ADM AND VLAND TIE UP TO TAP $1 BILLION CHINESE MARKET FOR PROBIOTICS
New York listed nutrition solutions provider ADM and enzymes and probiotics maker Qingdao Vland Biotech Group have agreed to form a joint venture to serve growing Chinese demand for human probiotics. The deal is subject to regulatory approval and is expected to launch in the first half of 2022.
“This represents the latest expansion in our full-scale global health and wellness business, which is helping propel growth across our entire human and animal nutrition portfolio,” said Vince Macciocchi, president of ADM’s nutrition business. “Consumers are becoming increasingly aware of the strong linkage between health of the gut microbiome and their overall health.”
Aron Chen, CEO of Vland added: “We believe this partnership – powered by the technology, brand and sales channels of both parties – will be perfectly positioned to expand production and meet demand for high-quality human probiotics in China – and for global customers.”
ADM expands in health and wellness
Retail demand for probiotics in China is estimated to reach $1 billion in 2022, with annual growth of more than 9%. The 50-50 joint venture will tap this segment by manufacturing and selling human probiotics, from pre-clinical trial design to go-to-market strategy and execution.
Globally, ingredients and supplements that support digestive health and immune function to elevate general well-being are on the rise. ADM has made several investments to build a health and wellness business including acquisitions like the additions of Protexin and Biopolis, organic projects such as expansion in probiotics production, and other partnerships.