A rundown of the most promising vegan stocks that could make you a profit this new year!
Whether you’re into veganism or not, there’s no denying that it’s a movement that’s growing exponentially with each passing year. More than just a trend, the choice to abstain from animal-based products continues to captivate many, with a growing number of shoppers preferring to go for vegan-alternative products even if they’re not necessarily vegan themselves.
The global vegan food market is expected to reach a value of over 22 billion U.S. dollars in 2025. In 2021 alone, the market size was close to 16 billion U.S. dollars with a compound annual growth rate is expected to be nine percent.
As an investor in stocks, recognizing the growth of this relatively new industry is important. When you realize that veganism, and the many products that make it possible, are here to stay, you open up avenues of investment that lets you capitalize on the growth.
Whether you’re a vegan looking to support an industry you believe in, or a meat-eating investor looking for a healthy profit, here are some of the best vegan stocks to purchase this 2022:
1. Beyond Meat (NASDAQ: BYND)
Market Cap: $4.3 billion
When it comes to meat substitution, Beyond Meat is the leader. The company specializes in the creating of plant-based meat alternatives that are as good as the real thing while still being environmentally friendly. Constantly in the news, the buzz surrounding this company makes it one of the hottest vegan stocks to buy this past few years.
Pre-pandemic, Beyond Meat reported triple-digit rates with a seemingly meteoric rise in share prices every time they release an innovation. As of September 2021, the company has gained somewhat of a ubiquitous status, reporting that its products were available at approximately 128,000 retail and food service locations in more than 85 countries.
It’s worth noting though that, for all the company’s successes, it had a difficult 2 years during the pandemic. Share prices have yet to rebound and investors short-sellers are having a feast with it. The current stock price of the company is down by -12.84% year-to-date.
If you decide to invest in the shares of Beyond Meat, it would be for the potential rebound and growth of the company post-pandemic.
2. Oatly (NASDAQ: OTLY)
Market Cap: $4.6 billion
In May of 2021, Outly took the market by storm with the release of its dairy-alternative oat milk. The Swedish company quickly dominated its category, becoming the second best-selling alternative after almond milk, surpassing soy by a huge margin.
Despite making huge waves, the company has in fact been around since the 1990s. It only really captured public attention when the demand for vegan options for dairy soared, naturally bringing its oat milk product ranges to the forefront. In terms of actual performance, Oatly's products are now available in more than 65,000 stores and more than 60,000 coffee shops. Revenues jumped 55.4% to $457.3 million for the first nine months of 2021 compared to the prior-year period.
Though the company is currently unprofitable, this is due in large part to its aggressive spending in marketing. Investors should be on the lookout to see if their advertising efforts pay off in future profits.
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3. Calavo Growers (NASDAQ: CVGW)
Market Cap: $748.8 million
Avocado, rich in healthy fats and vitamins, is essentially a staple in many vegan diets. It has also become a favorite among millennials and fitness enthusiasts. Any company that deals in the production or distribution of avocados are likely to benefit from the growth of veganism as well.
This is where Calavo Growers comes in. About half of the company’s revenue comes from avocados, and the increase in demand for that particular fruit has resulted in the company's stock prices tripling between 2011 and 2020.
Though the combination of stiff competition from similar producers and the effects of the global pandemic has hampered Calavo Growers’ performance in recent years. Currently, stock prices are down by -46.47% over a 12-month period. That being said, it does take the avocado tree 13 years to grow, making Calavo Growers an ideal investment for the long-term.
4. Mission Produce (NYSE: AVO)
Market Cap: $1 billion
Another notable seller of avocados, Mission Produce proclaimed itself to be the world’s most advanced avocado network when it went public in 2020. Mission Produce does not only grow its avocados in lands totaling 10,000 acres globally, but instead also buys it from countries like the world, including California, Mexico, Peru, South Africa, and New Zealand. They are also well-known sellers of mangoes.
Since going public, the company’s stocks have increased by 9.48%, not spectacular gains but still impressive considering many other companies in the same categories are sporting negative prices. Certain pandemic-related challenges still plague the company though such as disruptions in supply chains and the delayed start to the Mexican harvest season. Avocado prices fell by 2% in 2021 too which hurt the company’s performance.
Hopefully, once operations go back to normal, the company’s stocks can rebound with a vengeance and restore investor confidence.
5. Tattooed Chef (NASDAQ: TTDF)
Market Cap: $1.2 billion
When it comes to plant-based frozen foods, the Tattooed Chef is the way to go. Since going public in 2020 due to company acquisition, the stocks of this company served represented a bullish position for investors in vegan stocks.
Proof of this is its revenue spike of 75% in 2020 to $148.5 million. As of late, Tattooed Chef’s products are now available in about 4,300 retail stores with more being added each year. Over 90% of its earnings stems from its grocery shopping customers, either an advantage or disadvantage depending on the whims of consumers.
Over the past 5 years, the company’s stocks have gained by 21.04%. With plans to offer its products through e-commerce platforms and a higher budget percentage now being spent on marketing, investors should definitely be tracking the trajectory of the company’s shares.
6. Laird Superfood (NYSEMKT: LSF)
Market Cap: $97.7 million
This company is really as niche as it gets. Founded by former athletes, Laird Superfood specializes in the creation and marketing of plant-based coffee creamers, hydration products, beverage-enhancing supplements, and other drink products. And thanks to its recent acquisition by Picky Bars in May 2021, the company is primed for exposure to vegan snacks as well.
A relatively new company, being established in 2015, its nutrient-rich products have come to be enjoyed by everyone from gym-goers to health-conscious parents, earning patronage from groups outside of its main vegan market.
Although not currently profitable, like many other stocks on this list, the potential for future profits with Laird Superfood is great. They have plans to release even more new product lines and expand their presence among retailers. Investors would be wise to keep an eye on their new offerings to see if they fair well in this multibillion-dollar market, especially after the pandemic.
7. AppHarvest (NASDAQ: APPH)
Market Cap: $395.7 million
AppHarvest is probably one of the most recognizable agri-tech stocks in the market. This company specializes in vertical farming, an agricultural innovation that’s likely to gain traction over time, and is solely focused on the production of tomatoes. With plans to also expand to other crops, they are currently building a 60-acre indoor Kentucky farm as its flagship facility.
There are many concerned about the stocks of AppHarvest due to their less than stellar revenue reports — the stocks of the company being down by -17.68% year-to-date. However, there is still optimism among investors who consider the numbers to be a result of the company's heavy spending on operations. AppHarvest is aiming for 12 farms by 2025, with revenue of $350 million to $450 million and adjusted EBITDA of $115 million to $130 million.
Though caution is advised, its important to add that the company is still very young. Perhaps it’ll hit its stride in a year or two, earning its loyal investors a pretty penny along the way.
And those were the best vegan stocks to purchase this 2022. Many of the stocks listed here are not currently profitable but have high potential when taking into account the plans and projections of their respective companies.
It is also important to remember to practice your due diligence before investing in a particular stock. Research and careful consideration are always what sets a wise investor apart from a risk-loving gambler. Be sure to learn all you can about a company and its projection by exports before committing your hard-earned assets.
With that said, we certainly hope that this article was helpful in your search for the most ideal vegan stocks. The industry surrounding alternatives to animal-based products is growing every year. Capitalizing on it sooner rather than later is not only wise but ensures you walk away with as many returns as possible. With the vegan right stocks, you can definitely enjoy a healthy and guiltless profit.