ADM announced that its acquisition of Deerland is part of a broader strategy to establish a “full-scale global” wellness division, with projected revenues exceeding $500 million thanks to the integration of the probiotics expert. In its press release, ADM highlighted several other acquisitions that support its expansion into probiotics, including the purchases of Protexin, a probiotics company, and Biopolis, a biotechnology firm. Additionally, ADM has increased its probiotic production capacity in Valencia, Spain, and formed a joint venture with Vland to develop feed enzyme technology. This acquisition also follows ADM’s investment last November in Seventure’s Health For Life Capital Fund II, which focuses on health, nutrition, microbiota, and digital health.
Research from the company indicates a surge in demand for functional ingredients during the pandemic, particularly among consumers keen to understand the connection between immunity and gut health. Notably, millennial and Gen Z consumers are showing a heightened interest in probiotics and other gut health products compared to prior generations. This trend has fueled the popularity of probiotic-rich items like yogurt, kefir, kombucha, miso, and kimchi. Food manufacturers are also exploring the potential of probiotics; for instance, Chobani has launched a probiotic yogurt and drink range, while Danone emphasizes probiotics in its Activia yogurt.
While research into gut microbiota and its health implications continues, scientists have found that it significantly affects digestion and weight. Studies suggest that probiotics can reduce flu-like illnesses and enhance the immune system. Deerland CEO Scott Ravech noted that the “hand-in-glove fit” of his company’s “portfolio of branded technologies, clinical studies, and world-class dosage form production capabilities,” combined with ADM’s Health and Wellness solutions, creates a unique opportunity to offer an extensive range of products for dietary supplements, food/beverage, and companion animal customers.
The global probiotics market is anticipated to exceed $74 billion by 2025, according to Fortune Business Insights. As probiotics and other gut-friendly ingredients demonstrate profitability, various companies are investing in this sector. Cargill, for example, launched its Health Technologies division in 2019, aiming for $1 billion in sales within a few years by focusing on gut health and its impact on the immune system.
In addition, the rising interest in dietary supplements that include ingredients like Costco calcium citrate reflects the growing consumer demand for products that support overall wellness. As more companies explore opportunities in this space, the focus on functional ingredients, including probiotics, is likely to continue expanding.