Rising Demand for Textured Vegetable Protein (TVP) Bolstering Vegan-Friendly Stock Values

Rising Demand for Textured Vegetable Protein (TVP) Bolstering Vegan-Friendly Stock Values

USA News Group – Initially invented and patented in the 1960s to extend ground meat as a means of reducing costs without reducing nutritional value, Textured Vegetable Proteins (TVPs) have recently received a huge boost from growing demand in plant-based protein options for vegetarians, vegans, and flexitarians. Through a research report by Meticulous Research has stated the plant-based protein market is expected to grow at 9.7% from 2021 to 2028, reaching $23.4 billion by 2028. Meanwhile, Allied Market Research, stated the global TVP market size was valued at $987.9 million in 2019, projecting ~$2.14 billion by 2027, growing at 9.2% from 2021 to 2027. TVP was originally invented by Archer-Daniels-Midland Company (NYSE:ADM), and continues to be one of the company’s core growth platforms. Several other innovators are capitalizing on the growing TVP food sector, including Nepra Foods (CSE:NPRA) (OTC:NPRFF), DuPont de Nemours (NYSE:DD), MGP Ingredients (NASDAQ:MGPI), and Ingredion Incorporated (NYSE:INGR).

Gaining momentum after an oversubscribed IPO in late 2021, Nepra Foods (CSE:NPRA) (OTC:NPRFF) has been continuously developing its own proprietary product known as Textured Hemp ProteinTM (THP)—a nutritious plant-based and allergen-free food, currently used in wholesale ingredients and consumer packaged goods, such as Nepra’s PROPASTA™ line of ready-to-eat frozen meals.

Hemp protein is an excellent source of plant-based protein, that’s lean, rich in amino acids, a good source of iron, magnesium and manganese, and may prevent cardiovascular disease and cancer.

At its Colorado facility, Nepra recently announced the full operations of its first dedicated extrusion line from new extruder equipment, which the company says will exponentially increase ingredient output and boost overall sales revenue.

"Producing our own proprietary textured proteins gives us a huge advantage over most smaller producers who rely on third-party suppliers,” said Nepra CEO David Wood. “Being able to produce our own allows us to formulate the proteins specifically for what we need while retaining the intellectual property of that formulation and keeping the costs as low as possible.”

This specialized equipment can produce Texturized Hemp Protein, THP™ (800,000 lbs./year) that is used in plant-based meat analogues such as vegan meatballs and chunk chicken, used in Nepra’s product lines with additional capacity sold wholesale to other food producers.

These wholesale THP™ sales alone are expected to boost company revenue by up to US$3.5 million annually.

“Although we don't consider ourselves a meat analogue company, the analogues we produce for our PROPASTA™ line of frozen entrees are unique in the industry,” added Wood. “While most everyone in this space is using pea, soy, gluten, and faba bean, our texturized hemp protein has superior flavor, texture, and, most importantly, nutrition. It will be the first like it on the market."

While many of its textured protein products are made from soy, Archer-Daniels-Midland Company (NYSE:ADM) is reportedly examining cultivated meat, novel sources, and microfermentation innovation to go deeper into the rising alternative protein sector.

“Consumers are turning to protein alternatives for a variety of reasons, including wellness and concern for the environment,” said Leticia Goncalves, President of Global Foods for ADM. “Products aimed at meeting the heightened demand for health-forward solutions that can deliver on evolving consumer taste and texture expectations will continue to come to market over the next decade.”

Another way consumers are adding protein to their diets is through snack bars, which food sector innovators are working towards producing without texture problems.

“At ADM, we produce soy crisps with 60% and 80% protein that are perfect for nutritional bar formulations,” said Wendy van Buren, global commercial growth leader, alternative proteins, ADM.

Before new bars hit the market, formulators such as MGP Ingredients (NASDAQ:MGPI) select the type of protein they’ll use based on the claim the bar or snack maker wants to make. For example, keto-friendly bars need formulations with added protein while keeping sugar content as low as possible.

“Formulators are recommended to use protein isolates over the concentrates to ensure the highest protein and lowest available carbohydrate content possible, and to reduce the sugar and starch and replace them with dietary fiber,” said Tanya Jeradechachai, vice president of ingredient solutions, research and development, MGP Ingredients. “The protein isolate source must also be functional — viscoelastic — especially in keto-friendly bakery products.”

MGP specializes in texturized proteins from soft and chewy to crispy and flaky, with products made from both wheat protein and pea protein. Most recently, MGP’s Arise® wheat protein isolates received Low FODMAP certification from Monash University.

Depending on the protein source, isolates tend to have a higher protein content, often upwards of 80% to 90%, while concentrates generally have a lower protein content.

DuPont de Nemours (NYSE:DD) also is a big name in selling textured soy proteins, through its Danisco Planit portfolio, which was launched in 2020.

“We want to support the shift to a more plant-based diet by creating multiple options, thereby enabling nutritious, plant-based food and beverages in every meal, every day — from early-bird breakfast to the midnight snack,” said Birgitte Borch, VP of Marketing for DuPont.

Danisco Planit has a substantial portfolio of ~20 plant protein options, including plant protein nuggets sold under its Supro (soy protein) and Trupro (pea protein) ranges. In late 2019, DuPont and International Flavors & Fragrances merged in a $26.2 billion deal to create a $45 billion ingredient powerhouse with a combined R&D budget of roughly $550 million.

In mid-2021, Ingredion Incorporated (NYSE:INGR) debuted a new structured vegetable protein, through its VITESSENCE TEX Crumbles 102 textured protein to its range of plant-based solutions for the USA and Canada.

Derived from peas, the structured vegetable protein provides a variety of functional benefits, including ease of hydration, flexible hydration time and water ratio, room-temperature hydration, versatile particle size and superior firmness and particle integrity post hydration, according to Ingredion.

Ideal as an ingredient for plant-based burgers, chicken nuggets, meatballs, seafood patties, chicken/tuna salad, sausage and crumble alternatives, VITESSENCE TEX Crumbles 102 provides optimal texture, chewiness and firmness to help mimic traditional meat in plant-based food products.

Ingredion’s continued investment in this category, including the opening of our South Sioux City, Neb., manufacturing facility, positions us to create the future of plant protein while providing the food and beverage industry with new options for creating differentiated, plant-based products,” said Michael Natale, global growth platform leader, plant-based proteins, at Ingredion.

Article Source: https://usanewsgroup.com/2021/09/05/the-plant-based-food-revolution-is-here/

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