The global food industry has long been under the scrutiny of investors and policymakers because of its detrimental impact on the environment. These concerns have given rise to the plant-based food industry, quickly becoming one of the most disruptive business sectors today.
The plant-based food market was valued at $35.6 billion by the end of 2021, and this young industry is expected to grow exponentially in the coming years to reach a value of $161.9 billion by 2030.
Source: Statista
This stellar growth is expected because of a few major reasons, including the growing population of vegans, billion-dollar investments in plant-based food products by both businesses and government entities, the changing consumer spending habits, and the rising intolerance of animal protein among the youth.
Although it would be nearly impossible to replace meat products with 100% plant-based food products, a lot of progress has been made in the recent past to promote plant-based food products and also cultured meat products that are sourced ethically.
Many companies – from young startups to established food giants – have joined the movement to embrace plant-based food products, leaving investors with many options to choose from.
From an investor’s perspective, it makes more sense to invest in companies that are finding solutions to the most critical challenges seen by the plant-based food industry. The companies highlighted below are doing exactly that.
1. Tattooed Chef
Tattooed Chef (NASDAQ:TTCF) is a plant-based food company that sells various unique products such as ready-to-cook bowls, zucchini spirals, smoothie bowls, and plant-based burgers. One can find the company’s products in more than 14,000 outlets today. Tattooed Chef is venturing into new business areas aggressively - the latest being the expansion into plant-based snack bars.
2. Ingredion
Ingredion (NYSE:INGR) is a producer and distributor of sweetener products for various industries, and its top products include glucose syrups, high maltose syrups, and high fructose syrups. The company has also expanded to produce plant-based meat alternatives such as plant-based patties, plant-based hot dogs, and plant-based seafood products to make the most of the increasing interest in these types of products.
With a well-diversified portfolio of products and a strong relationship with its customers, Ingredion seems well-positioned to benefit from the plant-based food revolution.
Conclusion
The global food industry is changing dynamically, and a few companies are forcing the changes to promote a healthier, plant-based future for the upcoming generations. Investing early in these companies could help growth-oriented investors book handsome returns in the future.