Vegetarianism – invest.ch

It is estimated that 11% of the world’s population are vegetarians and many see this food choice as a personal contribution to a better planet.

Go Vegetarian

Sustainability, climate change, animal welfare and health implications are all factors to consider for people who decide to take the plunge.

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

Some developments

Plant protein companies are in a better position to meet the operational efficiency and production capacity requirements to compete with traditional protein sources.

As the predominant substitute, soy is expected to maintain its position despite concerns about allergies, estrogenic effects and genetically modified crops. Pea protein is becoming a competitor to soy and wheat as consumers look for a gluten-free protein source that is nutritious, sustainable and less expensive than alternatives. Despite the hype, the protein replacement industry has had a tough 2021.

In recent years, a growing number of plant-based food manufacturers have gone public, including Swedish oat milk maker Oatly (among its staunchest proponents is American emcee Oprah Winfrey). The company has priced its 2021 IPO at $17 per share, but the price has dropped following allegations of greenwashing.

The share price of Beyond Meat, a Los Angeles-based meat alternative maker, has also been falling for much of 2021 due to supply chain disruptions and a lack of consumer interest in healthy food following the lifting of pandemic-related restrictions. CEO Ethan Brown said the difficulties were mostly temporary, but did not hide the competition in the market.

Eat Just, a San Francisco-based maker of plant-based egg alternatives, is aiming to enter the market with a $3 billion IPO scheduled for 2022. It looks like the company is set to raise $500 million in a new round that would raise its valuation 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 environmental initiatives to achieve the global goal of carbon neutrality by 2050.

Despite the poor performance of the sector in 2021, investors have much to gain from the continued growth of producers and demand, in particular from the younger generation. This sector also provides opportunities for socially responsible investment, environmental, social and corporate governance priorities.

Certificate “Vegetarianismallows you to invest in companies that can benefit from the vegan trend. It is aimed at companies that produce vegetarian products and derive at least 90% of their income from vegetarianism. The certificate allows you to make socially responsible investments in an industry that is expected to demonstrate high growth rates in the coming decades.

ISIN code CH0489280914
Value 048928091
VEGATQ symbol