The Ultimate Guide to
How to trade in vegan stocks online
Veganism is fast becoming one of the biggest social and dietary movements of the 21st century. With growing awareness about animal cruelty in the food industry, as well as the devasting impact agriculture and meat production has on the environment, consumers are increasingly turning to meat free alternatives.
According to figures from data service Euromonitor, while the $30bn processed meat industry grew just 2% in 2018, the $1.4bn meat alternatives market expanded 10 times that at 20%.
This boom in veganism saw Los Angeles-based company Beyond Meat launch the most successful IPO of 2019. The firm, which produces plant-based meat substitutes designed to taste as close to ‘real’ meat as possible, has developed a cult following in the US and Canada.
Its IPO in May 2019 was met with eager enthusiasm by investors, with the firm closing its first day of trading at $65.75. This was 163% above its IPO price, making it the best performing debut IPO in nearly two decades. It also beat out Uber, which launched its IPO the same month. Uber’s first day of trading was more lukewarm at just over $40 per share.
Beyond Meat’s stock surged to over $230 per share in July and has since been hovering around $90 as of October 2019.
Advantages of trading with a regulated online broker
It is easy to get involved in the vegan movement, and potentially make some money, without necessarily needing to give up all things derived from animals. Platforms such as eToro offer a great way for any investor, from novice to know-it-all, to build a stock portfolio.
What’s more is that these platforms have to adhere to a strict set of rules and regulations, so everything is above board. Not to mention that, in the UK, trading platforms like eToro are authorised and regulated by the Financial Conduct Authority, offering customers an element of protection.
Driving fundamentals
It’s forecast that by 2040 only 40% of the global population will be consuming meat, with 35% consuming clean (lab) meat and 25% vegan meat replacements.
According to the Vegan Society, the growing vegan trend – especially in the UK – is expected to increase the demand for plant-based meat products.
In addition, countries including China, Singapore, Australia and New Zealand are expected to facilitate the growth in meat free foods in the coming years, due to the rise in demand for organic food products in these regions.
This consumer shift to meat free has also forced a number of leading meat companies to change their strategies and enter the vegan market.
America’s largest meat processor, Tyson Foods, bought a 5% stake in Beyond Meat in 2016, upping its investment the following year to 6.5%.
Tyson, which has a market cap of $24bn as of October 2019, has since sold its stake in favour of launching its own plant-based food line, Raised & Rooted -pitching it as a healthier alternative to Beyond Meat’s products.
Raised & Rooted is also attempting to capture the growing ‘flexitarian’ demographic by producing foods that are a blend of animal and plant proteins.
Facts
- The vegan trend quadrupled in the five years between 2012 and 2017, according to Google Search, and now gets three times more interest than vegetarian and gluten free searches
- According to a 2018 report by the Food Revolution Organization, the number of vegans in the US has increased by 600% in the last three years
- The move to veganism has seen burger giant McDonald launch vegan options in the US, Finland, Sweden and the UK over the last few years
- Beyond Meat’s investors has included the likes of Bill Gates, the Human Society and actor Leonardo DiCaprio.
- Beyond Meat’s biggest rival, Impossible Foods, is expected to go public at some point in 2020 – although the firm has declared it is in no rush to do an IPO
