11 Best Vegan Stocks to Buy Now

In this article, we discuss 11 best vegan stocks to buy.

Reuters noted that worries about climate change, animal welfare, and the desire for healthier eating habits are leading more people to adopt veganism. Similar to the low-carb trend from the early 2000s, businesses are working hard to stay aligned with the evolving preferences of consumers. Veganism has transitioned from being a preference of a small group to becoming more widely accepted by the general public. Influential figures like Joaquin Phoenix and Ellen DeGeneres have advocated for this lifestyle, leading major corporations to take notice. In 2019, McDonald’s Corporation (NYSE:MCD) introduced a vegetarian happy meal alongside its selection of burgers and chicken, and Unilever PLC (NYSE:UL) acquired The Vegetarian Butcher, a company focused on meat-free foods. Consumers are showing interest. British bakery Greggs, known for its sandwiches and sweet treats commonly available on many main streets, generated a lot of online attention when it introduced vegan-friendly sausage rolls for sale. Veganism seems to be here for the long run. It is not just a diet, it is a way of living that is focused on ethics – protecting animals and avoiding farming practices that harm the environment by producing greenhouse gasses and using too much water.

As veganism becomes more popular globally, there is a rising expectation for employers to adapt and create a more inclusive workplace, as reported by CNBC. A U.K. charity, The Vegan Society, suggested measures like having special shelves for vegan food in office fridges and using color-coded equipment along with separate spaces for food preparation. The charity reported that the number of vegans in the U.K. increased from 2014 to 2019, going up from 150,000 to 600,000 people. The shift towards plant-based diets prompted The Vegan Society to provide guidance for employers on creating a more inclusive workplace for vegan staff. The suggestions included distributing a dietary requirements form ahead of catered events, allowing vegans to skip corporate gatherings involving animal-related activities like horse racing or animal product-based events, among others. This was influenced by changes in the U.K. anti-discrimination law, now safeguarding “ethical veganism”, which includes people who follow a plant-based diet and avoid products connected to animals through use or testing. Matt Turner, spokesperson for The Vegan Society, mentioned that the legal safeguards now in place for ethical vegans in the U.K. are something that has been needed for quite a while. He stated:

“As momentum in the U.K. continues to grow, it’s imperative that employers ensure that the ever-increasing number of ethical vegans are protected and catered for in the workplace.”

Eric Brent, the CEO of HappyCow, an online directory for vegan and vegetarian restaurants based in California, expressed his belief that similar legal protections should extend to vegans in the United States.

According to a report published by Market Research Future, the worldwide market for vegan food was valued at around $24.2 billion in 2022. Predictions suggest that this market will grow from about $27.39 billion in 2023 to approximately $73.86 billion by 2032. This growth is expected to happen at a compound annual growth rate (CAGR) of 16.26% between 2023 and 2032. The main factors pushing this market’s growth include more people recognizing the advantages of a vegan diet and changes in consumer preferences. More and more people are discovering the health advantages of plant-based foods, which is boosting the vegan food industry. Choosing plant-based products can lead to reduced risks of heart disease, stroke, and early death. The market is expanding in several countries, largely due to people recognizing the benefits of adopting a vegan diet. Young individuals worldwide are showing a growing interest in vegan products. Vegan foods are available as tastier and healthier replacements for meat. They are typically made from ingredients like wheat and soy, while dairy-free products use soy, rice, coconut, and almond. As a result, these factors are driving the revenue of the vegan food market. A greater desire for non-dairy products and alternatives to animal-based foods would further encourage the adoption of vegan diets. Companies are working to make new vegan products by improving their production methods and using better technology. Even startups are joining in, creating and selling their own vegan products. This is making the market more diverse and competitive. Based on Google Trends data from 2004 to 2022, the countries most interested in veganism include the United Kingdom, Australia, New Zealand, Israel, and Austria.

Investors aiming to diversify their portfolios and tap into the rising interest in the vegan industry can check out stocks like Olaplex Holdings, Inc. (NASDAQ:OLPX), Tyson Foods, Inc. (NYSE:TSN), and e.l.f. Beauty, Inc. (NYSE:ELF).

Our Methodology

We selected the following vegan stocks based on hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the second quarter of 2023. The list is arranged in ascending order of the number of hedge fund investors in each firm.

Best Vegan Stocks to Buy Now

11. Farmmi, Inc. (NASDAQ:FAMI)

Number of Hedge Fund Holders: 1

Farmmi, Inc. (NASDAQ:FAMI) is engaged in the processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company’s product range includes shiitake and Mu Er mushrooms, along with other edible fungi. Additionally, the company operates Farmmi Jicai, an online store for the sale of edible fungi products. These products cater to a range of customers including restaurants, cafeterias, local specialty stores, and distribution networks. On July 19, Farmmi, Inc. announced the closing of an $8 million private placement of shares. The deal comprises the sale of 21.1 million shares to buyers, priced at $0.38 per share.

According to Insider Monkey’s second quarter database, 1 hedge fund was bullish on Farmmi, Inc., same as the previous quarter. Jim Simons’ Renaissance Technologies held 131,183 shares of the company worth $54,000.

In addition to Olaplex Holdings, Inc., Tyson Foods, Inc., and e.l.f. Beauty, Inc., Farmmi, Inc. is one of the best vegan stocks to buy. 

10. Laird Superfood, Inc. (NYSE:LSF)

Number of Hedge Fund Holders: 3

Laird Superfood, Inc. (NYSE:LSF) produces and sells plant-based, wholesome, and functional food products in the United States. It falls into the category of best vegan stocks. The company’s product range includes powdered and liquid coffee creamers, supplements that enhance hydration and beverages, supplements featuring performance-boosting mushrooms, harvest snacks, and various other food items. These products are accessible through the company’s own online platforms like lairdsuperfood.com and pickybars.com, as well as through external online channels. On August 9, Laird Superfood, Inc. announced a Q2 non-GAAP EPS of -$0.38, outperforming estimates by $0.05. However, its revenue came in at $7.7 million, missing market expectations by $0.88 million.

According to Insider Monkey’s second quarter database, 3 hedge funds were bullish on Laird Superfood, Inc., same as the preceding quarter. Israel Englander’s Millennium Management is the largest position holder in the company, with 55,471 shares worth $44,102.

9. Mission Produce, Inc. (NASDAQ:AVO)

Number of Hedge Fund Holders: 5

Mission Produce, Inc. (NASDAQ:AVO) is involved in activities like finding, cultivating, packaging, promoting, and delivering avocados, mangoes, and blueberries to grocery stores, distributors, and businesses in the foodservice sector, both within the United States and around the world. The company’s operations are divided into three segments – Marketing and Distribution, International Farming, and Blueberries. Mission Produce, Inc. is one of the best vegan stocks to buy. On June 8, Mission Produce, Inc. reported a Q2 non-GAAP EPS of $0.01 and a revenue of $221.1 million, exceeding Wall Street estimates by $0.02 and $2.99 million, respectively.

According to Insider Monkey’s second quarter database, 5 hedge funds were bullish on Mission Produce, Inc., compared to 4 funds in the preceding quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 55,364 shares valued at $671,012.

8. Local Bounti Corporation (NYSE:LOCL)

Number of Hedge Fund Holders: 9

Next on our list of the best vegan stocks is Local Bounti Corporation (NYSE:LOCL). It grows and packs fresh greens like lettuce, herbs, and loose-leaf lettuce in the United States. They sell these products to grocery stores and companies that distribute food to restaurants and other businesses. On August 9, Local Bounti Corporation reported a Q2 GAAP EPS of -$1.35 and a revenue of $7.18 million. Revenue for the period increased 15.2% on a year-over-year basis.

According to Insider Monkey’s second quarter database, 9 hedge funds were bullish on Local Bounti Corporation, compared to 8 funds in the prior quarter.

7. Calavo Growers, Inc. (NASDAQ:CVGW)

Number of Hedge Fund Holders: 10

Calavo Growers, Inc. (NASDAQ:CVGW) is in the business of marketing and delivering avocados, ready-to-eat avocados, and other perishable foods. They supply these products to different types of customers, such as grocery stores, restaurants, big retail clubs, large stores, food distributors, and wholesale buyers around the globe. The company’s operations are divided into two parts – Grown and Prepared. Calavo Growers, Inc. is one of the best vegan stocks. On June 23, Calavo Growers, Inc. declared a $0.10 per share quarterly dividend, in line with previous. The dividend was paid to shareholders on July 11.

According to Insider Monkey’s second quarter database, 10 hedge funds were bullish on Calavo Growers, Inc.. This number increased from the preceding quarter when 8 funds had invested in the stock. Ken Grossman and Glen Schneider’s SG Capital Management is the leading stakeholder in the company, with 299,764 shares worth $8.7 million.

6. Oatly Group AB (NASDAQ:OTLY)

Number of Hedge Fund Holders: 13

Oatly Group AB (NASDAQ:OTLY) is an oat milk company based in Sweden. The company produces a variety of plant-based dairy products using oats. The company, originally named Havre Global AB, changed its name to Oatly Group AB in March 2021. Founded in 1994, its headquarters are situated in Malmö, Sweden. On July 27, Oatly Group AB announced a Q2 GAAP EPS of -$0.15 and a revenue of $196 million, falling short of Street consensus by $0.02 and $13.68 million, respectively. Regardless, it remains a popular vegan stock among smart investors. 

According to Insider Monkey’s second quarter database, 13 hedge funds were bullish on Oatly Group AB, compared to 12 funds in the last quarter. Anand Parekh’s Alyeska Investment Group is the largest position holder in the company, with 2.97 million shares worth $6.1 million.

Like Olaplex Holdings, Inc., Tyson Foods, Inc., and e.l.f. Beauty, Inc., Oatly Group AB is one of the best vegan stocks to invest in.

Here is what ClearBridge Investments Mid Cap Growth Strategy has to say about Oatly Group AB in its Q4 2021 investor letter:

“We also closed out three names as we constantly seek ways to improve the Strategy’s overall growth profile. Oatly is a leader in dairy alternative oat-milk products benefiting from long-term secular growth of the category. That growth, however, is contingent on its ability to scale up manufacturing and we sold the position due to increased risk that global supply chain constraints would limit such efforts.”

5. Beyond Meat, Inc. (NASDAQ:BYND)

Number of Hedge Fund Holders: 15

Beyond Meat, Inc. (NASDAQ:BYND), recognized as one of the best vegan stocks, develops, produces, promotes, and sells plant-based meat products in the United States and around the world. The company provides different plant-based meat products, including beef, poultry, and pork. Beyond Meat, Inc. distributes its products through grocery stores, large retailers, clubs, convenience stores, and food-service outlets like restaurants and schools. On August 7, Beyond Meat, Inc. announced a Q2 GAAP EPS of -$0.83, outperforming market consensus by $0.01. However, the revenue of $102.15 million fell short of Street estimates by $7.04 million.

According to Insider Monkey’s second quarter database, 15 hedge funds were bullish on Beyond Meat, Inc., same as the previous quarter.

Here is what Horos Asset Management has to say about Beyond Meat, Inc. in its Q1 2022 investor letter:

“What about the other asset class that has attracted the most attention from the investment community in recent times? Beyond Meat is the other company whose valuations we did not understand and whose share price has also declined drastically in the last year and a half.”

4. MGP Ingredients, Inc. (NASDAQ:MGPI)

Number of Hedge Fund Holders: 17

MGP Ingredients, Inc. (NASDAQ:MGPI) produces and provides distilled drinks, branded spirits, and food ingredients in the United States and globally. It works in three segments – Distillery Solutions, Branded Spirits, and Ingredient Solutions. The company sells its products either directly or through distributors, serving manufacturers, processors of finished products, and even bakeries. MGP Ingredients, Inc. is one of the best vegan stocks to buy. On August 3, MGP Ingredients, Inc. reported a Q2 non-GAAP EPS of $1.49 and a revenue of $209 million, exceeding Wall Street estimates by $0.24 and $3.73 million, respectively.

According to Insider Monkey’s second quarter database, 17 hedge funds were bullish on MGP Ingredients, Inc., in contrast to the preceding quarter when 25 funds had invested in the stock. Richard Driehaus’ Driehaus Capital held a significant position in the company, comprising 188,088 shares valued at $19.99 million.

SouthernSun SMID Cap Strategy made the following comment about MGP Ingredients, Inc. in its second quarter 2023 investor letter:

“We initiated a position in MGP Ingredients, Inc. in April of 2023. MGPI is a leading supplier of premium distilled spirits and specialty wheat starches and proteins in the U.S. MGPI operates through three distinct segments, each of which has attractive opportunities for growth. Through its distilling solutions segment, MGPI is a leading supplier of distilled spirits, facilitating the creation of bourbons, rye whiskeys, American single malt whiskey, distilled gins and vodkas. U.S. spirits have gained a significant share of total beverage alcohol over the last decade on a revenue basis, and American whiskey volumes, in particular, have experienced strong growth, driven in part by the growth of craft brands. In our opinion, these trends in consumption habits tend to be generational, which suggests that this recent demand strength is sustainable. MGPI maintains a large inventory of distilled spirits of various ages, which is used to produce its own branded spirits and sold to both multinational and craft producers of branded spirits. The time and capital required to age new distillate is significant, and that capital is often better used in marketing new brands, and MGPI is in a unique position to serve this market. As of the end of the first quarter of 2023, the vast majority of MGPI’s new distillate capacity was contracted for both this year and next as well as the majority of its aged distillate for this year.

In addition to its distillation capabilities, MGPI also develops its own branded spirits, and the branded spirits segment provides a platform for both organic and acquisitive growth opportunities. Building individual spirits brands can be challenging, in part due to the three-tier distribution system in the U.S., which requires individual brands to comply with various state laws and state-licensed distributors. In 2021, MGPI acquired Luxco, Inc., which significantly expanded its portfolio of branded spirits and brought with it distribution capabilities across all 50 states. Since acquiring Luxco, MGPI has continued to expand its distilling capacity and increase sales of its premium, super premium and ultra premium brands, which generate higher gross margins than other portfolio brands. In June of 2023, MGPI announced the acquisition of Penelope Bourbon, adding a popular, growing bourbon brand to the portfolio. This transaction is the first tangible example of how we believe management will leverage its national distribution platform and existing distillation capacity to bring other brands into the fold. We expect acquisitions like this one to be a key element of the future value creation opportunity…”

3. Olaplex Holdings, Inc. (NASDAQ:OLPX)

Number of Hedge Fund Holders: 18

Coming up next among the best vegan stocks is Olaplex Holdings, Inc.. It creates, manufactures, and sells entirely vegan products for hair care. They offer shampoos, conditioners, and nourishing hair serums that help treat, maintain, and protect hair. These products are used by both professional hair salons and regular consumers. On August 8, Olaplex Holdings, Inc. announced a Q2 non-GAAP EPS of $0.03 and a revenue of $109.24 million, falling short of estimates by $0.02 and $20.56 million, respectively. However, it remains a popular vegan stock among smart investors. 

According to Insider Monkey’s second quarter database, 18 hedge funds were bullish on Olaplex Holdings, Inc.. This number increased from the last quarter when 15 funds had invested in the stock. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 5.3 million shares worth $19.78 million.

Polen U.S. Small Company made the following comment about Olaplex Holdings, Inc. in its Q1 2023 investor letter:

“We exited three positions during the quarter: Duck Creek Technologies, Azenta, and Olaplex Holdings, Inc.. We believe Olaplex highlights our willingness to change our mind when information changes, even with a new position. Olaplex is a highly profitable and uniquely positioned prestige beauty brand focused on science-based hair care. When we first invested in Olaplex in the fourth quarter of last year, it was on the back of the stock re-rating lower as revenue growth decelerated from rapid growth to a more sustainable growth rate. We felt this re-rating represented a significant discount on the stock’s long-term potential. In the short time since we became owners, a tail risk emerged related to a claim that the products cause hair loss and damage. At worst, this presents an existential threat to the business and, in the best-case scenario, makes everything that they are trying to do today a lot harder. No longer comfortable with the significantly widened range of potential outcomes, we eliminated the position as we have investment alternatives of equal or better reward today with meaningfully less risk. While it is unusual for us to exit positions so quickly, sometimes this is necessary. Not only is it important to be open to changing one’s mind quickly as new risks emerge—it is essential to protecting and preserving our clients’ capital.”

2. Tyson Foods, Inc. (NYSE:TSN)

Number of Hedge Fund Holders: 31

Tyson Foods, Inc. functions as a global food company. It is organized into four segments – Beef, Pork, Chicken, and Prepared Foods. It ranks among the best vegan stocks as it provides a range of plant-based meat products including burger patties, sausages, ground meat, and bratwurst. The company’s products are sold by their sales teams to grocery retailers, wholesalers, meat distributors, warehouse clubs, military commissaries, food processors, chain restaurants, and their distributors, among others. 

On August 17, Tyson Foods, Inc. announced its plan to sell its China poultry business. Private equity firms are being considered as potential buyers for the China poultry business. This segment generates approximately $1.1 billion in annual sales. However, the specific value of the business has not yet been determined, as discussions are still at an early stage.

According to Insider Monkey’s second quarter database, 31 hedge funds were bullish on Tyson Foods, Inc., compared to 38 funds in the last quarter. Donald Yacktman’s Yacktman Asset Management is the largest stakeholder of the company, with approximately 3.1 million shares worth $156.4 million.

Artisan Value Income Fund made the following comment about Tyson Foods, Inc. in its Q4 2022 investor letter:

“Our weakest contributors were Philips, Tyson Foods, Inc. and already-discussed Blackstone. The largest food processor in North America, Tyson Foods is a marketer and distributor of chicken, beef, pork and prepared foods. Top-line growth has remained strong, but margins have been volatile. The margin issues have been primarily in its chicken and prepared foods businesses as beef margins have benefited from ample cattle supply, global export demand and high US domestic retail prices. In the other segments, inflationary pressures have ranged from higher raw material costs to supply chain constraints and labor availability issues. Some of these factors are out of its control, but the company is making efforts to increase labor availability and shift contract terms toward variable price models that could repair margins more quickly. The business has improved over time—the company has spent years moving away from commodity processing toward a greater mix of higher margin branded products and packaging. This has contributed to solid return on invested capital and free cash flow generation. Additionally, revenue growth has benefited from a natural long-term health and wellness tailwind of protein demand rising in the US and globally as diets improve by replacing processed foods with healthier alternatives like protein.”

1. e.l.f. Beauty, Inc. (NYSE:ELF)

Number of Hedge Fund Holders: 31

e.l.f. Beauty, Inc. offers a range of entirely vegan makeup and skincare items through brands like e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare. Their product lineup includes products for eyes, lips, face, and skincare. They sell these products through different channels, including well-known retailers and online platforms, both in the United States and internationally. On August 1, e.l.f. Beauty, Inc. reported its financial results for the three months ended June 30, 2023. The company disclosed a GAAP EPS of $0.93 and a revenue of $216.3 million, outperforming Wall Street estimates by $0.45 and $31.77 million, respectively. e.l.f. Beauty, Inc. ranks 1st on our list of the best vegan stocks to buy.

According to Insider Monkey’s second quarter database, 31 hedge funds were bullish on e.l.f. Beauty, Inc., compared to the previous quarter when 30 funds had invested in the stock. Richard Driehaus’ Driehaus Capital held the largest position in the company, with 891,025 shares worth $101.8 million.

Diamond Hill Long-Short Fund made the following comment about E.l.f. Beauty, Inc. in its Q4 2022 investor letter:

“New positions initiated in Q4 included shorts International Business Machines (IBM), Acushnet Holdings (GOLF) and E.l.f. Beauty, Inc.. Shares of value-oriented beauty brand ELF received a meaningful boost from normalizing beauty usage and spending in a post-COVID environment, which we believe has contributed to its premium multiple relative to competitors in the beauty space. As this temporary lift unwinds, we expect elf’s valuation to similarly return to a level better aligned with its product offerings.”

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This article is originally published at Insider Monkey.