Meat and Dairy Alternatives (Plant Based Food)- a Multi-bagger Industry In Making

Dairy substitutes (plant-based milk) and plant-based food industry…certainly a good bet for private equity companies and venture capitalists

Words like dairy alternative, plant-based milk, plant-based food, vegan food and meat substitutes are gaining a lot of traction these days. Consumers are taking a lot of interest in innovative food products being launched in the market, that are plant-based.  These products mimic/are replacements of either non-vegetarian food products or conventional dairy (milk-based) products. There are several reasons for this. Consumers are realizing the health benefits of plant-based food products and are adopting food habits that will keep them fit and reduce various health problems like cholesterol, heart problems, diabetes and others.

Dairy substitute and plant-based food industry is fascinating private equity companies and venture capitalists

The surging demand for meat substitutes and dairy alternatives has caught the interest of private equity companies and venture capitalists too. The industry is attracting investments from reputed private equity firms across the globe. Moreover, venture capitalists are not shying away from funding startups that are coming up with such innovative ideas.


Here are a few potential investments in the meat substitute (plant-based food) and dairy alternative industry

  1. In 2020, Impossible Foods, a Silicon Valley based company raised $500 and $200 million in two consecutive rounds of funding. The company will utilize the money for expansion of its product line and further innovations. Impossible Foods is considered to be a rival of Beyond Meat, which is a famous faux meat producer.
  1. Blackstone Group Inc., a leading private equity company invested in Oatly, a Swedish oat milk producer. Oat milk is among the fastest growing segment in the plant-based milk industry. The demand for oat milk has more than doubled in the United States from 2019 to 2020. Oatly is expanding globally at a rapid pace and the company presently operates in over 25 countries across the globe.
  1. Calfia Farms, headquartered in the U.S., is another very innovative startup in the dairy alternatives industry. Its main product line in the milk alternatives category includes almond milk, oat milk, coconut milk and plant-based butter. The company raised $225 million to expand its milk alternative product line. The main investors in the funding round were Qatar Investment Authority, Temasek, Claridge and Green Monday Ventures.
  1. Good Planet Foods is another very potential company in the list. The company raised $12 million in 2020, which it is going to utilize to expand its plant-based cheese portfolio. Plant-based cheese is a very niche product segment presently. However, the product is gaining attention from non only among the vegan population but others as well.

Industry offers ample business opportunities…

Similar to products like plant-based (vegan) meat and dairy substitutes there are more number of startups entering into innovative product segments such as plant based yogurt, cheese and ice-creams. In 2021, around 15% of the global population is vegetarian and close to 5% is vegan. Moreover, over 50% of the global population has difficulty in digesting lactose. This statistic is indicative of the huge business opportunities that the market has to offer.

Over 80% of the startups in the dairy alternative and faux meat industry have originated from either North America region or Europe. There is a very clear reason behind this which is more health problems due to dietary habits and high purchasing power. Consumers in these markets are willing to pay extra for the sake of good health and natural ingredients. As usual, the trend is quickly being adopted in the emerging countries. Asia Pacific region holds over 55% of the world’s population. Rising middle class and changing lifestyle is the reason why global players are vying to expand into and capturing these markets.

Datavagyanik can help you…

Datavagyanik is helping private equity companies and venture capitalists in identifying investment opportunities in fast growing industries. We help you identify themes where your money will grow exponentially. We can also identify acquisition and investment targets (companies that you can acquire or invest in), for you, across the globe.

##Related tags – private equity and venture capital investment in dairy substitute, private equity and venture capital investment in plant-based milk, dairy free milk, milk alternative, vegan milk

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