetic colours and other ingredients in the U.S.

** There has been a flurry of announcements by U.S. food companies pledging to remove synthetic colours from products following pressure from Health Secretary Robert F. Kennedy Jr., along with growing consumer support, Barclays notes

** "We think in aggregate the listed consumer ingredients group ought to be net beneficiaries of this trend," it says

** "We feel most confident about Kerry Group KYGa.I and Givaudan's ability to capture this opportunity as the largest absolute revenue players in natural food & beverage ingredient solution alternatives to synthetics today," it adds

** It upgrades Givaudan GIVN.S to "equal-weight" from "underweight", noting the fragrance and flavour maker also has the advantage of global leadership in natural colour solutions

** Shares of Kerry ("overweight") and Givaudan have lost 1.9% and 2.6% YTD, respectively, including Tuesday's session

 (Reporting by Ozan Ergenay)

 ((ozan.ergenay@thomsonreuters.com))