CANADA – Louis Dreyfus Company, a France based merchant and processor of agricultural goods, has announced plans to construct a pea protein production facility in Canada.
The facility, set to be located at its existing complex in Yorkton, Saskatchewan, aims to meet the rising demand for plant-based alternatives and high-protein nutrition solutions.
Michael Gelchie, Louis Dreyfus’ CEO, emphasized the significance of this investment in the company’s global growth strategy, focusing on value-added products.
The new facility, anticipated to be operational by the end of 2025, underscores Louis Dreyfus’ commitment to enhancing its pea protein offerings, particularly in the dairy alternatives market and various plant-based applications.
Gelchie stated, “The investment is an important step in the Group’s global growth strategy, as part of our plans to diversify revenue through value-added products – in this case, addressing the growing demand for high-quality, nutritious and sustainable plant-based protein alternatives.”
The expansion aligns with the company’s mission to address evolving consumer preferences, as the plant-based protein market experiences significant growth.
According to Grand View Research, the global pea protein market size was valued at USD 1.9 billion in 2022 and is expected to grow at a compound annual growth rate of 12% from 2023 to 2030, driven by health and fitness trends and the rising number of vegan and vegetarian consumers.
Louis Dreyfus’ new facility is poised to play a pivotal role in meeting this demand, employing approximately 60 people upon its completion.
While the exact cost of the project has not been disclosed, the company’s commitment to providing taste-neutral pea protein for a variety of applications underscores its dedication to meeting the diverse needs of consumers worldwide.
Pea fiber market booms
In a parallel development, a recent report suggests a surge in business activity for leading plant-based suppliers such as Puris Protein, AM Nutrition, Emsland Group, and Avena Foods Limited, among others, through 2034.
The report highlights the increasing investments in plant-based proteins and the growing use of pea fiber in meat substitutes as key factors contributing to this trend.
Despite a competitive landscape, the report encourages incoming pea fiber providers to invest in product innovation, creating distinctive offerings in this thriving market.
The European market is identified as a significant growth area for pea fiber, driven by the increasing popularity of plant-based diets.
Pea fiber, known for being non-GMO, gluten-free, and allergen-free, has seen a remarkable uptick in usage since 2016. Extracted from the yellow pea’s endosperm, it contains both dietary fiber and starch, offering digestive benefits and potential positive effects on preventing certain diseases.
Mintel data indicates that the use of pea fiber in popular products, especially plant-based ones, has nearly doubled in recent years.
Acknowledging this trend, major players in the food and beverage industry, including Cargill, have invested substantially in pea protein production capacity.
However, concerns about the U.S. pea protein market’s future have arisen, with potential threats from cheap Chinese imports.
As the industry navigates these challenges, the versatile applications and health benefits of pea fiber position it as a key player in the evolving landscape of plant-based ingredients.
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