Wednesday, July 24, 2024

New Report Reveals Emerging Investment Opportunities in the Plant-Based Ingredients Sector

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Asit C. Mehta Investment Intermediaries (ACMIIL), a trusted equity research house , has published a comprehensive report titled “From Roots to Riches: Creating Wealth with Plant-Based Ingredients!”

This in-depth report uncovers the vast, untapped potential of the plant-based ingredients sector, highlighting investment opportunities within this rapidly growing industry. It outlines strategic recommendations for investors and businesses to leverage these opportunities, emphasizing the importance of innovation, efficient distribution, and government support in driving market growth.

Globally, the market for plant-based ingredients is projected to reach $120 billion by 2029, up from its estimated value of $60.71 billion in 2022, growing at a CAGR of 10.32%. The report emphasizes that plant-based ingredients extend far beyond the food industry, with applications in pharmaceuticals, cosmetics, textiles, and various other sectors.

This widespread usage presents unique and lucrative investment opportunities. The global shift towards sustainability, ethical consumption, and health consciousness is fueling increased demand for plant-based ingredients. Investors can capitalize on this structural shift, benefiting from the expanding market and premium pricing of plant-based products.

Notable companies operating in the plant-based ingredients industry include Adani Wilmar Ltd, Sanstar Ltd (proposed IPO), Manorama Industries Ltd, Food & Inn, and Gujarat Ambuja Exports Ltd. Apart from these companies, top brands like Gucci, Louis Vuitton, Hermes, Stella McCartney, Prada Group, and Givenchy are developing vegan leather products made from plant-based sustainable materials. Furthermore, seed-extracted butter is replacing chemical-based cosmetics and foods.

New Policy Initiatives in the Plant-Based Ingredients Sector: The sector’s growth is supported by the Indian government’s progressive policies, such as the PM Formalisation of Micro-Food-Processing Enterprises Scheme, National Mission on Edible Oils-Oil Palm (NMEO-OP), and the Pradhan Mantri Kisan Sampada Yojana (PMKSY). These initiatives aim to create modern infrastructure, enhance supply chain efficiency, formalize the unorganized food-processing business, and reduce agricultural waste, thereby driving sector growth.

Additionally, the National Institute of Nutrition (NIN) and the Indian Council of Medical Research (ICMR) have proposed new guidelines emphasizing stringent limits on sugar content in foods and beverages. These guidelines are poised to positively impact the plant-based ingredients sector.

Talking about the sector, Prasanna Pathak, Director, ACMIIL, said, “As plant-based natural extracts sector expands exponentially backed by industry innovation and global demand, it promises to deliver substantial returns, making it a compelling addition to any forward-looking investment portfolio. Those who judged this sector as beyond-commodity specialty products generated wealth while contributing to the development of the organic and vegan world.”

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