FinancialNewsMedia.com News Commentary
Unlike many markets, the outbreak of the pandemic has positively affected the global plant-based food ingredients market, owing to a rise in health consciousness, especially among people after COVID-19. People are dynamically changing their preferences from conventional food to organic, Plant-based, and clean-label foods & beverages products. Plant-based food ingredients are extracted from fruits, vegetables, plant roots, and other parts of the plant. It is majorly used in certified Plant-based food & beverages. Food ingredients are any substances that can be added to get the desired effect in foods & beverages. It is added to food to impart specific functional qualities such as sweeteners, which are added to get desired sweetness and preservatives to retard spoilage, whether from microbial growth or undesirable chemical changes. Rise in the adoption of vegan culture, growing health conscious among people, and increase in concerns for animal welfare are some of the major attributes influencing demand for Plant-based foods. This propels the growth of the Plant-based food ingredients market. A report from Allied Market Research projected that the Plant-based food ingredients market size was valued at $2,895.6 million in 2020, and is estimated to reach $12,341.4 million by 2030, registering a CAGR of 15.3% from 2021 to 2030. Active Companies in the markets today include Nepra Foods Inc. (OTCPK: NPRFF) (CSE: NPRA), Tattooed Chef, Inc. (NASDAQ: TTCF), Beyond Meat, Inc. (NASDAQ: BYND), Oatly Group AB (NASDAQ: OTLY), ELSE NUTRITION HOLDINGS INC. (OTCQX: BABYF) (TSX: BABY).
The Allied Market Research report said: “According to the plant-based food ingredients market trend, based on type, the emulsifiers segment was the highest contributor to the market, with $738.4 million in 2020, and is estimated to reach $2,305.0 million by 2030, at a CAGR of 11.8% during the forecast period. Emulsifiers are used to create and maintain emulsions that help reduce food waste and calories to replace fat. They are added to food to create a smooth texture, prevent separation and extend shelf life. Plant-based emulsifiers are majorly used in the foods & beverages industry, owing to their versatile applications such as smooth mixing of ingredients, prevention of separation, stability of emulsified products, reduction in stickiness, control crystallization, dispersed ingredients, and easy product dissolution. The Plant-based emulsifiers segment is driven by an increase in demand for Plant-based food and premium products. According to the Plant-based food ingredients market opportunities, Region-wise, North America garnered a considerable share in the market… and is expected to maintain its share throughout the plant-based food ingredients market forecast period.”
Nepra Foods Inc. (OTCPK: NPRFF) (CSE: NPRA) BREAKING NEWS: Nepra and Scoular Announce Manufacturing and Distribution Partnership for Specialized Plant-Based Ingredients – Nepra Foods Inc. (the “Company” or “Nepra”), and Scoular today announced a manufacturing and distribution partnership for specialized plant-based ingredients.
The partnership provides for co-development and collaboration on sales and marketing between Nepra, creator of nutritious plant-based and allergen-free food, and global agribusiness company Scoular. New product development, under the co-branded partnership, will utilize Nepra’s innovative research and development team, in addition to specialty ingredients from both companies. The partnership also enables Scoular to offer Nepra products through Scoular’s global supply chain network, benefiting both companies.
“This partnership with Scoular represents a transformational step for Nepra and its ability to continue pushing the boundaries of novel food development and broadening market access,” said Chadwick White, CEO of Nepra Foods. “Scoular is a leader within the agricultural supply chain and a pioneer in bringing new, healthy, clean-label ingredients to market. With this partnership, Nepra can penetrate previously inaccessible markets and brands both domestically and internationally.”
“Our partnership with Nepra is a great example of Scoular boosting our gluten-free product development capabilities,” said Brian Hansen, General Manager for Food Innovation. “It is also an example of how the food industry is becoming increasingly collaborative, enabling companies to combine their expertise to bring new products to the market.” CONTINUED… Read this full release for Nepra Foods at: https://www.financialnewsmedia.com/news-npra/
Other recent developments in the markets of note include
Beyond Meat, Inc. (NASDAQ: BYND), a leader in plant-based meat, recently reported financial results for its fourth quarter and full year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights Were: Net revenues were $79.9 million, a decrease of 20.6% year-over-year; Gross profit was a loss of $2.9 million, or a gross margin of -3.7% of net revenues; the Net loss was $66.9 million, or $1.05 per common share. Net loss as a percentage of net revenues was -83.6%; and Adjusted EBITDA was a loss of $56.5 million, or -70.7% of net revenues.
The full Year 2022 Financial Highlights Were: Net revenues were $418.9 million, a decrease of 9.8% year-over-year; Gross profit was a loss of $23.7 million, or a gross margin of -5.7% of net revenues; the Net loss was $366.1 million, or $5.75 per common share. Net loss as a percentage of net revenues was -87.4%; and Adjusted EBITDA was a loss of $278.0 million, or -66.4% of net revenues.
Tattooed Chef, Inc. (NASDAQ: TTCF), a leader in plant-based foods, recently announced financial results for the third quarter that ended September 30, 2022 (“Q3 2022”).
Third Quarter 2022 Financial Overview Compared to Third Quarter 2021 Were: Net revenue of $54.1 million compared to $58.0 million; Gross loss of $(3.9) million, or a gross margin of (7.2)%, compared to gross profit of $5.0 million, or a gross margin of 8.6%; Net loss of $38.5 million; and Adjusted EBITDA loss of $25.5 million.
“We are disappointed in our third quarter results but remain committed to making Tattooed Chef a household name brand that generates value for our shareholders for years to come,” said Sam Galletti, President, and CEO. “As previously announced, we have developed and are now executing a plan that we believe will put us on a path toward sustainable growth and profitability. Tattooed Chef holds a distinct position in our industry as a vertically integrated, value-added plant-based food company. We believe that the steps we are taking will help magnify these operating advantages and – when combined with a variety of ongoing expansion and efficiency initiatives – should position us to realize annual cost savings of approximately $30 million by year-end 2023 and achieve positive EBITDA and cash flow by or around mid-year 2024.”
Oatly Group AB (NASDAQ: OTLY), the world’s original and largest oat drink company, recently announced that it will report financial results for the fourth quarter and full year ended Dec. 31, 2022, on Wednesday, March 15, 2023, before the U.S. market opens. Oatly will host a conference call and webcast at 8:30 a.m. ET on the same day to discuss the results.
The conference call and simultaneous live webcast can be accessed on Oatly’s Investors website at https://investors.oatly.com under “Events.” The webcast will be archived for 30 days.
ELSE NUTRITION HOLDINGS INC. (OTCQX: BABYF) (TSX: BABY), recently announced that it has begun manufacturing in a second powder production facility in the US and that it will perform the first commercial production in Europe in March 2023. The additional production facilities more than triple Else’s production capacity.
Until the end of 2022 Else Nutrition had a single powder manufacturing plant that supported its sales in North America and globally. The addition of the two new production facilities will allow Else to satisfy the fast-growing retail demand from brick-and-mortar retailers and online sales from Amazon and Else’s e-store. The additional production will reduce the risk of future out-of-stock dramatically.
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