Dutch nutrition company Royal DSM and French agri-food group Avril said on Wednesday they would start production of rapeseed (canola)-based protein for the food industry as of 2022 as they aim to benefit from the booming plant-protein market.
The partners have formed a joint venture called Olatein in which DSM has a 75% stake and the remaining share held by farmer-owned Avril, they said in a joint statement on Wednesday.
An increasing number of international agri-food groups, including Archer Daniels Midland, Bunge, Cargill and France's Roquette, are betting on the plant-based protein market because of expectations of a lack of protein globally and a trend towards eating less red meat.
'Healthy And Nutritious Proteins'
"With the global population continuing to grow and the demand for healthy and nutritious proteins on the rise, the world needs sustainable solutions," Patrick Niels, president of DSM Food Specialties, said in the joint statement.
"Our partnership with Avril enables the production of CanolaPRO, a high-quality and nutritious protein that supports our customers to provide consumers around the world with better tasting, more enjoyable meat and dairy alternatives - in line with the market trends."
The global plant-based protein market was estimated at $18.5 billion in 2019 and is projected to grow at compound annual growth rate of 14.0% from 2019 to 2025, to reach $40.6 billion by 2025, research company MarketsandMarkets said.
Avril will also invest in the upstream supply of Olatein with non-genetically modified rapeseed meal for a crushing unit to be set up at one of its existing facilities in Dieppe in northern France. Work is due to start this summer.