NetworkNewsWire Editorial Coverage: Plant-based foods are proving they are re not just a passing vegan fancy. Whether its bean-based burgers or veggie pizzas, the plant-based food trend in the North America has grown from virtual obscurity to become an important segment of the North American diet. Several drivers have spurred phenomenal growth in the sector including healthier eating habits, increased concern for climate and limited natural resources, as well as new techniques that have turned boring veggies into tasty feasts. More and more, consumers are opting for simple, wholesome ingredients in products that taste good. This trend only accelerated as the pandemic took hold, evidenced by Nielsen’s report that alternative meat sales increased 454% in the third week of March 2020 compared to the same week in 2019. Nielsen’s data shows that plant-based meat and milk sales skyrocketed, far outpacing conventional meat and milk sales as Americans stocked up on food during the pandemic. This giant wave of plant-based food demand doesn’t appear temporary but likely represents a lasting shift in consumer preferences. Not counting the pandemic surge in growth, the plant-based food sector ballooned over 33-fold during the last 15 years, with no signs of slowing. As a result, plant-based online groceries are also thriving as sustainability-focused products are growing more than five times faster than other product categories, generating the highest growth in the consumer goods sector. Operating at the intersection of three high-growth sectors — plant-based products, e-commerce/technology and consumer-packaged goods — PlantX Life Inc. (CSE: VEGA) (Frankfurt: WNT1) (OTCQB: PLTXF) (Profile) is fast becoming the premier digital interface for plant-oriented consumers. As the first public company known to be fully focused on the plant-based e-commerce space, PlantX intends to leverage its first-mover status to become the global go-to place for everything plant-based. As it works to become, first and foremost, an e-commerce platform that carries multiple plant-based brands under one roof, PlantX looks to be following the model implemented by Amazon.com Inc. (NASDAQ: AMZN), which has become renowned for carrying a huge variety of products under one roof. PlantX is also following steps taken by both Amazon and Apple to succeed through both educating and serving its customers. Others in the plant-based sector, including Beyond Meat Inc. (NASDAQ: BYND) and The Very Good Food Company Inc. (OTCQB: VRYYF), have a narrower focus on the development and sale of alternative meats, while US Vegan Climate ETF (NYSE ARCA: VEGN) has made a significant commitment to sustainability by not investing in any company that hurts the environment or harms animals.
- Plant-based industry not a temporary trend but a sustainable, long-term movement.
- Plant-based food sector growing at 11.9% CAGR to reach $74 billion by 2027.
- PlantX Life Inc. building loyal community of plant-based food advocates.
- PLTXF carving substantial niche in exploding market, enjoying huge growth trajectory.
Health Plus Sustainability Plus Profitability
Beyond altruistic reasons such as climate, natural resources and sustainability, consumers are gravitating to plant-based foods for health reasons and then staying for taste. Most cultivated burgers get excellent reviews, many with five-star ratings, and consumers continue to drive market demand upward. An astonishing 51% of consumers report that they’ve added plant-based products to their diet, with 34% noting that they consume plant-based protein daily.
This groundswell has opened new vistas of opportunity for plant-based products, which can supply high nutritional value while enhancing environmental sustainability. In fact, new studies reveal that cultivated meat produced using renewable energy reduces global warming impacts by 92% compared to conventional beef production — and will be able to compete on costs in under 10 years. However, the market for plant-based foods isn’t waiting a decade; the space has already picked up a head of steam. The once-languid, plant-based food sector is projected to boom, growing at an eye-popping CAGR of 11.9% from 2020 to 2027, exceeding $74 billion by 2027.
Little wonder that plant-based food producers have attracted investment from venture capital firms and major meat supply companies. Investment in the U.S. plant-based meat, egg and dairy companies in just the first quarter of 2020 was a staggering $741 million, nearly much as all of 2019. Big money recognized the market opportunity and is quickly moving to capitalize on the global shift in the way meat is produced. Big money is seldom wrong and is hot on the trail of the next big money maker.
At the Intersection
With a seismic shift afoot, PlantX Life Inc. (CSE: VEGA) (Frankfurt: WNT1) (OTCQB: PLTXF) is in a unique position, right at the intersection of some of the highest-growth sectors in the market. In addition to plant-based products, PlantX is an accomplished e-commerce/tech company, efficiently connecting consumers to everything plant-based. The company is snatching market share, leveraging the exponential market growth of the plant-based, e-commerce and home-delivery industries. PlantX operates much like Amazon, except with a focused plant-based selection of offerings; this also includes carving a niche in the plant-based pet foods space.
People food, however, is a much bigger market. With its fast-growing category verticals, the company provides customers across North America with more than 10,000 plant-created products and offers a wide variety of other products and personalized services on a single, easy-to-use platform. Shoppers can browse through a curated selection of more than 20,000 items, including 20 unique, premade meals designed by top vegan chefs and nutritionists. More than just another e-commerce platform, PlantX is committed to building a loyal community of plant-based advocates who interact on the platform sharing like and dislikes as well as recipes and restaurant suggestions.
PlantX actively nurtures this allegiance while positioning itself to become the premier digital interface for plant-based consumers across the globe. Already ahead of the curve in shifting consumer preferences, the company’s user-friendly platform provides access to one of the largest product offerings in the entire plant-based sector. There’s a plethora of plant-based grocery items and everything to fill the pantry, even plant-based vitamins, cosmetics, pet food and its own water brand; the company is even expanding its product lines to include clothing. PlantX is unique in its array of offerings beyond just food and pantry items.
The company provides fantastic fast-delivery meals created from the recipes of well-known vegan chefs across the world. The company also has a plant shop, delivering a variety of indoor houseplants to consumers across North America and even, through its 2020 acquisition of Bloombox Club UK, expanding into the United Kingdom. The PlantX e-commerce platform efficiently connects consumers with interactive PlantX brick-and-mortar stores and a burgeoning variety of products and services. While building this disruptive juggernaut of plant-based ecommerce, PlantX enjoys substantial profit margins across its verticals.
As a young company, PlantX is exceeding expectations. The company’s overarching strategy to capitalize on high-grow trends and continued cultivation of a loyal customer base has produced amazing early results. For the three months ended December 31, 2020, PlantX posted a 298% increase from Q2 gross revenue and over the same period achieved a gross margin of 20%, an increase from 5.7% in Q2. The company’s phenomenal success during what’s normally the slowest period of the year underscores the tremendous traction PlantX is getting in the plant-based marketplace. The stellar growth is being driven by a combination of factors including marketing and branding efforts, strategic partnerships, and delivering exactly what consumers want.
Commenting on the blow-out quarter, PlantX CEO Julia Frank stated. “It is truly encouraging to achieve yet another incredible revenue milestone and to start the new year with such vigor and success. There are many other colorful growth opportunities on the horizon, and we’re confident that our financial trajectory will reflect the remarkable and increasing value our Company brings to the plant-based industry.”
The Start of Something Big
“Since PlantX has so many different verticals, it has seen tremendous growth from every angle,” Forbes reported. The company is leveraging its recent success and growth trajectory to build a global plant-based ecommerce juggernaut and become the “vegan Amazon.” PlantX is nurturing and growing its online community, expanding its vegan lifestyle platform and building an entire ecosystem around plant-based living. The company intends to aggressively scale through organic growth, strategic partnerships and accretive M&A opportunities. PlantX has formulated a global expansion strategy with targeted distribution in North America, Europe and Israel.
The company recently announced intentions to expand its e-commerce platform into Israel, which will include a future brick-and=mortar PlantX location in the country. Further brick-and-mortar locations are set to open in California and British Columbia. PlantX also began the process to be listed on the NASDAQ at the beginning of this year and is preparing for uplisting in the next few months. PlantX value skyrocketed from zero dollars in revenue in April 2020 to generating $1 million gross monthly revenue in only a year, and all indications point to that being the start of something much bigger.
Sustainability is imperative for the protecting vital natural resources and preserving the planet. Ever more public companies are incorporating sustainability into their corporate ethos.
Beyond Meat Inc. (NASDAQ: BYND) is one of the fastest-growing food companies in the United States, offering a portfolio of revolutionary plant-based meats made from simple ingredients without GMOs, bioengineered ingredients, hormones, antibiotics or cholesterol. Beyond Meat products are designed to have the same taste and texture as animal-based meat while being better for people and the planet. Beyond Meat’s brand commitment, Eat What You Love™, represents a strong belief that there is a better way to feed the future and that positive choices made, no matter how small, can have a great impact on personal health and the health of the planet.
The Very Good Food Company Inc. (OTC: VRYYF) is an emerging plant-based food technology company that designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. The company’s mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. To date the company has developed a core product line of plant-based meats under The Very Good Butchers brand. The Very Good Food Company butchers beans for vegan meats handcrafted with real, whole-food ingredients.
Amazon.com Inc. (NASDAQ: AMZN) has committed to building a sustainable business for customers and the planet and sells many plant-based foods on its platform. The company engages in the retail sale of consumer products and subscriptions in North America and internationally. Amazon operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores.
US Vegan Climate ETF (NYSE ARCA: VEGN) aims to address the concerns of vegans, animal lovers and environmentalists by avoiding investments in companies whose activities directly contribute to animal suffering, destruction of the natural environment and climate change. The fund does not invest in any company involved with animal testing, animal-derived products, animal farming and animals used in sports or entertainment. Also excluded are fossil fuel companies, those that burn fossil fuels for energy production, and any company with a significant carbon footprint or history of environmental destruction. Tobacco, military and defense companies are also eliminated, along with companies tied to human rights abuses.
The plant-based foods movement has all the earmarks of a megatrend spurred by concerns for health and for the planet. The plant-based food sector is expected to flourish in the years to come, and early entrants could enjoy outsized returns.
For more information about PlantX Life Inc. (CSE: VEGA) (Frankfurt: WNT1) (OTCQB: PLTXF), please visit PlantX Life Inc.
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