New Industry trend : Plant based Meat Industry in India from investment point of view

 New Industry trend : Plant based Meat Industry in India from investment point of view 

                                                                                                                     Image Source : Internet 

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First of all pardon me for writing after so long time....

As per this blog's peculiarity of  seeking and giving the knowledge about something unique and new topics  from Investment and Financial  World, today I am writing on a this unique yet trending industry topic from investment point of view....

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Blog Topic

Plant based Meat Industry in India

“Change is the only constant thing in the World” – Heraclitus

The emerging innovative industry, named ‘Plant based Meat Industry’ is seems to be evidence of above-mentioned popular proverb. Plant based meat industry is trending as well as booming and blooming in recent times. Along with the unique business model the industry seems beneficial from various perspectives such as health, investment and market capitalization.

 

Brief Introduction about What is exactly a ‘Plant Based Meat Industry’?

Plant based meat is a Cultivated meat in simple terms. It is having mimic properties of actual meat. The final product is considered as a substitute for the real meat. Most precisely, it is a ‘Vegan Meat’.  It is made from plants and it’s prepared in a way that it will feel, taste as well as look like the real meat only. Major ingredients used in the plant-based meat are legumes, lentils, Soyabean, quinoa and more. It also comprises vegetable proteins such as coconut oil, vital wheat gluten, peas and other.

From the health perceptive also, this seems a better option as, according to the experts’ opinion, plant-based meat secures more nutritional value and hence, more beneficial to the health.

 

From the Social Point of view:

Approximately, more than 50 billion chickens are killed per year for the food at global platform. The number of other animals is also significant. Majority of the society components says that is not at all good sign and also one of the main reasons for the social as well as climatic and natural imbalance. It is pushing the society towards the big jeopardy by misbalancing the Geo-cultural segment.

Unhealthy changes in the consumption patterns and significant increase in the greenhouse gas (GHG) emissions has already ranked India India’s agriculture and livestock industry which account for almost 18% of the total national GHG emissions, the third-largest polluter after China and the USA respectively.

 

From the Financial and Industrial Point of view

The plant-based meat industry seems to be promising candidate now days as the product demand along with the awareness about the industry is aggregating day by day. Though, the industry is taking baby steps still the business structure and model about the overall product varieties exhibiting healthy and hopeful insights from the industrial growth point of view. Even from the global to local, markets are selling the products like soya chap in a significant amount.

From the financial perceptive, the industry is showing stellar performances. As per the recent market expertise, the meat substitute that i.e., plant-based meat products’ market is expected to accelerate up to approximately $48.07 million by 2026, along with an average annual growth rate of around 8 per cent between the time space of 2021-2026.

Currently, India is second largest growing industry for processed meat which contributes more than 4% of GDP of India. The online retail market for these products is also contributing majorly for the gearing up this industry on fast space. In the medium term also, the plant-based meat market in India is expected to achieve the noticeable growth up to $493mn in upcoming three years’ time frame.

With the expected CAGR of around 18.53% in long term phase of 2021-2026, India is expected to spend an estimated additional $1.7 trillion by the year 2030 on healthier as well as aspirational foods.

 

Current Major Players in the Plant -based Meat Industry and Peers’ Analysis

Currently, there are very few participants in to the plant -based meat industry. The major players of this industry comprise Vezlay, Ahimsa Food’s Veggie Champ, GoodDot Enterprises, EVO and others.

Additionally, a renowned Indian conglomerate, ITC has entered into the plant-based meat industry with its products such as burger patties and nuggets. Apart from ITC, well-known FMCG food speciality companies such as Nestle, Kellogg’s, Mc-Donald’s Unilever, Cargill and start ups like Beyond Meat Impossible Foods are also steeping into this industry with the strength.  The peers are limited as of now and due to the novice nature of products and process there will be a scenario of ‘Perfect Competition’ among the market players for few years in near term.  

 

In the Nutshell

Though the plant-based meat industry is in the nascent stage now, the global plant protein market which is approximately at $29 billion currently is expected to grow to $160 billion by 2030.The alternative meat industry is growing at fast space of which accounts for around 15% of dominant, alternative dairy product industry.

From Indian market point of view also, the industry and the stocks prevailing these products seems a’ Golden Spot’ from medium- and long-term investment point of view. Though, the risk of initial nascent stages, long tenure and Geo- natural shifts are some risks for the sector, these risks are common to every segment and the industry is expected to handle these issues in near term.

So, based on the all above key points and crux about the plant-based meat industry, it is exhibiting ‘Delicious’ growth in medium to long-term investing phase.

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