Novozymes acquires PrecisionBiotics Group

2 Jul 2020

Danish biotech company Novozymes announced its acquisition of Irish probiotics firm PrecisionBiotics Group for €80 million.

PrecisionBiotics is a Cork-based firm that has developed a portfolio of probiotics aimed at improving human gut health. The company holds a leading position in the probiotics market with a revenue of €13.4 million in 2019. Through this partnership, Novozymes expects to gain access to the €5 billion human probiotic supplements market.

Novozymes acquires PrecisionBiotics Group
Photo Courtesy of Novozymes

Novozymes focuses on biological solutions for industrial applications but has also established its OneHealth division where it markets human health solutions. The company identified this sector as a key growth opportunity and plans to combine its expertise in enzymes with PrecisionBiotics’ knowledge in probiotics to produce innovative health benefits for consumers.
"With our unique expertise within discovery and enzymes and PrecisionBiotics’ strong capabilities and network within probiotics for human health, we will be in a unique position. It’s a position where we can expand market opportunities and develop new and highly efficient products,” says Ester Baiget, President and CEO of Novozymes.

Having a partnership with Novozymes, a company with a global presence and deep pockets, PrecisionBiotics CEO Barry Kiely noted in a statement that the company will be able to leverage the partnership to speed up its development of new probiotic solutions and accelerate growth.

Probiotics continue to grow in popularity with consumers who are looking for their food choices to serve as a vehicle that allows them to take a more active approach to personal health. Probiotics are linked to a long list of health benefits, including improving skin health, weight loss and boosting immune systems. These live microorganisms first came into vogue with their introduction into the yogurt space in the early 2000s, and, since then, their popularity has prompted manufacturers to introduce them into a wide range of products, such as cereals, milks and even hot teas.

According to Mordor Intelligence, the market for probiotics is estimated to grow at an 8% CAGR between 2020 and 2025 with the Asia-Pacific region leading the demand. Europe and North America follow closely behind with the market analytics firm saying these regions exhibit a “medium” market demand for probiotics.

This acquisition agreement will benefit both Novozymes and PrecisionBiotics as it will enable Novozymes to orchestrate a globalized release of probiotics solutions that target the appropriate markets. Depending on future market trends, the deal may prove to provide an advantageous, long term bolt-on solution to its biotech portfolio.

Related news

Monterey Mushrooms gets EU approval for vitamin D-rich mushroom powder

Monterey Mushrooms gets EU approval for vitamin D-rich mushroom powder

16 Jun 2022

Monterey Mushrooms’ vitamin D-rich mushroom powder, produced using ultraviolet (UV) to boost the nutrient content, can be sold in the EU, following novel food approval from the European Food Safety Authority (EFSA).

Read more 
Demand for tapioca syrup as a sweetener surges

Demand for tapioca syrup as a sweetener surges

1 Jun 2022

Seen as a better-for-you, natural sweetener, tapioca syrup is growing in demand, particularly among consumers in Asia and North America.

Read more 
Nestlé launches fortified dairy drink in Pakistan to tackle micronutrient deficiencies

Nestlé launches fortified dairy drink in Pakistan to tackle micronutrient deficiencies

16 May 2022

Nestlé is targeting micronutrient deficiencies with Bunyard Iron+, a fortified dairy-based drink that provides a source of iron that it says is “three times more absorbed in the body when compared to existing available sources."

Read more 
Tea flavour innovation in China unites tradition with modernity

Tea flavour innovation in China unites tradition with modernity

13 Apr 2022

Chinese tea brands are innovating with new flavours, blends and formats, and even making a foray into food with tea-flavoured food and drink launches.

Read more 
China leads the global boom for probiotics

China leads the global boom for probiotics

30 Mar 2022

Probiotics are experiencing a boom in global demand - particularly in China - as consumers look for functional ingredients in food and drink products that can improve their health. 

Read more 
A new brew: Ayurvedic coffee in India, adaptogenic coffee from Finland

A new brew: Ayurvedic coffee in India, adaptogenic coffee from Finland

10 Mar 2022

Coffee is probably one of the world’s most popular functional beverages, providing millions with their daily caffeine hit. However, some brands are taking its functional benefits further by adding in botanicals, vitamins, and other nutrients.

Read more 
Plant proteins' next evolution: Lupin beans

Plant proteins' next evolution: Lupin beans

7 Mar 2022

Delivering on taste, texture and health benefits, lupin beans are emerging as a viable contender in the race to dominate the plant-based protein industry. We look at some innovative startups using this ingredient.

Read more 
Enhanced ingredients: Using biotech to create highly functional food

Enhanced ingredients: Using biotech to create highly functional food

4 Mar 2022

Through acquisitions, investments and internal R&D, ingredient companies are harnessing biotechnology to create healthier ingredients and more functional additives.

Read more 
Butter is Better: Keto is driving resurgence as a premium product

Butter is Better: Keto is driving resurgence as a premium product

11 Feb 2022

After years of being shunned as an ingredient, fat is back thanks in large part to the popularity of the keto diet. The market for keto products is growing steadily with the global value of this category forecast to reach $15.6 billion by 2027, accordi...

Read more 
‘Humanisation’ of pets creates opportunities in pet food

‘Humanisation’ of pets creates opportunities in pet food

9 Feb 2022

Clean label, natural, sustainable, luxury and plant-based: The ‘humanisation’ of pets means consumers want premium pet food, and a number of food manufacturers are entering the growing pet food sector to meet their demands.

Read more