The plant-based meat industry is growing rapidly. In fact, it's projected that by 2050, there'll be more than 100 million vegetarians in America alone. And while this might not sound like a big deal—and it isn't!—it does mean that the plant-based meat industry has taken some significant share from the meat industry.
A shakeout is underway, and this shakeout could also lead to some exciting developments for both sides of this equation:
If consumers continue to shift away from eating animal products and toward plants, then companies like Beyond Meat (NASDAQ: BYND) (a significant player in the space) could see their sales soar as more people opt for these healthier alternatives instead of traditional meats or fish products;
Meanwhile, farmers could see themselves losing profits because they cannot supply enough demand for livestock products anymore (which would mean lower prices).
This leads us to a bare conclusion, which plant-based meat company would dominate the market in the coming months when the shakeout climaxes?
Two stocks with the best growth potential in this market are: Beyond meat stocks (NASDAQ: BYND) and Impossible Foods.
Beyond Meat
This stock is trading at a P/E of 16.6x forward earnings, which implies that it will grow at a CAGR of 43% over the next 5 years. In terms of revenue growth, Beyond Meat has been recording double-digit growth in each quarter since its inception, and this trend continues to show no signs of stopping. The company expects to reach $600 million by 2020, and considering the momentum behind its business model, it seems likely that this target can be achieved within a few years.
Beyond meat is worth adding to our portfolio. This stock has declined more than 72% YTD. Thus, if you buy this stock now, you've succeeded in catching it right at the bottom. Regarding unit growth (outstanding shares),Beyond Meat's total number has increased from just under 20 million shares in December 2021 to over 30 million today (March 20222). This means that about 1 million new investors now own shares in Beyond Meat Company every year since its inception!
Impossible Foods - Impossible Foods: A Good Long-Term Investment
Please do not sleep on this stock when it finally IPOs. Impossible Foods is an excellent long-term investment. The company has a lot of potentials, but it's still early days. Last year, Reuters reported that they are getting set for a public share offering come 2022. Well, 2022 is almost over, and we're still waiting for the fulfillment of the news.
Impossible Foods is one of the few companies making vegan meat substitutes that taste like real meat (which is why we love them). They've been selling their products at Whole Foods stores since 2016—and now they're expanding their reach beyond just Whole Foods with plans to sell in traditional grocery stores nationwide and restaurants across North America!
The battle for market share supremacy within the plant-based meat industry is uncertain.n
The plant-based meat industry is growing rapidly. According to Euromonitor International, the market for plant-based meat products reached $3.2 billion in 2017 and is expected to reach $6.8 billion by 2022 as consumers turn away from animal products in favor of more sustainable protein sources.
The biggest challenge facing plant-based meats is their uncertain market share once they've been on the shelf for a while: will consumers accept them? Will scientists find a way to make them taste like meat? Will supermarkets carry them? And how soon before someone patents one?
Which is a better choice?
We believe that Impossible Foods will continue to dominate the market for plant-based meat in the foreseeable future, but Beyond Meat stock has some room for growth and may be a good investment.
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