Major investment in a growth market

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.

“Health and well-being 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,” said Mark Lotsch, president of global health & wellness. “ADM is a leader in meeting this growing global demand, and we’re continuing to invest in the cutting edge of health and nutrition,” he said.

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.

ADM said that market research estimates a surge of the probiotic supplements retail market to 10.4 bn dollars by 2027 from about 8.3 bn dollars in 2022. That growth is being driven by rising demand for science-based probiotic formulas that are used in dietary supplements, and also dairy products, food, healthy snacks and beverages, as well as pet and animal well-being products.