How to Invest in Vegan Stocks
One of the biggest changes developing in consumer habits is a move towards more plant-based and vegan products.
The growth in this sector has led many investors to try and identify the top vegan companies to invest in.
In this ‘How to Invest in Vegan Stocks’ article, we cover a range of different vegan stocks and shares and how to invest in them with competitive commissions.
Table of Contents
Why Invest in Vegan Food Stocks?
According to research from investment bank UBS, global plant-based meat consumption (PBM) is set to exhibit a 31% compound annual growth rate (CAGR) through 2025. Their research shows that consumption of animal meat will only grow by 0.9% CAGR.
This highlights the huge shift in eating habits that are likely to take place over the next few years. Vegan food stocks that already have a foothold in the industry could capitalise on this growth – which is why there has been a huge increase in demand for vegan company stocks.
UBS also highlights that plant-based meat consumption can bring a growing revenue stream for food producers while boosting traffic and sales for restaurants. In this article, we focus on the vegan food stocks that are considered pure plays and are directly involved in the vegan supply chain.
List of Vegan Company Stocks
Below is a list of a few vegan food stocks to watch this year and to give you a platform to build your research and analysis upon. While there are still many vegan company stocks that are private, there is a good range of vegan food stocks that are publicly traded and ready to invest in.
- Beyond Meat (BYND) - A Leader in the Plant-Based Meat Industry
- Calavo Growers (CVGW) - Avocado Producer with Long Term Growth Potential
- Ingredion (INGR) - A Leader in Plant-Based Proteins for Food & Materials
- Tattooed Chef (TTCF) - Producing Plant-Based Products for Freezers & Pantry
Before we look at this range of different vegan companies to invest in, it’s important to remember that investments will go up and down in value. It is important to exercise proper risk management when building an investing portfolio – especially in new and growing sectors such as vegan shares.
Analysis of Vegan Companies to Invest in
The list of potential vegan shares to invest in highlighted above covers a wide range of companies that offer something different to the vegan sector. The focus is primarily on the vegan food stocks that are involved in the supply chain rather than the end consumer product such as a restaurant. The list is not exhaustive but is a great place to build upon.
Let’s have a look at the vegan food stocks to watch this year in more detail.
Beyond Meat (BYND) – A Leader in the Plant-Based Meat Industry
Beyond Meat is arguably one of the most well-known vegan food stocks around. It was founded in 2009 with its products officially launched in the United States in 2012. The company listed their stocks publicly through an IPO (initial public offering) in 2019 – making it the first vegan meat stock to list on the US stock market.
The company is backed by a wide range of celebrity investors including Leonardo di Caprio and Snoop Dogg. It has also managed to partner up with some major food outlets which serve Beyond Meat burgers and other products.
In 2020, Beyond Meat collaborated with McDonald’s to develop the McPlant burger which is a plant-based patty. In 2021, the company also partnered with Yum Brands to provide meat alternatives for its restaurant chains Taco Bell, KFC and Pizza Hut.
Beyond Meat also offer its products direct to consumers through its own e-commerce site and partnering with supermarkets such as Walmart and many others around the world.
Source: Admiral Markets MetaTrader 5, BYND, Weekly - Data range: from 5 May 2019 to 29 Apr 2022, performed on 29 Apr 2022 at 10:30 am GMT. Please note: Past performance is not a reliable indicator of future results.
The long term share price of Beyond Meat has been volatile. While there have been times of growth there have also been times of weakness. Currently, the share price is trading just above its all-time low of $20.00.
Calavo Growers (CVGW) - Avocado Producer with Long Term Growth Potential
Calavo Growers packages and distributes avocados and other fruits to consumers all around the world. While based in California, the company operates throughout the United States and Central and South America and has been listed on Forbes’ America’s Best Small Company list.
Founded in 1924, the California operation distributes Hawaiian papayas, while its operation in Mexico distributes avocados. Around half of the company’s revenues comes from its avocado operation. As it takes 13 years to grow an avocado tree, they are well-positioned to capitalise on growth in this vegan food staple.
Source: Admiral Markets MetaTrader 5, CVGW, Monthly - Data range: from 1 Mar 2002 to 30 Apr 2022, performed on 30 Apr 2022 at 10:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
The monthly chart of Calavo’s share price shown above highlights the strong growth from 2008 to 2018 – largely due to a huge rise in the price of avocados. The share price has struggled in recent years and is currently trading around price levels not seen since 2014.
Ingredion (INGR) - A Leader in Plant-Based Proteins for Food & Materials
Ingredion defines itself as a global ingredients solutions company. Their business turns plant materials such as vegetables and grains into sweeteners, starches and biomaterials used in everyday products including food, beverages, paper and pharmaceuticals.
With more than 12,000 employees around the world, Ingredion operates in 60 different sectors in more than 120 countries. Ingredion is now a Fortune 500 company producing plant products used in crackers, sweets, lotions, biodegradable plastics and even tissues.
Source: Admiral Markets MetaTrader 5, INGR, Monthly - Data range: from 1 Aug 2002 to 30 Apr 2022, performed on 30 Apr 2022 at 10:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Ingredion’s share price exhibited strong growth between 2008 and 2017. Since then, the share price has declined and has sat in a trading range since 2018, struggling to break above the $101.00 price level.
Tattooed Chef (TTCF) - Producing Plant-Based Products for Freezers & Pantry
Tattooed Chef went public at the end of 2020 through a special purpose acquisition vehicle (SPAC). Its products are now in more than 4,300 retail stores and can also be bought online in the US. Its products include meals, burgers, pizzas, bowls and burritos.
The company initially operated on a private-label basis but has since changed its branding for more exposure. As the company is relatively new, most of its profits are reinvested to build its product range around the world.
Source: Admiral Markets MetaTrader 5, TTCF, Daily - Data range: from 8 Feb 2021 to 30 Apr 2022, performed on 30 Apr 2022 at 10:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Tattooed Chef’s share price had a difficult time in 2021. Management failed to meet investor expectations, even though it did manage to increase its brand awareness. However, the decline in its share price is moving the company towards a potential vegan penny stock status.
Vegan penny stocks are stocks involved in the vegan food sector that are trading below $5. As Tattooed Chef’s share price is approaching this level it may gain attention from penny stock traders.
How to Invest in Vegan Stocks
To start investing in vegan stocks and shares you first need a live trading account. Alternatively, you can also practice on a demo trading account until you are ready to go live. With Admiral Markets, you can open live and demo trading accounts in just a few minutes.
This will give you access to the world’s most popular stock trading platform MetaTrader 5 for desktop, web and mobile, as well as a range of additional analysis tools such as the Technical Insight Lookup indicator in the Premium Analytics section.
Below is a step by step process on how to start investing from the MetaTrader 5 web platform.
- Login to your Admiral Markets account to access the Dashboard. Here, you can manage different accounts, deposits and withdrawals and more.
- Click on the Trade icon next to your account name to open the MetaTrader 5 web platform.
- Type in the name of the stock at the bottom of the MarketWatch window and then drag the name onto the chart to view live stock price information.
- Click on New Order at the top of the window to open a trading ticket. Input your entry, stop loss and take profit levels and number of shares to purchase.
Source: Admiral Markets MetaTrader 5, 30 April 2022
Why Invest in Vegan Stocks with Admiral Markets?
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