Old School Food Firms Bet on Faux-Meat Demand More Than Doubling

(Bloomberg) -- The faux meat market in the Americas is set to more than double in the coming years as consumers look for alternatives to animal proteins, according to two traditional agribusiness giants.

That kind of growth outlook helps explain why crop trader Archer-Daniels-Midland Co. and world No. 2 beef producer Marfrig Global Foods SA are joining forces in a plant protein venture for North and South America.

The regional market for plant-based meat may more than double in the next five years from $2 billion now, the partners said in an emailed response to questions. The new company, called PlantPlus Foods, will be 70% owned by Marfrig and 30% by ADM.

Both companies have developed meatless burgers that supply Burger King and Outback restaurants in Brazil and the joint venture will scale up production. Marfrig will produce meatless burgers, sausages and cold cuts in its facilities in Brazil and the U.S., where it operates via National Beef Packing Co. ADM will supply technical expertise, application development and ingredients.

For Marfrig, the move is in line with its goal of increasing processed food’s share of sales. For ADM, it’s “the next step in meeting the exploding consumer demand for alternative proteins,” Chief Executive Officer Juan Luciano said in a statement. And for faux meat specialists like Impossible Foods Inc. and Beyond Meat Inc., it means more competition.

©2020 Bloomberg L.P.