Dupont to take the lead in the Probiotics Industry by setting up a new Probiotics Fermentation Facility in New York

Posted by MarketsandMarkets on Jul 19, 2019 6:36:34 PM
MarketsandMarkets

DuPont (US), one of the largest players in the probiotics business, opened a new state-of-the-art probiotics fermentation unit in its New York facility on the 15th of July 2019. The company undertook this expansion to expand its probiotics capacity. The facility provides high-quality probiotics to cater to the demand from the dietary supplements and food & beverage industries.

MarketsandMarkets™ View Point:

DuPont is popular among its consumers for producing extensively documented strains that have a positive effect on digestive and immune health. With the increase in awareness among consumers about gut health and the subsequent increase in the popularity of dietary supplements, the market for probiotics is flourishing. Additionally, International bodies such as the World Health Organization (WHO), International Probiotics Association (IPA), and the International Scientific Association for Probiotics and Prebiotics have been investing heavily in the R&D of probiotics. According to Gopika Sandes (Senior Research Associate, Food, Beverage, and Agriculture at MarketsandMarkets™), the changing tastes and preferences of consumers have made way for innovative products to hit the shelves. For instance, flavored probiotic yogurt is gaining popularity in the US. Similarly, probiotics are being integrated with juices to make healthy offerings to customers. This shift in the preference of consumers from products offering basic nutrition to those offering intrinsic nutrition assures a booming market for probiotics. Thus, this expansion would enable DuPont to meet the growing demand from the food & nutraceutical industries.

Impact of Expansion:

The expansion was a part of the multiphase USD 100 million investment that was made to expand the probiotics capacity of DuPont. The establishment of the New York unit would help the company to expand its presence and cater to the growing demand in the region. It has also made DuPont the world’s largest fermenter dedicated to the production of probiotics. Additionally, with this establishment, the company would also become one among the pioneers who effectively utilize internet of things (IoT) in monitoring the optimal growth of the strains, which would mean the elimination of the traditional sampling method. The unit would help the company optimize its production capacity, which would allow faster delivery of its probiotic products to customers spanning various regions.

Amarnath Rajendran (Associate Manager - Food, Beverage, Animal Nutrition, and Agriculture at MarketsandMarkets™) is of the view that this new facility would help DuPont to focus on personalized nutrition. Customers increasingly seek personalization in their daily experiences, shifting away from the consumption of one-size-fits-all media and meals. The marketing strategy to sell products with ‘Smart’, like Smart Water, Smart Food, etc., has been trending and foresee similar trends in the future.

The figure given below showcases the current market opportunity in the probiotics industry. The rise in demand for probiotics in food & beverages and dietary supplements—particularly in the emerging economies, such as Asia Pacific and Europe—is driving the growth of the global probiotics market.

FIGURE 1 Probiotics market, 2018 vs. 2023 (USd billion)

PROBIOTICS MARKET

e - Estimated, p - Projected

Source: Related Research Publications, Government Publications, Company Press Releases, Company Annual Reports, Company Websites, Company Publications, and MarketsandMarkets™ Analysis

Impact of the expansion on top competitors:

Some of the major competitors operating in the probiotics market include Chr. Hansen (Denmark), Kerry Group (Ireland), BioGaia (Sweden), Probi (Sweden), Bifodan (Denmark), Lallemand (Canada), and UAS Laboratories (US). Most of the major players operating in the probiotics business are located in the European region, which would provide DuPont with an edge in the US market, as North America is one of the growing markets for probiotics. However, other major players such as Chr. Hansen are also backed by state-of-the-art production sites based on advanced bioscience, which would enable it to enhance its overall yield and productivity. This could pose a stiff competition to the new facility established by DuPont.

Conclusion:

DuPont has been unabatingly focusing on bettering its production capacity for probiotics. The recent expansion in New York is second in line after its expansion efforts in the Madison facility in 2017, where the company added centers for data collection, laboratories, instrumentation, and specialized workspace for probiotic development. The setup of the New York facility would aid the company in establishing its leadership in the delivery of high-quality and clinically documented strains to the dietary supplement and food & beverage industries.

For more information, please write to info@marketsandmarkets.com.

Topics: Probiotics Market, DuPont, Food, Beverage, and Agriculture, dietary supplements and food & beverage

Recent Posts

Subscribe Here!

Posts by Tag

See all