What Are the Hottest Plant-Based Food Stocks Right Now? 3 Top Picks.

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Sometimes, even the most boring stocks hold big potential. Look at plant-based food stocks, for example.

While these may not be the most exciting stocks, statistics point to strong future growth. Younger generations, including Generation Z, just saw a five percentage-point increase in their adoption of plant-based food since 2021. All of which presents “a significant opportunity for sustainable food brands,” as noted by Trellis.net.

In addition, according to analysts at the Brightfield Group, “Gen Z is opting for plant-based dairy alternatives such as oat milk, plant-based ice cream, pea milk and soy milk. They do not appear to be adopting plant-based meat replacements with the same enthusiasm.”

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With stats pointing to further growth, analysts at Spherical Insights say the global plant-based market could be worth about $55.84 billion by 2033 from $23.73 billion today.

That being said, investors may want to keep an eye on plant-based food stocks, such as:

Oatly (OTLY)

otly stock Rolled oats or oat flakes in bowl with wooden spoons
otly stock Rolled oats or oat flakes in bowl with wooden spoons

Source: Vladislav Noseek / Shutterstock.com

Look at oat milk stocks, like Oatly (NASDAQ:OTLY).

For one, earnings are improving. Its earnings per share loss of five cents, for example, beat estimates by two cents. Revenue of $202.2 million, up 3.2% year-over-year, beat by $910,000. It also raised its full-year outlook for revenue growth to a new range of 6% to 10% from 5% to 10%. It also expects to post an EBITDA loss of $35 million to $50 million, which is slightly better than its prior calls for a loss of $35 million to $60 million.

Two, the plant-based drink is popular. In fact, over the last year, U.S. retail sales jumped to $695 million (28% growth), according to Ambrook.com. Demand for oat milk is also up in grocery stores, where it held a 24% share of the retail plant-based milk market in 2023.

That being said, OTLY could push higher over the long haul.

Ingredion (INGR)

Ingredion Canada Inc head office in Brampton, Ontario, Canada
Ingredion Canada Inc head office in Brampton, Ontario, Canada

Source: JHVEPhoto / Shutterstock.com

While Ingredion (NYSE:INGR) isn’t one of the pure play plant-based food stocks, it has been increasing its plant-based offerings, including patties, seafood and chicken. And it carries a healthy dividend of 2.43% and just recently paid out a quarterly dividend of 78 cents.

Earnings have also been okay. Its EPS of $2.87 beat by 38 cents. Revenue of $1.88 billion did miss by $100 million, though. INGR also raised its full-year EPS guidance to a new range of $10.20 to $10.70, and also raised its adjusted EPS range to $9.70 to $10.20.

Plus, as noted in a recent press release, the company expects to deploy cash towards organic investments, dividends and share buybacks.