Could investing in the sustainable food revolution work for your portfolio?
Investing in the food revolution has seen some soaring opportunities in the market lately. Especially when diversification is the need of the hour, and most investors are looking to diversify their portfolios as much as possible, the sustainable food revolution is an arena that still remains untapped by most. There are increasing opportunities to invest in the sustainable food revolution and futuristic food aspects in the longer term. The food innovation industry is currently valued at $135 billion and is set to expand in the coming years. It is expected that 2030 will see the food industry market capitalisation at $700 billion. Hence, this is the time to invest in a sustainable food revolution to enhance your portfolio!
What are sustainable food revolution investments?
Investing in the food revolution refers to an impact investing strategy that attracts system investments from investors who wish to diversify their portfolios. Proceeds are then transferred to the ventures that meet all consumers’ demands for food concerning sustainability, health and security. In layman terms, investing in a sustainable food revolution means encouraging the companies that have been working hard to fulfil the food demands of consumers in the safest and healthiest way possible.
How will investing in a sustainable food revolution work for an investor’s portfolio?
To start with, investing in the sustainable food revolution market is profitable because it deals with something that most people relate to and love: food. There is hardly any person who does not have a favourite food item on their list, let alone people being able to survive without the same. However, bringing a commercial angle to something as personal and as daily-like as food has been taking over the market for a few years now.
The success of the plant-based product company, Beyond Meat, is one such example of monetising the sustainable food revolution industry. It does not only help investors diversify their portfolios but also allows them several long-term benefits that are attached to paying attention to this particular sector in the market.
What will drive the sustainable food revolution and innovation in the coming times?
The trends in the food revolution and innovation industry are here to stay. They will not shift in the short term but will change in the long term due to a number of reasons:
1- Population growth
The population growth in continents like Africa and Asia is definitely going to act as a trend change in the food revolution and innovation industry by spiking an increase in urbanisation. This will lead to a fall in the supply of existing water and land resources, putting more pressure on other countries to come forward and work together to save one another.
2- Change in consumer behaviour
Consumers now care about what they eat and what goes on in the process of making what they eat. They are concerned about the environmental effects and health benefits the food has and having quick access to the products as much as possible. People are now also developing technology in farming to enhance the processes, so investments in the farming technology sector increased by 43% in 2018, to nearly $17 billion as of 2018.
3- Agricultural technology
The technology in the agriculture sector is rapidly changing and for good. Especially vertical farming that employs advanced technologies to use light and water that makes it possible for the farmed products to grow even in urbanised areas. This helps reduce the usage of water and improves the usage of land to quite some extent. Such farming enables growing multiple sorts of crops in different places, increasing the supply of such farm products and enhancing the sustainable food innovation industry’s stand in the market.
Concluding statement: So where should you even invest in the sustainable food revolution industry?
The plant-based meats sector is one of the fastest-growing sustainable food revolution businesses, which is seeing rapid growth, rising at 28 per cent from $4.6 billion market value to an expected rise to $85 billion in 2030.
The online food delivery sector also significantly impacts the sustainable food revolution and innovation industry. The increase in demand has expanded the industry from $50 billion to a massive expected growth to $365 billion in 2030. The agriculture technology market is another sector that can definitely be tapped to lock in significant gains in the future, considering the sustainable food revolution market.
All in all, several sectors in the sustainable food revolution industries have been coming up with multiple mergers and acquisitions that tend to reap significant profits to the investors. Investing in these companies can prove to be fruitful in the long term, with the changing food industry norms and standards. This can help investors expand their portfolio and profit through diversification.
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