amiMay 15, 2021
The prevalence of plant-based food and meat alternatives have observed to be constantly rising across countries like New Zealand, United States, Canada, Sweden and Germany. According to studies, in 2018, the demand for plant-based meat grew 37% compared to last two years. The most demanded form of plat-based meats across United States included burgers followed by nuggets, strips and cutlets. Rising demand for plant-based food and meat alternatives is influencing investment across the industry. According to the Good Food Institute, the investment in the plant-based meat, egg, and dairy alternative companies in the first quarter of 2020 across United States accounted for US$ 741 Mn. However, in 2018, the total investment in the plant-based market in the country accounted for US$ 673 Mn, out of which venture capital was the most common source of funding, representing 43% of the total investment. The other type of investment in the plant-based food market involved individual investments and corporate investments. These investments have encouraged indigenous food companies across the country to establish their presence in the vegan food market. For instance, in April 2020, Blue Horizon Ventures declared planned investments in four plant-based food companies including Alpha Foods, Love Raw, Veestro, and The Live Kindly Co. The company aims to invest in these companies to specifically support a healthy and sustainable food consumption practice. Moreover, the major companies investing in these plant-based food manufacturing companies are impact investors who strategically focuses on investments that have a social impact. For instance, companies like New Crop Capital and Stray Dog Capital amongst others are investing in the market to popularize vegan food culture and simultaneously monetize on the growing demand of plant based food and alternatives. Thus, the growing investment by these corporate investors in the plant-based food manufacturing companies is driving the growth of the vegan food market across the globe.