Archer Daniels Midland (ADM), a leading global producer of food ingredients, has opened a new production facility in Valencia, Spain, to expand its presence in the growing market for probiotics and postbiotics. The facility represents an investment of over $30 million. It is expected to increase the company’s production capacity by five times to 50 metric tons per year. The facility is near ADM’s R&D center in the University of Valencia Scientific Park, which provides access to cutting-edge technology for next-generation genome sequencing and testing new bacterial strains.
This new facility is the world’s first to produce both probiotics and postbiotics at the same site. It will support ADM’s growth strategy in the health and wellness sector. The company’s goal is to increase its revenue from $500 million in 2022 to $2 billion within the next decade. This new facility is expected to play a vital role in achieving that objective. The facility will produce ADM’s BPL1™ probiotic and heat-treated BPL1™ postbiotic and other proprietary strains, which will be marketed to the US, Asia-Pacific, and European regions.
According to Mark Lotsch, president of Global Health & Wellness at ADM, the company is focused on the health and well-being sector as part of its growth strategy. For example, consumers are becoming more informed about their gut microbiome’s impact on their daily lives and want nutrition solutions based on scientific research. ADM is at the forefront of fulfilling this growing global demand, and it continues to invest in innovative health and nutrition technologies, Lotsch said.
The company estimates that its customer base is expected to triple in the next five years due to increasing awareness of the gut microbiome and the growing demand for science-backed nutrition solutions. The probiotic supplements retail market is estimated to grow to $10.4 billion by 2027, driven by the need for science-based formulas in dietary supplements, dairy products, food, snacks, beverages, and pet and animal well-being products.
Photo by Giuseppe Buccola on Unsplash
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