Plant-based Gets Its Own Stock Index: VegTech
Reflecting the rising energy surrounding plant-based consumer demand and investment capital pouring into companies in the sector, a new stock index called VegTech (The Global Vegan Impact and Innovation Index (VEGT)) launched on March 1, 2021.
Per the publication greenqueen.com, the index, which tracks the stocks of publicly traded companies in the plant-based space and is being referred to as a “Vegan Dow Jones” index, will help investors and other industry stakeholders track the overall health of the alternative protein market. VegTech currently includes 21 global companies, including plant-based meat and cellular agriculture companies as well as climate-forward companies in non-food industries.
To be included in the index, companies must be “working toward animal-free advancements or an alternative to an industry that is reliant on animal agriculture,” and they must have no involvement in the production or manufacture of animal products, animal testing, or wildlife displacement.
The launch of VegTech is the latest in a range of announcements and corporate decisions that attest to the mainstreaming of plant-based foods. According to our Food & Technology: From Plant-based to Lab-grown report, over half of consumers (51%) had purchased plant-based milk, dairy, or meat in the last three months at the time of the report, demonstrating that such products are no longer a niche lifestyle choice but a prominent feature of mainstream food culture. Our most recent health and wellness report (an update of which is now being released) found that 36% of consumers say they are adding or increasing plant-based protein in their diet.
Wall Street, Silicon Valley, and major food companies are upping the ante on their commitments to incorporating plant-based and other alternatives to animal products in their business models in a reflection of growing consumer acceptance of — and demand for — such products.
However, amidst all the buzz about plant-based, it is essential to remember that consumers are looking for better alternatives to meat and will increasingly scrutinize ingredients and processing to ensure they’re getting products that align with their values around real, fresh, and healthy food.
New report: Health & Wellness 2021