Regenerative food and agriculture company Wide Open Agriculture (ASX: WOA) is advancing the development of several plant-based products as their markets continue to expand rapidly.
The company today provided an update in the form of a presentation for the Euroz Hartleys Rottnest Island Institutional Conference on Rottnest Island off Western Australia. He revealed research data which showed that plant-based food categories are estimated to grow to over US$100 billion (AUD$137 billion) by 2025.
By 2028, the market is expected to be worth more than US$200 billion (AU$275 billion), plant-based snacks such as noodles and plant-based dairy alternatives for yoghurt, cheese and mayonnaise to represent the largest share of the market value. at 73 billion US dollars (100 billion Australian dollars).
Lupine protein pilot plant on track
Wide Open Agriculture has developed a proprietary protein suitable for many categories of foods and beverages made from Lupine, one of the highest sources of vegetable protein available as well as a high source of dietary fiber. He trademarked the protein Buntine based on the location of his WA farm.
The company is currently in the process of establishing a lupine pilot plant in WA and today revealed that all equipment has been received and work is on track to begin construction this quarter (Q3) . Full-scale optimization and operation is expected to begin and continue through the fourth quarter and first quarter of FY23.
Commercial and intellectual property avenues are also expected to progress over the next nine months, including the initial launch of the branded high-protein flavored oat milk, the progress of commercial agreements and final patent applications across the globe.
The company also aims to expand sampling and business relationships with other food and ingredient companies for its lupine protein.
Growing demand for oat milk
Wide Open Agriculture reported growing demand for its replenishing oat milk, sales of which more than doubled in the second quarter of FY22. The product is now available at more than 500 outlets and cafes globally and is on track to reach over 1,000 outlets by the end of June.
Four distribution agreements have recently been signed, with sales from these agreements estimated at a minimum commitment of $2.1 million per year. Continued sales momentum is expected throughout the year as distribution partners come online, including initial orders for Woolworths and Metro Assets in Hong Kong.
Wide Open Agriculture said it expects to announce new regional markets it will expand to “in the coming months.”
The company’s new Barista oat milk product is currently in production and is scheduled for release in Australia, Singapore and Hong Kong next quarter.
Wide Open Agriculture is also reaching the final planning stages of its commercial-scale oat milk plant in WA with detailed mechanical and engineering plans due for completion this month.
Growth of online delivery business
Wide Open Agriculture is seeing increasing adoption of its online delivery business, especially in the local WA market during the current Omicron outbreak. This growth was supported by increased statewide home delivery capacity as well as new product lines.
The company said the digital channel saw 87% month-over-month revenue growth from December to January. Q2 FY22 digital revenue of $576,063 also reflected a 91% year-over-year increase.
According to market research, the global online food delivery services market is expected to reach US$192 billion in 2025 at a compound annual growth rate of 11%.