With Brazilian Market Entry, Is Beyond Meat A Top Consumer Stock To Buy?
Beyond Meat (BYND Stock Report) is back on investors’ radar once again. This is after the company announced that it would begin selling products in Brazil. Recall that not long ago Beyond Meat’s announced that it will sell its plant-based meat burgers in supermarkets in mainland China through a partnership with Alibaba’s (BABA Stock Report) Freshippo grocery stores.
“Our Brazil market entry marks an important step in furthering our mission of increasing accessibility to plant-based meat globally,” said Beyond Meat in a statement. “As the third-largest market in the world in terms of animal meat consumption, Brazil offers significant opportunity for plant-based meat adoption.”
The international market could be the growth driver for Beyond Meat. That’s because the potential customer base is theoretically almost everyone in the world. Considering international sales only made up about a quarter of revenue during the first quarter, this tells us that there is big room for growth moving forward. Bear in mind that the company has only just begun selling its products in international supermarkets. The previous focus was mainly on fast food chains globally. With global restaurants struggling to gain a firmer foothold even in their core products, the plant-based meat provider has shifted its strategy to target retail channels.
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Is Beyond Meat (BYND) The Only Public “Pure Play” On A Massive Opportunity?
That’s not to say there’s no competition in the market, but Beyond Meat is the only publicly traded plant-based meat company in the global stock market. The most obvious competitor in almost every market, Impossible Foods, is still a private company. On top of that, the competition is even fiercer with smaller-scale players. Companies such as OmniFood are still private too.
The Covid-19 has clearly reinforced the demand for plant-based meat, at least in Asia, and is creating competition within the Asian market. The pandemic exposes the public health and sustainability risk of our meat-reliant food system. This was more significant when Tyson Food (TSN Stock Report) said the supply chain of the meat supply was on the verge of breaking when the pandemic first ravaged the U.S. For this reason, this could create a new opportunity for the plant-base sector to thrive.
Being the only publicly-traded company comes with advantages, both for reputation as well as BYND stock price. The lack of options on what to invest in this niche sector puts Beyond Meat shares at a premium. When you think of plant-based meat stocks to invest, the only option is Beyond Meat.
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Beyond Meat (BYND) Stock Poised For Big-Time Growth
The traditional meat industry in the U.S. is $270 billion per year business. As for the global meat industry, it is a whopping $1.4 trillion. And when we compare the plant-based meat market share to the traditional meat market, obviously the former is just a tiny fraction of the latter. But on the bright side, plant-based meat is growing rapidly.
Again, we know the Covid-19 pandemic has only driven greater attention to the vulnerabilities of the meat supply chain. But the good thing is that consumers are now increasingly recognizing the value of meat alternatives. And that could potentially lead to some big-time growth rates.
But here is one reason why investors might want to be optimistic about the Brazillian and the Chinese markets. Brazil is a major market behind the EU, the US, and China. The country doesn’t produce enough meat to cater to its huge population. With that being said, it is safe to assume that the demand for meat alternatives will gain a foothold in the global market.