ADM makes $300m investment to expand alternative protein production capabilities
The investment will nearly double the extrusion capacity at its existing production facility in Decatur where it produces its soy protein concentrate for various food applications and help fund the construction of a new 'state-of-the-art' protein innovation center nearby.
The investment is the company's latest effort to step up and meet growing global customer demand for alternative proteins. Last year, the company acquired European protein supplier Sojaprotein expanding its production capacity and network of suppliers throughout Europe. Between the two investments, ADM said it expects to increase its global alternative protein production capacity by more than 30%.
“The global trends of food security and sustainability are driving structural changes in the food industry, including strong growth in alternative proteins, and we’re investing to ensure ADM remains a leader in this vast and exciting space. The array of opportunity areas for alternative proteins in foods and nutrition solutions is continuing to grow at 10% CAGR, with alternative meat and dairy sales alone expected to grow by 14% a year and reach $125bn in 2030," said Leticia Gonçalves, ADM’s president of global foods.
"Our sales in this space have been growing at rates much faster than the industry’s, and our work to expand our leadership position with new innovation and capacity is an important driver of future growth for our nutrition business.”
'Our sales in this space have been growing at rates much faster than the industry’s'
Slated for completion in the first quarter of 2025 subject to applicable approvals and permits, the new protein innovation center will include labs, test kitchens, and pilot-scale production capabilities to power new innovation in the alternative protein sector from novel and diversified ingredients, to more sustainable and efficient processing, to unique and differentiated texture, taste, appearance, and nutrition solutions, said ADM.
“Our customers choose ADM because we can innovate across the entire value chain, from seed to fork and around the globe, to arrive at the perfect solutions to meet growing consumer demand. We’re proud to be the alternative protein partner of choice for global CPGs, food service companies, and startups alike, with the highest-quality ingredients, unparalleled global scale, unmatched speed to market, and a value chain that no other company can offer," Gonçalves added.
