5 Meat Stocks to Consider in 2024 | The Motley Fool (2024)

The average American consumes almost 225 pounds of meat each year, or a little more than half a pound a day, the second-highest rate globally. Overall, worldwide meat consumption is rising. By 2050, global meat consumption could top 570 million tons, double the amount in 2008.

The forecast bodes well for food companies focused on producing meat to feed the masses. It's already a $1.4 trillion industry that should continue growing in the future. Here's a closer look at the meat-focusedfood stocks investors could consider to potentially profit from our insatiable appetite for meat.

Best meat stocks

Best meat stocks

While several food companies focus on producing meat, the number of publicly traded options is dwindling due to mergers and acquisitions. Here's a snapshot of some of the biggest meat companies traded on majorstock exchangesin 2024:

Here's a closer look at these meat-focusedconsumer staples stocks.

BRF S.A.

BRF S.A.

BRF is a global food company based in Brazil. It produced 4.7 million tons of food in 2022, and that food was distributed in more than 117 countries. The company has diversified food processing plants that include meat, margarine, pasta, and desserts. It has several top-selling brands, including Qualy (the top margarine brand in Brazil), Sadia (the most valuable food brand in Brazil), and Banvit (the leading poultry brand in Turkey).

BRF also has a leading meat business focused on poultry and pork. It's dominant in Brazilian exports to Asia, including 39% of the chicken sent to Japan and 27% of the pork exported to China. In addition to selling meat products such as cold cuts and encased meats, BRF aims to revolutionize the pork industry in Brazil by leading the meat substitute market. These factors make the company a potentially tasty way to play the growth of meat consumption in emerging markets, along with trends like plant-based meat substitutes.

Beyond Meat

Beyond Meat

Beyond Meat is a leader in plant-based meat substitutes. The company aims to disrupt the meat industry by shifting the planet from animal-based meat to plant-based proteins. Beyond Meat strives to create products with the same taste and texture as animal-based meats. It believes its products will improve the health of the population and the planet.

Beyond Meat has developed plant-based products that it sells to the food service and retail sectors to replace beef, pork, and chicken. The company sold almost 85 million pounds of products in 2022, generating more than $400 million in revenue. It continues investing in innovative new products to gobble up a larger share of the global meat market.

Hormel Foods

Hormel Foods

Hormel is a leading global branded food company. It has three operating segments:

• Retail: This category features the company's iconic retail brands, like Planters, SPAM, Skippy, Herdez, Jennie-O, and Hormel.
• Foodservice: This operating segment focuses on serving food service places with a portfolio of products in the pizza toppings and bacon categories.
• International: This operating category includes products that the company sells internationally. It also includes the company's international investments. For example, in 2022, it acquired a minority stake in Garudafood, one of Indonesia's largest food and beverage companies.

Hormel has been slowly shifting away from being a meat-centric company to a global branded food company. It generates over $11 billion of revenue from more than 30 global brands.

Pilgrim's Pride

Pilgrim's Pride

Pilgrim's Pride is one of the world's largest poultry producers. The company operates protein processing plants and prepared food facilities worldwide.

It primarily delivers its products to retailers and food service distributors. Pilgrim's Pride also has a rapidly growing prepared foods business featuring branded fully cooked products Just Bare and Pilgrim's Chicken. Sales of prepared foods surged 70% in 2022.

E-commerce is becoming is also emerging as a growth driver for the company. Those sales rose 48% in 2022 and now account for 23% of the company's revenue from branded products.

Tyson Foods

Tyson Foods

Tyson Foods is one of the world's largest food companies. It's a leader in protein, with an estimated 20% share of U.S. protein consumption.

The company's segments include prepared foods, beef, pork, chicken, and international/other. It has an extensive portfolio of products and brands, including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, IBP, and State Fair.

Tyson has also expanded into plant-based products in recent years. Its Raised & Rooted brand features a growing lineup of alternative plant-based protein products.

Are meat stocks a good investment?

Demand for meat is growing, which should enable meat-focused producers (and alternative plant-based products) to expand their profits in the coming years. Investors have several tasty options if they want to invest directly in the long-term growth potential of the global meat market.