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With health being a factor in many lifestyle choices being made by consumers, the area of land used for organic farming has increased substantially since 2015, expanding by about 21 million hectares just between 2015 and 2019 according to a report by Statista. The preference for organic food is strongest among young consumers, with Americans aged 18 to 29 most positively perceiving organic food like fresh produce and dairy.
Increasing sedentary or inactive lifestyles and their potentially fatal consequences have forced more people to become more concerned about their health and begin making healthier life choices. Apart from exercising, people are also putting a lot of emphasis on healthy eating – switching to organic foods. This is driving sales of organic food, which are forecasted to reach almost $1 trillion globally by 2030, growing at a compound annual growth rate of 14.8% between 2022 and 2030 according to Market Research Future.
Organic foods are devoid of chemical fertilizers and pesticides — the use of natural cultivation methods is often beneficial not only to the human body but also to the earth.
Time To Look At Organic Food Stocks?
In 2021, organic food sales in the U.S. amounted to about $57.5 billion. In 2020, organic food sales made up 6% of total food sales in the U.S. The pandemic caused many to take a closer look at the food they ate and make healthier choices, boosting the sales of organic food. Since then, organic has continued to grow and has retained the market footholds gained in 2020 according to Organic Trade Association.
The growing demand for healthier and sustainable food options has brought many organic food companies to the forefront, and many investors seem to be paying close attention to them.
Investing in organic stocks can help players in the industry raise needed capital for growth and expansion while helping change the way that business is done, while also potentially helping investors make good returns on their investments.
A blue chip stock in the space is General Mills GIS, which was among the early operators in the space that began offering organic products after it acquired Small Planet Foods in the year 2000. But investors looking for other options with the potential to fuel growth through capturing market share may also look at other stocks such as:
- Appharvest Inc. APPH, an operator of indoor farms in Appalachia. The stock hit a 52-wk low on October 21, 2022.
- Sprout Farmers Market Inc. SFM, which offers a farm shop vibe and derives approximately 60% of its sales from organic products.
- The Simply Good Foods Co. SMPL, a Colorado-based firm which focuses on the snacks and meal replacement area of the market.
- Beyond Meat, Inc. BYND, which helped some first-phase investors make returns in the triple digits some time after it made its initial public offering (IPO) in 2019. The stock has since dropped to lower levels closer to the original IPO price.
- Save Foods Inc. SVFD, an agritech company that develops and sells eco-friendly green treatments for the food industry to enhance food safety and shelf life of fresh produce.
While ultimately an investor’s decision and choice of stock will be influenced by their investment appetite and preferences, below is a closer look at Save Foods.
Addressing Challenges In The Agri-Food Tech Industry
Delving further into organic and healthy food stocks could put more spotlight on Save Foods, a company that might be addressing two of the most significant challenges in the agri-food tech industry – food waste and loss and food safety.
Since 2009, the company has been dedicated to delivering integrated green solutions for improved safety, freshness and quality from farm to fork. Save Foods’ technology allows growers, packers and food retailers to reduce their waste and increase their revenues, with more food ending up on plates and less in landfills.
The company’s treatments, which combine its proprietary blend of food acids and oxidizers, were commercially validated on citrus fruits, mangos, avocados, pears, bell peppers, berries and various fresh-cut vegetables.
The company believes that by controlling and preventing pathogen contamination and significantly reducing the use of hazardous chemicals (pesticides) and their residues, its treatment not only prolongs produce’s shelf life and reduces food loss and waste but also ensures a safe and healthy product.
“The organic fruits and vegetables industry has a very difficult task contending with short shelf life and limited available solutions, with high waste and transportation issues resulting in higher costs,” commented Dan Sztybel, CEO of Save Foods’ Israeli subsidiary. “One of the Save Foods’ treatments is certified organic and we are well- positioned to deliver significant value to the organic market by providing efficient and affordable solutions to address these challenges.”
Head over to Save Foods’s website to learn more about the company and its technology.
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