SINGAPORE — 12 November 2024 - In a landmark cross-continental collaboration, Nourish Ingredients, a leader in speciality fats and precision fermentation, today announced a Joint Commercial Agreement with CABIO Biotech, a leading Chinese biotechnology company specialising in microbial fermentation and synthetic biology-based products. Uniting Australian innovation with China’s manufacturing might, the companies will partner to produce and distribute Nourish Ingredients’ flagship product, Tastilux®, unlocking the vast potential of the Chinese market.

Tastilux® is a premium specialty ingredient derived from natural sources and produced through fermentation. It provides a meaty flavour, aroma and cooking experience to alternative proteins. This is essential in winning over consumers to the plant-based market by providing a delicious animalic taste.

Beyond plant-based meats, this collaboration is ripe to capitalise on diverse market segments. These include the rapidly expanding ready-made meals and prepared dishes sector, the leisure snacks industry, and the ever-evolving spices and condiments market.

Under the terms of the agreement, CABIO Biotech will leverage its state-of-the-art facilities and expertise to manufacture Tastilux®, ensuring efficient, high-quality production with minimal waste at a global scale. This manufacturing excellence will allow Nourish Ingredients to enter the market with the highest product quality and consistency.

The partnership also outlines a clear strategy for market expansion. CABIO will assist Nourish Ingredients by spearheading distribution and sales within the Chinese market, utilising their local knowledge and networks. Meanwhile, Nourish Ingredients will lead commercial engagement and sales in other global markets, with CABIO providing manufacturing support.

A key advantage of this collaboration is CABIO’s extensive experience in navigating China’s complex regulatory landscape. This expertise will facilitate rapid market access for Nourish Ingredients’ products in China and potentially other Asian markets, providing a significant competitive edge in these rapidly growing economies.

“Our strategic partnership with CABIO Biotech marks a pivotal moment for Nourish Ingredients,” said James Petrie, CEO of Nourish Ingredients. “By leveraging CABIO’s established expertise, we’re not only derisking our supply chain for expansion but also enhancing our ability to deliver high-quality, innovative food solutions at scale.”

“This collaboration combines our cutting-edge product development with CABIO’s manufacturing excellence and market insights, positioning us to meet the surging global demand for superior food ingredients. Together, we’re set to efficiently produce top-tier products, opening doors to both the dynamic Chinese market and broader international opportunities.”

This strategic partnership represents a significant commercial opportunity for both companies, unlocking several market avenues in China while setting the stage for expansion into other global markets.

A key target is China’s burgeoning plant-based meat (PBM) sector. With China’s total meat consumption reaching nearly 100 million tons annually, even a modest 1% substitution with plant-based alternatives by 2026 would create a market of 1 million tons. Industry projections suggest this market could surge to a value of 3.5 billion by 2028, underscoring the immense growth potential.

Jimmy Wang, Vice President of CABIO Biotech, added, “This collaboration aligns perfectly with our commitment to advancing biotechnology and delivering cutting-edge products. Together, we’ll set new standards in the alternative protein industry.

CABIO has established one of the world’s largest LCPUFA manufacturing plants, with a full set of capabilities ranging from bio-fermentation, non-solvent extraction, refining, winterization, and microencapsulation. For over twenty years, CABIO has supplied high-quality functional ingredients and creative solutions to nourish life.

The collaboration between Nourish Ingredients and CABIO Biotech is built on a foundation of strong interpersonal connections and shared values, fostering an environment that promises to drive innovation and growth in the food technology sector. While the initial focus is on Tastilux®, both companies see potential for future expansion into other product categories, leveraging their combined expertise and capabilities.