Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

How to get involved in vegan investments

In the past, veganism represented a very limited niche market. However, according to research between 2014 and 2019, the number of vegans in United Kingdom has grown exponentially. In 2019, there were around 600,000 vegans (1.16% of the population), up from 150,000 (0.25% of the population) in 2014. Vegan investments are becoming more popular each day among financial traders, and it could be an effective way to diversify your portfolio with assets from emerging markets, such as the vegan industry.

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The rise of veganism

The vegan food industry is flourishing, which is why Burger King, McDonald’s and other fast-food chains have started offering vegan alternatives to their traditional meat burgers. In 2019, vegan and plant-based food sales in the United States increased 10 times faster than any other food sector. Many food giants have started to follow this trend, either by creating vegan options for their customers or by acquiring or investing in start-up vegan companies.

It seems clear that veganism is not going to be a temporary trend, but rather a lifestyle that will most likely continue to grow and expand, not only within the food industry, but also in the beauty and in fashion industries.

Cruelty-free and vegan companies have reached an estimated global worth of $15 billion, and they are actually expected to top $40 billion by 2025, for a compound annual growth rate of 17%.

How to invest in veganism

One way of investing in veganism is to buy and sell shares within the stock market for growing vegan companies or purchase outright commodities, although this requires you to pay the full value of the security upfront. You will also have to find somewhere to store the commodity when holding for a long period of time.

An alternative way is to trade on these assets. Short-term trading entails opening buy or sell positions based on how you think the asset will perform in the future. This means that you can go both long and short on the market. Follow the steps below to get started.

  1. Register for an account. You will be automatically be granted access to a free demo account, which allows you to practise trading with virtual funds.
  2. Choose your product between spread betting and CFD trading. Learn more about the differences between the two.
  3. Choose your financial market and asset, whether this be shares, commodities or ETFs. We offer over 10,000 assets on our Next Generation trading platform.
  4. Decide whether to buy or sell. You can read our in-depth guide to different trading strategies to find one that is suitable to your level of experience, personality and overall goals.
  5. Don’t forget about risk-management. Stop-loss orders can help to minimise losses when trading in volatile markets or if you experience slippage or gapping on price charts. In particular, our guaranteed stop-loss orders (GSLOs) can offer more protection.

Vegan stocks and shares

Vegan stocks are the shares of companies that are either entirely vegan or have transformed part of their business to accommodate the manufacturing and retailing of cruelty-free products. Although only a few fully vegan companies are publicly listed at the moment, some of the largest companies in the food, fashion, and cosmetics sectors are dedicating entire lines to vegan products, in order to respond to growing demand.

It may be a good idea to keep up to date with the evolution of veganism, for example, by reading our news and analysis section. This is updated on a daily basis with analysis and insights into the financial markets and upcoming trends by our expert market analysts.

Vegan companies to watch

Beyond Meat (BYND)

Beyond Meat is an American company based in Los Angeles, which was founded in 2009. Its three founders decided to invest in a project that could lead to the production of meat that would be fully plant-based, environmentally sustainable and above all, similar in flavour to animal alternatives.

The company launched its first product on the U.S. market in 2013, and then further expanded in 2016, with the sale of a vegan hamburger and other fake meat products both nationally and internationally. Beyond Meat’s products are now available in 40 countries around the world, including restaurants and large-scale retail stores.

Bunge (BG)

Bunge is an American agricultural company that was established in Bermuda and is now based in Illinois. The company buys, sells, stores, transports, and processes oilseeds and grains specifically. In addition to exporting soybeans, it is also involved in food processing and in the sale and purchase of wheat and fertilizers. The company has also merged with oil supermajor BP to create more environmentally friendly energy solutions in the biopower market.

Ingredion (INGR)

Ingredion, which is based in Illinois, is an American multinational supplier of food ingredients. Examples of these are starch, including modified starches and starch sugars, such as glucose syrup and high fructose syrup, which are extracted from plant sources such as corn, tapioca, rice, sago and potatoes. The company was named as one of the 2019 World’s Most Ethical Companies by Ethisphere.

e.l.f Cosmetics (ELF)

e.l.f Cosmetics is an American cosmetics company that manufactures and retails skincare and make-up products. The company is extremely successful on social media, counting more than 20 million followers, and is especially popular with the younger population. Most of its sales are in fact generated by its e-commerce store and social media channels.

The company claims that its products are 100% vegan and cruelty-free, making it a potentially popular investment choice for a younger audience.

Hain Celestial Group (HAIN)

The Hain Celestial Group is an American food producer that owns a number of plant-based brands. This includes non-dairy products from DREAM and meat alternatives from Yves Veggie Cuisine. The company is dedicated to creating more organic and vegan-based products in their food and personal care product lines.

Else Nutrition (BABY)

Else Nutrition is an Israeli food and nutrition company for babies and toddlers. The company is one of the first to offer to completely plant-based formula, which is also dairy, soy and gluten-free. It claims to use 92% whole-food ingredients and a natural production process. This company and stock may appeal to vegan parents that are interested in introducing a plant-based lifestyle to their children.

United Natural Foods (UNFI)

United Natural Foods is an American distributor and retailer of natural and organic food products. Their ‘Wholesale’ segment deals with the distribution of organic food and vegetables in the United States and Canada, whereas their ‘Other’ segment includes a retail division, which sells nuts, seeds, dried fruit and snack items. As of October 2018, the company offered more than 110,000 natural and organic foods.

Trade on vegan and plant-based companies

How to trade on vegan commodities

Soft commodities represent an alternative way to ride the vegan wave. As veganism and plant-based diets become increasingly popular, so does the demand for meat-substitute products, such as beans, nuts, grains, soy, and fruits, just to name a few. Below is a sample of vegan commodities that you can trade on our Next Generation trading platform.

Cocoa Coffee Arabica Coffee Robusta
Corn Oats Orange juice
Rice Soybean Raw sugar
White sugar US Cocoa Wheat

Learn how to trade on commodities here.

You can also trade a basket of vegan commodities through our Agricultural Index. This index contains most of the above-mentioned commodities and allows you to trade on multiple assets with a single position. This can also help to spread and offset risk. More information on our Agricultural Index >

Vegan investment portfolio

As discussed, the vegan industry can be a good way to diversify your investment portfolio. This is because traders can speculate on vegan assets including company shares, commodities and, at some point in the future, exchange-traded funds (ETFs), which aim to track a collection of assets.

If you enjoyed this article and are interested in other ethical and sustainable investments, read our article on ethical and sustainable shares to watch right now, which focus on farming, clean energy and electricity.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.