Company / Analytics

Analytics, 11 August 2022

Best vegan stocks 2022 you should look at

Companies in plant-based food and beverage companies have been seeing a massive growth rate in recent years, with the growth of demand for the industry’s products. Therefore, investors would inevitably rally into looking for the best vegan stocks to buy ib 2022.

In the pandemic struck 2020 for example, when naturally, there was a notably increased health consciousness among consumers, the U.S. plant-based food market grew by 27% to reach $7 billion, growing nearly twice as fast as the total U.S. retail food market.

2021 and 2022 were notably slow in terms of growth for the vegan industry. However, a Bloomberg report on plant-based food and beverage suggests that revenue generated from plant-based products could grow to $166 billion by 2031 from less than $50 billion today. The report also stated they believed the industry would reach a 5% penetration of the global meat market by 2031 from the current 0.8%. According to Boston Consulting Group, the alternative protein market is expected to reach $290 billion by 2035.

Here are a few vegan food stocks and a bonus vegan ETF that you should consider for your portfolio

Beyond Meat stocks - overview and forecast

Beyond meat is undoubtedly the leader in the plant-based meat substitute industry. Products from the company are practically in every supermarket and common on restaurant menus. Beyond Meat reported at the end of last year that its products were available at approximately 130,000 retail and food service locations in more than 90 countries.

The company is reported to spend about 10% of its revenue on research and development, which has put the company in the lead and is forecast to remain ahead of its competition in the long term. The company excels at developing new products, advancing its technology, and making quality improvements.

Looking at the company’s stock price, Beyond Meat (NASDAQ: BYND), it is clear the stock has performed badly in the last year or so. The biggest concern that Wall Street has with the company is that its growth appears to be decelerating. In recent times, their product recent product Beyond Meat Jerky in collaboration with PepsiCo (NASDAQ: PEP) has helped hide the bad performance of their other products. With the expected growth in plant-based products in the long term, Beyond Meat is a good investment in the long term. It is however not advisable for the risk intolerant, short-term trader.

Oatly stocks - overview and forecast

Oatly, a Swedish oat milk brand has shaken up the plant-based milk category after it made a splash with its initial public offering (IPO) in May 2021. Oat milk has passed soy milk to become the second-best-selling alternative after almond milk.

The company has recently engaged in relatively bold marketing campaigns accompanied by a new product category in the U.S., but the company is hardly new. The company has been around since the 1990s and has been consistently developing oat-based alternative dairy products, including milk, ice cream, yogurt, cooking creams, spreads, and to-go drinks.

Oatly’s products are now available in more than 65,000 stores and more than 60,000 coffee shops. Its revenue jumped 52.6% to $643.2 million in 2021 compared to the previous year, although Oatly is currently unprofitable because it is spending aggressively on marketing.

The company’s revenue continues to grow as was evident In the Q1 earnings report when revenues came in at $166.2 million, an increase of 18.6% year-over-year. For context, the 2018 – LTM Q1-2022 revenue CAGR now stands at roughly 71%.

VegTech Plant-based Innovation & Climate ETF (EATV)

EATV is an actively managed fund that primarily invests in companies involved in the creation of animal-free, alternative-protein products made with plants and plant derivatives. The company seeks to focus mainly on the shift occurring in the global food supply system by the global community in an effort to positively affect climate change and food security across the globe.

Launched in December 2021, this all-capitalization global portfolio holds 40 stocks spread out among plant-based food and beverage firms (58%); agricultural technology and science (18%); plant-based materials, climate, and other (14%); and cultivated meat and precision fermentation (7%). EATV’s expense ratio is 0.75%. In December 2021, EATV launched and was the first to track the plant-based protein market and its agricultural technologies.

Investor note

With vegan stocks falling under staple stocks, their high immunity to large market crashes and their high potential growth make investing in the industry lucrative. Investors should, as with other stocks, be cautious when investing, and be mindful of the risks involved.

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