Plant-based Products have been Growing Rapidly in the Recent Years

Views: 51     Author: Site Editor     Publish Time: 2022-05-10      Origin: Site

Plant-based products are becoming increasingly popular, while there is also a significant shift towards greener, healthier food choices.

In the U.S., rising demand drove sales of Plant-based Foods to reach $7 billion in 2020, up 27 percent.

In 2021, the plant-based food industry is expected to gain favor from the mainstream market

A report commissioned by the Plant-Based Foods Association and the Good Food Institute shows that 57 percent of U.S. households purchased plant-based foods in 2020, up from 53 percent in 2019.

Plant Food Association and Good Food Institute

According to a report by the Research and Marketing Department, the U.S. plant-derived food market is expected to grow at a COMPOUND annual growth rate of $9.69% to $10.7 billion from 2020 to 2027.

In contrast, by the same year, the global plant-derived food market is expected to reach more than $74.2 billion, with a compound annual growth rate of 11.9%.

Consumer demand for plant-based foods has not gone unnoticed by investors, with as much as $3.1 billion of global investment capital flowing into the sector last year (a three-fold increase from 2019).

2020 in review

While 2019 was the year Beyond Meat (NASDAQ: BYND) launched a record-breaking initial public offering (IPO), 2020 was also a milestone year for the plant-based food industry.

Beyond Meat (NASDAQ: BYND) launches record initial public offering (IPO) in 2019

In 2020, Very Good Food Company (TSXV: Very, OTCQB: VRYYF) became the second plant-based food company to go public, listing on the TSX Risk Exchange and the U.S. OTCQB.

Very Good Food Company is the second plant-based food company to go public

Last year, Tattooed Chef (NASDAQ: TTCF) also went on the market to enter the frozen food market.

The company has factories in both the U.S. and Italy, producing an ever-expanding portfolio of plant-based food products that are sold by retail malls across the United States.

What's more, many traditional food industry companies have made a significant shift to the plant-based food market with new product lines and retrofitted production facilities.

For example, through its Morningstar Farms brand, Kellogg Company (NYSE:K) has launched Incogmeato, a plant-based food line that includes burgers, sausages, chicken tenders and Mickey Mouse-shaped chicken nuggets.

Hormel Foods' (NYSE: HRL) brand of Happy Little Plants includes plant-based sausages that appear on Papa Murphy's pizzas.

Maple Leaf Foods has launched a series of alternative meat products, including pea protein hot dogs; the company also plans to invest $310 million in Indiana to build a plant-based protein factory.

Ingredion (NYSE: INGR), a century-old global food manufacturer, opened its first plant in North America to produce pea protein isolate and pea starch.

Chains of grocery stores throughout the U.S. and Canada, including Albertsons (NYSE: ACI), Costco (NASDAQ: COST), Loblaws (TSX:L, OTC Pink: LBLCF), Fred Meyer, Safeway, Sobeys, Walmart (Walmart, Both NYSE WMT and Whole Foods stock plant-derived meat alternatives on shelves and cold room aisles.

Major food merchant Kroger (NYSE: KR) has added 50 plant-based products to its Simple Truth brand, including non-dairy cheese and yogurt, as well as plant-based chicken products.

In 2020, the meat alternative revolution shifted from hamburger pie to plant-based chicken nuggets, meat strips, and meatloaf alternatives.

"Vegans have been making chicken substitutes out of wheat and soybeans for years," for Forbes reported, "but this year some new prefabricated, easy-to-process proteins have been introduced, making real chicken a thing of the past." ”

By the end of 2020, plant-derived foods have appeared more than just niche health food channels in many grocery stores in the United States and Canada, but have entered the menus of many restaurants.

In 2020, the boom in participation in this emerging market also spawned Canada's first investor focused purely on the global plant-based food industry: Eat Beyond Global Holdings (CSE:EATS, OTC Pink:EATBF), which invested in stakes such as Very Good Food Company (CSE: GDNP).

Don Robinson, former CEO of Mars, is currently Chairman of the Board of Directors of Eclipse Global Holdings

Growth drivers and trends

"Consumers are increasingly concerned about health and wellness, ethical food production, and environmental sustainability," said Dr. Dan Zhu, senior vice president of Jimei Holding Group, "which provides an opportunity to invest in plant-derived foods, an emerging market with huge growth potential." ”

The diet is low in saturated fat and high in fiber, and nutritionists believe that plant-based meat substitutes are healthier than animal-based meat products.

Plant-based products are still highly processed foods with less healthy sodium content.

But if consumed in moderation and instead of red and processed meats, plant-derived foods can help reduce consumers' risk of cardiovascular disease and multiple cancers.

Young consumers are demanding an end to unethical and environmentally harmful factory farming practices, which has also driven interest in plant-derived protein selection, no matter how expensive they are.

Surprisingly, those willing to open their wallets for plant-derived meat alternatives are not limited to stubborn vegetarians.

A January 2021 survey of U.S. consumers found that 88 percent of vegetarians, 78 percent of resiliencists, and 62 percent of meat lovers expressed a willingness to pay extra for plant-based foods.

"Nimblers" eat animal-based foods, but increasingly choose foods of plant origin.

When it comes to plant-based products, Forbes notes that "if 2020 is the Year of the Vegetarian Chicken, 2021 is the year that vegetarian fish egg alternatives will continue to expand." ”

In the U.S. and Canada, a number of vegan seafood brands have appeared on grocery store shelves, including Sophie's Kitchen, Gardein and Good Catch.

Sophie Kitchen was a pioneer in vegetarian seafood, introducing a pea tuna alternative in 2010.

Recently, the company launched vegetarian crab cakes and vegetarian bread shrimp.

Gardan is produced by Pinnacle Foods, a subsidiary of ConAgra Brands (NYSE: CAG).

Collected Foods raised $26.35 million in the B-2 bridge round in April 2021 through investments from Louis Dreyfus Company, Unovis Asset Management and Big Idea Ventures.

Initial public offerings (IPOs), product launches and partnerships

In 2020, plant-derived foods have attracted a large number of investors' attention.

In the U.S. alone, plant-based food companies received more than $3.1 billion in investment, up nearly 300 percent from 2019.

2021 will be another interesting year for plant-based food companies to go public, launch new products and build partnerships.

Vegan milk maker Oatly is expected to go public in 2021, with a potential $10 billion listing amount.

In May, the company, which makes coffee creamer, ice cream, yogurt and cream cheese made from oat milk, applied to be listed on the NASDAQ Global Select Market under the ticker symbol OTLY.

Beyond Meat's biggest rival, Impossible Foods, is also reportedly planning a $10 billion IPO in 2021 or 2022.

The company announced in early January 2021 that it would lower prices for food service distributors to bring plant-based meat alternatives closer to price parity with traditional meats.

EAT Just, the maker of plant-derived product Just Egg, raised $200 million in a round of funding led by Qatar's Sovereign Wealth Fund in March 2021.

Last August, Reuters reported that if the company can start making a profit, it may be ready to go public in 2021.

Recently, EAT Just CEO Josh Tetrick spoke about the company's plans to enter the European market in 2021, "Our goal is to become the world's largest supplier of eggs consumed." It's healthier and you don't need chicken. ”。

JOSH Tetrick, CEO of EAT Just

Major traditional food companies are also increasingly launching new plant-based foods to capitalize on the growth potential of this market.

This summer, Tyson Foods (NYSE: TSN) launched its own burger and sausage brand, and Nestle (Nestle, SWX: NESN) launched a pea milk alternative.

Another trend worth watching in 2021 and beyond is the rise of partnerships between plant-derived food companies and traditional businesses in the global food market.

More recently, Beyond Meat has partnered with PepsiCo (NASDAQ: PEP) and Yum Restaurant Group (Yum!). Taco Bell, a subsidiary of Brands, NYSE: YUM), has built a strong relationship.

Plant-based foods are becoming healthier and more sustainable alternatives to meat, eggs and dairy products.

However, this market is still largely an emerging market, and investors can take advantage of a wealth of growth opportunities.

We look forward to working with you to develop cost effective products and long term relationships with mutual benefit.

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