ADM announced Feb. 6 that it has opened a new production facility in Valencia, Spain to help meet rising global demand for probiotics, postbiotics and other products that support health and well-being.
The production facility represents an investment north of $30 million 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 U.S., Asia-Pacific and Europe. ADM expects its customer base will more than triple over the next five years as more people recognize 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, will help the company fulfill its expansion strategy in the health and well-being sector. ADM is on its way to realizing its ambition to increase health and wellness revenue from over $500 million in 2022 to $2 billion 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 award-winning 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 center 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.
Market research estimates that the probiotic supplements retail market could surge to $10.4 billion by 2027 from about $8.3 billion in 20221. 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.