Investors can find several signs of growth potential in the plant-based food market with the latest coming from the combination of International Flavors & Fragrances Inc (NYSE: IFF) with Dupont's Nutrition & Biosciences business, Stott said Friday on CNBC. Specifically, part of a slideshow presentation the companies made to explain the merger specifically calls out plant-based food products.
Despite growing demand and potential, one of the bigger issues hurting the plant-based food market is the unfavorable bitter aftertaste present in may products, Stott said. The research firm's conversations with Beyond Meat Inc (NASDAQ: BYND) R&D department point to a revenue uplift potential of four times for the consumer ingredient companies who address these concerns.
Global consumption of beef has doubled over the past 35 years on a per capita basis, he said. The toll this causes to the environment is "huge" and plant-based food can play a role in easing environmental concerns.
Through 2025, animal-based meat consumption per capita is expected to rise by 0.1% while over the same time period the plant-based meat market will increase by 30%, according to the firm's research. But put in perspective, the plant-based food market will be worth just $50 billion, or around 5% of the total addressable market.