Now is the Time to Invest in Vegan Stocks
The global plant-based food market is projected to enjoy a CAGR of around 11.9%, reaching a worth of around $74.2 billion by 2027 – as per a recent report published by Meticulous Research. Drivers of this vertiginous growth include a dramatically larger vegan population, intolerances of animal products, and “significant investments in plant-based production companies.” Demands in areas like manufacturing and distribution, alongside the demand for new products such as meat substitutions and plant-based milk, have forced plant-based food manufacturers to adopt new strategies. If you are keen on investing in plant-based companies yourself, what considerations should you keep in mind?
Defining Your Investment Portfolio
The first step to take when it comes to building your portfolio is choosing what type of company you are interested in. Do you mind investing in semi-vegan companies (i.e. vegetarian ones) or is your investment based on an ethical desire to go completely plant-based? Some companies are not vegan per se, although they have vegan departments. Maple Leaf Foods, for instance, is a frozen food company that has a ‘greenleaf’ subdivision, created to meet the rising demand for plant-based foods. As this demand increases, the company may convert into an exclusively vegan foods distributor; currently, it also sells sustainable meat and farm-raised chicken and is proud to be carbon neutral. The plus side of investing in this type of company is that it is clearly one that readily adapts to market necessities. On the other hand, the vegan community is increasingly looking to support companies that are 100% committed to the plant-based lifestyle.
Top Vegan Stocks to Invest In
Just a few companies enjoying great success on the stock market include Beyond Meat (whose products are sold at restaurants like Carl’s Jr and Del Taco). This company’s stocks have traded with as high a profit as 1,427% and it is known for continually creating new products, ranging from meat-free sausages right through to vegan meatballs and sausages, actively recommended by celebrities like Kim Kardashian. Additional companies trading on the stock market include Else Nutrition (which specializes in whole vegan foods for infants), Burcon NutraScience (which extracts proteins from plants), and The Very Good Food Company (a company that has enjoyed vertiginous growth, with sales figures up by 226% in 2020).
Choosing Your Investment Type
The way in which you invest is just as important as the companies you choose to support. If you are confident about the companies you have chosen, then you could decide to directly buy shares.
If, on the other hand, you prefer to have someone else take charge of screening companies and selecting the most ethical investments possible, then signing up to an ethical fund (a mutual fund) will save time and effort. You will need to ensure the fund’s ethical criteria matches your own, of course. Finally, you could choose to invest in companies creating commodities such as grains, via an exchange traded fund (ETF), which tracks commodities and other assets but which can be purchased or sold on the stock exchange in the same way regular stocks can.
If you have decided to invest in a plant-based company or commodity, ensure the businesses you are backing share your ethical concerns. Just a few companies enjoying continuous growth include Maple Leaf Foods, Beyond Meat, and Else Nutrition. Expand your range beyond food companies, considering commodities and ETFs as a way to expand your portfolio.
About the Author
Amy Fletcher is a freelance writer and researcher with a keen interest in business management. In recent years she has written for various online magazines, journals, and blogs. When she’s not writing she enjoys long walks with her daughter and two dogs.
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All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
