PLANT-BASED FOOD IS
THE BIG MEME OF 2021
The trades that have worked in 2020 —– Work From Home, Electric Vehicles, Renewable Energy—are all tied to industries that are experiencing incredible revenue growth.
The hot growth sectors of 2020 have literally generated 20 years of stock market returns over a time period that spans just months. The most popular stocks in these sectors have been 6, 7 and 8 baggers just since the pandemic broke out.
Those were great trades in 2020. There is an even BETTER TRADE coming in 2021. That trade is plant-based foods.
When I started digging into the numbers—well, the projections for this industry are incredibly convincing. And it’s not just projections folks—this growth is happening right now.
I just read a report from Nielsen (1) that detailed how sales of fresh plant-based meat alternatives have nearly doubled EVERY MONTH THIS YEAR.
In Canada, meat packer Maple Leaf Foods (MFI-TSX) said plant-based sales were greater than meat-based sales in Q3 2020—sales in the plant-based protein group of 2020 were $51.4 million compared to $47.0 million last year(2).
For example —— brokerage firm UBS estimates (3) that the market for plant-based proteins will explode from under $5 billion today to more than $85 billion by the end of the decade.
From $5 billion to $85 billion. There can’t possibly be another sector that is going to grow that fast over the next decade. That is a 28% CAGR over the next 10 years. That means that plant-based food sales will be increasing more than 16 times.
If revenue for the entire sector is increasing 16 times in a decade that tells you how fast the average company will be growing. The biggest winners in plant-based food are going to be growing much faster than that.
No wonder investors are so hungry to get more exposure (there is a pun there) ––– they are buying first and asking questions later. All of the stocks in this sector are surging higher.
Simply put—every quality company in this sector is catching a bid.
No Sector Has More Momentum Than Plant-Based Food…
The UBS growth projections for plant based revenue growth are so extreme that they are hard to believe.
But the more you dig into this industry the more convinced you become. All of the data is pointing to incredible growth.
Another study, similar looking projections. Meticulous Research published a report that pegged the plant based food market to hit $74.2 billion by 2027 (4). That is an even steeper growth curve than UBS which pointed to $85 billion by 2030.
The market isn’t dumb. It isn’t going to miss out on a sector with this kind of growth in front of it.
That is why plant-based stocks are already running. Just look at the Very Good Food Company (VERY-CSE). It’s up almost 600% in a month just because the momentum traders finally got sniff that this was a plant- based food trade.
A FIVE-BAGGER…………in a month!! A month.
Every plant-based food company that has a fundamental growth story behind it has a similar looking chart.
Beyond Meat (BYND-NASD) ran from approximately $60 a share to about $240 a share when the momentum boys discovered it.
Modern Meat (MEAT-CSE) went from 30 cents a share to $3.66 a share in the blink of an eye right out of the gate.
If the market finds a pure-play plant-based food stock that has a real story behind it…….then just forget about it. That stock is going to catch a bid.
Buy first, ask questions later. In the plant based food sector if you have a solid product the market is taking your stock higher. Momentum, momentum, momentum —— like a snowball rolling down a hill on sticky day.
That makes it sound like the market is dumb, but most certainly isn’t. The market can always sniff out when a sector is poised for unusual growth. The market always knows before mainstream thinking gets there.
Like all momentum trades plant-based food is based on very real economic fundamentals. Society’s eating preferences are changing fast and this is driving huge growth in consumer demand for plant-based food.
There is room for everybody in this market—competition isn’t relevant here; not a factor—the market is exploding and there aren’t many companies ready to supply it.
From Niche To Mainstream – People Are Evolving
In the annual IFIC Food and Health Survey released in June —43% of people said that a product with a description of “plant-based” would be the most healthy out of several options.
We used to think we had to eat meat to get enough protein. Now half of society believes that plant-based is the healthiest alternative.
We are evolving. More and more of us believe in plant-based because we think it is healthier and because we think it is the right way to live. This is why the plant-based market is expected to go from $5 billion to $85 billion in a decade.
I’m not saying if it is right or wrong. I’ll I’m saying is that what was once a fad diet is now becoming a MEGA-TREND with the steepest revenue growth curve in the market.
This is not hunch of mine. This is based on DATA, DATA, DATA. The numbers don’t lie. Today only 7% of society are following a plant-based diet but 30% of people indicate that they plan to move to one…this is a way of life that is gaining mainstream acceptance.
It’s tough to lose investing in a sector with that kind of tailwind behind it.
No wonder these plant-based stocks are flying. As per usual the market has sniffed out a major paradigm shift and is desperately trying to exploit it.
The only problem for investors—so far—is that there just aren’t enough high quality pure-play, plant-based stocks through which to jump on this momentum trade.
Tomorrow the market gets another one to satisfy its plant-based cravings.
Do Not Miss My E-Mail Tomorrow….
I follow the hottest trends in the market and then I dig out the best way to ride them. That is what I do.
There is no sector that is on the verge of a growth curve that compares to plant-based food. I’ve given you some incredible statistics to think about.
BUT DON’T TAKE MY WORD FOR IT…do you not see Mega-Trend in your own life—everyday? There are more vegan restaurants, there are more plant-based foods at regular restaurants, there are more plant-based products in grocery stores…and you probably know vegetarians! (They walk among us!)
The public has whole-heartedly bought into the idea of a plant-based lifestyle — for the millennial generation this is going to be the norm.
The most obvious indicator that plant-based food is going ballistic is to look at what the giant corporations are doing. They’re all scrambling to fill out their plant-based offerings as fast as they possibly can—look at this list:
Tomorrow I’m giving you the next high quality plant-based stock upon which to ride this momentum trade.
It has management, product, distribution, funding—all the things I want to see in a company like this.
Here is what you are going to learn…
1 – Why I believe this company can post big revenue jumps in every quarter of 2021
2 – The huge move that the company just made and why this is going to be the accelerator for the growth I’m expecting
3 – Why the market hasn’t yet caught onto this story and what the catalyst is that is going to change that
4 – And of course the name and ticker for this stock
The last 12 months have reinforced something that I’ve known for a long time.
To make a lot of money in the market REALLY FAST —— the way to do it is to get in early on what is hot and then enjoy the ride.
Money is flowing into ESG investments. Money is flowing into plant-based food stocks.
The market demand for pure play-plant-based investments is insatiable. Buy first, ask questions later.
Tomorrow I’m going to give the market something big to chew on.
Don’t miss it.
Sources:
- https://www.fooddive.com/news/coronavirus-plant-based-meat-growth/585433/
- https://www.fooddive.com/news/plant-based-meat-market-forecast-to-reach-85b-by-2030-report-says/559170/#:~:text=Investment%20firm%20UBS%20projects%20growth,consumer%20awareness%20drive%20more%20consumption.
- https://www.prnewswire.com/news-releases/plant-based-food-market-worth-74-2-billion-by-2027–exclusive-report-by-meticulous-research-301094884.html
- https://www.insightswest.com/news/2019_canadian_food_diet_trends/
