Vegan Foods

Plant-based food outlook 2021: the industry is gaining in appeal


Want to invest in the emerging plant-based food market, but don’t know what to expect? Here’s a look at the trends driving growth in this exciting industry.

The outlook for plant-based foods looks positive in 2021. Plant-based products are growing in popularity alongside a noticeable shift towards more environmentally friendly and healthy food choices.

In the United States, this growth in demand has pushed sales of plant-based foods to $ 7 billion in 2020, up 27%. A report commissioned by the Plant Based Foods Association and the Good Food Institute shows that 57% of U.S. households purchased plant-based foods in 2020, up from 53% in 2019.

From 2020 to 2027, the U.S. plant-based foods market is expected to grow at a compound annual growth rate of 9.69% to $ 10.7 billion, according to a Research and Markets report. Comparatively, the global plant-based foods market is should reach over US $ 74.2 billion in the same year, reflecting a compound annual growth rate of 11.9%.

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Consumer demand for plant-based foods has not gone unnoticed by investors, and a huge $ 3.1 billion in investment capital flocked to the industry globally last year (a threefold increase from 2019).

Here, the Investing News Network takes a look at the outlook for plant-based foods to explain what is driving the growth of this industry and what could be in store for this emerging sector in 2021.

Plant-Based Foods Outlook 2021: A look back at 2020

Although 2019 was the Year of Beyond Meat (NASDAQ: BYND) launched Its record-breaking IPO, 2020 was also a pivotal year for the plant-based food industry.

In 2020, the Very Good Food Company (TSXV: VERY, OTCQB: VRYYF) became the second plant-based food company to go public, going on the TSX Venture Exchange and then the OTCQB in the United States.

Tackling the ready-to-eat frozen section of the market, the tattooed chef (NASDAQ: TTCF) also became public Last year. The company has facilities in the United States and Italy, producing a growing portfolio of plant-based food products that are sold through retailers across the United States.

Additionally, many traditional companies in the food industry have made significant changes to the plant-based food market through new product lines and by reorganizing their manufacturing facilities.

For example, through its MorningStar Farms brand, Kellogg Company (NYSE:K) launched the Incogmeato plant-based food product line, with offerings such as burgers, bratwurst, chicken fillets and Mickey Mouse-shaped chicken nuggets.

Hormel Foods (NYSE: HRL) Happy Little Plants brand includes plant-based pepperoni that is featured on Papa Murphy’s pizza. For its part, Maple Leaf Foods (TSX: MFI) has launched a line of alternative meat products that includes hot dogs made with pea protein; the company also plans to build a $ 310 million plant protein plant in Indiana. Century-old global food maker Ingredion (NYSE: INGR) opened the first establishment in North America to produce pea protein isolate and pea starch.

Grocery chains in the United States and Canada including Albertsons (NYSE: ACI), Costco (NASDAQ: COST), Loblaws (TSX: L, OTC Pink: LBLCF), Fred Meyer, Safeway, Sobeys, Walmart (NYSE : WMT) and Whole Foods offers freezer shelves and aisles with plant-based meat alternatives. Big Grocer Kroger (NYSE: KR) added 50 herbal products to its Simple Truth brand, including dairy-free cheese and yogurt, as well as plant-based chicken products.

In 2020, the revolution in meat alternatives has gone beyond the burger patty to plant-based chicken substitutes in the form of nuggets, strips and patties. “Vegans and vegetarians have been making chicken substitutes from wheat and soy for ages” Forbes reported. “But this year saw the introduction of new, ready-made, easy-to-use proteins that could make real chicken a thing of the past.”

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By the end of 2020, plant-based food items could be found beyond the niche health food aisles of many grocery stores in the United States and Canada, and on the menus of a multitude of restaurants. .

The rush to participate in this emerging market in 2020 has also led to the launch of Canada’s first investment issuer that focuses solely on the global plant-based food industry: Eat beyond global holdings (CSE: EATS, OTC Rose: EATBF). Its holdings include Very Good Food Company and Good Natured (CSE: GDNP).

Plant-Based Foods Outlook 2021: Growth Drivers and Trends

Increased consumer focus on health and wellbeing, ethical food production and environmental sustainability have opened up investment opportunities in plant-based foods, an emerging market with significant growth potential.

Less rich in saturated fat and higher in fiber, dieticians consider plant-based meat substitutes to be healthier food choices on meat products of animal origin. That comes with a caveat – plant-based products are still highly processed foods that contain not-so-healthy amounts of sodium.

But when eaten in moderation and instead of red meats and processed meats, plant-based foods can help reduce the risk of developing cardiovascular disease and various cancers in consumers.

Young consumers’ demands for an end to unethical and environmentally harmful practices factory farming practices It’s also sparking interest in plant-based protein options, regardless of their higher prices.

Surprisingly, it’s not just die-hard vegans and vegetarians who are ready to open their wallets wider for plant-based meat alternatives. A January 2021 survey of American consumers found that 88 percent of vegetarians, 78 percent of flexitarians and 62 percent of meat lovers said they would pay extra for plant-based foods. In case you were wondering, “flexitarians” consume food products of animal origin, but increasingly opt for more plant-based alternatives.

In terms of product offerings of plant origin, Forbes Notes that “if 2020 was the year of the vegan chicken, 2021 is the year when vegan alternatives based on fish and eggs will continue to develop.”

In the United States and Canada, several vegan seafood brands are already available on grocery store shelves, including Sophie’s Kitchen, Gardein, and Good Catch. Sophie’s Kitchen is a pioneer in vegan seafood, launching its pea-based alternative to tuna in 2010. More recently, the company launched vegan crabcakes and vegan breaded shrimp.

Gardein is produced by Pinnacle Foods, a subsidiary of ConAgra Brands (NYSE: CAG). Good Catch is made by Gathered Foods, which in April 2021 raised $ 26.35 million in a B-2 round of funding with investments from Louis Dreyfus Company, Unovis Asset Management and Big Idea Ventures.

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Plant-Based Foods Outlook 2021: IPOs, Product Launches, and Partnerships

Plant-based foods garnered a lot of investor attention in 2020. Plant-based food companies in the United States alone generated more than $ 3.1 billion in investment, up by almost 300% compared to 2019.

2021 is shaping up to be another exciting year for plant-based food companies going public, launching new products and forming partnerships.

Vegan milk maker Oatly is expected to go public with a potential listing of US $ 10 billion in 2021. In May, the company – which makes oat milk-based coffee creamers, ice cream, yogurt and cream cheese – applied to list on the NASDAQ Global Select Market under the symbol OTLY.

Beyond Meat’s biggest competitor, Impossible Foods, is also planned an initial public offering of 10 billion US dollars in 2021 or 2022. The company announced in early January 2021 that it was cutting prices for foodservice distributors in an effort to bring plant-based meat substitutes closer to price parity with conventional meat.

EAT Just, manufacturer of the plant product JUST Egg, raised $ 200 million in March 2021 during a fundraiser led by the Qatar sovereign wealth fund. Last August, Reuters reported that the company could be ready to go public in 2021 if it can start making a profit. Most recently, EAT Just CEO Josh Tetrick spoke about plan to expand on European markets in 2021. “Our goal (is) to be the most consumed egg in the world. It’s healthier, you don’t need the chicken, ”he said.

The major players in conventional food are also launching more and more new food products of plant origin to take advantage of the growth potential of this market. This summer, Tyson Foods (NYSE: TSN) is enter space with its own brand of hamburgers and sausages, and Nestlé (SWX: NESN) is go out with a pea-based milk substitute.

Another trend to watch for 2021 and beyond is the creation of partnerships between plant-based food companies and legacy companies in the global food market. More recently, Beyond Meat has consolidated its relationship with PepsiCo (NASDAQ: PEP) and Taco Bell, a subsidiary of Yum! Brands (NYSE: YUM).

Plant-Based Foods Outlook 2021: Key Points for Investors

Plant-based foods are becoming healthier and more sustainable alternatives to meat, eggs and dairy products. However, this market is still an emerging space with many growth opportunities that investors can take advantage of. I

If you’d like to learn more about these opportunities, check out our articles How to Invest in Plant-Based Foods and the Best Stocks of Plant-Based Foods.

Don’t forget to follow us @INN_LifeScience for real-time updates!

Disclosure of Title: I, Melissa Pistilli, do not have any direct investments in any of the companies mentioned in this article.

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