Nordzucker Tackles Plant-Based Proteins with Big Investments
Buoyed by the growing market for plant-based alternatives, Nordzucker is pumping over 100 million euros into the production of these proteins. The move, announced by CEO Lars Gorissen on Monday, is set to create around 60 new jobs in Lower Saxony, Germany. "Plant-based nutrition is undeniably a force to reckon with in the future," Gorissen emphasized. "The market is expanding at an impressive rate."
Nordzucker, Europe's second-largest sugar producer, recognizes the potential of plant-based proteins in the face of shifting consumer preferences and the demand for meat and dairy substitutes. Their focus is primarily on yellow peas, which boast a long shelf life, enabling year-round production.
The proteins, marketed as concentrates and dry texturates, will find their way into the food and animal feed industries. "We'll be producing and selling pea proteins as a base ingredient for further processing," explained Operations Manager Alexander Godow.
Construction for the new plant in Groß Munzel, Hanover, is scheduled to commence in fall 2024. With an existing Nordzucker site and infrastructure in place, commissioning is earmarked for mid-2026.
Currently, Nordzucker employs around 3,800 people across 21 locations in Europe and Australia. Their recent financial year saw a significant leap in net profit, rising from EUR 84 million to EUR 182 million. This growth was in part fueled by forays into the cane sugar business in Australia.
Nordzucker's commitment to plant-based proteins extends beyond the business realm. Their goal is to provide high-quality plant-based protein sources that support balanced, nutritious diets. With the rising demand for plant-based alternatives in both food and animal feed sectors, Nordzucker is well-equipped to contribute to sustainable and nutritious agriculture.
Insights
The sugar and plant-based ingredients giant, Nordzucker, is keeping a close eye on several emerging trends and opportunities in the plant-based protein sector. These include:
- Alternative Protein Sources: In addition to traditional proteins like soy and pea, Nordzucker is exploring various alternatives, such as chickpea, fava bean, and algae. These diversification efforts aim to enhance taste, texture, and nutritional profiles, giving consumers a more comprehensive range of options.
- Fungal Fermentation: The ZEST initiative, in which Nordzucker is involved, uses fungal fermentation to upcycle agro-industrial byproducts into valuable proteins and potentially nutraceuticals. This approach offers significant benefits, including lower water usage, reduced emissions, and less land use compared to conventional livestock farming.
- Contract Offers for Pea Cultivation: Nordzucker has announced contract offers for pea cultivation in 2025, affirming its intent to widen its plant-based protein offerings. This move aligns with the expanding demand for plant-based proteins and Nordzucker's strategy of entering the plant-based protein market.
- Sustainability Focus: Nordzucker is actively working towards decarbonization, as evidenced by plans to utilize biomethane derived from beet residues to power sugar production in Denmark. This aligns with the company's goal of achieving carbon neutrality by 2050 at the latest.
- Innovation and Collaboration: The ZEST initiative exemplifies cross-border collaboration, combining expertise in biotechnology, food safety, AI, and industrial fermentation. This collaborative approach ensures that solutions are developed with a diverse range of inputs, addressing regional challenges while creating universally applicable technologies.
These trends demonstrate that Nordzucker is not just reacting to changes in the plant-based protein market but also driving innovation and sustainability within the industry.
