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The Plant-based Food Market Boom is Just Getting Started
2021-01-27 08:50:04 AM ET (PR Newswire)
   
   
Plant-based alternatives to animal product foods have been by far the biggest food industry trend of the past few years. Heading into 2021, that growth is showing no sign of slowing. The plant-based food market is set to reach $74.2 billion by 2027 for a CAGR of 11.9% in 2021. As the market grows, companies are now bringing to market products that fit into previously unserved niches in the plant-based food market, while established favorites like the Beyond Burger are still going strong. Consumers have embraced plant-based foods, setting up a market opportunity that is not going away any time soon. Now that the concept is a proven success, established legacy food companies like Kraft Heinz Co (NASDAQ: KHC), Tyson Foods, Inc. (NYSE: TSN), and Kroger Co (NYSE: KR) are establishing and expanding their plant-based offerings to join purpose-built plant-based food companies like Beyond Meat Inc (NASDAQ:BYND) and Else Nutrition (TSXV:BABY) (OTCQX:BABYF) in this rapidly gr owing market.

Else Nutrition Grows US Retail Availability

Israeli-based food and nutrition company Else Nutrition (TSXV:BABY) (OTCQX:BABYF) is one of the leading companies in plant-based nutrition innovation. The company is focused on developing innovative, clean, and plant-based food and nutrition for infants, toddlers, children, and adults. Else's flagship product is a 100% plant-based infant nutrition formula that closely replicates the nutritional profile of human breast milk. All of Else's products are free of dairy, soy, and corn-syrup, and are made with non-GMO ingredients.The company has been rapidly expanding its footprint in the United States market throughout 2020 with a successful e-store and Amazon launch and an ongoing rollout of its products in more than 380 retail locations throughout the United States.

On December 23, Else Nutrition announced a major development in the company's US product rollout. Else announced that the company's plant-based toddler nutrition formula would be carried by major US health food retailer Sprouts Farmers Market. Else formula will be available at more than 360 Sprouts locations throughout the country beginning in February 2021. This partnership between Sprouts and Else Nutrition will dramatically increase the size of Else's footprint in the United States and put the company's products front and center in the eyes of health conscious consumers throughout the country.

"Being on the shelves at Sprouts Farmers Markets is an incredible milestone for our brand," Else CEO and Co-Founder Hamutal Yitzhak said in the company's release. "We are appreciative of the belief and support Sprouts has shown in our line of products, as they become the first natural grocery account to distribute Else on a national level. We have our sights set on being highly accessible across the United States, and this will begin with retailers who share our values and exceptionally high standards for progressive nutrition and 'better-for-you' foods."

Food Companies Expand Plant-Based Options and Availability

Beyond Meat Inc (NASDAQ:BYND), the company largely credited with popularizing the plant-based meat alternatives concept, is continuing to make its products available in a growing number of stores and restaurants. Most recently, the company announced in January that Beyond Meat will be available at Taco Bell restaurants beginning in March.

Kraft Heinz Co (NASDAQ:KHC) was relatively late to capitalize on the plant-based alternatives boom, and is still vastly behind Beyond in market share. The company is looking to catch up, however, particularly in the plant-based cheese and condiments segments. Kraft-owned Philidelpha cream cheese has been researching plant-based alternatives, and Kraft launched vegan mayo and salad dressing options in late December.

US meat giant Tyson Foods, Inc. (NYSE:TSN) is not looking to be left behind in the plant-based craze either. In 2019, the company launched its Raised and Rooted brand of plant-based and hybrid foods. Then, in November 2020, the company retooled the Raised and Rooted lineup to eliminate the hybrid options and go fully meatless. In January, the company added to its plant-based offerings with the introduction of meatless options to its Jimmy Dean breakfast sausage brand.

In October, Kroger Co (NYSE:KR) expanded its in-house Simple Truth brand of plant-based foods with the addition of more than 50 meatless items. These included dairy-free ice creams and desserts, along with plant-based deli slices, 'Chick'n' burger patties, and more.

Plant-based foods as alternatives to animal products are proving to be far more than a food industry fad. Heading into 2021, this segment's growth is only just getting started, along with the significant market opportunities for plant-based food companies like Else Nutrition.