Plant-based Ingredients: A Growing Goldmine For Investors

Asit C Mehta Investment Intermediates (ACMIIL), an equity research firm, has released an insightful report titled "From Roots to Riches: Creating Wealth with Plant-Based Ingredients!" This report uncovers the untapped potential of the plant-based ingredients sector and highlights the lucrative investment opportunities within this rapidly expanding industry.

Global Market Expansion

Globally, the plant-based ingredients market is expected to double, reaching an impressive USD 120 billion by 2029, up from USD 60.71 billion in 2022. This growth, at a compound annual growth rate (CAGR) of 10.32 per cent, signals a significant opportunity for investors.

Beyond Food: Diverse Applications

The report emphasises that plant-based ingredients are not limited to the food industry. They find applications in pharmaceuticals, cosmetics, textiles, and more. This broad usage, coupled with a global shift towards sustainability and health consciousness, is driving increased demand. India's dynamic ecosystem and shifting consumer preferences are positioning the country as a key player in this industry.

Capitalising on India's Market

Investors can benefit from the expanding market and premium pricing of plant-based products. The export market for India’s plant-based sector is projected to grow substantially by 2030. Manorama Industries exemplifies this potential, delivering 16x returns since its listing in 2018. Other notable companies in the sector include Adani Wilmar, Sanstar and Gujarat Ambuja Exports.

Everyday Impact

Plant-based speciality products, derived from renewable and natural sources like sal seed butter and menthol extract from mint leaves, are increasingly preferred by consumers. Luxury brands like Gucci and Louis Vuitton are creating vegan leather products from plant-based materials, and seed butter is replacing chemical-based cosmetics and foods.

Government Support

The Indian government’s progressive policies are bolstering the sector's growth. Initiatives 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) aim to enhance infrastructure, supply chain efficiency, and reduce agricultural waste.

Health-Conscious Consumer Trends

Health concerns are driving consumers away from white sugar, linked to obesity and diabetes, towards healthier plant-based alternatives like corn starch, agave syrup, and coconut sugar. New guidelines from the National Institute of Nutrition (NIN) and the Indian Council of Medical Research (ICMR) limiting sugar content in foods and beverages are expected to boost demand for low-sugar and sugar-free options.

Devang Shah, Head of Retail Research at ACMIIL, stated, “The plant-based ingredients market represents a shift towards vegetarian, vegan, and organic products. Investors who seize this opportunity will benefit financially and contribute to a sustainable future. ACMIIL's study provides strategic recommendations for leveraging these opportunities, highlighting innovation and government support.”

Prasanna Pathak, Director at ACMIIL, said, “As the plant-based natural extracts sector grows exponentially with industry innovation and global demand, it promises substantial returns, making it a compelling addition to any investment portfolio.”