January 2025 was filled with significant developments across various industries, from food production to energy storage. Whether it's finding cost-effective alternatives to cocoa, enhancing edible packaging with bioactive compounds, or predicting the future of battery manufacturing, these stories highlight key trends shaping the bulk materials sector. Additionally, updates on winter wheat conditions and dairy feed costs provide valuable insights for agriculture and food industries. If you missed any of these important headlines, here’s a quick recap of the top five bulk material stories from the past month.
Identifying cost-saving alternatives to cocoa
Bakers and snack producers are exploring cost-saving alternatives to traditional cocoa-based products by using chocolate-flavored compounds and coatings. These alternatives replicate the sensory properties of chocolate while replacing cocoa butter with different fat sources, allowing for varied melting profiles, innovative flavors, and diverse color options. Companies like Cargill provide these budget-friendly solutions, particularly useful in foodservice and in-store bakeries where labeling as "chocolate" isn’t required.
Beyond cost savings, these compound coatings offer performance advantages such as higher heat resistance, improved color and shine, and longer shelf life due to delayed fat bloom. Cargill has also partnered with Voyage Foods to develop cocoa-free chocolate alternatives using affordable, widely available plant-based ingredients, including upcycled materials. This approach helps stabilize costs while maintaining the rich chocolate flavor consumers expect, reducing reliance on the volatile cocoa market.
Secondary Compounds in Edible Packaging
Edible packaging, crafted from biodegradable polymers such as seaweed, rice paper, gelatin, and plant-based materials, offers a sustainable alternative to traditional plastics. These materials are safe for consumption and often enriched with nutrients, serving the dual purpose of protecting food from external factors like contamination and acting as an integral part of the product. Common applications include edible cups, wraps, pouches, and films for snacks or ready-to-eat meals.
The incorporation of secondary compounds (SCs)—natural bioactive substances found in plants, fungi, and microorganisms—enhances the functionality of edible packaging. SCs such as essential oils (e.g., rosemary, thyme, cinnamon), phenolic compounds, and organic acids provide antimicrobial properties, combating harmful microorganisms like E. coli and Salmonella. They also offer antioxidant activity, protecting food from oxidative damage and extending shelf life. Additionally, SCs improve the mechanical performance of packaging by enhancing water resistance, addressing the hydrophilic nature of many biopolymers.
Battery Manufacturing Predictions for 2025 and Beyond
In 2024, battery production reached unprecedented levels, particularly in energy storage and electric vehicle (EV) sectors. The global EV battery market is projected to grow at a compound annual growth rate of 15.5%, reaching $84.5 billion by 2030. Lie Shi, CEO of AM Batteries, anticipates that the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) will persist due to their legislative complexity and bipartisan support, with 75% of grants allocated to Republican districts and 50% in swing states. He predicts a consolidation in the U.S. cleantech sector, where only companies with genuine technical differentiation will thrive, while others may exit the market.
Shi also foresees a deceleration in global EV growth, which could create opportunities for adopting next-generation technologies like sodium-ion and solid-state batteries, as well as dry battery electrode (DBE) processes. He expects more battery manufacturers to announce plans to implement DBE technology, building upon initiatives by companies such as Tesla and LG Energy Solution. Additionally, the "Made in America" movement is anticipated to gain momentum, with the new administration encouraging investments within the U.S. to bolster domestic manufacturing in the cleantech space.
Report eases winterkill concerns
In mid-January 2025, Arctic air swept over key winter wheat regions in the U.S. Plains and Midwest, leading to concerns about potential winterkill affecting up to 15% of the crop. However, a report by Romulo Lollato from Kansas State University offers a more optimistic outlook. Factors such as timely precipitation and above-average fall temperatures contributed to robust root development and tillering in Kansas' wheat fields, enhancing the crop's winterhardiness. Despite air temperatures dropping as low as minus-15 degrees Fahrenheit in some areas, soil temperatures remained above 20 degrees, reducing the likelihood of significant winterkill.
While some fields planted later in the season may have experienced delayed emergence due to earlier dry spells, the overall condition of the Kansas wheat crop appears favorable. The combination of good root development, adequate snow cover, and moderate soil temperatures has mitigated the risk of winterkill, suggesting that the crop is well-positioned to withstand the winter conditions.
Dairy costs closely linked to feed values
Between 2019 and 2024, global milk production costs increased by an average of 14% across major dairy regions, with over 70% of this rise occurring since 2021. The primary driver has been a 19% surge in feed expenses, exacerbated by higher fertilizer costs, increased transportation expenses, geopolitical tensions such as the Russia-Ukraine war, adverse weather conditions, and supply chain disruptions. Regions with abundant pasture access, like New Zealand, Ireland, and the Netherlands, allocate about 30% of their production costs to feed, whereas areas relying more on manufactured feed, such as California, the Upper Midwest, and China, see feed accounting for approximately 55% of their total costs.
In 2024, favorable weather and robust crop yields led to a decrease in global feed prices, particularly for corn and soybeans. California experienced a notable 30% reduction in feed costs compared to the previous year. However, the long-term impact on milk production costs remains uncertain and will depend on future commodity price trends, global trade policies, currency fluctuations, energy markets, and shifts in dairy demand, especially from China.