In this article, we will take a look at the 10 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. 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.
You can also read 13 Best Food Stocks To Buy Now and 10 Best Beverage Stocks To Buy Right Now.
Our Methodology
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.
Best Alternative Meat Stocks to Buy
10. MGP Ingredients, Inc. (NASDAQ:MGPI)
Number of Hedge Fund Holders: 17
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. 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.
9. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 19
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 collaborated with food-tech company ENOUGH to introduce new plant-based meat products. In 2020, Unilever PLC 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.
8. The Hain Celestial Group, Inc. (NASDAQ:HAIN)
Number of Hedge Fund Holders: 21
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. 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.
7. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 24
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 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’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 that were valued at $88.3 million.
6. Nomad Foods Limited (NYSE:NOMD)
Number of Hedge Fund Holders: 24
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 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. 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.
5. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 29
Conagra Brands, Inc. (NYSE:CAG) is a consumer packaged food company that ranks 5th in our list of the best alternative meat stocks to buy. The firm operates under its Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. It is one of the best beef stocks to buy and provides alternative to meat. The Chicago-based company recently rolled out 50 new products this year throughout its frozen, grocery, and snacks divisions. Conagra Brands, Inc. completed the acquisition of Pinnacle Foods in 2018 including the latter’s Gardein brand that sold plant-based meat substitute products.
Insider Monkey took a look at Q2 hedge fund portfolios for Conagra Brands, Inc. and found that 29 had stakes in the firm. Noam Gottesman’s GLG Partners was the largest stakeholder of Conagra Brands, Inc. which bought 3.4 million shares that were valued at $115 million.
4. Ingredion Incorporated (NYSE:INGR)
Number of Hedge Fund Holders: 30
Ingredion Incorporated (NYSE:INGR) is one of the best alternatives to beef stocks to buy as it provides nutrition ingredients including potato starches. In the plant-based meat sector, Ingredion Incorporated is one of the popular stocks. During its Q2 earnings call, CEO Jim Zallie said that plant-based trends is a long-term “enduring” trend. The CEO also highlighted that since clients’ preferences were changing, the firm was expecting new requirements to implement. Ingredion Incorporated recently introduced NOVATION Indulge 2940, the non-GMO functional native corn starch and clean label ingredient.
Out of 910 hedge funds profiled by Insider Monkey for Q2, 30 had stakes in Ingredion Incorporated. The largest stakeholder was Donald Yacktman’s Yacktman Asset Management which owned about 2.2 million shares of the firm that were valued at $236.7 million.
3. Tyson Foods, Inc. (NYSE:TSN)
Number of Hedge Fund Holders: 31
Tyson Foods, Inc. (NYSE:TSN) was incorporated in 1935 and operates as a food company globally through its Beef, Pork, Chicken, and Prepared Foods segments. In June 2021, the company introduced a new plant-based product line, First Pride. It was the first time Tyson Foods, Inc. rolled out a plant-based product in Asia. As customers were rethinking about meat alternatives and their health, Tyson Foods, Inc. tapped the need and launched First Pride initially in Malaysia. Moreover, the company’s Raised & Rooted brand also rolled out plant-based burger patties and Italian sausages, in May 2021 as an alternative to meat and thus Tyson Foods, Inc. is one of the best alternatives to beef stocks.
At the end of June 30, Tyson Foods, Inc. had 31 hedge funds investors out of 910 funds tracked by Insider Monkey database. Donald Yacktman’s Yacktman Asset Management was the largest stakeholder with 3.1 million shares that were valued at $156.4 million.
2. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 32
Archer-Daniels-Midland Company (NYSE:ADM) ranks 2nd in our list of the best alternative meat stocks to buy. The company says it leverages “both the plant-based revolution and an increased interest in organic, sustainable and clean-label foods.” To search for meat alternatives, Archer-Daniels-Midland Company offers plant-based whole muscle solutions globally as plant-based products’ demand is rising around the world. The firm also sells plant-based burgers to those who prefer meat alternatives. The company mainly operates across pea, soy and wheat as part of its plant-based protein ingredients portfolio. In Q3, it posted earnings of $1.63 per share, beating analysts’ expectations of $1.5.
“In our plant-based main courses, ADM Arcon and TVP proteins are the stars,” Archer-Daniels-Midland Company said on its website.
Insider Monkey took a look at hedge fund portfolios for Archer-Daniels-Midland Company’s second quarter of 2023 investments and concluded that 32 had stakes in the firm. Cliff Asness’ AQR Capital Management was Archer-Daniels-Midland Company’s largest stakeholder which owned about 2.2 million shares for about $162.1 million.
1. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 39
Ranked at the top of our list of the best alternative meat stocks to buy, The Kraft Heinz Company (NASDAQ:KHC) is one of the largest food production firms in the world. With a market capitalization of $41 billion, the company’s Philadelphia brand introduced a plant-based spread offering in this July. The spread is in three different flavors: Original, Strawberry, and Chive and Onion. In 2019, the company’s plant-based alternatives sales rose by $500 million and are expected to hit $4.5 billion this year. It recently declared a quarterly dividend of $0.40 per common stock.
At the end of June 30, The Kraft Heinz Company had 39 hedge funds investors out of 910 funds tracked by Insider Monkey database. Warren Buffett’s Berkshire Hathaway was the largest stakeholder with 325.6 million shares that were valued at $11.6 billion.
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This article is originally published at Insider Monkey.
