There is a move afoot by some in politics and health care to push people to consume more plant-based foods. Hard to say if a change in the national/global diet is warranted, but we learned in grade school that balance and moderation were the keys to good health.
We see the appeal of healthy eating and that farmers can feed far more people if they eat plants versus eating chicken, beef, or pork. Depending on the calculation method, it takes 2.5 pounds of grain to produce a pound of meat. If you consider grass-fed cattle, it takes 7 to 25 pounds of grass to make a pound of beef.
That being the case, it makes sense to consider a diet heavier in plants as humans take the steps necessary to feed a growing global population. We look for investment opportunities in this space, but the pure-play companies are more like public venture startups than stable growing mature companies. As a result, we have not liked the valuation investors put on these high-risk investments so we have focused our efforts elsewhere. They are just too high for our taste. That said, we keep searching and learning. Someday there will be a promising opportunity to consider.
Timeline: The Rapid Evolution of Plant-Based Alternatives
From plant-based “Chick’n” Tenders to dairy-free “Mylk,” consumers are spoilt for choice for alternative products on the market.
With an explosion of new options hitting shelves at lightning speed and consumers growing more knowledgeable of plant-based diets, a shift towards eating less meat is being felt across the globe. But how did this movement come to be?
The infographic below from Billy Goat Brands (CSE: GOAT) (“GOAT”) maps out the most notable milestones in the last two decades that have contributed to the evolution of this growing market. Let’s dive in.
Key Events
Although it may feel like we are undergoing a massive transformation when it comes to alternatives, vegetarianism is nothing new. In fact, meat alternatives like tofu have been around since as early as 200 BCE.
Since then, many cultures have made plants a staple in their diet, and as of 2021, there was an estimated 79 million people in the world who eat strictly plant-based.
In the table below, we break down the milestones of note that contributed to the growing plant-based market over the last 20 years:
Despite disruptions in the supply chain, 2020 proved to be a pivotal year for alternative products to move into the mainstream, with more people realizing the many benefits of a plant-based lifestyle.
U.S. retail sales in 2020 shot up by a whopping 27% as a result, reaching $7 billion according to the Good Food Institute.
The Benefits of Eating Plant-Based
Plant-based alternatives can provide the same, if not more, nutrients and protein as meat and dairy products. In fact, there is a long list of reasons why you should eat plant-based, as many alternatives on the market have proven to:
- Contain lower saturated fats
- Help lower cholesterol
- Help lower cardiovascular risks
On top of the health benefits, plant-based alternatives have also been shown to be a better option for the planet:
- Reduce reliance on more resource-intensive production processes
- Produce lower GHG emissions
- Require less water and land use compared to conventional meat production
Ultimately, the reasons for reaching for healthy alternatives far outweigh the benefits of eating conventional meat products.
Investing in the Next Generation of Food
GOAT is a unique platform that gives investors access to a diverse selection of health-conscious, sustainability-focused, and ESG-driven companies in the alternatives space, including The Vegetarian Butcher.
As Canada’s one-stop-shop for high-quality plant-based alternatives, The Vegetarian Butcher has recently announced its ambitious plan to open a third brick and mortar store after just five years in business.
Will you invest in the future of food?
article courtesy of Visual Capitalist
Photo by Alisha Mishra from Pexels
