Global Plant-Based Food Market Is Expected To Reach $74.2 Billion By 2027
FinancialNewsMedia.com News Commentary
Sep 20, 2021, 08:45 ET
PALM BEACH, Fla., Sept. 20, 2021 /PRNewswire/ -- Plant-based foods are a booming business. Plant-based products are a key driver of sales growth at grocery retailers nationwide, growing almost twice as fast as overall food sales. Retail sales data released shows that grocery sales of plant-based foods that directly replace animal products have grown 27 percent in the past year to $7 billion. Food manufacturers ranging from startups to leading CPG companies to the world's largest meat companies are innovating rapidly in the plant-based market. Next-generation plant-based meat, egg, and dairy products are increasingly competitive with animal products on taste, price, and accessibility. Distribution is expanding, and a growing number of mainstream consumers are buying plant-based options. In the U.S., 98 percent of people who buy plant-based meat also purchase conventional meat. A report from Meticulous Research added: "Plant-based food products are defined as a finished product consisting of ingredients derived from plants that include vegetables, fruits, whole grains, nuts, seeds, and/or legumes. What differentiates them from animal-based foods is that their fiber fraction is made of indigestible compounds, mainly, pectins, hemicellulose, cellulose, and/or resistant starch. The plant-based food market is expected to grow at a CAGR of 11.9% from 2020 to 2027 to reach $74.2 billion by 2027. Food manufacturers ranging from startups to well-known companies to the world's largest meat companies are innovating rapidly in the plant-based market. Next-generation plant-based meat, egg, and dairy products are increasingly competitive with animal products on taste, price, and accessibility." Active Companies in the markets today include Nepra Foods Inc. (CSE: NPRA), The Very Good Food Company Inc. (OTCQB: VRYYF) (TSX-V: VERY.V), Beyond Meat (NASDAQ: BYND), Oatly Group AB (NASDAQ: OTLY), Tyson Foods (NYSE: TSN).
The report also added that: "Based on product type, the plant-based food market is segmented into dairy alternatives, meat substitutes, egg substitutes (plant-based eggs), confectioneries, and other types. In 2020, the dairy alternatives segment is estimated to account for the largest share of the overall plant-based food market. Factors such as huge demand for dairy alternatives, awareness about animal abuse in modern dairy farming practices, and nutritional benefits offered by plant-based dairy products are driving the growth of this segment. Further, the dairy alternatives market is segmented into plant-based milk, cheese, yogurt, butter, ice-cream, creamer, and other dairy alternatives. In 2020, the plant-based milk segment is estimated to hold the largest share of the overall dairy alternatives market. The increasing prevalence of lactose intolerance and consumer preference for vegan diets are the key factors driving the demand for plant-based milk alternatives, such as almond and soy milk. However, the yogurt segment is expected to grow at the fastest CAGR during the forecast period… However, the burger patties segment is expected to grow at the fastest CAGR during the forecast period."
Nepra Foods Inc. (CSE: NPRA) BREAKING NEWS: Nepra Foods Inc Completes Oversubscribed $7.47 Million Initial Public Offering - Nepra Foods Inc. (CSE: NPRA) (the "Company" or "Nepra") a creator of nutritious plant based and allergen-free food is pleased to announce the successful completion of the Company's initial public offering (the "IPO") of 15,903,465 common shares (the "Offered Shares") at a price of $0.47 per Offered Share for total gross proceeds of $7,474,629, which included 2,073,678 Offered Shares from the exercise of the over-allotment option.
The IPO was conducted through Canaccord Genuity Corp. as the sole agent (the "Agent") and its selling group. As partial compensation to the Agent, the Company has issued to the Agent, or as directed by the Agent, 898,889 non-transferable compensation options (the "Compensation Options") with each Compensation Option exercisable into one common share in the capital of the Company at an exercise price of $0.47 per common shares for a period of 24 months from today. In addition, the Agent received a fee equal to 6.0% of the gross proceeds of the IPO from subscribers other than those on the President's List and a fee equal to 2.0% of the gross proceeds of the IPO received from the President's List subject to a maximum of $650,000 of gross proceeds subscribed for by such President's List purchasers. Furthermore, the Agent received a corporate finance fee equal to 4.0% of the aggregate number of Offered Shares resulting in the Company issuing 636,138 common shares to the Agent upon closing of the IPO.
The Offered Shares were listed on the Canadian Securities Exchange (the "CSE"), effective Wednesday, September 15, 2021 and begins trading today, Monday, September 20, 2021, under the trading symbol "NPRA" on the CSE. McMillan LLP, acted as counsel to the Company, and Bennett Jones LLP, acted as counsel to the Agent.
"The enthusiasm we are seeing from the investor community with the launching of our IPO confirms our beliefs that the evolution the food industry is seeing away from animal-based proteins is not merely a short-term fad, but a long-term global trend. The key will be providing consumers with very nutritious, satisfying foods with great tastes and textures. The proceeds from this IPO is expected to accelerate our expansion into consumer products using our innovative ingredients," said Nepra's CEO, David Wood. CONTINUED… Read this full release for Nepra Foods at: https://www.financialnewsmedia.com/news-npra/
Other recent developments in the markets of note include:
The Very Good Food Company Inc. (OTCQB: VRYYF) (TSX-V: VERY.V) the leading brand of The Very Good Food Company, a plant-based meat company, whose plant-based Butcher Boxes, Smokin' Burgers, and The Very Good Burgers are available for purchase on Amazon, were recently ranked as the number one release in the meatless burgers and patties category with Amazon U.S. Customers can order the brand's post popular products through Amazon, further positioning its mission to make plant-based eating not only nutritious and delicious, but approachable and accessible.
With more consumers interested in plant-based products due to a renewed focus on health and sustainability, more than half of U.S. households are purchasing strictly plant-based foods. The plant-based meat category has been on an upward trajectory and reached U.S. $1.4 billion in sales in 2020, growing 45% overall compared to 2019, and now accounts for 2.7% of all U.S. retail packaged meat sales, according to SPINS data released by the (PBFA) in April.
Beyond Meat (NASDAQ: BYND), a leader in plant-based meat, recently announced the favorable ruling it received in its legal case with Don Lee Farms, a former co-manufacturer that was terminated by Beyond Meat after failing to meet its standards for quality and safety. In the ruling issued August 27, 2021, Los Angeles Superior Court Judge Holly J. Fujie granted Beyond Meat's motion for summary adjudication on Don Lee Farms' claims for misappropriation of trade secrets and unfair competition. As a result, those claims will not proceed to trial, which is now set for May 16, 2022.
The Court's ruling puts an end to the fictional narrative Don Lee Farms has attempted to use throughout this case that Beyond Meat misappropriated Don Lee Farms' trade secrets to manufacture the Beyond Burger and other products. Beyond Meat will vigorously defend against Don Lee Farms' remaining claims against Beyond Meat, which are premised on Beyond Meat's alleged breach of the parties' contract and Don Lee Farms' allegation that it was fraudulently induced to continue working with Beyond Meat despite profiting from the parties' relationship. Beyond Meat also intends to pursue its own claims against Don Lee Farms—including its claim that Don Lee Farms misappropriated Beyond Meat's trade secrets to create its own line of copycat products. Beyond Meat seeks millions of dollars in damages from Don Lee Farms and its owners Donald Goodman, Daniel Goodman, and Brandon Goodman.
Oatly Group AB (NASDAQ: OTLY), the world's original and largest oat drink company, recently announced an increase in oat base capacity at its Ogden, Utah facility in the Americas region to support an acceleration in consumer demand.
In the second half of 2021 the Company will start construction to add 75 million liters of finished goods equivalent oat base capacity. Total production will increase from an estimated 150 million liters annually at full production to an estimated 225 million liters annually to support the Company's growth in 2022 and beyond. This will increase the Company's total estimated capacity by the end of 2022 from 1,000 million to 1,075 million liters and from 1,400 million to 1,475 million liters of finished goods equivalent oat base capacity by the end of 2023. The Company expects its EMEA manufacturing combined with its two facilities in the Americas and two in Asia to create more than a 200% increase in its production output by the end of 2022 from the end of 2020. The Company will execute this capacity expansion within its stated plan for capital expenditures at the low end of $350 million to $400 million in 2021 provided at the time of its IPO.
Tyson Foods (NYSE: TSN), one of the world's leading protein producers, is taking on the $1 billion kids refrigerated, pre-packaged snack category with a new kids snack - Hillshire Farm®SNACKED! Building upon its powerhouse portfolio of protein brands and success in adult snacking, Hillshire Farm SNACKED! will give parents a versatile, on-the-go snack pack made with quality, trusted ingredients – made just for kids.
More than 76% of people, including children, eat two or more snacks every day. And when it comes to snack purchases for their kids, parents look for high quality, ease of preparation and use, and taste. Hillshire Farm SNACKED! uniquely delivers on all these elements in one delicious snack pack.
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