PlantX is a Vancouver-based company that stands at the nexus of emerging global markets like eCommerce and of course, plant-based lifestyles. While you might instinctively attribute plant-based lifestyles with veganism, there is a large portion of the population that is simply observing a more plant-based diet. This is not necessarily a diet that adheres strictly to only eating vegetables, but is one that is more conscious of alternative sources of protein.
The global plant-based market is anticipated to grow at a CAGR of nearly 12% between now and the end of this decade. Estimates of the total value of the industry have a wide range, although a Bloomberg Intelligence report from last year estimates it will be worth upwards of $162 billion by 2030. This market includes plant-based proteins from companies like Beyond Meat and Impossible Foods, as well as nut-based products from brands like Oatly.
In an age where food prices are rising, while a growing intolerance to meat-based proteins are affecting more people, plant-based diets are becoming increasingly popular and cost-efficient. PlantX is one of the first movers in the plant-based retail sector, and is making a massive push towards cornering a large, mostly untapped global market that is still in its infancy in terms of mainstream development.
Could This Company Be the Amazon of the Plant-Based Community?
Comparing anything to Amazon is lofty, especially when PlantX has a market cap of $20 million compared to Amazon’s $1.1 trillion. Where the comparison is valid is gaining a first mover advantage over competition and becoming the brand that is most widely associated with plant-based eCommerce.
But also like Amazon, PlantX is creating a digital ecosystem for plant–based consumers. It’s not just an online retailer, but it is attempting to build a full suite of plant-based products and services. Part of PlantX’s strategy is to follow Amazon down the path of a premium membership that allows access to exclusive opportunities within the platform. Amazon Prime might not be the first premium membership system, but it has certainly become the benchmark against which all others are measured.
PlantX is hoping to emulate this success by providing customers with its XVIP membership. For a fee of $29.99, XVIP members gain exclusive access to free shipping, sales and promotions, as well as premium services like its XFitness platform. XFitness provides live and on-demand fitness classes that span multiple genres including yoga, martial arts, meditation, and strength training. The XFitness platform further portrays the plant-based lifestyle as a focus on improving personal health and self-improvement, something many plant-based consumers are interested in doing.
The company is also partnering with major brands and spokespeople to further market its site. Celebrity partnerships with Matthew Kenney, Venus Williams, and Justin Fields have brought credibility and star power to the brand. PlantX is also furthering its presence in the UK with a new strategic partnership with Access Fulfillment. PlantX is targeting rapid growth in the United Kingdom over the next few years as the country is the largest plant-based market in the world.
PlantX Is Showing Growth Through Acquisitions
PlantX is also proving it isn’t just an online retailer by actively and aggressively acquiring several well known plant-based brands. By growing its portfolio of brands, PlantX is establishing itself as a market leader in various plant-based sub sectors like coffee, vegan food ingredients, and plant-based home goods.
These acquisitions are certainly paying instant dividends for the company as well. A recent press release from the company showed that its acquisition of LittleWest, a cold pressed juice company, has already paid off in a big way. LittleWest’s revenues grew a staggering 145% from March 2021 to March 2022 since it became a part of the PlantX umbrella. In addition to this, during that same time period, the average order value at LittleWest rose by 16% while unique online store visits jumped by 136%.
PlantX’s method of growth through both organic strategies like its XVIP program, as well as inorganically through acquisitions is proving to be a winning combination. The company itself just reported a record monthly gross revenue of $1,744,248 for the month of April, representing a 164% year over year rise from last year.
Conclusion: PlantX Shows Extreme Promise
The growth for PlantX is already happening, although it has yet to have been reflected in their stock price. Granted, we are currently in an environment with extreme bearishness and fears of a global recession. I’ve been very impressed with the continued sequential monthly growth for PlantX, especially at a time where eCommerce is in a market-wide downturn. Historically, companies that continue to perform well in a recession have gone on to do very well once the global economy has stabilized. If PlantX can continue to post impressive monthly sales figures, then it is positioned for industry-changing growth, and we could truly be seeing the initial stages of the Amazon of the plant-based world.