In this article, we will take a look at the 10 best alternative meat stocks to buy. If you want to skip our discussion on the recent developments in the industry, go directly to 5 Best Alternative Meat Stocks to Buy.
The demand for meat was expected to jump 50% internationally between 2013 and 2050, the Good Food Institute said, citing Our World in Data. According to research by the US Department of Agriculture, the per-capita US meat consumption in 2018 was only two pounds away from being the highest figure in American history. In 2021, the value of fresh beef sold in the US was over $30 billion. And for this, plant-based meat products offer a way out. Although there are still some best beef stocks having popular names in the market, plant-based meat products or alternatives to the meat sector are also rising. In 2022, the plant-based meat market value was around $7.9 billion and it is anticipated to reach $33.6 billion by 2032 with a compound annual growth rate of 14.7% during the forecast period from 2022 to 2032. On the other hand, the international beef market was valued at $49.7 billion in 2022 and is anticipated to reach $63.3 billion by 2028 with a compound annual growth rate of 4.1% during the forecast period. To learn more about the best beef stocks to buy, you can visit 10 Best Beef Stocks to Buy Now.
Plant-based meat products are usually made from soy protein, peas, and binders which have artificial and natural flavors to develop a taste of meat. There are a few important points that provide a competitive edge to firms in the plant-based meat sector in comparison to the best beef stocks. Firstly, companies that adopt innovation and produce plant-based meat products that closely relate to traditional meat tastes will likely retain a competitive advantage against their competitors. Secondly, sustainability also plays a crucial role for those firms. And lastly, effective branding and marketing strategies let organizations be different from other players in the market. As a healthier alternative to traditional meat, plant-based meat products end up being the best option for people who are usually diet-conscious. In terms of environmental sustainability, plant-based meat releases 30% to 90% less greenhouse gas than conventional meat, while the former also utilizes 72% to 99% less water than the latter.
The plant-based meat products in the US had distribution sales of roughly $304 million in 2022. The research by Good Food Institute also highlighted that plant-based buyers in America spend approximately $400 more than those average purchasers at food service operators annually. Last year in the US, 53% of plant-based protein sales were meat analogs, higher than 39% in 2019. Beyond Meat, Inc. (NASDAQ:BYND), one of the best beef stocks to buy, entered into a three-year agreement in 2021 to be the preferred supplier for the patty in McDonald's Corporation (NYSE:MCD)'s plant-based burger McPlant. In June, the company said it rolled out plant-based Beyond Sausage product at select Costco Wholesale Corporation's (NASDAQ:COST) outlets.
"Meat is basically protein, fat, and water. Our game is to find all that in plants and reassemble it against the architecture of meat," Ethan Brown, CEO of Beyond Meat, Inc. (NASDAQ:BYND) said.
Some of the notable best beef stocks to buy include BRF S.A. (NYSE:BRFS), Performance Food Group Company (NYSE:PFGC), Sysco Corporation (NYSE:SYY), Albertsons Companies, Inc. (NYSE:ACI) and others.
Looking ahead, although meat products remain more popular, 46% of people around the world consume plant-based foods between 2 to 6 times weekly, GlobalData's consumer survey indicated, cited by JustFood. Also, 42% of consumers globally think that majority of people around the world will prefer to eat plant-based meat products over traditional meat through the next 10 years. For this, we decided to take a look at some of best alternative meat stocks to buy.
To compile the list of the best alternative meat stocks to buy, we filtered plant-based alternative meat production companies listed on the New York Stock Exchange and Nasdaq, and then we picked the top largest alternative meat stocks in terms of hedge fund sentiment. The stocks were ranked based on Insider Monkey’s database of 910 hedge funds tracked at the end of Q2 this year. The ranking was based on the ascending order of the number of hedge fund investors in each firm and then the top 10 best alternative meat stocks to buy were selected for investment purposes.
MGP Ingredients, Inc. (NASDAQ:MGPI) ranks 10th in our list of the best alternative meat stocks to buy. In September last year, it introduced Proterra Crumbles, a plant-based pea protein crumble and an alternative to traditional meat. MGP Ingredients, Inc. (NASDAQ:MGPI) reported Q2 sales of $209 million, up 7% year-over-year. During the Q2 earnings call, the firm highlighted a rising demand for plant-based proteins and food products that resulted in higher sales of wheat proteins and starches including commodity wheat starches.
One of the biggest fast moving consumer goods firms, London-based Unilever PLC (NYSE:UL) has been in operations since at least 1860. The company tapped the plant-based meats and foods sector in 2018 when it acquired The Vegetarian Butcher that produces vegetarian meat products. In 2021, Unilever PLC (NYSE:UL) collaborated with food-tech company ENOUGH to introduce new plant-based meat products. In 2020, Unilever PLC (NYSE:UL) said it expected to generate 1 billion euros ($1.07 billion) in annual global sales from plant-based meat and dairy alternatives, over next 5 to 7 years.
The Hain Celestial Group, Inc. (NASDAQ:HAIN) ranks 8th in our list of the best alternative meat stocks to buy. The company produces, advertises, and sells organic and natural food products globally. The Hain Celestial Group, Inc. (NASDAQ:HAIN) also has numerous plant-based products' brands including Joya, Lima, Linda McCartney's, and others. The New Jersey-based firm tapped the plant-based food sector by acquiring Yves Veggie Cuisine, a Canadian distributor of soy protein meat alternative products, in 2001.
Hormel Foods Corporation (NYSE:HRL) was founded in 1891 and is based in Austin, Minnesota. The company's 199 Ventures signed an exclusive partnership with The Better Meat Co. in October of 2021 to launch new mycoprotein and plant-based protein products in market. The two firms collaborated to roll out the next generation of great-tasting, wholesome, and sustainable alternative protein products for diet conscious consumers. In 2020, Hormel Foods Corporation (NYSE:HRL) launched a new line of plant-based ingredient solutions in the United States. The new product included cooked crumbles and uncooked ground products made from pea protein.
Insider Monkey took a look at hedge fund portfolios for Hormel Foods Corporation (NYSE:HRL)'s second quarter of 2023 investments and concluded that 24 had stakes in the firm. Bill & Melinda Gates Foundation Trust was the largest stakeholder that owned 2.2 million shares of Hormel Foods Corporation (NYSE:HRL) that were valued at $88.3 million.
Nomad Foods Limited (NYSE:NOMD) ranks 6th in our list of the best alternative meat stocks to buy. The company produces and sells different frozen food products in the European market. Nomad Foods Limited (NYSE:NOMD) announced in 2020 that it was introducing plant-based Green Cuisine products throughout Europe. It initially rolled out Green Cuisine products in the UK and Germany under its Birds Eye and Iglo brands, respectively.
Out of 910 hedge funds profiled by Insider Monkey at the end of June 30, 24 had stakes in Nomad Foods Limited (NYSE:NOMD). The largest stakeholder was Bernard Horn's Polaris Capital Management which owned about 2.8 million shares of the firm that were valued at $49.8 million.
