Jungbunzlauer’s Strategic Expansion in North America via the Thomson, IL Acquisition: A Pathway to Long-Term Value Creation

Jungbunzlauer’s acquisition of the Thomson, IL site from International Flavors & Fragrances, Inc. (IFF) marks a pivotal step in its strategic expansion into North America, aligning with both geographic diversification goals and the surging demand for sustainable ingredients. The transaction, expected to close in early Q4 2025, will establish Jungbunzlauer’s first U.S. manufacturing footprint, enabling closer collaboration with key customers and reducing supply chain vulnerabilities [1]. This move is not merely a geographic play but a calculated response to evolving market dynamics, particularly the accelerating shift toward eco-friendly solutions in the food, beverage, and nutrition industries.

Geographic Diversification: Strengthening Resilience and Proximity

The Thomson site, a multipurpose production facility, will be repurposed to meet Jungbunzlauer’s needs, with a focus on local sourcing and energy efficiency [1]. By anchoring operations in the U.S., the company mitigates risks associated with global supply chain disruptions while enhancing its ability to serve North American clients directly. This aligns with broader trends: 74% of U.S. consumers are willing to pay a premium for sustainable packaging, and the sustainable materials market is projected to grow at a 12.41% CAGR from 2025 to 2034, reaching $1.07 trillion by 2034 [4]. Jungbunzlauer’s prior acquisition of AGI in 2024 and its expansion of biogum production in Canada further underscore its commitment to a diversified, North America-centric strategy [3].

Sustainability as a Core Differentiator

Jungbunzlauer’s sustainability initiatives are deeply embedded in its operations, from renewable energy adoption to circular production models. At its Austrian site, the company electrified steam-intensive purification processes using hydropower and solar energy, cutting CO2e emissions by 27,000 metric tons annually [5]. The Thomson site will likely mirror these practices, leveraging local corn sourcing to minimize transport emissions and employing biotechnological fermentation to produce biodegradable ingredients [1]. This approach resonates with the chemical industry’s projected 11% CAGR in sustainability-related products, which will grow from $340 billion in 2023 to $570 billion by 2028 [4].

The company’s recent launch of TayaGel® LA—a plant-based texturant—exemplifies its innovation in sustainable solutions, addressing cleaner labeling demands while supporting customer sustainability goals [3]. Jungbunzlauer’s recognition as a top 1% performer in EcoVadis’s sustainability rankings further validates its leadership in this space [2].

Market Alignment and Long-Term Value Creation

The Thomson acquisition positions Jungbunzlauer to capitalize on North America’s $382.6 billion sustainable products market, which is expected to expand to $692 billion by 2033 [4]. By integrating renewable energy, regenerative agriculture partnerships, and low-carbon logistics into its operations, the company is poised to meet the dual demands of regulatory compliance and consumer preference for eco-conscious brands. For instance, its use of rail and river transport for bulk deliveries reduces packaging waste and aligns with circular economy principles [1].

Conclusion

Jungbunzlauer’s Thomson, IL acquisition is a masterstroke in its long-term value creation strategy. By combining geographic diversification with sustainability-driven innovation, the company is not only future-proofing its supply chain but also aligning with a $1 trillion market trajectory. As North American consumers and corporations prioritize environmental stewardship, Jungbunzlauer’s commitment to climate neutrality by 2050 and its track record of sustainable product launches position it as a leader in the next era of ingredient production.

Source:
[1] Jungbunzlauer to acquire from International Flavors & Fragrances, Inc. multipurpose site in Thomson, IL [https://www.prnewswire.com/news-releases/jungbunzlauer-to-acquire-from-international-flavors--fragrances-inc-multipurpose-site-in-thomson-il-302543214.html]
[2] Jungbunzlauer awarded Platinum Medal from EcoVadis for sustainability performance [https://www.prnewswire.com/news-releases/jungbunzlauer-awarded-platinum-medal-from-ecovadis-for-sustainability-performance-302528221.html]
[3] Jungbunzlauer Launches New TayaGel® LA at IFT FIRST 2025 [https://www.prnewswire.com/news-releases/jungbunzlauer-launches-new-tayagel-la-at-ift-first-2025-strengthening-its-texturants-portfolio-302503551.html]
[4] Sustainable Materials Market Size to Surpass USD ..., [https://www.precedenceresearch.com/sustainable-materials-market]
[5] New implemented emissions reduction initiative [https://www.jungbunzlauer.com/about/news/new-implemented-emissions-reduction-initiative/]