The dizzying rise of the plant-based meat trend continued Thursday, with ingredients giant Archer Daniels Co. the latest big food player to jump on the bandwagon.
Chicago-based Archer Daniels ADM, -2.52% said plant-based meat is one market it is eyeing as it works to offset “challenging external conditions,” that include the trade tensions between the U.S. and China that have disrupted food and agricultural trade flows, as well as the current outbreak of African swine fever in China.
“Fast-growing consumer trends such as plant-based proteins are creating long-term growth opportunities for our comprehensive portfolio of food and beverage solutions,” the company said in its second-quarter earnings release.
The alternative meat market has exploded into a major theme for investors and traditional food companies, ever since the enormous success of the initial public offering of Beyond Meat Inc. BYND, -0.12% in May. Beyond Meat shares are trading at more than six times their IPO price as the company has signed up new distributors and restaurant clients.
Barclays estimates the market for plant-based or lab-made meat could climb to $140 billion in the next 10 years and food companies are moving fast to avoid being left behind.
Other food companies that have shown an interest in the sector include Tyson Foods Inc. TSN, -0.39%, Kellogg Co. K, -0.44%, Kraft Heinz Co. KHC, -1.48%, Conagra Brands Inc CAG, -2.04% and Nestlé SA NESN, -0.44% and Kerry Group PLC KRZ, -0.47%, ...