Kerry Q3 volume growth accelerates as taste and reformulation drive demand

Kerry Group reported strong volume growth in the first nine months of 2026, with demand for taste, nutrition, and reformulation solutions supporting performance across key food and beverage categories.

The ingredients supplier recorded volume growth of 3.6%, rising to 4.1% in the third quarter, as customer innovation and product renovation activity helped drive growth ahead of wider market trends.

Despite volume growth, Kerry’s reported revenue declined by 0.6% in the first nine months of 2026, reflecting adverse currency movements, disposals net of acquisitions, and lower net pricing amid input cost deflation.

Meanwhile, EBITDA margin expanded by 50 basis points, primarily driven by the group’s Accelerate 2.0 program, alongside benefits from operating leverage and product mix. 

Kerry maintained its full-year 2026 guidance for constant-currency adjusted earnings per share growth of 6–10%.

Taste and reformulation drive category growth

Growth was led by the snacks, meat, dairy, and beverage markets, with Kerry attributing demand to its savory taste technologies, salt and sugar reduction solutions, natural extracts, enzymes, and bio-fermentation-based preservation systems. 

In beverages, the group reported strong growth in the Americas, supported by refreshing drinks, nutritional beverages, and coffee-based innovations. 

Demand for sugar reduction technologies, botanicals, and natural extracts also contributed to growth in refreshing beverages, while protein-masking solutions supported nutritional drink applications.

Americas and APMEA lead regional performance

Regional performance highlighted continued demand for ingredients that address evolving consumer preferences and manufacturers’ reformulation priorities. 

The Americas recorded 4.0% volume growth over the nine-month period, while APMEA led regional performance with growth of 5.2%, driven by dairy, meat, snacks, and bakery.

Europe delivered 0.7% volume growth, led by beverages, snacks, and dairy, including low- and no-alcohol beverage solutions. Across retail and foodservice, Kerry said innovation focused on new taste experiences, high-protein products, health and wellness, improved nutritional profiles, and cost optimization.

“We are pleased to report a strong performance in the period, reflecting a further step-up in volume growth across all three regions in the third quarter, combined with continued strong margin expansion. The volume growth achieved in the third quarter reflects very strong growth in the Americas, a further step-up in APMEA, and good growth in Europe,” says Kerry CEO Edmond Scanlon. 

“Growth in the period was led by good innovation activity in the foodservice channel and continued product renovation activity in the retail channel.” 

Kerry has continued to develop the business, including further investment in taste and biotechnology-enabled solutions capacity and capabilities across different regions, including savory taste, Tastesense salt and sugar reduction technologies, botanicals, natural extracts, taste solutions for high-protein applications, bio-fermentation based preservation systems, and enzymes. It has also made progress in its Accelerate 2.0 program.

Despite facing ongoing geopolitical uncertainty, Scanlon stressed that Kerry’s “business resiliency positions us well through this period, and we remain strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation pipeline.”

Foodservice growth reflects demand for innovation

Foodservice was a particular growth driver, with volumes rising 5.0% as new menu innovations, seasonal launches, and solutions addressing operational complexity supported demand. 

Across the wider portfolio, Kerry highlighted growing customer focus on high-protein products, salt and sugar reduction, improved nutritional profiles, underlining the role of ingredient innovation in helping manufacturers respond to changing consumer expectations.

The group says that its continued strong performance highlights the strength of strategic positioning across markets, channels, and customers.