The global organic food and beverages market is expected to reach $211.44 billion by 2020.
Between 2014 and 2020, the market is expected to grow at a compound annual growth rate or CAGR of 15.7%. That is impressive by any standards.
The impressive growth will be driven by increasing adoption of healthy foods and beverages as consumers globally become more and more health conscious. The organic food and beverages market is dominated by organic fruits and vegetables. In 2013, this segment accounted for more than a third of the global market revenue.
However, organic meat, poultry and fish are expected to be the fastest growing areas during the forecast period.
In 2013, the North American organic foods and products market was valued at more than $38 billion. The North American market not surprisingly is dominated by the U.S. In 2013, the U.S.
accounted for over 90% of the North American organic foods & beverages market.
The robust outlook for this market augurs well for GreenSpace Brands Inc. (TSX-Venture: JTR).
Based in Toronto, GreenSpace Brands was formerly known as Aumento Capital IV Corporation. The company is in the business of developing, marketing and selling natural food products. The Company offers products, which feature grass fed or pasture raised meat and dairy.
The Company also offers products in the natural and whole foods markets under its affiliated brands. Its products include chicken nuggets, chicken strips, chicken tenders and sprouted grain chicken nuggets.
GreenSpace Brands today reported its financial results for the three-month and full-year ended March 31, 2016. For the fourth quarter of its fiscal 2016, JTR reported gross revenue of $5.8 million, up 283% on a year-over- year basis. The company’s adjusted gross margins for the quarter was 25.6%, compared to 19.8% reported in the same period in the previous year.
JTR continued to set record gross revenue results through the fourth quarter of fiscal 2016. The quarterly revenue increase was due to the continued strong internal growth of GreenSpace legacy brands, a full quarter of Love Child revenue and the additional revenue from only five weeks of the Central Roast acquisition.
Looking ahead, the JTR management continues to believe that there are a number of fundamental trends occurring within both the global and North American food market, which will inevitably drive demand for the Company's brands and products in future periods.
While the announcement was positive, shares of JTR are trading down 11% today to $0.89, likely as a result of buy the rumor, sell the news with shares driven up in anticipation of today’s results. Shares are currently trading at around the mid-way point of their 52-week range.
