Investing in vegan stocks

Vegan and plant-based companies may be of special interest to the investor looking to add some socially conscious investments to their portfolio. But many of these companies are young, untested and facing an uncertain future.

What are vegan stocks?

Vegan stocks are stocks from companies that market to vegans. Most of these companies are food manufacturers that specialize in vegan-friendly and plant-based products.

The vegan diet excludes meat, dairy products, eggs and all other ingredients derived from animals. Dietary staples include fruits, vegetables, legumes and whole grains. Publicly traded companies that exclude animal products from their offerings may be considered vegan stocks.

Why invest in vegan stocks?

It’s a growing industry that’s adding companies that qualify as socially responsible investments, and more and more people are becoming interested in veganism. Between 2014 and 2017, vegans in the US grew from 1% to 6% according to Forbes.

The global plant-based meat market — a hearty component of many vegan diets — was worth $12.1 billion in 2019 and is forecasted to reach $74.2 billion by 2027, according to a report from Meticulous Research. And with the Plant Based Food Association reporting that 29% of Americans now identify as flexitarians — shoppers aiming to cut back on animal-based food products — the plant-based food market is well-positioned to grow at a healthy rate.

In addition to a positive growth forecast, vegan stocks qualify as a socially responsible investment. Socially responsible investments support companies that aim to have a positive social or environmental impact. This type of investing has become more popular in recent years and gives investors the opportunity to support companies and causes they truly care about.

Whether you’re a vegan, vegetarian, flexitarian or simply want to support companies that refrain from selling animal products, vegan stocks are one way to introduce socially responsible investments into your portfolio.

What unique risks do vegan companies face?

The risks facing vegan stocks are the same risks that face many new, rapidly evolving industries: instability.

This portion of the global food market is still small, to say the least. And while it’s definitely growing, it hasn’t proven itself long term. Many companies that specialize in vegan and plant-based products are startups.

And startups are an inherently risky investment. There’s no guarantee these newer companies will stand the test of time, especially considering how the coronavirus pandemic has affected the way we dine.

Beyond Meat — one of the biggest players in plant-based meat — sells half its products to restaurants. And a number of its competitors are in the same boat. In light of the pandemic, restaurants simply aren’t seeing the same numbers of patrons, even considering the shift toward takeout, pickup and delivery options.

There’s no telling how the pandemic will affect the restaurant industry long-term. And with such a large cut of plant-based company sales going to restaurants, these companies will undoubtedly be affected.

Veganism has begun to take root in American dietary trends, but these companies may be too new for the experienced investor to gamble on.

Vegan stocks

If you’re ready to add some socially conscious stocks to your portfolio, you have a few options. While most of these stocks are available on US exchanges, which makes them easy to purchase from common brokers like Robinhood and Chase You Invest, Else Nutrition and Burcon NutraScience are both listed on Canadian exchanges.

To purchase international stocks, you’ll need to open an international share trading account. Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.

• Beyond Meat (BYND.US)

  Company summary

  Beyond Meat, Inc. manufactures, markets, and sells plant-based meat products in the United States and internationally. The company sells a range of plant-based meat products across the platforms of beef, pork, and poultry. It sells its products through grocery, mass merchandiser, club store, convenience store and natural retailer channels, and direct-to-consumer, as well as various food-away-from-home channels, including restaurants, foodservice outlets, and schools. The company was formerly known as Savage River, Inc. and changed its name to Beyond Meat, Inc. in September 2018. Beyond Meat, Inc. was founded in 2009 and is headquartered in El Segundo, California.

  Historical performance

  Stock information

  • Market capitalization: $998946176
  • PEG ratio: 40.7473
  • Dividend yield: 0%

  Get more detailed information and learn how to buy BYND.US stock

• Tofutti Brands (TOFB.US)

  Company summary

  Tofutti Brands Inc. engages in the development, production, and marketing of dairy free, vegan frozen desserts, cheeses, and other food products under the TOFUTTI brand in the United States, Europe, the Middle East, the Asia Pacific, Africa, and internationally. It offers frozen desserts, including frozen sandwiches and chocolate-coated crispy cones; bars; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products comprising frozen crepes. The company sells its products through independent unaffiliated food brokers to distributors, as well as on a direct basis to retail chain accounts or to warehouse accounts that directly service chain accounts. Tofutti Brands, Inc. was founded in 1981 and is based in Cranford, New Jersey.

  Historical performance

  Stock information

  • Market capitalization: $7472879
  • P/E ratio: 145
  • PEG ratio: 0
  • Dividend yield: 0%

• United Natural Foods (UNFI.US)

  Company summary

  United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. It also provides Woodstock brand imports, roasts, packages, and distributes nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections. In addition, the company is involved in importing, roasting, packaging, and distributing nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections. Further, it offers Blue Marble Brands products through wholesale segment, third-party distributors, and directly to retailers; and Field Day brand products primarily to customers through its independent channel. Additionally, the company provides general merchandise, home, health and beauty care, and pharmacy products, as well as private label products through a network of 74 Cub Foods and Shoppers retail grocery stores; professional services, such as retail store support, advertising, couponing, e-commerce, consumer convenience services, store design, equipment sourcing, electronic payments processing, network and data hosting solutions, and administrative back-office solutions; and marketing services comprising consumer and trade marketing programs, as well as programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, e-commerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

  Historical performance

  Stock information

  • Market capitalization: $2269898240
  • P/E ratio: 9.9337
  • PEG ratio: 3.74
  • Dividend yield: 0%

  Get more detailed information and learn how to buy UNFI.US stock

• Burcon NutraScience Corporation (BU.TO)

  Company summary

  Burcon NutraScience Corporation, together with its subsidiaries, develops plant proteins and ingredients for use in the food and beverage industries in Canada. The company's products include Peazazz, a pea protein for use in dairy alternatives, ready-to-drink beverages, dry blended beverages, bars, baked goods, and meat substitute products; and Peazac and Peazac 850, a pea protein for plant-based meat alternative products, ready-to-mix powders, ready-to-mix beverages, dairy alternatives, and nutrition bars, as well as other applications requiring the most neutral flavor and moderate viscosity. It provides Puratein, a canola protein isolate for use in meat alternatives, such as burgers, sausages, and nutrition bars; Supertein, a canola protein that is a light-colored powder for use in non-dairy frozen desserts, egg alternative, plant-based marshmallows and ready-to-mix beverages, whipped toppings, and plant-based bars; and Nutratein, a canola protein comprising a mixture of globulin and albumin proteins for use in meat and egg alternatives, and other plant-based functional foods. In addition, the company offers Nutratein-PS and Nutratein-TZ, a blend of Peazac pea protein; and CLARISOY, a soy protein for use in sports nutrition beverages, citrus-based drinks, fruit-flavored beverages, lemonades, powdered beverage mixes, and other foods and nutritional products. Further, it provides MeritPro, a nutritional protein blend, including allergen-free, gluten-free, non-dairy, non-GMO, and vegan. The company was formerly known as Burcon Capital Corp. and changed its name to Burcon NutraScience Corporation in October 1999. The company was incorporated in 1998 and is headquartered in Vancouver, Canada.

  Historical performance

  Stock information

  • Market capitalization: $49471696
  • PEG ratio: 0
  • Dividend yield: 0%

• Else Nutrition (BABY.V)

  Company summary

  Else Nutrition Holdings Inc. focuses on the research, development, manufacturing, marketing, and sale of plant-based food and nutrition products to the infant, toddler, children, and adult markets. It offers baby snacks under the HEART brand; baby feeding accessories, such as feeding bottles and disposable sterile nipples (teats); baby formulas; and nutritional drinks, as well as dried food snacks. Else Nutrition Holdings Inc. is headquartered in Tel Aviv-Yafo, Israel.

  Historical performance

  Stock information

  • Market capitalization: $121909312
  • Dividend yield: 0%

What ETFs track vegan companies?

Investors looking for a vegan-focused ETF may be pleasantly surprised to discover the U.S. Vegan Climate ETF (VEGN): the first publicly traded fund to focus on vegan investments.

The U.S. Vegan Climate ETF holds over $18 million in assets and has an expense ratio of 0.6%. It’s a socially responsible fund that primarily filters out companies involved in animal products, testing, farming and animals used for sports or entertainment purposes. But the fund also exempts companies that:

As of March 2020, the U.S. Vegan Climate ETF held 268 companies, including Apple, Microsoft and Facebook.

Compare trading platforms

Before you can invest, you’ll need a brokerage account. Explore your platform options below.

Sort by:

Name	Product	Asset types	Stock trade fee	Minimum deposit	Signup bonus
SoFi Invest SoFi Invest		Stocks, ETFs, Cryptocurrency	$0	$0	$10 - $100 when you open an account and place a first crypto trade of $50 - $5,000+	A free way to invest in most equities.	Go to site More Info		loading Fetching your data...
BONUS eToro eToro		Stocks, ETFs, Cryptocurrency	$0	$10	8%-12% of your deposit when you sign up and deposit at least $50. T&Cs apply.	Trade stocks in the app or online with $0 commissions. Not available in NY, NV, MN, TN, and HI.	Go to site More Info		loading Fetching your data...
Public Public		Stocks, ETFs, Cryptocurrency	$0	$0	Receive a free stock slice worth between $3–$300 when you sign up for an account and deposit at least $20.	Commission-free trading in stocks and ETFs with a social networking twist.	Go to site More Info		loading Fetching your data...
Tastyworks Tastyworks		Stocks, Options, ETFs, Cryptocurrency	$0	$0	$200 in US stocks when you open and fund an account with min. $2,000 for 3+ mos.	Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform.	Go to site More Info		loading Fetching your data...
JPMorgan Self-Directed Investing JPMorgan Self-Directed Investing		Stocks, Bonds, Options, Mutual funds, ETFs	$0	$0	$125 - $625 when you open and fund an account with $25,000 - $250,000+	INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE	Go to site More Info		loading Fetching your data...
Robinhood Robinhood		Stocks, Options, ETFs, Cryptocurrency	$0	$0	Get a free stock when you successfully sign up and link your bank account.	Make unlimited commission-free trades, plus earn 3% interest on uninvested cash in your account with Robinhood Gold.	Go to site More Info		loading Fetching your data...
Tradier Tradier		Stocks, Options, ETFs	$0	$0	N/A	Customize your trade platform or build your own Deep tools, charts and screens Analyzers to help you study before you trade	Go to site More Info		loading Fetching your data...

loading

Compare up to 4 providers

Clear selection

Compare

*Signup bonus information updated weekly.

Bottom line

For those ready to add some plant-based investments to their portfolio, vegan stocks represent an investment opportunity on the rise and gaining momentum. But most companies in this industry have plenty more ground to cover before they can be considered a stable investment.

Review your platform options across multiple providers to find the brokerage account that meets your needs.

Frequently asked questions

Are Beyond Meat products vegan?
Yes, Beyond Meat products are 100% vegan-friendly.

How can something be considered a vegan stock even if they sell animal products?
Vegan pure plays — companies that exclusively offer vegan products — are rare. In fact, most of the U.S. Vegan Climate ETF’s top 10 holdings are tech companies that don’t offer vegan products: like Intel, AT&T and Microsoft. A stock can be considered a vegan stock if it offers vegan or plant-based products or if it offers products that don’t exploit animals.

But be careful: Some companies considered to be a vegan investment offering plant-based foods may also manufacture meat products. If you have strict ethical investing guidelines, investigate a stock before you purchase it to better understand what the company does and what it offers.

What is veganism and how does it work?
Veganism is a lifestyle characterized by the exclusion of animal products from material purchases and food consumption. Veganism aims to limit animal cruelty and the environmental impact of animal exploitation.