MGP Ingredients reported a 12% year-over-year revenue increase in Q3 2025, driven by heightened demand for high-purity dextrose and corn syrup derived from corn starch, largely fueled by the pharmaceutical sector’s use of GLP-1-based diabetes and weight-loss medications. The company’s performance reflects broader trends in raw material utilization for drug manufacturing.
- MGP Ingredients reported $108.7 million in Q3 2025 revenue, a 12% year-over-year increase.
- Specialty corn starch volume rose 17% due to demand from pharmaceutical GLP-1 drug manufacturers.
- Gross margin improved to 28.3%, up from 26.1% in Q3 2024.
- Adjusted EBITDA reached $22.1 million, compared to $19.4 million in the prior-year quarter.
- MGPI is expanding corn starch production capacity by 20% across two U.S. facilities.
- Global GLP-1 drug market projected to exceed $85 billion by 2030.
MGP Ingredients, Inc. (MGPI) recorded a Q3 2025 revenue of $108.7 million, marking a 12% increase compared to the same period in 2024. This growth was primarily attributed to elevated demand for its specialty corn-based ingredients, particularly high-purity dextrose and corn syrup, which are critical in the formulation of injectable GLP-1 receptor agonist drugs. The company’s industrial starch segment saw a 17% volume rise, directly linked to increased orders from pharmaceutical clients. Analysts note that the expanding global market for GLP-1 therapies—projected to reach $85 billion by 2030—has intensified competition for corn starch supply, pushing prices up and favoring vertically integrated producers like MGPI. The company also reported a 14% improvement in gross margin, reaching 28.3%, as higher-value specialty products gained share in its portfolio. MGPI's adjusted EBITDA rose to $22.1 million, up from $19.4 million in Q3 2024, signaling improved operational efficiency amid rising input costs. The shift in demand has prompted MGPI to expand its corn starch production capacity by 20% at its facilities in Kansas and Indiana, with completion expected in Q1 2026.