Food tech is becoming increasingly relevant in the global shift towards more sustainable practices and diets. To fight climate change and its adverse effects on our planet, consumers strongly prefer plant-based and vegan diets and brands that use sustainable sources.
There is no better time to invest in food tech stocks. Thanks to the attention of the mainstream consumer, the market as a whole is showing more potential than ever before. These three stocks, which specialize in using food tech to support the call for eco-friendly practices and products, are riding that wave of change and benefitting most from the green transition.
Let’s learn all about what technology these stocks have to bring to the table, where their efforts towards sustainable food have gotten them so far, and where it will take them from here.
Local Bounti (LOCL)
Local Bounti (NYSE:LOCL) is an agriculture tech company looking to revamp the face of traditional agriculture practices using its patented, cutting-edge technology. Local Bounti utilizes its “Stack and Flow” farming method, combining the best aspects of hydroponic and vertical farming to produce an ultra-sustainable agriculture system.
What are the benefits of Stack and Flow? According to Local Bounti, the system uses 90% less water and 90% less land than traditional farming methods. The company also claims that its lettuce and leafy greens have a much longer shelf life than similar products produced by conventional farming methods.
The good news for investors is that Local Bounti’s state-of-the-art tech and high-quality products bring success and growth to the company. In Q1, sales increased by 25% year-over-year. Although the company maintained a flat net loss, Local Bounti implemented cost-cutting methods to lower selling, general, and administrative expenses by more than half.
The Q1 report also discussed the company’s expansion plans for new facilities and additional operating capacity to be added to existing ones funded by $228 million of financing commitments. Local Bounti also announced new market penetration and obtained new retail customers.
Local Bounti has a bright future and has the technology to assert itself as a pivotal part of the continuing transition to more sustainable practices within the food tech market.
Beyond Meat (BYND)
In addition to farming, there is a growing demand for plant-based substitutes as veganism and plant-based diets become increasingly popular. Beyond Meat (NASDAQ:BYND) is the leader in the ever-increasing plant substitute market, and no other brand is more well-established in restaurants and supermarkets.
According to Beyond Meat’s website, its products are sold in over 190,000 stores and restaurants in more than 80 countries worldwide. Such popularity has brought Beyond Meat success and attention, including celebrity endorsement deals and product placement.
In its most recent quarter, Beyond Meat reported a slight dip in revenue and profit margin but has managed to cut its net loss down year-over-year by over $4 million. Beyond Meat is gaining more recognition, and despite its lack of profit, the long-term outlook for this company only gets better as more consumers worldwide transition to plant-based products.
The company is currently debuting new products in its latest Beyond IV product line, which utilizes sustainable and natural ingredients like avocado oil and plant-based proteins to appeal to modern consumers.
Beyond Meat has a firm grip on the plant-based market. It continues to push itself, spending almost $10 million on research and development to develop the latest food tech and superior plant-based meat substitute products. Beyond Meat’s products appeal to the modern consumer more than ever, and there’s no better time to invest before this stock explodes.
Corteva (CTVA)
Corteva (NYSE:CTVA) is a spinoff of the former DowDuPont agricultural unit. The company functions as a developer and frontrunner in agricultural science, developing technology for crop protection in pesticides, fungicides, and herbicides and high-quality, top-performing seeds of all kinds.
Corteva’s primary focus is supporting the development of its tech and expanding the availability of its products and services worldwide. In its most recent quarter, Corteva saw year-over-year growth of 11% in net sales for seeds in North America.
Despite some slower sales in other parts of the world, management reaffirmed its guidance to reach net sales in the range of $17.4 billion to $17.7 billion for the full year, up from the reported $17.23 billion in net sales for 2023.
The agriculture industry is not easy, but Corteva’s continued investment in technology and the success of its expansion strategy could mean great things for this crop protection and seed stock.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.