Breakdown of investment opportunities: plant food stocks

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Investment in the environment, society and governance (ESG) has become increasingly popular in the last few years. This is great news for ESG shares as a whole. But as a key part of this growing diligence, plant food supplies are the main benefits.

While vegetarian options have been around for decades, plant-based meats and plant-based dairy alternatives have begun to gain in popularity. Companies like Beyond the flesh (NASDAQ:BYND), Oatly (NASDAQ:OTLY) in Tyson Foods (NYSE:TSN) continue to produce new and improved products. In fact, the vegan food market is growing rapidly, and estimates suggest it will reach $ 31.4 billion until 2026.

Not only is plant food on the rise, vegetable growers are also thriving. For example, fruit and vegetable growers love it Calavo growers (NASDAQ:CVGW) have been a great success in the last decade. (Shares of Calavo Growers tripled between 2011 and 2020).

This dietary trend is also fueled by the Covid-19 pandemic. This is partly due to supply chain problems, especially with meat. At the start of the pandemic, all meat prices rose and beef and veal prices rose 17.6% in September 2020. In addition, as the Centers for Disease Control and Prevention informed the public that a healthy diet would boost the immune system, more and more people switched to a plant-based diet and took advantage of new plant products.

No matter how promising the future of plant-based stocks is, investors looking for pure vegan supplies may be in trouble. Here is the key in the definition of veganism. Vegans oppose the use of animal products of any kind, but adherents of plant origin can use it only for their own food or eat only mostly plant products with some exceptions. This makes it difficult to find vegan stocks, but there are plant businesses, e.g. Impossible food, which produce food products that help enable a vegan lifestyle.

In addition to this quick review, let’s delve into the details of what to expect from plant food stocks in the coming years.

Plant food stocks: catalysts for less livestock

The Covid-19 pandemic highlighted the fragility of the human immune system, which was a powerful catalyst for vegan and plant food supplies. Although there is no diet that has been proven to fight Covid-19, Medical news today notes that: “A plant-based diet can also reduce the risk of obesity and chronic diseases. These are conditions that could worsen the outcome of COVID-19. ”Also guidelines from the World Health Organization (WHO). proposed a meat restriction consumption. People were advised to limit “consumption of red meat to 1-2 times a week and poultry to 2-3 times a week”.

People with higher levels of certain vitamins and minerals in plants could be more resistant to Covid-19. Therefore, people who switch from a less vitamin- and mineral-rich diet to a more plant-based or vegan diet could boost their immune system. Another plus of a vegan or plant-based diet is the amount of antioxidants consumed. Antioxidants can help fight free radicals and oxidative stress associated with respiratory diseases and others.

While this sounds like great news to people in general, it’s also great news for plant food stocks. As more and more people are encouraged to eat healthier, companies that produce plant products should see an increased demand for their products. In fact, WebMD reports that “Plant food Sales rose 27% in 2020 to more than $ 7 billion.

He also mentioned Oxford Academic, “the demand for functional foods containing bioactive ingredients has increased.” This is very good for plant stocks as it gives them a place in the market that they can fill. Demand for frozen vegetables also increased by 52% in the week of the pandemic. Following the pandemic, consumer trends towards healthier options became clearer, with 43% of consumers eating more fruit and 42% eating more vegetables. All this data means more options for stocks of vegetable and plant foods.

The Covid-19 pandemic also caused significant supply chain problems, which in turn affected demand for plant products.

there are five levels in the food supply chain: “agricultural production, post-harvest processing, processing, distribution / retail / service and consumption.” Due to transportation restrictions imposed by the government to facilitate the proliferation of Covid-19, food transportation has become a problem. Governments closed borders and territories, making it difficult to deliver food shipments. In addition, labor shortages have led to disruptions in livestock (meat), horticulture, planting, harvesting and crop processing.

Labor shortages were particularly difficult to address, such as food processing plants “possible outbreak hotspots.” It is difficult to distance oneself socially in an environment where workers have to stand side by side. A loud environment also means that people have to speak or shout loudly. This releases more droplets into the air, causing the viruses to spread. Employees also tend to group cars together or use public transportation that was dangerous during a pandemic.

The entire food industry was threatened; however, meat producers have been particularly hard hit, as plant food companies have avoided many of these issues due to their unique supply chain. In fact, at the beginning of the pandemic, “the sale of artificial meat in grocery stores increased by 264 percent, ”While the cost of real meat has risen due to supply problems.

No meat on this bone: Plant food supply Preventive winds

While the catalysts for growing plant stocks are strong, the industry is not without challenges.

For example, a healthier lifestyle and plant-based diet are difficult to maintain and do well. For one it can be a challenge to ensure you are getting enough protein. Protein is made up of amino acids found in dairy products, fish, eggs, meat, legumes, grains and nuts. A plant-based diet would generally exclude the first four products, which would make protein intake more difficult.

There is also “the potential for a deficiency of certain nutrients, including calcium, iron and B12”. To avoid these problems, meals need to be planned and prepared, which can take a lot of time and thought. In a world where many people are constantly busy, some do not have the time to carefully plan diets and meals.

Many plant food companies come here and try to offer convenient solutions. However, it is questionable whether their “solutions” are actually healthier or not.

To further break down the ingredients of vegetable meat, take Burger King’s Whopper, for example. Theirs Impossible cube is: “629 calories, 25 grams of protein, 58 grams of carbohydrates (4 grams of fiber) and 34 grams of fat. For comparison, traditional beef Whopper… [is] 660 calories, 28 grams of protein, 49 grams of carbohydrates (2 grams of fiber) and 40 grams of fat. The difference in numbers is quite small, as the Impossible Whopper lean beats the beef Whopper, except in the amount of carbohydrates. That being said, if you want to give up meat for health reasons, those numbers are small, which isn’t great for plant-based stocks.

The review of plant foods and their viability as healthy alternatives should be expected to continue.

Another disadvantage of a plant-based diet may be the cost. For example, a 16-ounce Beyond Beef, a plant replica of ground beef, costs between $ 7.79 and $ 9.99. Slightly cheaper, a replica of Impossible Food minced beef costs $ 6.99 for 16 ounces. However, 16 ounces of minced beef can start at a price of $ 3.99 to $ 8.99, depending on the type of beef and whether it is organic or not. Depending on your favorite type of vegetable “meat,” it’s currently cheaper to buy and make a beef burger than to make a vegetable burger.

As for cheaper and healthier diets, the best choice would be to stick to vegetarian products compared to plant “meat”. This vegetarian burger recipe only costs 47 cents per serving; much cheaper than vegetable “meat”. While this is bad news for some plant food stocks, it could still be good news for fruit and vegetable growers.

The best plant stocks to see

Caroline Rodrigues is the online editor for InvestorPlace.com. At the date of publication, they did not have any position (direct or indirect) in any of the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.

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