The growth in plant-based foods is accelerating all around the world as consumers’ preference for sustainable, healthier foods continues to grow. Bloomberg Intelligence estimate the global plant-based food market will grow 451% from $29.4 billion in 2020 to $162 billion by 2030. This plant-based boom is expected to be supported by an expanding set of product options across the plant-based industry including vegan dairy and plant-based meat. One company is particularly well positioned to benefit from the plant-based boom: PlantX Life Inc (CNSX:VEGA).
The drivers of the plant-based food boom
There are two main drivers of the plant-based food boom. Firstly, consumers are increasingly demanding plant-based foods driven by growing health and sustainability awareness, the trend towards veganism, a growing population of lactose intolerant people, and increasing concern for carbon emissions and the environment. And secondly, food manufacturers are rapidly innovating in the plant-based food market which is resulting in the development of next-generation plant-based meat, egg, and dairy products. Both these market drivers are long-term and structural in nature which explains why a plant-based boom is expected in the coming decade.
PlantX: Building the Amazon.com of the plant-based community
PlantX Life Inc (PlantX) is building a one-stop shop digital platform for all plant-based products, and by doing so it is positioning itself as the online face of the plant-based community. The company already distributes more than 10,000 plant-based products including groceries, frozen meals, beverages, and other wellness products, while its product range will soon be extended to include cosmetics, clothing, and its own water brand. PlantX has also partnered with a number of leading vegan brands such as BESTIES Vegan Paradise , Nootka & Sea , and Upmeals .
The company is building a plant-based health and lifestyle community and ecosystem around its hub market position. PlantX’s like-minded customer base benefit by being connected to the company’s community, and are able to access plant-based education from leading nutritionists, chefs, and companies including Matthew Kenney, Venus Williams, and Justin Fields. As its community expands, PlantX benefits from growing competitive advantages as it builds upon its position at the center of the plant-based industry. The company is adopting a similar strategy to Amazon.com focused upon exceeding customer expectations by providing its customers with the plant-based products and services they need to live longer, healthier, and happier lives.
Impressive revenue growth with visible drivers
PlantX’s strategy is working as its revenue growth is accelerating. The company recently announced 168% year-on-year growth in its March gross revenues to $1.7 million reflecting market share growth as well as the plant-based food sector’s tailwinds.
Looking forward, PlantX is positioned to continue generating impressive revenue growth as the company acquires brands and launches them on its platform. For example, PlantX recently acquired Little West, a cold pressed juice business based in California. Once the company on-boarded Little West’s products onto the PlantX platform, Little West’s revenue growth accelerated dramatically. In March , Little West experienced 145% year-on-year revenue growth driven by a 16% increase in the average order value and a 136% increase in the number of online store visits.
In the coming years, PlantX’s revenue growth will be primarily driven by the roll out of more acquired brand-names on its platform. As new brand-names and products are added, the company will benefit from a revenue uplift driven mainly by strong growth in online store visits reflecting PlantX’s growing position as the hub of the plant-based community. It’s a prudent and repeatable formula.
PlantX well positioned to outperform long term
PlantX is executing on its plan to become a one-stop shop digital platform for all plant-based products. By acquiring more brand-names and partnering with more plant-based product leaders, the company is positioned to drive very strong revenue growth for many years to come. The structural tailwinds behind the plant-based food sector are here to stay, and PlantX is actively increasing its market share by expanding its product range. The stock offers investors an unusually defensive growth profile, and is well positioned to outperform over the long term.