This is a guest blog post by Julien Hivon, who is a representative of the vegan investment group GIVE. Earthsave Canada does not provide financial or investment advice. For advice on your specific situation, please contact your financial advisor or planner.
If you enjoy plant-based foods, you may have tried plant-based alternatives such as Oatly milk, Beyond Meat burgers or Daiya cheese. Every year, these companies improve the taste of their products and continue to expand their product lines. According to Fortune Business Insights, the global vegan food market is projected to grow from $26.16 billion in 2021 to $61.35 billion in 2028, representing an annual growth rate of 12.95%.
The vegan market includes multiple sub-sectors like:
● Plant-based food (e.g. Oatly)
● Plant-based ingredients (e.g Ingredion)
● Vegan fashion and apparel (e.g. ELF Beauty)
● Sustainable agriculture and farming (e.g. Mission Produce)
● Vegan tech (e.g. PlantX)
● Plant-based supplements and nutrition (e.g. Future King)
Additionally, sectors like renewable energy (e.g. Lion Electric) contribute to a more sustainable and eco-friendly world.
To invest in R&D, hire new talent, and grow their market share, companies that offer plant-based alternatives require financial capital. In addition to purchasing plant-based products, you might consider supporting vegan companies by investing in them.
How you can invest your savings in vegan companies
Investing in the vegan economy offers numerous opportunities. Each type of investment has its own set of risks and potential rewards. Here are three ways to invest specifically in the vegan economy:
Exchange traded funds (ETFs)
An ETF is like a basket that holds a variety of different stocks, bonds, or other assets. While the risk remains, ETFs are generally considered safer investments given their diversification. Index ETFs usually track a benchmark or “underlying” index. For example, the US Vegan Climate ETF (Ticker: VEGN) screens large cap US companies for a variety of ESG (Environmental, Social, Governance) considerations, primarily animal harm and exploitation, as well as fossil fuels, environmental damage, and human rights. Another option is the VegTech Plant-based Innovation & Climate ETF (NYSE: EATV), which is an actively-managed fund designed to offer investors exposure to the growing plant-based foods and materials trend through VegTech companies. This index tracks vegan sub-sectors like ingredients, flavour technology, or synthetic biology.
Publicly-traded company stocks
Stocks are easy to exchange, but considered riskier than ETFs. The leading Canadian stock exchanges include the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV). Through stock markets, you can invest for example in Swedish oat milk brand Oatly (NASDAQ: OTLY), plant-based meat substitute Beyond Meat (NASDAQ: BYND), or the growing makeup and skincare company Elf Beauty (NYSE: ELF).
Private equity
Previously reserved for accredited investors, investing in equity is now possible thanks to equity crowdfunding platforms, like FrontFundr or Equivesto. These platforms connect entrepreneurs with potential investors. In exchange for relatively small investments, private investors get proportionate equity in the business venture. Vegan businesses can be found in some of these platforms, but they are relatively rare. It is also considered to be the riskiest of the three options.
Other forms of investments include mutual funds or bonds, but they are not common in the vegan investment market.
Vegan investing with GIVE
Investing can be complicated. Before making any investment, it is wise to speak with an appropriately qualified financial advisor or financial planner about what financial products are best for your specific situation. One option you may wish to consider is investing with GIVE.
We launched GIVE in Canada in 2021. GIVE, for the French acronym of “Groupe d’investissement végane et éthique” (vegan and ethical investment group), is a group of individuals pooling their capital and knowledge to invest in companies playing an important role in reducing animal exploitation.
We try to make investing accessible, fun, and rewarding. We have several committees, and our members meet quarterly to go over financial results and possible investing opportunities. At GIVE, decisions are made democratically. All members, regardless of their background, have a say. Above all, GIVE is a community of curious and passionate people wanting to support vegan companies through investment.
Two years after its launch, GIVE is now 20 members strong and manages an investment portfolio of 14 vegan and ethical companies shaping tomorrow’s food system. We also took part in equity crowdfunding campaigns and created a fund with Microcredit Montreal to offer loans and personalized support to local vegan entrepreneurs.Interested in joining GIVE and investing in the vegan economy? Explore our portfolio here, and visit our website for further details.
Photo by Towfiqu barbhuiya on Unsplash
