We recently published a list of 7 Best Future Food Stocks to Buy According to Analysts. In this article, we are going to take a look at where Ingredion Incorporated (NYSE:INGR) stands against other best future food stocks to buy according to analysts.

The food industry is a major contributor to the global economy, evolving over time to cater to dynamic consumer demands, technological advancements, and economic conditions. As per The Business Research Company, the global food and beverage sector in 2024 was valued at around $6.96 trillion, expected to reach $7.4 trillion by 2025. The expansion of the industry has been made possible due to increasing consumer spending, swift urbanization, and higher demand for convenient and healthy food options. On the other hand, companies face challenges in terms of inflationary pressures, supply chain constraints, and changing trade policies.

Today’s food industry is majorly influenced by the increasing demand for healthier and more sustainable food alternatives. The global healthy food market is expected to reach $897 billion by 2025 and grow at a CAGR of 9.7%, reaching $2.2 trillion by 2035, as per Future Market Insights. The shift in the food market is fueled by awareness around diet and its relation to chronic health conditions like obesity, diabetes, and heart disease. Consumers look for clean-label, minimally processed, and plant-based alternatives, which has driven the demand for organic, non-GMO, and fortified food.

Furthermore, the growth in the food-away-from-home (FAFH) sector is also unparalleled. According to the U.S. Department of Agriculture, spending at food service outlets breached pre-pandemic records in 2021 and hit the $2.6 trillion mark in 2023. To drive this growth, limited-service and full-service restaurants contributed around 69% of total FAFH expenditures. This growth emanates from the increasing demand for convenience-driven dining-out options and the growing market for digital ordering platforms. Considering the competition between limited-service and full-service restaurants, menus are evolving. This is made possible through quick-service restaurants adding more premium options and traditional restaurants focusing on convenience and delivery optimization.

However, inflation still remains a major concern for the industry. Grocery prices have risen 1.8%, year-on-year in December 2024, whereas costs for food-away-from-home increased by 3.6%. These surges were driven by increasing production costs and supply chain disruptions. Additionally, according to FAO, Food Price Index saw a monthly increase of 1.6% in February 2025, as food price inflation remains a major concern, driven mainly by increases in prices of sugar, dairy, and vegetable oil. To mitigate these concerns, companies are actively looking to adopt advanced supply chain technologies, price optimization strategies, and sustainability initiatives to control costs and protect margins.

Moreover, technological innovation is playing an important role in transforming the future of the food sector. Robotics and artificial intelligence (AI) are being used to increase production efficiency, optimize supply chains, and decrease food wastage.

Despite these concerns, the long-term prospects for the food industry remain strong. The sector continues to benefit from urbanization, increasing middle-class population, and changing consumer preferences. Accordingly, top food stocks provide an average annual return of 32.25%, posing them as an impressive option for investors. Companies that look to integrate innovation, move forward sustainably, and focus on health-conscious options, are positioned to grow in the future.

Methodology

To come up with our list of the 7 Best Future Food Stocks to Buy According to Analysts, we first spotted 22 food-related companies with a market capitalization of more than $5 billion. These were then narrowed down to stocks with significant average analyst share price upside and an average rating of Buy or better.

Additionally, we look at the number of hedge funds which have invested in these companies, using Insider Monkey’s Q4 2024 hedge funds database. The list was finalized by placing the stocks in ascending order based on analysts’ upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close up of a baker stirring a bowl of flour and sugar in a bakery.

Ingredion Incorporated (NYSE:INGR)

Potential Upside: 22.44%

Number of Hedge Funds Holders: 36

Ingredion Incorporated (NYSE:INGR) is a key player in the ingredient solutions industry. The company supplies starches, sweeteners, and biomaterials for global food, beverage, and industrial markets.

Ingredion Incorporated (NYSE:INGR) reported an increase of 4% in organic net sales for the quarter ended December 31, 2024. This increase was fostered by strong demand in its Texture & Healthful Solutions segment. Due to enhanced demand for yogurt, beverages, and frozen foods, sales volumes increased for the second consecutive quarter. As consumers returned to their in-office routine and placed a stronger focus on convenience, specialty starches by Ingredion played an important part in enhancing food products’ texture and functionality.

However, Ingredion Incorporated (NYSE:INGR) observed lower demand from Latin America, especially from the beverage market in Mexico. This decrease led to a decline in net sales for the region. Despite this, the company deployed pricing strategies to mitigate varying corn costs and currency volatility. As a result of successful pricing, the company reported gross profit margins to be 24%, increased from 21.3% in 2023, where adjusted operating income increased by 5%.

A key development that came in 2025 was the company’s $50 million investment in its Cedar Rapids, Iowa facility in February. This investment went toward the modernization and expansion of its industrial starch production. With this, the company is enhancing its position in the sustainable packaging sector through production capabilities to benefit from the increasing demand for biodegradable and recyclable packaging. Moreover, Ingredion made moves to elevate cost efficiency through supply chain optimization, which includes the closure of three smaller facilities in the UK, Brazil, and Canada.

Thus, Ingredion Incorporated (NYSE:INGR) remains laser-focused on advancing its high-value ingredient solutions portfolio while keeping finances in check. With this, Ingredion remains a compelling pick among the Best Future Food Stocks to Buy.

Overall, INGR ranks 6th on our list of best future food stocks to buy according to analysts. While we acknowledge the potential of INGR, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INGR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.