Investing in vegan stocks? Better not…
January is all about good intentions and plant-based meals, because Veganuary is back. But eating vegan eating is one thing. Is the vegan market also interesting for private investors? Trading and investment platform eToro examined the figures and concludes: caution is advised.
Falling share prices among vegan companies
Although more and more plant-based alternatives can be found in supermarkets, well-known vegan brands such as Oatly (-91%) and Beyond Meat (-95%) are struggling on the stock market. Since their peak, they have lost 91% and 95% of their value respectively. Other companies, such as Modern Plant Based Foods (-98%) and Else Nutrition (-98%), also suffered substantial losses.
What stands out? The so-called ‘pure play’ brands – companies focused entirely on vegan products – are particularly vulnerable. According to eToro market analyst Jean-Paul van Oudheusden, this is because these companies are still investing heavily in research and market expansion. Competition is fierce, and profitability can sometimes take years to materialize.
The shovel seller wins
Still, there are some bright spots. Companies that are not entirely dependent on plant-based products but do form an important link in the chain are doing considerably better. Ingredion, a producer of pea proteins and sweeteners, achieved a return of 34% over three years. As van Oudheusden aptly puts it: “In a gold rush, the biggest winner is often the one selling the shovels – or, in this case, the pea protein.”
Volatility in the vegan market
The vegan market is a fickle place. Take Laird Superfood, known for its wellness-focused coffees: its shares rose by 691% in 2024, but over a longer period the share price is still negative. For investors looking to make quick profits, this is a risky business. Van Oudheusden emphasizes that following a social trend such as veganism is only half the job. “You also need to be able to handle fluctuations in share prices and be willing to play the long game.”
Conclusion: opportunities with a grain of salt
Veganism is here to stay, but anyone who really wants to make money from it must be smart and patient. Look for companies with a broad portfolio or an essential role in the supply chain.
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