Top food tech stocks with modern practices and trendy products that will perform best this year.
Foodtech is becoming increasingly important in the global transition towards more sustainable habits and diets: To combat climate change and its negative impact on the planet, consumers have a strong preference for plant-based and vegan diets, as well as brands that use sustainably sourced ingredients.
There’s never been a better time to invest in food tech stocks. Thanks to consumer attention, the overall market is showing greater potential than ever before. Specializing in using food tech to meet the demand for environmentally friendly practices and products, these three stocks are riding the wave of change and benefiting the most from the green transition.
Read on to learn what technologies these companies are adopting, how far the journey towards sustainable food has come, and where it’s going next.
Local Bounty (LOCL)
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Local Bounti (NYSE:LOCL) is an agricultural technology company aiming to change the face of traditional agricultural practices with its patented, cutting-edge technology. Local Bounti employs “stack and flow” farming techniques that combine the best aspects of hydroponic and vertical farming to create a highly sustainable agricultural system.
What’s the benefit of stack and flow? According to Local Bounti, the system uses 90% less water and land than conventional farming. The company also claims that its lettuce and leafy greens have a much longer shelf life than similar products produced using conventional methods.
The good news for investors is that Local Bounti’s cutting-edge technology and high-quality products are driving success and growth for the company. First-quarter sales increased 25% year over year. Although the company’s net loss remained stable, Local Bounti implemented cost-cutting measures, cutting selling, general and administrative expenses by more than half.
The first quarter report also outlined the company’s expansion plans for new facilities funded by $228 million in financing commitments and additional operational capacity being added to existing facilities. Local Bounti also announced entry into new markets and the acquisition of new retail customers.
Local Bounti has a bright future and has the technology to assert itself within the foodtech market as a vital part of the ongoing transition towards more sustainable practices.
Beyond Meat (BYND)
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In addition to agriculture, the growing popularity of vegan and plant-based diets has led to a rise in demand for plant-based alternatives. Beyond Meat (NASDAQ:BYND) is a leader in the expanding plant-based alternatives market, and no other brand is more entrenched in restaurants and supermarkets.
According to Beyond Meat’s website, its products are sold in over 80 countries and in more than 190,000 stores and restaurants around the world. This popularity has led to Beyond Meat receiving success and attention, including celebrity sponsorship deals and product placements.
In its most recent quarter, Beyond Meat reported a slight decline in revenue and profit margins, but managed to cut its net loss by more than $4 million year over year. Beyond Meat’s popularity is growing, and despite the lack of profits, the company’s long-term prospects are only getting better as consumers around the world shift to plant-based products.
The company is now introducing new products in its updated Beyond IV product line, which uses sustainable and natural ingredients, including avocado oil and plant-based proteins, to appeal to the modern consumer.
Beyond Meat has a firm grip on the plant-based market. The company continues to push itself, spending approximately $10 million on research and development to develop the latest food technology and superior plant-based meat alternatives. Beyond Meat’s products appeal to modern consumers more than ever before, making this the perfect time to invest in this stock before it soars.
Corteva (CTVA)
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Corteva (NYSE:CTVA) is a spin-off of the former DowDuPont Agriculture Division. The company serves as an agricultural science developer and pioneer, developing crop protection technologies in insecticides, fungicides, herbicides and a full range of high-quality, superior-performing seeds.
Corteva’s primary focus is supporting its technology development and making its products and services available worldwide. In the most recent quarter, Corteva saw its net seed sales in North America increase 11% year over year.
Despite some slowing sales in other parts of the world, management reaffirmed its outlook for full-year net sales to reach a range of $17.4 billion to $17.7 billion, up from 2023 reported net sales of $17.23 billion.
The agriculture industry is not easy, but Corteva’s continued technology investments and successful expansion strategy could mean big things for this crop protection and seed stock.
As of the date of publication, Joel Lim did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication guidelines.
Joel Lim is a contributor to InvestorPlace.com and a financial content contractor who creates content for several companies, including LTSE and Realtor, as well as financial publications such as Business Insider, Yahoo Finance, Mises Institution and the Foundation for Economic Education.
