Elmhurst 1925 is a US-based company that produces plant-based beverages. It manufactures and retails non-dairy plant-based milk made from nuts, and grains and seeds such as soy, oats, pea, rice, coconut, almond, cashew, hazelnut, walnut, peanut, and hemp. The company also offers plant-based milk products under unsweetened Barista and Hemp Creamers series. Although the company was established in 1925, it launched its plant-based milk products in 2017; it evolved from offering milk-based products to plant-based milk after a meeting with plant nutrition pioneer, Dr. Cheryl Mitchell. On August 14th, 2019, it announced the expansion of its Barista Editions line with a new hemp-based variant for a variety of coffee applications. The vegan product is made without artificial flavors, carrageenan, gums, oils, or other emulsifiers. In February 2019, Elmhurst 1925 launched a new unsweetened hemp creamer and an unsweetened milk oats beverage. With the rising trend of healthy lifestyles, beverage producers are shifting their offerings to products that have improved nutritional profiles. Furthermore, legalizing hemp for recreational purpose has opened opportunities for manufacturers to innovate and expand their product portfolio. The fast-growing hemp industry is facing major hindrances of stringent and complex regulatory structures. Despite these challenges, Elmhurst 1925 has harnessed the power of superfood hemp seeds, which are rich in omega-3s, protein, fiber, and other nutrients.
MarketsandMarkets™’ View Point:
The rising trend of healthy lifestyles and awareness amongst consumers about the health benefits of superfoods and their significance in weight management contribute to the demand for hemp. The rapidly growing lactose-intolerant and vegan population across the world drive the demand for plant-based milk. According to the US Department of Health and Human Services, 30 to 50 million adults in the US are lactose intolerant. Thus, many food & beverage giants are investing in plant-based milk products, while other companies are expanding their presence. Elmhurst 1925 is one of the largest plant-based milk suppliers and has an extensive supply chain. Peter Truby, vice president of marketing at Elmhurst 1925, stated that the company is the first hemp creamer, crafted with four ingredients, namely, hemp cream, oats, water, and salt. The hemp is grown on the company’s field, and the drink is free from added gums or oils and contains 20 g of whole grains.
Both the unsweetened hemp creamer and unsweetened milked oats are crafted through the HydroRelease method. Using just water, this process separates the components of a nut, grain, or seed before reassembling as a creamy, beverage-ready emulsion, maintaining the complete nutrition of the source ingredient without added gums or emulsifiers. - said Indu Patel, Ph.D. (Senior Research Analyst - Food and Beverage, at MarketsandMarkets™).
“Plant-based milk with hemp is the perfect blend to meet the demand from lactose intolerant and superfood enthusiasts around the world. This recreational beverage is rich in vitamins and omega, profoundly aids consumers turning vegan. Greenhouse gas emissions are lower in plant-based milk as compared to the production of traditional milk products. With consumers adopting a vegan diet, drive this rising trend, I believe the multi-billion-dollar plant-based milk industry is set to have a disruptive shift in the next decade.” – said Suraj Nagvenkar (Assistant Manager, Food and Beverage, at MarketsandMarkets™).
Impact of Product Launch
According to the USDA, in the past five years, the sales of milk alternatives have grown 61% to over USD 2 billion in 2018. Through plant-based milk infused with hemp, Elmhurst 1925 is going to harness its revenue from the milk market. The company is projected to witness increased sales in the coming years, owing to the growing demand from consumers.
FIGURE 1 Industrial Hemp Market Forecast to 2025 (USD billion)
e - Estimated; p - Projected
Source: MarketsandMarkets™ Analysis
According to MarketsandMarkets™, the global industrial hemp market is projected to grow at a CAGR of 34% during the forecast period. The growth of this market is expected to be directly affected by a number of factors such as the increasing legalization of cultivating industrial hemp, growth of different food applications of hemp, and the rise in incidences of chronic diseases. Additionally, an increase in the demand for industrial hemp has led to a rise in the demand for hemp with low THC content. The European market is projected to grow at the highest CAGR from 2019 to 2025.
The company has expanded its product portfolio by infusing hemp in the Unsweetened Barista and Hemp Creamer products. This combination is projected to profit from the removal of regulatory roadblocks pertaining to hemp in potential markets. Furthermore, this launch would help the company to expand its customer base and increase its revenue opportunities, especially as consumers in the Western regions such as North America and Europe are increasingly inclining themselves toward hemp-infused products for reasons such as functional and health benefits.
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