Plant-Based Ingredients: A Lucrative Investment Opportunity, According to ACMIIL Report

ACMIIL Report Highlights Investment Opportunities in Sustainable Plant-Based Products

Asit C. Mehta Investment Intermediates (ACMIIL), a leading equity research house, has released a comprehensive report titled “From Roots to Riches: Creating Wealth with Plant-Based Ingredients!” The report highlights the vast potential of the plant-based ingredients sector and the investment opportunities it presents.

The global plant-based ingredients market is expected to surge from an estimated $60.71 billion in 2022 to a staggering $120 billion by 2029, reflecting a compound annual growth rate (CAGR) of 10.32%. Investors who have overlooked this sector as a mere commodity are urged to reconsider, as it holds immense potential for value-added expansion and wealth generation.

The report emphasizes that plant-based ingredients extend beyond food, finding applications in pharmaceuticals, cosmetics, textiles, and more. This widespread use creates a unique and lucrative opportunity for investors. The global shift towards sustainability, ethical consumption, and health consciousness is fueling the demand for plant-based ingredients.

India: A Powerhouse in Plant-Based Ingredients

ACMIIL’s report identifies India as a significant player in the plant-based ingredients industry, due to its diverse ecosystem and evolving consumer preferences. The export market for India’s plant-based sector is projected to expand substantially by 2030, presenting a lucrative opportunity for investors seeking to capitalize on this expanding market.

The report cites Manorama Industries as a prime example of the sector’s potential, delivering a staggering 16x return on investment since its listing in 2018. This success story exemplifies how companies focusing on specialty plant-based products can generate significant wealth while contributing to a more sustainable future.

From Seed to Shelf: Plant-Based Ingredients in Everyday Products

Plant-based specialty products and ingredients are derived from renewable sources like sal seed butter, maize starch, and menthol extract. As consumers become more environmentally conscious, these natural alternatives to synthetic materials are gaining popularity. Leading fashion brands like Gucci and Louis Vuitton are now developing vegan leather products made from plant-based materials. Additionally, seed-based butters are replacing chemical-based ingredients in cosmetics and food products.

Government Initiatives Bolster Industry Growth

The Indian government’s progressive policies, such as the PM Formalisation of Micro-Food-Processing Enterprises Scheme and the National Mission on Edible Oils-Oil Palm (NMEO-OP), are fostering growth in the plant-based ingredients sector. These initiatives aim to create modern infrastructure, improve supply chain efficiency, and formalize the unorganized food-processing sector, ultimately reducing agricultural waste.

Sugar Reduction Initiatives Drive Demand for Plant-Based Alternatives

The growing health consciousness among consumers is leading to a shift away from white sugar, known to contribute to obesity, diabetes, and cardiovascular diseases. Proposed new guidelines by the National Institute of Nutrition (NIN) and the Indian Council of Medical Research (ICMR) aim to impose stricter limits on sugar content in food and beverages. This will positively impact the demand for plant-based sugar alternatives like corn starch, agave syrup, coconut sugar, and fruit pulp.

ACMIIL: A Golden Opportunity for Investors

ACMIIL’s report concludes by emphasizing the immense potential of the plant-based ingredients market. Mr. Devang Shah, Head of Retail Research at ACMIIL, states, “The plant-based ingredients market represents a significant shift towards vegetarian, vegan, and organic products. Investors who capitalize on this opportunity will not only see substantial financial returns but also contribute to a more sustainable future.”

The report offers strategic recommendations for investors and businesses to leverage these opportunities, highlighting the importance of innovation, efficient distribution networks, and government support in propelling market growth. Mr. Prasanna Pathak, Director at ACMIIL, adds, “The plant-based natural extracts sector is poised for exponential growth, driven by innovation and global demand. This sector offers compelling returns and should be a part of any forward-looking investment portfolio.”