Once upon a time, plant-based burgers and alternative food products took Wall Street by storm, with headlines touting the best vegan stocks to buy.
The stock market was buzzing with initial public offerings of up-and-coming upstarts in the sector. However, the industry’s lofty predictions fizzled out as part of last year’s stock market rout.
Despite the slowdown, investors’ appetite for vegan stocks to buy remains strong, driven by encouraging long-term projections for plant-based food. According to Future Business Insights, the global vegan food market should reach $61.35 billion in 2028, with a CAGR of 12.95% during the period.
Hence, it’s an ideal time to explore vegan growth stocks and uncover promising vegan stock picks for the long haul.
|HAIN||Hain Celestial Group||$17.02|
Ingredion (NYSE:INGR), as the name suggests, is a leading ingredients provider. Its product offerings cater to various industries across multiple continents, including North and South America, Asia Pacific, Europe and Africa.
Its commitment to innovation and sustainability is clear in its specialty division, which focuses on developing vegan products.
The division has been growing by double-digit margins over the past several quarters, helping the firm grow its massive revenue base.
A key growth catalyst for the firm is its ability to capitalize on the growing consumer demand for alternative proteins and eco-friendly products. One of the major challenges for those embracing a vegan diet is getting sufficient protein intake.
Ingredion addresses this issue head-on by offering vegan protein shakes and other plant-based protein ingredients, effectively tapping into the burgeoning $10 billion market.
INGR stock is an excellent investment in the consumer staples sphere, with an A-graded dividend profile, boasting 12 consecutive years of payout growth. Its stock trades at just 0.8 times forward sales estimates, roughly 30% lower than its sector average.
And if you are done with this analysis, I encourage you to check out this excellent article on Ingredion. Written by Louis Navellier and the InvestorPlace research staff, it provides a holistic, long-term view of Ingredion.
MGP Ingredients (MGPI)
MGP Ingredient (NASDAQ:MGPI) is another top vegan stock. The production of specialty ingredients is at the heart of the firm’s operations.
With the rising plant-based alternatives market, MGP Ingredients remains in pole position to tap into this trend. Despite facing remarkably input costs, the company has managed its risks by focusing on premium and specialty products, helping mitigate inflation’s impacts across most product lines.
Its specialty offerings have experienced double-digit growth margins, compensating for losses in other divisions. The company boasts a robust profitability profile with industry-leading margins, making it an enticing prospect for investors.
Overall, MGP Ingredient is well-positioned to benefit from the growing demand for plant-based alternatives. It boasts a strong product portfolio that includes plant-based proteins, fibers, and starches across food, beverage, and industrial sectors.
By focusing on premium and specialty products, the company has mitigated inflation’s impact on its product lines. It is maintaining a robust profitability profile with industry-leading margins.
With its specialty offerings experiencing double-digit growth margins, MGP Ingredient is an attractive prospect for investors. For more information, watch out for its earnings due this week.
Hain Celestial Group (HAIN)
Hain Celestial Group (NASDAQ:HAIN) boasts an extensive plant-based and organic food product portfolio.
It owns and operates an array of well-known vegan and vegetarian brands, including Earth’s Best, Garden of Eatin’, and WestSoy. These brands offer meat alternatives, dairy-free beverages, snacks, and more, catering to the rising consumer demand for vegan and plant-based options.
Hain Celestial remains in a strong position to benefit from this trend as the market for plant-based products expands. Its diversified product offerings and commitment to quality and sustainable ingredients make it a prominent player in the vegan market.
The firm’s top-line growth has declined in recent years. There has been an increasing focus on natural food channels. The company has a new CEO who aims to optimize its portfolio. The CEO aims to improve advertising spending. The CEO also aims to expand the distribution network.
In summary, Hain Celestial Group is a prominent player in the vegan market, with a diversified product portfolio. Despite contracting top-line growth in recent years, it is still worth a small position in my eyes.
Its focus on natural food channels leaves it well-positioned to benefit from the expanding market for plant-based products. With a new CEO setting the groundwork for a comeback, the company is now in a better position than it was a few years ago.
In conclusion, the stock’s worth investing in at present due to several positive developments, and it is a value play among vegan stocks since its price has dropped over 48% in the last year.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.