Hollywood celebrities, world-class athletes, billionaires, food experts, and even regular consumers now seem more enthusiastic about plant-based diets than ever. This trend has created a new and juicy “opportunity market” that investors can sink their teeth.
Plant-based food refers to various food products made from natural plant-sourced ingredients such as fruits, vegetables, nuts, oils, etc. Different types of plant-based food include dairy alternatives, egg alternatives, meat substitutes, and others. They have no animal-sourced ingredients such as meat, milk, or eggs and are rich sources of vitamins B1, C, E, and more. Regular consumption may help reduce the risk of diabetes and certain types of cancer.
Plant-based foods had existed since 200 BCE when meat alternatives were common, but the trend took off during the Covid-19 pandemic when the supply chain snarled. Since then, many cultures have made plants a staple in their diet. As of 2021, an estimated 79 million people worldwide eat strictly plant-based.
As plant-based foods become more popular, thanks to their health benefits, ethical issues, and environmental concerns posed by the meat and dairy industry, plant-based food companies have gained some momentum.
One of 2021’s biggest winners was Impossible Foods, which completed a $500 million raise for over $2 billion in lifetime funding. 2022's biggest winner was the $400 million Series C round for cultured meat company Upside Foods. In January 2023, alternative protein maker, No Meat Factory raised $42 million through a Series B round. More funding could follow as this trend grows.
Future Market Insights projects the global plant-based food market will grow 3x to $93.92 billion by 2030. The data shows a compound annual growth rate (CAGR) of 12.27% over the forecast period. Bill Gates has backed high-profile alternative meat brands such as Beyond Meat, Impossible Foods, and Upside Foods. The current trend suggests an excellent opportunity to invest in this emerging market.
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On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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