BranchOut Food Enters the $300 Billion Industrial Food Ingredients Market
BranchOut Food (NASDAQ: BOF), a leader in dehydrated fruit and vegetable products, has announced its entry into the industrial food ingredients market, a sector valued at $335.32 billion in 2023 and projected to reach $511.33 billion by 2032, with a CAGR of 4.8%.
The company's proprietary technology and Peru-based manufacturing facility provide a competitive edge. A recent acquisition of a fourth EnWave radiant energy vacuum machine will support the growing demand. BranchOut Food is also expanding its internal sales and marketing team and will showcase its offerings at the IFT Annual Expo in July 2024.
- Entering a $335.32 billion market with projected growth to $511.33 billion by 2032.
- Proprietary technology and Peru-based manufacturing offer competitive advantages.
- Acquisition of a fourth EnWave REV machine to meet rising demand.
- Expanding internal sales and marketing team to pursue new market channels.
- No immediate financial impact or revenue figures provided.
Insights
BranchOut Food's entry into the industrial food ingredients market is a strategic move given the market's projected growth. The global market for industrial food ingredients is expected to grow from
Investors should note that this market expansion taps into existing demand from Consumer Packaged Goods (CPG) companies, which are consistently looking for unique and high-quality ingredients. The company's investment in EnWave's REV technology suggests a commitment to maintaining high production standards and efficiency.
However, while the industrial food ingredients market presents robust growth opportunities, the competitive landscape is equally fierce. Established players with deep market penetration and longstanding relationships may pose significant challenges. Furthermore, the success of BranchOut's strategy will greatly depend on the effective execution of its new sales and marketing initiatives.
From a financial perspective, BranchOut Food’s expansion into the industrial food ingredients market could have positive implications for its revenue streams and profitability. The recent acquisition of the EnWave REV machine, which is highly efficient and optimized, should improve the company's production margins. Higher throughput and better quality control could translate into stronger financial performance, particularly if BranchOut can secure large contracts with prominent national brands.
BranchOut's large-scale manufacturing facility in Peru is another factor contributing to potential cost savings. Proximity to abundant fresh produce resources allows the company to manage quality control and production costs more effectively. These advantages can provide a competitive edge by enabling BranchOut to offer high-quality products at competitive prices.
Nevertheless, it's important to consider the initial capital outlay and ongoing operational costs associated with scaling up production and building a new sales and marketing team. These investments will initially impact the company’s cash flow and profitability in the short term. Investors will need to monitor how quickly these investments translate into tangible revenue growth and improved margins.
The utilization of EnWave's Radiant Energy Vacuum (REV) technology is a significant technological asset for BranchOut Food. This technology is known for its ability to efficiently dehydrate food products while preserving their nutritional quality, texture and flavor. The recent addition of the 100kW nutraREV system aligns with BranchOut’s strategic goals of enhancing production capabilities and meeting rising demand for high-quality fruit and vegetable products.
Investors should appreciate that this technological edge not only enhances production efficiency but also differentiates BranchOut’s product offerings in a crowded market. The ability to produce premium quality ingredients consistently could help establish long-term partnerships with major brands, driving sustained revenue growth.
However, adopting cutting-edge technology also comes with risks. The company must ensure consistent operational efficiency and maintenance of the REV machines to avoid production downtimes and potential quality control issues. Furthermore, technology adoption must be complemented by effective market penetration strategies to fully capitalize on its potential benefits.
Industrial food ingredients expected to be a valuable additional commercialization channel
Company to build out internal sales and marketing team to pursue new channel
BranchOut Food will showcase its products and services at the ITF Annual Expo in July 2024
BEND, Ore., June 25, 2024 (GLOBE NEWSWIRE) -- BranchOut Food Inc. (NASDAQ: BOF), a leading food technology company specializing in dehydrated fruit and vegetable-based products, today announced that it will enter the industrial food ingredients market as part of its commercialization strategy. The global market for industrial food ingredients was valued at
Eric Healy, CEO of BranchOut Food, said, “We are excited to be entering the industrial food ingredients marketplace with BranchOut Food’s high quality fruit and vegetable products. Our Consumer Packaged Goods (CPG) customers have consistently highlighted a growing need for high quality, unique ingredients, and we look forward to being a trusted partner and supplier to these prominent national brands.
“We believe that BranchOut Food has a significant competitive advantage in this space, due to our proprietary technology and its ability to deliver innovative, new products that have not previously been possible, as well as our large-scale manufacturing facility in Peru. Our proximity to abundant fresh fruit and vegetables in Peru allows us the freedom to manage quality control and cost of goods ourselves.
“Our recent purchase of a fourth EnWave radiant energy vacuum (REV) machine, a 100kW nutraREV system, will enable us to meet the rising demand for our branded and private label products from some of the nation’s largest retailers and best known brands. This machine is highly optimized and efficient at producing premium fruit and vegetable pieces, fragments and powders with excellent quality, throughput and margins.”
BranchOut Food is building out an internal Sales and Marketing team to pursue this channel.
The Company will attend the IFT FIRST annual expo Chicago, IL. in July 2024. IFT FIRST brings together researchers, scientists, engineers and entrepreneurs from across the global food value chain to discuss scientific solutions in presentations and panels focused on transformative innovation.
About IFT
Since 1939, the Institute of Food Technologists (IFT) has been a forum for passionate science of food professionals and technologists to collaborate, learn, and contribute all with the goal of inspiring and transforming collective scientific knowledge into innovative solutions for the benefit of all people around the world. As a scientific community grounded in purpose, IFT feeds the minds that feed the world.
About BranchOut Food Inc.
BranchOut Food is an international food-tech company delivering truly great natural snacks and real superfood ingredients enabled by its licensed dehydration technology. The company’s GentleDry Technology is the next generation in dehydration technology, preserving up to
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified using words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate", "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements with respect to the operations of BranchOut Food, Inc., (the Company) strategies, prospects and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
For more information
Jeff Ramson
PCG Advisory
646-863-6893
jramson@pcgadvisory.com
FAQ
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