10 Best Plant-Based Meat Companies to Buy

In this article, we will take a look at the 10 best plant-based meat companies to buy. If you want to skip our discussion on the recent developments in the industry, go to the 5 Best Plant-Based Meat Companies to Buy.

In recent times, the plant-based meat industry has received mainstream recognition. It has become a market of over $1 billion in the US alone. Consumers are driven by the need to replace traditional meat, and this has brought vegan companies to the forefront as they are continuously developing innovative meat substitutes. According to the International Market Analysis Research and Consulting Group (IMARC Group), the size of the global plant-based meat industry stood at $10.8 billion at the end of 2022. The New York-based leading authority on market research anticipates the plant-based meat industry to compound at an

annual rate of 25.6% to reach a size of $42.7 billion by 2028.

Notable consumer packaged goods (CPG) companies like Unilever PLC (NYSE:UL), Kellogg Company (NYSE:K), The Kraft Heinz Company (NASDAQ:KHC), and others are acquiring plant-based meat brands. This trend is a clear indication of the growing recognition and demand for the best vegan stocks to buy in the market. Grocery chains like Walmart Inc. (NYSE:WMT) and The Kroger Co. (NYSE:KR) and quick service restaurants (QSRs) like Starbucks Corporation (NASDAQ:SBUX) have also entered into agreements with notable plant-based meat substitute companies like Beyond Meat, Inc. (NASDAQ:BYND) and Impossible Foods. Furthermore, conventional meat-producing and processing companies like Tyson Foods, Inc. (NYSE:TSN) and Cargill are adding plant-based meat assembly lines into their operations.

Shifting Consumer Preferences

Impressively, the plant-based meat industry has observed an enormous growth of 118% since 2017. According to the non-profit Good Food Institute (GFI), plant-based meat companies’ market share stands at 1.3% of the overall meat category in the US, while the total meat category in the US is valued at around $897 billion as of 2022. It must be noted that the unit sales growth of plant-based food has outpaced the unit growth sales of animal-based food, reflecting consumers’ increasing desire to reduce their reliance on traditional animal-based meats and the increased appeal of the best vegan stocks to buy.

According to research conducted by Credit Suisse, 66% of people between the ages of 16 and 40 spread across 10 countries intend to increase the use of plant-based meat and dairy products, which has garnered increased interest in the best vegan stocks to buy. UBS, a diversified financial services firm, further supports this notion by projecting that the plant-based meat industry will maintain an annual growth rate of over 30% in the next few years. To achieve this goal, some of the largest plant-based meat companies need to conduct extensive research and development (R&D) to enhance the taste of plant-based meat. According to marketing intelligence firm Mintel, 53% of consumers believe that there should be no difference between the tastes of plant-based and animal-based meat. The  Food Industry Association (FIA) builds on this insight, emphasizing that the perception of taste poses a significant challenge to the widespread adoption of plant-based meats among new consumers. Overall, 51% of meat consumers have highlighted taste as the reason for not choosing plant-based meat offerings.

The landscape of top-tier plant-based meat companies in the United States continues to expand rapidly. As of November 2022, there were more than 60 plant-based meat companies in the US that have achieved sales of over half a million dollars. Overall, there are over 800 companies that are involved in the business of producing plant-based foods for the end consumer. This reflects the emergence of major players in the industry with every passing day. For investors looking to tap into this high-growth category, plant-based meat companies provide plenty of opportunities.

Photo by LikeMeat on Unsplash

Our Methodology

We have shortlisted the 10 best plant-based meat companies on the basis of hedge fund sentiment toward each stock. We have evaluated the hedge fund sentiment using Insider Monkey’s database of 910 hedge funds as of the second quarter of 2023. The stocks have been ranked in ascending order of the level of hedge fund ownership.

10 Best Plant-Based Meat Companies to Buy

10. Benson Hill, Inc. (NYSE:BHIL)

Number of Hedge Fund Holders: 15

Value of Hedge Fund Holdings: $5,195,711

Benson Hill, Inc. (NYSE:BHIL) is a Haslett, Michigan-based food tech company that uses data science and AI to guide the development of improved plant ingredients. The company’s proprietary CropOS platform uses machine learning algorithms to optimize the genetics and attributes of crops like soy, pea, and wheat.

During Q2 2023, the company reiterated its forecast of achieving $410 million in revenue with a gross profit in the range of $20 million to $25 million. Benson Hill, Inc. (NYSE:BHIL) finished Q2 2023 with a cash reserve of $118 million. The company anticipates to burn $53 million to $58 million during the second half of the year. Click here to read the company’s Q2 2023 earnings call transcript.

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

Number of Hedge Fund Holders: 15

Value of Hedge Fund Holdings: $19,587,914

Beyond Meat, Inc. (NASDAQ:BYND), one of the prominent players among the best vegan stocks to buy, is a leading producer of plant-based meat substitutes that came into being in 2009. The company designs its offerings to look and taste like traditional meat, appealing to both vegetarian and meat-eating consumers.

Beyond Meat, Inc. (NASDAQ:BYND) reported quarterly revenue of $102.1 million during Q2 2023. The entity anticipates to post total annual revenue in the range of $360 million to $380 million. Beyond Meat, Inc. (NASDAQ:BYND) is working actively to bring out products to address the difference between plant and animal-based meat. You can check out the company’s Q2 2023 earnings call transcript here.

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

Number of Hedge Fund Holders: 17

Value of Hedge Fund Holdings: $71,859,501

MGP Ingredients, Inc. (NASDAQ:MGPI) is an Atchison, Kansas-based producer of premium distilled spirits and food ingredient solutions founded in 1941. The company has developed a product line of plant-based meat proteins and binders that fall under the purview of the Ingredient Solutions segment.

MGP Ingredients, Inc. (NASDAQ:MGPI) has the ProTerra series that caters to the various end-market needs of plant-based meat substitutes. During Q2 2023, the company’s Ingredient Solutions segment saw its top line increase by 18% YoY to $34.5% and gross profit margin expand from 29% during the same period last quarter to 33.6%. MGP Ingredients, Inc.’s (NASDAQ:MGPI) strong financials make it one of the best vegan stocks to buy.

SouthernSun Asset Management, LLC shared its stance on MGP Ingredients, Inc. (NASDAQ:MGPI) in its Q2 2023 investor letter. Here’s what the firm said:

“We initiated a position in MGP Ingredients, Inc. (NASDAQ:MGPI) 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 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…” (Click here to read the full text)

7. Unilever PLC (NYSE:UL)

Number of Hedge Fund Holders: 19

Value of Hedge Fund Holdings: $318,499,600

Unilever PLC (NYSE:UL), a notable company among the best vegan stocks to buy, entered the plant-based meat substitute arena following the acquisition of The Vegetarian Butcher in 2018. The entity makes meat substitutes like plant-based chicken, burgers, sausages, and nuggets using soy, wheat, and pea proteins. Since the acquisition, Unilever PLC (NYSE:UL) has expanded the presence of the Vegetarian Butcher to 30,000 retail outlets. The company has set a target of achieving $1.08 billion (€1 billion) in annual revenues through its plant-based meat and dairy business by 2027. Unilever PLC (NYSE:UL) has a presence in 190 countries across the globe.

Here’s what Tweedy, Browne said about Unilever PLC (NYSE:UL) in its Q1 2023 investor letter:

“Portfolio activity slowed somewhat during the quarter as equity prices advanced. While there were a few new positions established, and a few sales, portfolio activity overall was quite modest compared to the rather brisk pace of the last two years. On the sell side, a number of holdings were sold or pared back, including Unilever (NYSE:UN), among others. The stock prices of these businesses had either reached our estimates of their underlying intrinsic values or had been compromised in some way by virtue of declines in our estimates of their underlying intrinsic values and future growth prospects. Or, they may have been sold or trimmed to make room for new additions or to generate losses, which could be used to offset realized gains.”

6. Nomad Foods Limited (NYSE:NOMD)

Number of Hedge Fund Holders: 24

Value of Hedge Fund Holdings: $281,627,400

Nomad Foods Limited (NYSE:NOMD) is a Feltham, UK-based frozen foods company that offers a wide range of plant-based meat products through its Green Cuisine brand. The portfolio of plant-based meat products boosts the non-high fat, salt, and sugar (HFSS) profile of the company. The HFSS is a new regulation that the UK government is introducing to ensure the provision of healthy products to the end consumers.

In a research note issued on August 10, Jonmichael Shekian at Citi assigned Nomad Foods Limited (NYSE:NOMD) stock a target price of $23 along with a Buy rating following the Q2 2023 results. The analyst believes that the company is seeing a positive turnaround in its volume and market share.

In addition to Nomad Foods Limited (NYSE:NOMD), Tyson Foods, Inc. (NYSE:TSN), Kellogg Company (NYSE:K), The Kraft Heinz Company (NASDAQ:KHC) are also among the best vegan stocks to buy.