Global Protein Ingredients Market Could Exceed USD $70 Billion By 2025
Palm Beach, FL – May 6, 2020 – The global protein ingredients market size is projected to grow from USD $49.8 billion in 2019 to USD 70.7 billion by 2025, at a CAGR of 6.0% through 2025. Plant-based protein ingredients are produced from crops such as wheat, canola, pea, and soy. Soy protein market has been expanding at a significant pace owing to health benefits offered by the product. Plant protein ingredients market is expected to grow significantly over the next few years on account of relatively inexpensive price than the animal-derived variants. Consumers are increasingly adopting plant protein ingredients as they are perceived to be healthier and more nutritious than their animal-based counterparts. A recent report from MarketsAndMarkets which projects continued growth, said: “The protein ingredients market is driven by factors such as the increasing demand for protein functionalities, awareness about healthy diet & nutritional food, new technological development in the protein ingredients industry, growth in demand for superior personal care and healthcare products, and increase in consumption of animal by-products, which are in turn supported by the economic growth, technological advancements, and consumer preference for functional products. However, factors such as stringent government regulations on animal-sourced protein are expected to restrain the market growth of animal protein. Active stocks in news today include: China Xiangtai Food Co. Ltd. (NASDAQ: PLIN), Mondelez International, Inc. (NASDAQ: MDLZ), Beyond Meat, Inc. (NASDAQ: BYND), Hormel Foods Corporation (NYSE: HRL), Archer-Daniels-Midland Company (NYSE: ADM).
The article continued with “The plant source of the protein ingredients market is projected to be the fastest-growing, in terms of value. The demand for plant sourced protein has increased due to changing consumer preferences from meat to plant-based protein. In addition, plant-based protein ingredients are a major source of protein for vegans worldwide. High nutritional profile, low carbon footprint, and low price of plant-sourced protein are driving the consumption of these proteins. It is also gaining an increasing level of importance due to its lower energy consumption, emissions, land usage, and water consumption; it also offers better input conversion efficiency.”
China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) BREAKING NEWS – Goldman Small Cap Research Issues New Research Update On China Xiangtai Food Co., Ltd. – Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has released a new research update on China Xiangtai Food Co., Ltd., (NASDAQ – PLIN). The Company is a leading pork products and pork processing company in China. This report carries a price target. To view the new research update, along with disclosures and disclaimers, or to download it and the original full report in their entirety, please visit http://www.goldmanresearch.com.
In the Opportunity Research update, analyst Rob Goldman discusses the potential major financial impact of the Company’s recent acquisition and joint venture on the Company, along with drivers of the Company’s business model, and financial forecasts.
Goldman noted, “Since our initial report in late May, PLIN has not only executed a highly profitable and accretive complementary business acquisition, but closed on a major joint venture which provides the Company with unrivalled positioning through vertical integration. The Company PLIN acquired a 51% controlling interest in Chongqing Ji Mao Cang Feed Co., Ltd.(“JMC”), a private enterprise specializing in feed raw material sales and providing feed formula solutions. The deal enables PLIN to expand the southwest market in China but also adds roughly $70 million, or a 70% in annualized sales.”
“Meanwhile, the recently announced 10-year joint venture with Chongqing Fengjie County Rural Ecological Agriculture Development Co., Ltd. (“FEA”) increases PLIN’s vertical integration by immediately adding hog breeding capabilities,” commented Goldman. “Pork is a major food staple in China and PLIN is a leading provider throughout the food chain.”
“Given the recent events, we have raised our forecasts and our price target is under review for a potential upgrade as well. Plus, it appears additional business development opportunities are in the offing later this year, enabling PLIN to establish a stronghold in this sector. Publicly traded pork companies such as Hormel are near year highs as this category serves as a popular defensive group during these difficult economic and market conditions. As a US-traded pure play on this sector in China, PLIN could follow a similar path,” concluded Goldman. Source: Goldman Small Cap Research
In other industry news this week of note includes:
Mondelez International, Inc. (NASDAQ: MDLZ) recently reported its first quarter 2020 results. “We had a strong first quarter, with record market share gains, and executed very well in challenging circumstances, thanks to the dedication and commitment of our colleagues, especially those on the front line, who are working tirelessly to provide food to consumers around the world,” said Dirk Van de Put, Chairman and Chief Executive Officer. “In the last month of the quarter, we saw a significant increase in consumer demand for our snacks in developed markets, particularly in North America, which more than offset a more challenging environment in several emerging markets.
“Our priority at this time is to protect our colleagues and maintain business continuity in service of our customers and consumers around the world. We remain confident that with our dedicated people, our portfolio of trusted global and taste-of-the-nation local brands, our strong balance sheet, access to significant liquidity and our clear strategic priorities, we have everything we need to manage through this pandemic and emerge stronger on the other side.”
Hormel Foods Corporation (NYSE: HRL) recently announced the launch of its virtual internship program to accommodate 60 college students from around the country. With internships in flux at many corporations due the effects of COVID-19, Hormel Foods believed it was imperative to not only honor its commitment to their inspired summer interns, but rethink and revolutionize its entire program.
“There is so much uncertainty facing college students today given remote study, as well as internship and job offers being rescinded,” says Amy Sheehan, director of talent acquisition at Hormel Foods “We wanted to take this worry away from our group of interns as we confirmed with them all that our internship program will be moving ahead with exciting virtual options and ways to collaborate in new and innovative ways this summer.”
Beyond Meat, Inc. (NASDAQ: BYND) recently announced that it has entered into a new $150 million five-year secured revolving credit facility (the “New Credit Facility”) to support its future growth initiatives. The New Credit Facility also includes an accordion feature for up to an additional $200 million.
“Our current cash and liquidity position is strong, and we are pleased to complete this New Credit Facility on terms that will provide Beyond Meat with a greater amount of financial flexibility and better position the Company for long-term success,” said Mark Nelson, Beyond Meat’s Chief Financial Officer and Treasurer. “We appreciate the support of our lenders as this transaction lowers our cost of capital, is expected to support our future global growth initiatives and enables greater strategic flexibility. We remain committed to providing consumers around the world with great-tasting plant-based meats, while contributing to important health, climate, natural resource, and animal welfare goals.” The New Credit Facility matures on April 21, 2025 and replaces the Company’s existing secured credit arrangements.
Archer-Daniels-Midland Company (NYSE: ADM) recently announced an additional $800,000 in donations to organizations focused on addressing needs during COVID-19, including food assistance, hunger relief, and local support to hospitals and first responders.
“These are unprecedented times, and ADM is committed to doing our part to help address the tremendous need around the world right now,” said Chairman and CEO Juan Luciano. “We are proud to take part in Giving Tuesday’s efforts to unite companies, individuals and communities around the world to tackle the great challenges brought on by the global fight against COVID-19.”
DISCLAIMER: FN Media Group LLC (FNM), which owns and operates Financialnewsmedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM was compensated twenty nine hundred dollars for multiple day news coverage of the current press releases issued by China Xiangtai Food Co. Ltd. by a non affiliated third party. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact email: [email protected] – +1(561)325-8757