Consumer Demand for Nutritious Alternatives Creating a Health Food Boom
To say that the pandemic has changed the way consumers behave in just about every industry is, at this point, probably an understatement.
In addition to consumers ordering meals via apps like GrubHub, a subsidiary of Just Eat Takeaway.com N.V. (Tii:GRUB), and Uber Eats from Uber Technologies, Inc. (Tii:UBER) at record levels last year, a greater number are opting for healthy alternatives - creating something of a health food boom. People are more interested in immune health support than ever these days. In fact, there are a number of healthy and/or otherwise organic food companies doing quite well as a result of this trend - all of which are more than worth a closer look.
An organization that is getting a lot of attention these days takes the form of PlantX Life Inc. (Tii:PLTXF) – one that bills itself as the “digital face of the plant-based community.” In addition to a comprehensive online platform with retail locations worldwide, PlantX partners with brands, influencers, and even medical advisors to act as a true one-stop shop for all plant-based things. PlantX has also enjoyed a tremendous amount of success since its launch and especially during the pandemic. Within just five months of going live, its monthly recurring revenues hit an impressive $2 million – a trend that shows no signs of stopping anytime soon.
Built around taking an old, unhealthy habit that many of us share and turning it on its head in a most interesting way, NightFood Holdings, Inc. (Tii:NGTF) partnered with sleep doctors to create ice cream that is friendly for night snacking. The company’s products contain ingredients that support relaxation and higher quality sleep, all while satisfying cravings along the way. According to one recent study, about 80% of people say they snack every night. Over 700 million “bedtime snacks” are consumed weekly. With an annual nighttime snack spend of over $50 billion in the United States alone, it’s easy to see why this is one powerful market opportunity that NightFood has refused to overlook.
One of the largest grocers in the country, Sprouts Farmers Market, Inc. (Tii:SFM) provides access to both natural and organic foods. Founded in Phoenix, Arizona, in 2002, the company’s stores offer produce, bulk items, vitamins, supplements and more. Essentially, Sprouts Farmers is a healthier alternative to your traditional neighborhood grocery store, and it has enjoyed a fair bit of success as a result. The company has more than 35,000 workers spread out over 360 stores in 23 states across the country. According to the company’s website, it’s also one of the fastest-growing retailers in the country.
On the wholesale side of this trend is United Natural Foods, Inc. (Tii:UNFI). The largest publicly traded wholesale distributor, United Natural Foods distributes over 250,000 natural, organic, and conventional products to more than 30,000 customers. These customers include natural product superstores, independent retailers, traditional supermarket chains, e-commerce retailers, and the foodservice industry. Through its nearly 50 distribution centers, the wholesaler delivers a range of natural and organic grocery, specialty, pet and personal care items.
In the end, the pandemic has (and will likely continue to) create significant challenges for us all. It will take some industries years to recover from massive adjustments in consumer behaviors – if they’re even able to do so at all. But there’s a silver lining to every cloud, and not all of these changes were negative. A significant push towards a large portion of the population leading healthier lives and eating better is certainly something to be celebrated.