Investments in plant-based food brands have topped $17 billion since 2009, with the most action happening in the past two years. In just this past year, plantbased meat alternative investments were up 24%, topping out at nearly $670 million in sales.
This surge has resulted in U.S. retailers booking a 17% rise in plant-based food sales over the past year, while total U.S. retail food sales grew only 2% and investors are increasingly following the consumer trend. Whether you believe in these products or not, you can’t deny the financial interest these products have today and the meat industry is taking notice.
Sustainable foods are the wave of the future.
Stocks usually takeoff due to the old saying of “Supply & Demand.”
So here are some of the reasons why the plantbase meat investments are taking off today:
- Traditional meat has a major negative impact on the environment.
- People want to consume less meat for animal welfare.
- Demand for meat alternative for health reasons.
Growing plants for livestock accounts for 25% of the world’s fresh water usage. Livestock generate 7.1 of GHGs (Greenhouse gases) per year: about the same as the entire global transportation sector and about 15% of all human-induced greenhouse gas emissions.
Here are your best Plantbase meat investments heading into 2020.
The California plant-based food company went public on May 1 at $25 a share, selling 9.6 million of its stock for net proceeds of $219 million, not including the underwriters’ over-allotment. The company’s shareholders didn’t sell any of their shares in the IPO.
Recently, the market hasn’t been so kind to Beyond Meat (NASDAQ:BYND), for a good stretch of time since the stock opened, it has been the hot topic of Wall St. Since the opening, the stock has tumbled 37% since it almost hit $235 per share at the end of July. However this stock will not fall for long and has already seen recent gains in a tumbling stock as of late.
In less than three months, investors enjoyed an incredible 840% gain from Beyond Meat’s initial public offering price of $25 per share, making it one of the most successful offerings of the year. So while Beyond Meat’s fall may be concerning to some, because of the recent fall, some are very excited moving forward and understand the fall is common for a hot stock that took off so quickly.
In a recent investor presentation, Beyond Meat spelled out plans to capture 13% of the US market share of traditional meat, about $35 billion of the $270 billion industry in the US. The company arrived at this number by calculating how much of the dairy milk market has been captured by plant-based milk.
The alternative meat maker will see its plant-based burgers tested at McDonald’s in Canada, an announcement that sent shares of Beyond Meat up 11.6% in trading.
Not enough, here are more reasons to believe Beyond meat is the king of the meat alternatives.
Beyond Meat benefits from a wider array of plant-based offerings than its closest competitor, Impossible Foods, which has stayed focused on a replacement for ground beef. The El Segundo, Calif.-based company has inked pilot deals with KFC for a plant-based chicken nugget, and a number of fast food outlets like Dunkin, are selling the company’s breakfast sausages.
But the competition extends beyond fast food chains. Big food service vendors like Sodexo and others that cater to corporations, colleges, and universities are trying to lock in suppliers of protein replacements as well.
Beyond Meat is considered to be the top choice by the plantbase market. The fact is, 70% of the people who eat Beyond Meat burgers are meat-eaters.
In 2016, Tyson made a 5% investment in Beyond Meat, the company behind the burger that has taken Canada and the U.S. by storm. It upped its stake at the end of 2017 as part of a $55 million investment round by the California-based company.Tyson was also an early investor in Beyond Meat, but sold shares before Beyond’s ultra successful IPO. Shares are up more than 500% from the company’s $25 IPO price, making Beyond Meat the best-performing IPO of 2019.
In June, Tyson announced a line of plant-based nuggets and blended burgers made with beef and plants as part of its new “Raised & Rooted” brand, which incorporates pea protein isolate. Both Beyond Meat and alternative milk company Ripple rely on pea protein as a key ingredient that’s also gaining in popularity with consumers who want to avoid soy as an allergen.
Tyson has also in the sea food alternative as well, they aren’t the first to get into the seafood challenge, but word is they will be the best. They will specialize in plantbase shellfish, with it’s new investment in New Wave Foods. These products will be ready for sales in early 2020.
Tyson Foods is the rising star of the plantbase market right now, keep a close eye on this stock (TSN)
Early next year, Kellogg’s Morningstar Farms will begin selling the “Incogmeato” burger: a plant-based, refrigerated patty made with non-GMO soy that is designed to mimic meat’s look and flavor. It will also start offering new versions of its vegetarian “Chik’n tenders” and “Chik’n nuggets” that the company bills as an improvement over its current chicken-substitute products. Available in grocery stores and foodservice beginning in early 2020, include:
MorningStar Farms delivers roughly 90 million pounds of plant-based protein to people all over the country. MorningStar Farms has often been the first meat-alternative product people have tried and it is proud to be the plant-based protein brand with the highest consumer repeat rate. Nielsen data shows that when shoppers try MorningStar Farms first, they’re more likely to come back for more, thanks to the great taste, variety of options, affordable prices and how easy it is to find in stores.
Kellogg Co (K) is the dark horse in the plantbase market, but could soon rise to the top, especially with Morningstar’s already popular vegetarian consumers.
Honorable mentions for this list are as follows:
Maple leaf foods (MLFNF)