Can Darling Ingredients Turn Collagen Into a Bigger Earnings Engine?

Darling Ingredients is expanding its collagen business within its Food segment, capitalizing on growing demand across the US, Europe, and Asia. Collagen generates 2.5-3x the margins of gelatin and targeted ingredients reach 7-11x gelatin margins. Collagen's contribution to Food-segment adjusted EBITDA is projected to grow from 48% in 2025 to 50% by 2030, with targeted ingredients expected to add 15% by 2030. The company, which produces about 30% of the world's collagen, is well-positioned to benefit from this higher-margin product mix shift.