Going vegan: best vegan stocks and how to invest
The appetite for vegan food has increased in many countries, with businesses rushing to get a piece of the proverbial cake. These are some of the largest vegan stocks and are ordered by market capitalisation.
The vegan market and how much it’s worth
Many food products are naturally friendly to vegans, like vegetables, which means the vegan market is already large. The global vegan market is said to have reached a value of $24.59 billion in 2022 and is expected to increase at a compound annual growth rate (CAGR) of 10.1% between 2023 and 2028.
In comparison, the global meat market is thought to be nearing $1 trillion in worth, meaning that there’s still plenty of room for the vegan market to grow.3 But, there’s an expectation that cultured meat might overtake plant-based meat products as the number one alternative to meat in coming years.
Global meat consumption: share of market (%)
| 2025 | 2030 | 2035 | 2040 | |
| Total value | $1.2 trillion | $1.4 trillion | $1.6 trillion | $1.8 trillion |
| Cultured meat | 0% | 10% | 22% | 35% |
| Novel vegan replacement meat | 10% | 18% | 23% | 25% |
| Conventional meat | 90% | 72% | 55% | 40% |
Source: Kearney2
The adoption of vegan food is being driven by a number of key factors. The movement is particularly popular among younger generations, and plants are regarded as a more efficient way of feeding the world’s growing population – set to rise from 7.6 billion to around 10 billion by 2050.2
But the main reason for the success of vegan alternatives to meat has been its reception from meat-eaters. When hype was at its peak, vegetarianism was polarising: you either ate meat or you didn’t – if you enjoyed meat, vegetarian alternatives were off the menu.
But veganism, partly because of how it links to climate change and as a result of growing awareness of the possible health benefits, is more fluid. In fact, a large number of people that consume meat alternatives aren't strictly vegan, but are simply trying to reduce their meat intake. These people are often called ‘flexitarians’ (a semi-vegan or vegetarian diet) or ‘reducetarians’.
With the likes of ‘meat-free Mondays’ becoming increasingly popular in the UK, it’s estimated that at least a quarter of evening meals are either vegan or vegetarian.4
But it’s not all about winning over meat lovers. Vegan alternatives to other everyday staples are now commonplace, eg almond milk and dairy-free cheeses are experiencing rapid growth.
Companies vie for the vegan dollar
The fact that vegan products appeal to non-vegans means businesses have been more motivated to move with the times. It also means they can cater to a larger market.
As a result, many big companies have launched new vegan products either to capitalise on demand or because they were pressured by customers or shareholders. This has been achieved by either developing new products in-house or by acquiring smaller businesses to get a head start.
Despite these new products hitting the shelves, the vegan trend, which looks to have peaked in 2019, has since slowed and with only an estimated 2% of the population currently identifying as vegan, the predicted 25% by 2025 now seems unlikely.
So, is this the beginning of the end for vegan investing?
Far from it. Veganism has become increasingly normalised within society and its environmental impact has resulted in a generally positive view of the movement. In fact, 73% of UK customers claim they would switch to plant-based products if the price was equal to or less than meat.
Although this is yet to be achieved, progress is already being made. Ikea's plant-based meatballs and the vast majority of ASDA's plant-based range are already cheaper than their meat-based equivalents and it’s only a matter of time before others follow.
One of the main reasons for this is thought to be cost. For the most part, vegan products are more expensive than their meat-based counterparts. Given the recent rise in the cost of living, many people who previously followed a more flexitarian diet have opted for a more cost-effective alternative and switched back to meat. This may be the reason why many vegan stocks have dropped in recent times.
Veganism also goes well beyond food, with people becoming increasingly particular about the contents of non-edible goods. The vegan cosmetics market, for for instance, is currently worth $17.37 billion and come 2030, it's expected to reach $26.16 billion.
Even companies like Tesla, that aren’t obvious examples of vegan friendliness, are making changes – the electric carmaker removed the leather option for seats due to environmental reasons.
Investing in and trading in the vegan market
How to invest in veganism
You can get exposure to the consumption of plant-based products in different ways, including:
- Investing in vegan stocks
- Backing venture capital trusts (VCTs) that invest in vegan and plant-based stocks
- Investing in vegan exchange traded funds (ETFs)
Say you choose to invest in vegan stocks: you’ll become a shareholder with voting rights and profit from any dividend payments (if offered by the company). You’d also make a profit if you sell your investment when the share price is higher than the original buy price.
However, if you sell your shares when the share price is lower, you’d incur a loss. While potential profits are essentially unlimited, your possible losses are capped at the full value of your investment (excluding any additional fees).
Create a share dealing account to start investing in veganism
How to trade on the vegan market
When you trade vegan assets, you’re speculating on the future market price with derivatives such as spread bets and CFDs. This means that you won’t own the underlying asset, so you can profit from both rising and falling markets.
Spread bets and CFDs are leveraged products, so you’ll only need to commit a small initial deposit – known as margin – to open a position. Leverage magnifies both your possible profits and potential losses to the full value of the trade, so it’s important to manage your risk properly before you open a position.
If you’re not ready to trade on live markets, you can practise trading vegan assets on our demo account – a risk-free environment where you never have to deposit real funds.
Best vegan stocks and assets to watch
Best vegan stocks
Below is a list of vegan stocks to watch (as of March 2024), although not all of them can be classed as 100% vegan-friendly. They are ordered by market capitalisation:
Archer Daniels Midland
Archer-Daniels-Midland also known as ADM, is another firm poised to capitalise on the demand for plant-based foods. The US company serves customers in around 200 countries ‘all the way from plant to plate’ from its 450 crop procurement facilities and over 330 food and ingredient manufacturing plants.
With multiple alternatives to animal products such as plant-based proteins and non-dairy frozen treats, the company demonstrates an acute awareness of how consumer diets are changing. However, investors should also note that it has a large industrial business and produces animal feed.
In its first quarter results, adjusted segment operating profit came in at $1.3 billion, down 24% on last year due to weaker pricing and margins. CEO Juan Luciano, nevertheless, said the company's performance showed "resilience" in challenging market conditions and reiterated its earnings guidance for the year.
Market Capitalisation: $30.1 billion
Bunge Global
Bunge is an agribusiness that supplies plant-based staples – eg grains, oilseeds and sugar – used to make a variety of foods. Predominantly operating across the US and South America, its strongest area is oilseeds, where it has an industry leading footprint producing soy, canola, sunflower seed and rapeseed oil.
Together with oil giant BP, Bunge created BP Bunge Bioenergia, a market leader in low carbon ethanol, sugar and bioelectricity in Brazil.
In its first quarter results, Bunge's net income fell to $244 million from $632 million in 2023, while GAAP diluted EPS slid to $1.68 from $4.15 in the previous year. In its agribusiness higher processing results were offset by lower results in merchandising, while the refined and specialty oils division was hit by higher comparative results in the previous year.
CEO Greg Heckman said: “We are pleased with our first quarter results, which reflect our team’s strong execution in a more balanced market environment. During the quarter we invested further in our pipeline of growth projects and made excellent progress on integration planning for our announced combination with Viterra.”
Market Capitalisation: $15.3 billion
Ingredion
Ingredion is a Fortune 500 company that turns grains, fruits, vegetables and other plant materials into ingredients such as sweeteners, gums, biomaterials and other specialty ingredients for a wide array of applications.
Most of the company’s ingredients are used in food, with the rest going to soft drinks and alcoholic beverages, as well as other applications such as toiletries and materials that help in making plastics and paper more environmentally friendly.
In its first quarter results, reported EPS was $3.23, an increase of 13%, while the company completed the sale of its South Korea business. Ingredion raised its earnings guidance for the full-year and now expects EPS to be in the range of $10.35 to $11.00 and adjusted EPS to be in the range of $9.20 to $9.85.
“Against a strong comparison with last year's record first quarter performance, this quarter’s results exceeded expectations," said Jim Zallie, Ingredion’s president and chief executive officer. "As anticipated, our net sales volumes in the quarter improved sequentially, despite the impact of extreme cold weather on shipments in the U.S. and taking into account the sale of our South Korea business,”
Market Capitalisation: $7.7 billion
AAK
Scandinavian firm AAK is the world's leading producer of specialty and semi-specialty vegetable oils and fats. AAK advises clients on everything, from tinkering with recipes to logistics and analysing market trends. It also helps make products suitable for different dietary and nutritional needs.
Its products are popular in chocolates, confectionary and other sweet treats. It launched AkoPlanet in 2019 to offer tailor-made solutions for food manufacturers developing plant-based alternatives within the meat, dairy, and ice cream segments. The company says its raw materials come from plants and have a ‘minimum impact on the environment’.
At the first quarter results, volumes increased by 3% to 556,000 MT (541,000), driven by its chocolate and confectionery fats and food ingredients businesses. Meanwhile, operating profits rose by 32% to
SEK 1,254 million (from SEK 952 in the same period last year), including a negative currency translation effect of SEK 63 million.
Johan Westman, President and CEO said: “It is encouraging to see volumes returning to growth. With the added volumes, we are driving profitability not only through our global optimization programs but also via the operating leverage that comes with our organic volume growth. As a result, we are experiencing continued growth in operating profit combined with an improved return on capital employed.”
Market Capitalisation: $7.3 billion
Dole
Formed in 2021 after the Irish company Total Produce and its American counterpart Dole Food formally merged, the resulting company Dole PLC is currently the largest distributor of fresh fruit, vegetables and packaged foods in the world. It operates across 75 countries in North and South America, Europe, Africa and the Middle East.
Although the firm doesn't specifically target plant-based foods, it’s a natural beneficiary in the growing vegan market, nonetheless.
In its first quarter results the company enjoyed growth across all business segments, with revenues up 6.6% to $2.1 billion, while net income rose by 219.5% to $65.4 million. Dole also completed the sale of its 65% equity stake in Progressive Produce for $120.3 million and gain of $74.0 million
"Our strong start to the year positions us well to deliver another good result in 2024," said Executive Chairman Carl McCann. "For the full year, we are maintaining our target to deliver adjusted EBITDA in line with 2023 on a like-for-like basis. Adjusting for the sale of Progressive Produce, this implies an adjusted EBITDA target of at least $360 million."
Market Capitalisation: $1.17 billion
Hain Celestial Group
Hain Celestial Group is a natural food producer with an ambition to create ‘organic, natural and better-for-you brands. The firm distributes its products to over 70 countries, including the UK, Germany, the US, Brazil, Japan, New Zealand, and South Africa.
The company has well-known brands that feed off the growing demand for healthier, plant-based alternatives, such as its Almond Dream, Better Bean and Yves Veggie Cuisine, in addition to a smaller portfolio of personal care products.
In the first quarter, Hain's net sales fell by 3.3% to $425 million, while gross profit margins slid by 170 basis points to 19.7%, compared to the prior year end period. As such, the company made a net loss of $10.4 million compared to net income of $6.9 million in the same period in 2023.
However, Wendy Davidson, the company's president and chief executive officer, was upbeat about Hain's recovery strategy. “During the quarter, we unveiled Hain Reimagined, our bold strategy to transform the business and deliver sustainable profitable growth,” she told investors. “Several initiatives underlying Hain Reimagined showed signs of progress in the fiscal first quarter, contributing to net sales that were in line with our expectations and adjusted EBITDA that beat our guidance."
Market Capitalisation: $688 million
Beyond Meat
Beyond Meat is perhaps the poster child when discussing how veganism is gripping consumers around the world. The company is famous for its Beyond Burger, the ‘world's first plant-based burger that looks, cooks, and satisfies like beef,’ without genetically modified organisms (GMOs), soy, or gluten.
Beyond Meat also provides other meat-free alternatives, such as sausages and minced beef.
The stock has fallen substantially in recent years, but there is a turnaround plan in place — one which may need rates to fall. Net revenues in the third quarter of 2023 fell by 8.7% to $75.3 million year-over-year.
Market Capitalisation: $492.5 million
Vegan VCTs
Investors can also gain exposure to the vegan market through venture capital trusts (VCTs).
There’s a wide variety of VCTs that have dipped their toes into the vegan, and plant-based food and wellness categories, but it’s important to understand that VCTs tend to have broad fields of interests, meaning they may hold investments in other areas that are less appealing to vegan investors, eg meat production.
Octopus Titan VCT, for instance, has backed the likes of ‘allplants’, which delivers frozen plant-based meals to subscribers, and Plum, which produces organic plant-based foods for children and babies. But its portfolio spans everything, from energy to property to healthcare, and much in-between.
Similarly, Pembroke VCT has investments in companies like Plenish, a UK-based alternative milk and cold pressed juicing business, but also has investments in other firms, like burger outlet Five Guys, that may reduce its appeal to vegan investors.
One of the biggest benefits of investing in a VCT is that it can allow you to gain exposure to private companies that aren’t publicly listed. The fact they hold a variety of investments in multiple sectors also reduces risk.
Vegan commodities
Another way of gaining exposure to the vegan market on the financial markets is by investing in or trading the commodities that underpin vegan and plant-based diets.
As the world starts to reduce its meat intake and consume more plants, demand for common agricultural products should increase while new, more exotic ingredients are likely to become more popular. Beans, grains, soy, nuts, fruit and veg, vegetable oils and seeds are just some of the common staples of a vegan diet.
With us, you can invest in or trade a number of soft commodities that fit into these categories, including:
Open a live account: start investing or place your first trade in vegan shares
Are you ready to buy physical vegan assets or speculate on their future share price? If so, create an account and get started.
1. Learn more about large cap shares
2. Open an account with us or practise on a demo
3. Select your opportunity
4. Choose your position size and manage your risk
5. Place your deal and monitor your trade
You can either invest in shares directly or trade using spread betting or CFDs to benefit from leverage.
Keep in mind, leverage means you can gain or lose money faster than expected. Because your position size is far greater than your deposit, you could lose more money than you put in. Be aware also that past performance is not an indicator of future returns.
Learn more about the differences between trading and investing here.
Top vegan shares to watch summed up
The above companies are just a small selection of top stocks to watch in the vegan sector. Remember that big companies can also fail and always do your own research.
Trade and invest in over 17,000 UK, US and global shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading or investing in shares with us, or open an account to get started today.
*Based on revenue excluding FX (published financial statements, October 2021).
FAQs
What is veganism?
‘Veganism is a way of living which seeks to exclude, as far as is possible and practicable, all forms of exploitation of, and cruelty to, animals for food, clothing or any other purpose’ – The Vegan Society.
The defining characteristic of a vegan diet and lifestyle is consuming products that don’t contain any ingredients sourced from animals, including things they make like eggs, honey and milk. Vegans also avoid using products like cosmetics or clothing if they have been produced using animal materials such as leather or fur, or have been tested on animals.
What are the differences between vegan products and plant-based products?
Those striving to make vegan food are primarily focused on one dietary requirement: protein. Whilst the human diet has traditionally sourced protein from meat, there are a growing number of vegan products sourcing it from plants like lentils and chickpeas.
Vegan products shouldn’t be mistaken for plant-based ones, especially when it comes to food. All vegan food is plant-based but not all plant-based food is vegan. Although some foodstuffs source protein from plants, they can still contain or be made using secondary ingredients that are sourced from animals.
For example, Guinness wasn’t made using animal products but was filtered using isinglass, made from fish bladders, which made it unsuitable for vegans. Drinks-maker Diageo has now stopped using isinglass to make Guinness a vegan-friendly option, and has made vegan alternatives to other beverages in its portfolio, such as Baileys.
It’s also worth mentioning ‘cultured’ foods, better known as lab-grown meat. Protein is grown in a bioreactor using ingredients such as sugar, creating ‘meat’ without having to rear an animal.
Is veganism about more than animals?
Protecting animals is usually the number one priority for vegans, but they’re likely to have other beliefs that influence their habits as consumers. Many also aim to purchase products with a low carbon footprint as a way of contributing to climate change reform, while some also consider how much water has been used to create a product.
Some say that veganism isn’t just about protecting animals and cutting out meat from their diets, but a broader set of principles aimed at saving the environment. Global meat and dairy production must be cut in half by 2050 if the world is to meet its climate obligations under the Paris Agreement, according to Greenpeace.
1 EIN Presswire, 2021
2 Kearney, 2021
3 Statista, 2021
4 The Goodness Project, 2021
5 Statista, 2021
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