Vegan Investment

Vegan investments are at an all-time high year-over-year, driven by an increasing vegan movement and a global shifting in eating habits towards plant-based food around the world. Nowadays, for vegan businesses, private companies and publicly traded alike, to be estimated at several billion is no longer rare, especially among the vegan meat giants, including the fastest-growing plant-based meat company in retail Impossible Foods, the world’s first publicly listed alt-meat company Beyond Meat, and Else Nutrition, working on a plant-based infant formula.

In 2020, investments in vegan food companies almost doubled, with particularly high growth for cultured meat. According to studies, the plant-based foods market could be worth $155 billion by 2027, with alt-protein potentially making up 11% of the global protein market by 2035. All of those good reasons for vegan and non-vegan investors around the globe to get one’s hands on the best vegan stocks as fast as possible.

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Whereas some years ago, vegans and environmentalists interested in profiting on the stock market had had little choice but to profit from the harm of animals, the environment (e.g. by contributing to climate change) through their investment options, there are now many vegan stocks offering excellent profit outlooks. Apart from individual vegan stocks, there are now also vegan mutual funds or ETFs, such as the US vegan climate ETF.

How to Find Vegan Stocks

Dealing with the issue of how to find vegan and ethical stock, Beyond Investing launched the vegan stock index “US Vegan Climate Index.” Established in 2018, the vegan climate index has a special focus on environmentally friendly companies, most of which are in the vegan sector. Thereby, the vegan climate index is excluding any investment company that is involved in animal testing, animal-derived products, energy production from fossil fuel and more. Marking a milestone for vegan business, the vegan climate index became the first of its kind to list investment opportunities suitable for vegans.

Launched by Beyond Investing in 2019, “The US Vegan Climate ETF” has been created by a team of experienced vegan finance professionals in the US, Switzerland, and the UK. It excludes any stocks whose activities are not aligned with a vegan, climate-conscious approach to investing, replacing damaging stocks with midcap alternatives that meet its ethical criteria. The US Vegan Climate ETF seeks to track the Beyond Investing US Vegan Climate Index. In doing so, The US Vegan Climate ETF seeks to invest in companies that offer a humane and animal-friendly approach while being good to people and the environment.

In 2021, Beyond Investing announced the launch of new investment products. Among them, the “Europe Vegan Climate Index” and “The Vegan World Index Certificate”, both applying the same policies as the “US Vegan Climate Index”, while “The Vegan World Index Certificate” is for global small to mid-cap growth companies. Rather than including all eligible companies, it proactively targets relevant ones, from major players such as Beyond Meat to lesser-known companies.

In the same year, German asset management company Daubenthaler & Cie created the BeneFaktorIndex® VEGAN, a stock index featuring only companies that offer exclusively vegan products. To qualify for the index, the entire company must be vegan, though exceptions are made for companies that also offer a few vegetarian products. Moreover, BeneFaktorZertifikat® VEGAN is the first investment certificate with an automatic 10% donation to an animal advocacy organization.

The Rise of Vegan IPOs

Along with a rising number of vegan stock indexes, vegan companies increasingly turn into publicly traded companies, either by directly being listed at different stock exchanges or by going through a special purpose acquisition company (SPAC). In 2021, more vegan companies announced to prepare for an IPO than ever before, and at the same time, the list of public listings being conducted is growing. In terms of new vegan stock, plant-based dairy brand The Planting Hope Co., producer of the world’s first commercially available sesame milk, recently completed its IPO in Canada, selling 22.5 million shares at a price of $0.40 each.

Following The Planting Hope’s public listing, the vegan dairy manufacturer is joining major vegan brands, mostly from the plant-based meat alternatives sector, including the world’s first publicly listed US-based company Beyond Meat and Canadian big player The Very Good Food Company with its leading plant-based meat brand The Very Good Butchers.

Another vegan giant entering the stock market is Swedish oat pioneer Oatly, as its innovative and globally hyped oat milk is not only gaining market share in the vegan society. After securing $2.12 billion in its IPO, the now publicly owned oat milk company will be furthering its growth in the fastest-growing market for milk alternatives, outperforming almond milk and soy milk.

Investment Funds and Mutual Funds for Plant-Based Companies

Vegan companies and startups looking for vegan-friendly investment funds can choose between several options these days. For instance, Switzerland’s Blue Horizon is an impact investor shaping the alternative protein sector. Consisting of a team that is 67% female, Blue Horizon has raised more than $850 million and invested in over 50 companies in the alternative protein sector, aiming to supercharge portfolio company growth for large-scale production and global distribution.

Vegan brands targeting a dedicated vegan investment fund should know about UK’s specialist private family fund Veg Capital. Providing early-stage capital to vegan companies striving to replace the use of animals in the food system, Veg Capital invest primarily in companies developing meat, dairy, eggs, and seafood replacements with plant-based, recombinant, and cultivated ingredients. Another suitable investment partner for vegan brands is Dutch micro–VC Capital V. Targeting the creation of a global ecosystem of vegan companies, Capital V is a specialized private investment partner, primarily providing Angel, Seed, and Series A funding.

Established in 2016, London-based technology platform for plant-based and cell-cultured businesses Vevolution has helped companies request over $130 million in funding. Noteworthy in terms of networking in the plant-based space, Vevolution has built a community of startups and investors through its popular business community events.

More Vegans Means More Vegan Investors

Modern times not only produce modern meat, but they also demand a vegan lifestyle that not only includes following a vegan diet, but also acting vegan-friendly when trading on the stock market. In fact, vegan food and other vegan products are not only free from animal suffering, as they often also perform better in terms of sustainability and human health, making vegan stocks an interesting investment opportunity for vegans and non-vegans who are looking for profit and cause.

Building on this development, it is likely that vegan principles will gain importance on financial markets, as investors concerned about climate change and animal suffering will avoid investing in listed companies manufacturing animal products derived from traditional animal agriculture. In order to use this development, food manufacturers should shift towards food products made from vegan commodities, as an increasing global population following a vegan diet also means a rise in vegan investors that want to be pleased with plant-based stocks.