The world’s population is increasingly becoming conscious of the impact of dietary choices on their bodies as well as the environment. This consciousness has driven the growth in the plant-based food market, which is estimated to reach $74.2 billion by 2027. Consumers are choosing meat substitutes, dairy alternatives, and food derived from or processed from plant-based sources. Health conditions such as heart disease, lactose intolerance, and obesity are also factors driving this market. As the demand for healthier food alternatives, companies are rising to meet the growing demand through dietary supplements, and dairy and meat substitutes. Companies such as Element Nutritional Sciences (CSE:ELMT), Oatly (NASDAQ:OTLY), Beyond Meat (NASDAQ:BYND), Tattooed Chef (NASDAQ:TTCF), and Else Nutrition (TSXV:BABY) are developing solutions to meet the growing demand for healthier plant-based alternatives by targeting different segments of the plant-based foods market.
Element Nutritional Sciences is positioned to benefit from expanding Markets
Element Nutritional Sciences (CSE:ELMT), is a Canadian nutraceutical company focused on developing science-based plant-based nutritional products to improve the quality of life of its consumers. The company focuses on nutritional supplements.
Rejuvenate is an amino-acid supplement meant for helping prevent age-related muscle loss and restoring lost muscle. The target group for this product is mainly the aging population, which is usually at a higher risk of age-related muscle loss. Rejuvenate helps rebuild muscles, repair muscles, and prevent muscle-related loss due to sarcopenia. Rejuvenate blends all the nine essential amino acids that help in rebuilding and repairing muscle mass. The only way your body gets these is through your diet.
With this product, Element is positioned to benefit from two expanding industries; the ready-to-drink and plant-based food markets. The ready-to-drink beverages market is estimated to grow at a CAGR of 6.1% between 2021 and 2026. The North American market is expected to grow as consumers shift towards healthier solutions. The plant-based market is also growing with projections estimating that it will grow by a CAGR of 10.20% by 2027.
In an interview with Drug Store News, CEO of Element Nutritional Sciences, Stuart Lowther revealed that the company has gone to production with its Rejuvenate ready-to-drink product. The drink, developed using the patented Rejuvenate formula has only 100 calories and doesn’t have artificial sweeteners, colors, or added sugar.
The company is in the process of launching the clean label, gluten-free, and sugar-free organic protein drink for the 40-plus demographic. The drink is based on organic plant-based protein.
Commenting about plans for the company, Stuart Lowther said, “We have a significant pipeline of new innovative products in development, both in the beverage sector and also other areas of the VMS and adult nutrition category. Our goal is to innovate wherever possible and bring that innovation to customers by partnering with our retailers. Rejuvenate will be the go-to brand for all the nutrition needs of the 40-plus demographic.”
Oatly Holds its IPO, As Similar Companies Form Key Partnerships to Drive Their Brands Forward
Swedish manufacturer of dairy alternatives, Oatly (NASDAQ:OTLY), sold its shares publicly for the first time on May 20, with the price opening at $22.2 giving Oatly a valuation of approximately $13 billion. According to the company’s prospectus, “We [Oatly] have a bold vision for a food system that’s better for people and the planet… we believe our company is leading the transformation of the global dairy market – which is worth approximately $600 billion in the retail channel alone as of 2020. Behind our products are decades of scientific heritage, deep expertise around oats, production craftsmanship, and commercially proven innovation in matters of sustainability and human health.” Oatly is now listed on NASDAQ under the ticker “OTLY”.
Los Angeles-based producer of plant-based proteins Beyond Meat (NASDAQ:BYND), announced that it would be expanding its partnership with Pizza Hut Canada to launch the first-ever plant-based Italian sausage.
“As Canadians continue to seek convenient ways to incorporate more plant-based protein in their lives, we are excited to partner with Beyond Meat, a leader in plant-based, to bring consumers expanded choice across our menus,” said Devon Lawrence, Marketing manager Pizza Hut Canada. Some of the new menu items include The Great beyond, Beyond Italian sausage Alfredo Loaded Flatbread, and Beyond Creamy Alfredo.
Tattooed Chef (NASDAQ:TTCF), another leader in the plant-based food industry, announced the completion of its acquisition of New Mexico Food Distributors, Inc. and Karsten Tortilla Factory. The acquisition allows Tattooed Chef to diversify its manufacturing capabilities, expand its production capacity, and accelerate its expansion into other plant-based food products. The company is in the process of reclassifying its expenses but it continues to expect a full year’s revenue of between $235 million to $242 million with an adjusted EBITDA of about $2 million to $4 million. The company is also working with its accountants and advisors to prepare a preferability study which it hopes to complete by the end of Q2 2021.
Else Nutrition (TSXV:BABY), an Israeli plant-based manufacturer of baby, toddler, and children nutritional products announced the launch of its plant-based toddler nutrition at PCC Community Markets at all 15 locations in Washington State. With over 58,000 household members, Seattle-based PCC Community Markets is a consumer-owned food cooperative and America’s largest consumer-owned food cooperative in the US. Hamutal Yitzhak, Else Nutrition CEO and Co-Founder said, “Launching at PCC further strengthens our presence in the Pacific Northwest, and is directly on strategy, partnering with like-minded partners who support sustainability, organic and better-for-health food options.”
Sustainability, health consciousness, and the desire to protect the environment are some of the factors driving the growth of the plant-based and alternative foods markets with companies such as Element Nutritional Sciences (CSE: ELMT) developing solutions to help consumers remain healthy while protecting the environment.
For more information about Element Nutritional Sciences, please visit this link.
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