Food Processing Market Projected To Exceed $4 Trillion By 2024

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Aug 13, 2020, 08:30 ET

PALM BEACH, Fla., Aug. 13, 2020 /PRNewswire/ -- The food processing and handling (FP&H) sector provides the systems, machinery, and equipment that help the food industry feed a global population approaching eight billion people worldwide. It is the behind-the-scenes enabler that quietly and efficiently moves food from field to factory and onto the plate. It is also a significant global industry that has been growing fast in recent years amid rising demand in emerging markets, changes in consumer lifestyles, and a transformative leap forward in technological capabilities. From the impact of artificial intelligence and process automation to growing demand for organics, the sector is undergoing a period of fundamental change. FP&H equipment companies across the three key sub-sectors of processing, packaging, and commercial food service have a chance to reap significant rewards, but to do so, they must themselves adapt to the changing environment. Active stocks in news today include: China Xiangtai Food Co. Ltd. (NASDAQ: PLIN), Hormel Foods Corporation (NYSE: HRL), Beyond Meat, Inc. (NASDAQ: BYND), Tyson Foods, Inc. (NYSE: TSN), Mondelz International, Inc. (NASDAQ: MDLZ).

According to a report from ResearchAndMarkets the food processing market is expected to reach an estimated $4.1 trillion by 2024 with a CAGR of 4.3% from 2019 to 2024. "… the future of the food processing market looks promising with opportunities in beverage, dairy, meat & poultry, convenience food & snacks, fruits & vegetables, and seafood industries. The major drivers for this market are increasing demand for ready-to-eat food products, changing lifestyle, and an increase in nuclear families and working women. Emerging trends, which have a direct impact on the dynamics of the industry, include the development of food processing technologies that reduce detrimental changes in food and maintain the nutritional value. Cargill Foods, Nestle, PepsiCo, Archer Daniels Midland, and Unilever are among the major processed food manufacturers."

China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) BREAKING NEWS - China Xiangtai Food Co., Ltd. Launches Hot Pot Restaurant Business - China Xiangtai Food (the "Company" or the "PLIN"), an emerging growth company engaged in the food processing business, today announced that it plans to launch a hot pot franchise business and plan to open its first location in Chongqing by August 31, 2020. The launch will allow the Company to integrate its existing industry resources and leverage its strength to provide consumers with a farm-to-table experience.

The Company plans to expand the hot pot chain by applying a franchise model and increase the number of restaurants to 200 by the end of 2021. All restaurants will be operated under Company's own brand "Xiangtai Fresh Beef Hot Pot". The Company plans to recruit a team of seasoned restaurateurs with more than 20 years of professional experience to manage and operate the franchise chain.

Ms. Zeshu Dai, Chairwoman and Chief Executive Officer of the Company commented, "We are excited about the launch of our hot pot restaurant franchise. We hope to meet the robust demand by supplying fresh and flavorful meat products on the retail level, thus creating additional revenue channels. Being competitive in the hot pot business requires high quality food supplies and extensive food industry experience, which are our strengths. We believe PLIN has tremendous potential and this new business will position the Company to create long-term value." Read this entire press release and more news for PLIN at: https://www.financialnewsmedia.com/news-plin

In other industry news this week of note includes:

Beyond Meat, Inc. (NASDAQ: BYND) a leader in plant-based meat, recently reported financial results for its second quarter ended June 27, 2020. Second Quarter 2020 Financial Highlights were: Net revenues were $113.3 million, an increase of 69% year over year; Gross profit was $33.7 million, or gross margin of 29.7% of net revenues; Adjusted gross profit was $39.6 million, or Adjusted gross margin of 34.9% of net revenues, reflecting exclusion of expenses attributable to COVID-19; Net loss was $10.2 million, or $0.16 per common share; Adjusted net loss was $1.2 million, or $0.02 per diluted common share, reflecting exclusion of expenses attributable to COVID-19 and early debt extinguishment; and Adjusted EBITDA was $11.7 million, or 10.3% of net revenues.

Beyond Meat President and CEO Ethan Brown commented, "I am proud of our record net revenues and growth during a very challenging period. As the toll of the COVID-19 pandemic took hold across the foodservice industry, we repurposed assets and repacked and rerouted products to meet increased consumer activity in the retail aisles. Throughout the quarter, our brand experienced an enviable combination of consumer trends – increasing household penetration; increasing buying levels per household; and strong repeat purchase rates of nearly 50%², well above the success threshold for consumer packaged goods. Further, we forged ahead with our long-term growth strategy. We invested in expanded operations and sales in the EU and Asia, in innovation, and in targeted pricing measures during this period of high beef prices. Most notable in this regard was the retail introduction of our Cookout Classic™ value pack, which significantly reduced the price of our burgers from nearly 2 times that of conventional beef patties to an approximate 20% premium, on a per pound basis. Though the Cookout Classic™only reached stores in the last 2 weeks of the second quarter, it accounted for 16 points of the year-over-year volume growth in our U.S. retail business. We look forward to continuing to serve our consumers and customers alike as we all hope for a resolution to the COVID-19 pandemic."

Hormel Health Labs, part of the Hormel Foods (NYSE:HRL) family of companies, recently launched new THICK & EASY^®IDDSI Level 5 Ready Meats to provide safe, enjoyable food and meaningful nutrition for those on dysphagia diets. Preparing meat for someone with dysphagia can be difficult because it has to be ground to a specific, standardized consistency for safety and comfort reasons. The THICK & EASY^® IDDSI Level 5 Ready Meats offer a simple way to make sure meats are suitable for IDDSI Levels 5 and 6. In addition to consistency, they offer great convenience in the kitchen and can be prepared in just a matter of minutes.

"Our job is to develop products that are easy to prepare and still taste great for those on dysphagia diets," said Tim Garry, director of marketing for Hormel Health Labs and a registered dietitian nutritionist. "Our new THICK & EASY^®IDDSI Level 5 Ready Meats provide a solid source of protein that can be prepared quickly while still delivering a tasty and enjoyable meal."

Tyson Foods, Inc. (NYSE: TSN), one of the world's largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, recently reported its third quarter results.

"Without a doubt, our third fiscal quarter was one of the most volatile and uncertain periods I've seen during my time in the industry," said Noel White, Tyson Foods' CEO. "However, our commitment to team member health and safety and investments in operations and portfolio strategy effectively positioned us to weather unprecedented COVID-19 marketplace volatility while allowing us to support our farmers, ranchers and producers and meet our customers' needs."

Mondelz International, Inc. (NASDAQ: MDLZ) recently reported its second quarter 2020 results. "We remain focused on the safety and well-being of our colleagues and communities at this time, while continuing to serve our customers in the exceptional circumstances caused by COVID-19. I am proud of how our teams have demonstrated their commitment to our customers and consumers by safely and efficiently maintaining business continuity. I am pleased with our second quarter performance given the challenging environment, with top-line performance driven by Developed Markets and strong share gains in all key markets. Our Emerging Markets performance improved throughout the quarter as store closures eased and consumers in many markets were increasingly able to access our products. While we expect continued volatility and uncertainty from COVID-19, I am confident that our strategy, investments, category fundamentals and execution will enable us to successfully navigate this crisis and emerge stronger," said Dirk Van de Put, Chairman and Chief Executive Officer.

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