December 14, 2018

Leading global ingredients provider Ingredion has identified and targeted pea protein as being a high-growth, high-value market opportunity, and has announced multiple combined strategic investments totaling $140 million to further its position in the space.

With the goal of building an expanded and broad range of plant-based protein solutions to meet global demand, ultimately, Ingredion will have two North American manufacturing facilities producing pea protein isolates and pulse-based flours and concentrates in 2019.

In February of this year, Ingredion acquired a soy processing facility in Sioux City, Nebraska, and is currently making capital investments to overhaul the site, transforming it to initially produce pea protein isolates, and eventually also produce isolates from other pulses as well.

Once the project is complete, the facility will be used to produce ingredients that enhance Ingredion’s current VITESSENCE Pulse protein isolate line, to include greater levels of protein for the nutrition, health, and wellness categories.

Furthermore, the company announced that it has entered into a joint venture agreement with Verdient Foods Inc. – a plant-based production company located in Saskatchewan, Canada, co-owned by well-know film director, James Cameron and his wife Suzy Amis Cameron, and PIC Investment Group. Through the agreement, investments are being made so that the existing facility will be able to produce pulse-based concentrates and flours from peas, lentils, and fava beans for human consumption.

“We’ve identified plant-based proteins as a high-growth, high-value market opportunity that is on-trend with consumers’ desire to find sustainable and good tasting alternatives to animal-based proteins,” said Jim Zallie, president and CEO of Ingredion. “We’re excited by what these investments represent for Ingredion. Being a sustainable and trusted source of plant-based proteins provides us with another major ingredient platform to complement our offerings in clean label, wholesome, texture and nutritional ingredient solutions.”

At the point of its launch in Vanscoy, Saskatchewan, in September 2017, Verdient Foods was destined to be the largest facility of its kind in North America with a capacity of 160,000 tons. The project was founded through partnerships with PIC Investment Group Inc., the Whitecap Dakota First Nation of Saskatchewan, and the Food Industry Development Center, with which the Camerons entered into a four-year research partnership to develop value-added organic food products to be produced by Verdient Foods.

The Promise of Pea Protein

Global protein consumption is expected to climb at a CAGR of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. Over this same time period, alternative plant-based protein sources are forecast to command up to a third of the protein market as they fill the void created by slowing growth in meat and seafood production, while also meeting consumers desires to protect animals, the environment, and their health. These trends are driving the market for non-soy, gluten-free, plant-based proteins to a value of $1.5 billion by 2022.

Of these plant-based alternative protein sources, peas offer an additional benefit and appeal to consumers due to the fact that, unlike soy, they are not one of the major allergens and are not genetically modified.

“We look forward to working with Verdient Foods, Inc. and leveraging their sustainable sourcing practices for Canadian pulses,” said Zallie. “Our investments in Nebraska and Saskatchewan represent an exciting new chapter for Ingredion as an innovative ingredient solutions provider.”

“More consumers are looking for products with clean and simple labels, offering specific health and nutrition benefits that taste great,” said Tony DeLio, senior vice president of corporate strategy and CIO at Ingredion. “Meeting the nutritional needs and achieving the right functional requirements will require a broad range of protein alternatives that are sustainable, affordable and great tasting. By combining our expertise in product formulation with an expanded plant-based product portfolio, we’re well positioned to deliver a breadth of ingredient solutions for our customers around the world.”

-Lynda Kiernan