We share the details of a new distribution partnership allowing the Singapore insect protein producer to enter a new Asian market.
Nutrition Technologies signed a $100 million (€91M) trade deal with trading firm Sumitomo Corporation to expand the pet food and aquafeed products distribution in the Japanese market.
Sumitomo, an existing investor, recognized that the firm’s Black Soldier Fly Larvae (BSFL) products using low-energy and tropical production technology are more sustainably competent than other industry players.
“This distribution agreement not only secures supply for our existing customers and the strength of demand we have for future production but emphasizes our commitment to the success of Nutrition Technologies,” said Masahito Uno, General Manager Life Sciences Division at Sumitomo Corporation.
It is estimated that the global insect-based pet food market accounted for a $7.73 billion (€7B) turnover in pet food sales in 2021. Sales are expected to increase annually by 9% until the end of the decade, according to Future Market Insights (FMI).
Probiotics and gut health
Following the partnership, Nutrition Technologies is working on product development for the Japanese market.
CEO Nick Piggot identifies a growing market demand for low-carbon products as the humanization of pets continues to accelerate. In a communication with GlobalPETS, he pointed out the increased move towards wider use of probiotics and gut health supplements for pets, similar to humans.
Nutrition Technologies’ current facility produces 2000 million tons of insect meal. Each future facility will likely have 2 to 3 times this production capacity.
The company is also currently developing niche feeds for ornamental fish.
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