2024 Predictions: The Time Has Come for Investing in Food System Transformation

2023 was such an odd year, but we are seeing the light at the end of the tunnel, at least as it pertains to investing in food system transformation. Here are Dr. Sasha Goodman , Chief Investment Officer at VegTech Invest and my predictions for 2024. We are in the right place at the right time! Read on...

From VegTech Invest Chief Investment Officer, Dr. Sasha Goodman :

1. Continued Surge in Health-Conscious Consumer Spending in Plant-based Foods: The Plant-based Innovation sector is poised for substantial revenue growth in 2024, fueled by an expanding health-conscious consumer base. This trend, as seen in companies like Dole plc with a 42.9% sales increase and Vita Coco and Ingredion Incorporated 's strong earnings, reflects a broader shift towards healthier, sustainable food choices. Whole Foods Market 's ninth annual trend report highlights this movement, emphasizing a return to basic, less processed plant-based ingredients driven by consumer demand. More info: Whole Foods Market Top 10 Food Trends for 2024
2. Expansion of the Plant-Based Protein Segment: The protein sector, especially in bars and protein powders, is projected to maintain its impressive growth trajectory in 2024, with a 39% three-year dollar sales growth rate according to The Good Food Institute (GFI). The rise is driven by innovation and diversification in protein sources by companies like 安海斯 - 布希英博 's EverGrain, SunOpta , and Ingredion Incorporated , signaling robust demand in consumer and B2B markets. More info: GFI 2022 State of the Industry Report
3. Advancements in Technology Will Expand Price Parity: Price is second only to taste as a driver of consumer purchasing. Technological innovation and scaling in plant-based and alternative protein products are critical drivers for sector growth in 2024. The move towards price parity, as seen in the Netherlands with plant-based products becoming more affordable than meat, is expected to pick up in the U.S. and other regions, and boost consumer adoption and market expansion significantly. More info: Food Navigator on Plant-based Price Parity GFI on Price Parity
4. Growth Potential in Small- and Mid-Cap Companies: The Plant-based Innovation sector's small- and mid-cap companies are likely to experience rapid growth in 2024. With the eventual easing of macroeconomic pressures and a decrease in interest rates, these companies may surge at a higher rate than the large companies in the market.More info: Morningstar reports that reduction in interest rates could turn the tide for smaller companies in general
5. Rising Popularity of Plant-based Seafood: Plant-based seafood, a sector that has been gaining momentum, is expected to see significant growth in 2024. Factors like the depletion of natural ocean resources, ocean acidification and global food supply chain pressures contribute to this trend. Whole Foods Market predicts that 2024 will bring innovative and gourmet plant-based seafood products, such as plant-based tinned fish, further energizing the category. More info: Whole Foods Market Top 10 Food Trends for 2024

For more information on investing for financial upside and impact in the sustainable food systems transformation, visit VegTechInvest.com .

From VegTech Invest CEO, Elysabeth Alfano :

1. Acceptance. 2024 is the year of acceptance from governments, private capital and industry leaders that Food System Transformation through protein diversification is a significant way to address business and natural inefficiencies, food insecurity, Climate Change and the financial risk currently borne by governments, companies and consumers. Below is a chart from the 波士顿谘询公司 illustrating that investing in Plant-based Innovation is three times (3x) to forty times (40x) more impactful at reducing Greenhouse Gas Emissions (GhGE) than investing in other green technologies such as alternative building materials, alternative energy and alternative transportation.
2. Financing Food Fast. Sustainable Food System Transformation based on Plant-based Innovation of diversified proteins through plants, fermentation and cell cultivation becomes a large-scale financial opportunity. Investing in the infrastructure, the picks and shovels of the supply chain, remains critical to the growth of the sector.
3. Blended finance. Blended finance will be the financial buzz phrase of 2024. It combines government, philanthropic, Wall Street and private capital to drive innovation and R&D and includes de-risking systems with off take options to ensure that entrepreneurs, companies and farmers won't lose out in moving to a new food system.
4. Bounce Back Better. Even though the election will keep things volatile for another three fiscal quarters, public markets will bounce back before private venture markets. Thus, public market capital and government capital will be funding innovation until venture capital catches up.
5. Race to zero. As the only sector that can reach Net Zero by 2030 according to Mahesh Roy of Institutional Investors Group on Climate Change (IIGCC) investor network, Food System Transformation through diversified proteins becomes a priority for companies trying to meet sustainability goals. Even smaller initiatives, such as shifting cafeterias to be two-thirds plant-based as was the case at COP28, allows companies to say they are on the way to meeting 2030 goals without large spending to do so.

For more information on investing for financial upside and impact in the sustainable food systems transformation, visit VegTechInvest.com .

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