SAN FRANCISCO--(BUSINESS WIRE)--Impossible Foods is benefiting from growing demand from environmentally conscious consumers who want alternatives to traditional meat products that are healthier and promote environmentally responsible farming practices, according to a new report from SharesPost.
Founded in 2011 by Stanford biochemist Patrick Brown, the Silicon Valley firm is scaling the production of its Impossible Burger, the wildly popular plant-based ground beef alternative sold in thousands of restaurants worldwide. The 13-page report said the company’s current focus is beef, but it could ultimately extend to poultry, fish and meat, a market estimated to be $73 trillion by 2025.
The report also highlights the company’s growth potential and recent capital-raising success. Impossible Food’s revenue increased eight times in 2018. In May 2019, it raised $489 million at $10.60 per share, bringing total capital raised to $777 million. The company’s capital raise follows a highly successful IPO by competitor Beyond Meat, also in May 2019.
“The data suggest that Impossible Foods is capitalizing on the strong demand for healthy meat substitutes that are also good for the environment,” said Alejandro Ortiz, Principal Analyst, SharesPost, Inc. “The company’s growth could accelerate further so long as it is not another passing consumer fad, which has happened in the past with similar meat substitute products.”
The report points out the risks facing the company and investors. They are the unpredictability of consumer tastes; lapses in food safety that hurt its brand; limited quality control at restaurants serving its products; competitors that erode its market share; a lack of patent protection for new products; overreliance on one distribution channel or method; the potential loss of quality as its expands; and potential production overcapacity.
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