The American human and pet nutrition company ADM has opened its most innovative production plant in Valencia. With an investment of over 30 million dollars, the factory will be the first in the world capable of producing probiotics and postbiotics at the same facility. In addition, the new factory represents a five-fold increase in the company's production capacity.
The aim of the new plant is to meet the growing worldwide demand for probiotics and postbiotics, as part of ADM's expansion strategy in the health and wellness sector. It will thus contribute to the multinational firm's target of boosting revenue in this division from 500 million dollars at the close of 2022 to over 2 billion in the next ten years.
University R&D laboratory
The factory is located close to the company's R&D centre at the University of Valencia Science Park, facilities where scientists carry out activities such as next-generation genome sequencing and early-stage testing of new bacterial strains.
The commissioning of the Valencian factory will enable the company to produce 50 metric tonnes per year. From there it will supply the probiotic and postbiotic markets in the United States, Asia-Pacific and Europe. The company intends to triple its customer base over the next five years.
Science-based research
Health and wellness division president Mark Lotsch said that his business area is 'one of the three enduring trends powering ADM's growth strategy: consumers are increasingly aware of the role their gut microbiome can play in their everyday lives, and they're seeking nutrition solutions that are backed up by science-based research'.
The company alluded to a Euromonitor market research study that estimates that the probiotic supplements retail market could surge to 10.4 billion dollars by 2027, compared to its turnover of 8.3 billion in 2022. Lotsch added that this growth is being driven by the rising demand for science-based probiotic formulas that are used in dietary supplements, as well as dairy products, food and healthy snacks and beverages, and in addition to pet and animal well-being products.
ADM, one of the world's leaders in science-backed nutrition solutions, has opened a new production facility in Valencia, Spain to help meet rising global demand for probiotics, post-biotics and other products that support health and well-being
The production facility represents an investment in excess of 30 mio dollars and a more than five-fold increase in ADM's production capacity, increasing it to 50 metric tons per year. The facility will allow ADM to supply growing markets for probiotics and postbiotics in the US, Asia-Pacific and Europe, states the company.
ADM expects its customer base will more than triple over the next five years as more people recognise the links between the gut microbiome and many aspects of health, and look for products tailored to their specific needs. The facility, the world's first to produce both probiotics and postbiotics at the same site according to ADM, will help the company fulfil its expansion strategy in the health and well-being sector. ADM is on its way to realising its ambition of increasing health and wellness revenue from over 500 million dollars in 2022 to 2 bn dollars within 10 years.
The site will produce ADM's probiotic BPL1 and the heat-treated BPL1 postbiotic, as well as other ADM proprietary strains, supplying a broad range of customers. It will also be able to support further growth in ADM's UK-leading Bio-Kult brand of products. The new facility is located close to ADM's pioneering research and development centre in the University of Valencia Scientific Park, where ADM scientists undertake activity including next-generation genome sequencing and early-stage testing of new bacterial strains.
By ADM
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02/11/2023