#ChiVentureSummit Future-of-Food, #FoodInnovation

For a variety of reasons, ranging from health benefits and environmental concerns to animal welfare, an increasing number of consumers have adopted a diet of plant-based, protein-rich foods. To meet this growing demand, innovative companies have developed new products based on advanced technologies, but demand far exceeds their capacity to meet it.

For consumers, these foods present a number of attractions. Medical studies have shown, for example, that a plant-based diet may help to lower blood pressure and cholesterol levels, may reduce the risk of cancer and may even control the impact of type 2 diabetes. Environmentally, the production of plant based foods may potentially require less land, consume less freshwater and emit fewer greenhouse gasses than more conventional animal-based products.

By eliminating animal products from their diet, consumers can also potentially reduce their carbon footprint by as much as 40 per cent while contributing to the restoration of native forests, prairie land and the natural habitats of threatened and endangered species.

To meet this growing consumer demand, innovative companies have developed [a wide variety of] plant-based, protein-rich foods that taste good, too.

According to Bloomberg Intelligence, the global market for plant-based foods could see fivefold growth by 2030. Sales of plant-based dairy and meat alternatives reached $29.4 billion in 2020, and could increase to $162 billion by 2030, comprising 7.7% of the global protein market. Compared to industrialized animal agriculture, plant-based meat production currently accounts for about one percent of the meat market in the United States and closer to one-tenth of a percent globally. Forces like urbanization, population growth and an expanding global middle class are all anticipated to lead to greater demand for protein.

One sector of the plant-based, protein-rich food industry that is strategically positioning itself to take advantage of this forecasted growth in global protein demand is food manufacturing. This sector consists of:

1. multinational animal-based food companies (Tyson, JBS and Nestlé) that are pivoting to mass production of plant-based, protein-rich offerings;
2. large, pure play, early adopters (Beyond Meat, Impossible Foods) that have captured substantial amount of market share with their first mover advantage; and
3. numerous newer, younger entrants focusing on unique, proprietary ingredients, products and processes (Planting Hope Company, General Assembly Holdings, Odd Burger Corporation, The Very Good Food Company, Sol Cuisine Ltd., Green Rise Foods Inc., Organto Foods Inc., Else Nutrition Holdings Inc., CubicFarms Systems Corp., Pontus Protein Ltd.)

Regardless of where these food manufacturing companies operate within the industry sector they must all transition through the phases of R&D, technology and intellectual property as quickly as possible towards large-scale production. Only by achieving greater economies of scale will these food manufacturers become cost-competitive and in turn be able to take advantage of the potential increase in global demand for protein based foods.

Whether you want to support the rising acceptance of plant-based, protein-rich foods or simply get involved in this rapidly growing market, Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) lists companies along the entire industry vertical. Companies listed on TSX and TSXV range from early-stage start-ups to traditional food companies with multi-billion-dollar market caps transitioning from animal-based products to plant-based foods.

Currently, more than 30 listed companies, with a combined market capitalization of more than C$130 billion, are involved in the plant-based food industry. Most recently, a Chicago plant-based food & beverage company, Planting Hope (TSXV: MYLK), went public on TSXV raising an aggregate C$18 million since its IPO.?

Contributor: George Khalife - Vice President, U.S. Capital Formation, TMX Group