Planet Green Holdings has entered commercial operations to source, market and distribute lactoferrin, expanding the company’s consumer products portfolio into a bioactive ingredient market that it expects to grow rapidly in China and globally.
Lactoferrin is a glycoprotein used in products including infant formula, sports nutrition, dietary supplements and immune-support products. Planet Green also uses lactoferrin in its chewable immune tablets.
The company said China currently represents about 22% of an estimated $300 million in annual global lactoferrin demand.
Planet Green estimates the market is growing at approximately 9% annually and expects annual sales to exceed $100 million in China and $500 million globally by 2030.
China currently imports nearly all of its lactoferrin due largely to limited domestic production capabilities, according to the company.
Planet Green said it is focused on supplying high-quality lactoferrin to the Chinese market and believes access to the ingredient could strengthen its position in existing health products while creating opportunities for additional products.
The company also plans to add a Chief Scientist to its executive team to help identify scientific investments, joint ventures and new product opportunities.
Planet Green said it has identified a leading candidate at a U.S. academic institution and is in advanced discussions to fill the position in the near term.
The Chief Scientist is expected to help prioritize scientific initiatives and support expansion of the company’s product portfolio and revenue-generating capabilities.
Commercial lactoferrin is currently produced primarily through extraction from bovine milk or through precision fermentation.
The more established bovine milk method uses whey or skim milk that is processed through membrane filtration and ion-exchange chromatography. Because milk contains relatively small quantities of lactoferrin, the production process requires large volumes of milk and can be costly and supply constrained.
Precision fermentation represents an emerging alternative in which genetically engineered microorganisms such as yeast or fungi produce recombinant lactoferrin in fermentation tanks.
Planet Green said the approach could offer greater scalability, consistency and potentially lower production costs, although commercial adoption remains relatively early.
The company believes high-quality lactoferrin can command premium pricing because of limited supply and the complexity involved in producing the ingredient.
Planet Green is headquartered in Flushing, New York, and operates through subsidiaries in mainland China and Canada. Its businesses include consumer products and online advertising.
KEY QUOTES:
“Lactoferrin is a crucial glycoprotein that is part of your body’s immune response and is the hero ingredient in our chewable immune tablets. With our rapidly growing market share and consumer adoption, gaining access to this critical ingredient should only enhance our market position going forward.”
“Lactoferrin is obtained from mammalian milk, and has been dubbed ‘Pink Gold,’ not only due to its pale pink hue, but also because of its extremely high commercial value. Extracting lactoferrin from cow’s milk is a complex and costly process, and the low yield and high demand make it a valuable and sought after bioactive ingredient.”
“We use pure lactoferrin which is unavailable in China for most of manufacturers and is expected to command a premium due to its high-quality. With a large market growing quickly to well over $100 million addressable market, we see this as attracting and compelling business opportunity for many years to come.”
Zhou Bin, Chief Executive Officer of Planet Green Holdings
