Nestlé Plans USD100M Plant-Based Manufacturing Facility in China

Swiss food giant Nestlé recently announced that it will invest CHF100m (USD103m) to open a plant-based food manufacturing facility in the Tianjin Economic-Technological Development Area (TEDA), which is 72 miles outside of Beijing. The company said that the facility would also include significant capacity for the expansion of its Purina pet food line.

Plant-based protein is not just a phenomenon in the Europe and North America. According to data from Euromonitor International, the market for plant-based meat alternatives in China grew from USD7.2bn in 2014 to USD9.7bn in 2018 and is predicted to reach USD11.9bn in sales by 2023. “In recent years, the food sector has undergone a quiet revolution as people are choosing more and more healthy, nutritious, and environmentally friendly foods,” Nestlé said in a statement.

With compounding reasons continuing to drive the rising interest in meatless meat, Nestlé is not the first multinational conglomerate to capitalize on this growing trend.

Starbucks is collaborating with Beyond Meat to introduce a plant-based menu to its locations in China. Beyond Meat’s rival, Impossible Foods, also entered the market last November when it debuted at an event in Shanghai.

With stiff competition in the Chinese market, Nestlé aims to accelerate its entrance into the market in order to earn a slice of the pie. Nestlé, which has 31 other production facilities in the country, will begin producing meat substitutes by the end of the year.