World’s Largest Animal Protein Producer, JBS, Invests $100 Million in Cultivated Meat
“The acquisition marks the company’s entry into the cultivated protein market,” JBS said in a statement.
JBS, the world's largest producer of animal protein, has announced an investment of US $100 million in cultivated meat manufacturing.
As part of the investment, the Brazilian company will acquire Spanish Company BioTech Foods SL and construct a new $41 million plant to scale production of BioTech’s product.
Additionally, JBS will establish the first Center for Research and Development (R&D) in biotechnology and cultivated protein in Brazil. The new facility, which is set to open in 2022, will research and develop innovative techniques to increase the scale of cultivated products while lowering production costs.
JBS manufactures beef, chicken, and pork, and their byproducts. The company makes around $50 billion in revenue annually, according to financial reports.
This marks JBS’s first foray into the cultivated meat sector. The meat giant previously launched its own vegan meat range called Planterra, and earlier this year it acquired plant-based meat brand Vivera Foods for €341 million.
"JBS has previously made a foray into meat alternatives with the launch of plant-based meat products under its subsidiary Planterra Foods in 2020 and the purchase of Vivera in April this year,” said Packaged Facts analyst Cara Rasch. “By making its first investment in cultivated meat, JBS is signaling that the meat industry sees the shift coming and is preparing for this new market."
The U.S. market for cultivated meat products is projected to reach $200 million in 2024 as consumers increasingly look for more animal and environment-friendly alternatives to traditional animal protein. Last year, at least $366 million was invested in the cultivated meat sector.
Rasch notes, "As the technology is improving, many cultivated meat companies are cropping up and achieving significant investments from venture capital funds and other investors due to an anticipated potential for a market worth billions of dollars."
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