Vegetarianism – invest.ch

It is estimated that 11% of the world’s population is vegetarian, and many consider this choice of food to be an individual contribution to improving the planet.

Go vegetarian

Sustainability, climate change, animal welfare and health are all important things for people who decide to take action.

The plant food market has been using the tastes of vegetarians and flexitarians for some time, and the potential for growth is significant. Bloomberg Research estimates the global market value at $ 29.4 billion and predicts that it will grow to $ 161.9 billion over the next ten years. This is a 451% increase between 2020 and 2030.

Some developments

Vegetable protein companies are in the best position to provide the necessary operational efficiency and production capacity to compete with traditional protein sources.

Soybeans are expected to retain their place as a major substitute, despite concerns about allergies, estrogenic effects and genetically modified crops. Pea protein is becoming a competitor to soy and wheat, driven by consumers looking for a source of gluten-free protein that is nutritious, sustainable and less expensive than alternatives. Despite the hype, the protein substitute industry has had a difficult 2021 year.

In recent years, a growing number of plant food producers, including the Swedish oat milk producer Oatly (who considers the famous American TV presenter Oprah Winfrey one of the most ardent supporters). The company valued its IPO in 2021 at $ 17 per share, but the price fell after accusations of “green grinding”.

Shares of Beyond Meat, a Los Angeles-based producer of meat alternatives, also fell for most of 2021 due to supply chain disruptions and consumers’ lack of interest in healthy food following the lifting of pandemic restrictions. CEO Ethan Brown said the difficulties were mostly temporary, but did not hide competition in the market.

Eat Just, a producer of alternative egg-based eggs in San Francisco, aims to enter the market with an IPO of $ 3 billion, scheduled for 2022. California-based Impossible Foods, known for its famous Impossible Burger, is set to go public and is expected to raise $ 500 million in the new round, raising its estimate to $ 7 billion.

Outlook 2022

It is unrealistic to think that plant-based products will completely replace meat, but the market will continue to grow as countries encourage green initiatives aimed at achieving the global goal of carbon neutrality by 2050.

Despite the poor performance of the sector in 2021, investors should benefit greatly from the constant growth of producers and, in particular, demand from the younger generations. The sector also provides opportunities for socially responsible investment by addressing environmental, social and corporate governance priorities.

Certificate”Vegetarianismallows you to invest in companies that can benefit from the trend of vegetarianism. It focuses on companies that produce vegetarian products and have at least 90% of their income from vegetarianism. The certificate allows for socially responsible investment in an industry that is expected to grow at a high rate in the coming decades.

ISIN CH0489280914
Price 048928091
VEGATQ symbol