We recently compiled a list of the 9 Best Alternative Meat Stocks to Buy. In this article, we are going to take a look at where Hormel Foods Corporation (NYSE:HRL) stands against the other alternative meat stocks.
The alternative meat industry has experienced significant growth in recent years, driven by environmental concerns, health consciousness, and technological advancements. As of 2025, the market continues to expand, with notable developments in both plant-based and cultivated meat sectors. According to a report by research firm Mordor Intelligence, at the end of 2024, the global meat substitutes market was valued at around $10.36 billion, with projections to reach over $18 billion by 2030, reflecting a compound annual growth rate of 11.76% during the forecast period. Similarly, Business Research Company, another market intelligence firm, estimates that the market size for cultivated meat is expected to grow from $9.31 billion in 2024 to close to $11 billion in 2025, at an annual growth rate of 18%.
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Several factors are contributing to the burgeoning alternative meat industry. The most important of these is environmental sustainability. Alternative meats, particularly plant-based options, are recognized for their lower environmental impact compared to traditional meat. A study by the Food Foundation, quoted by prominent British newspaper The Guardian, found that plant-based meat alternatives result in fewer greenhouse gas emissions and require less water. Another factor contributing to alternative meat popularity is health considerations. The same study noted that plant-based alternatives often contain fewer calories, less saturated fat, and more fiber than conventional meat products.
However, it also highlighted that some alternatives may have higher salt content and lack certain nutrients like iron and vitamin B12. Innovations in food technology have led to the development of lab-grown meats, offering solutions to ethical and environmental issues associated with traditional meat production. The cultivated meat industry is projected to be valued at $25 billion globally by 2030. Despite the positive trajectory, the alternative meat industry faces several challenges. These include production costs, consumer acceptance, and nutritional fortification, among others. With increasing investments, technological innovations, and a growing consumer base seeking sustainable and healthy food options, the industry is set to play a significant role in the future of food production.
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For this article, we selected food stocks that offer alternative meat products. Companies that mainly produce beef are also included in the list for comparison purposes. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a hand cutting fresh turkeys, revealing the perishable products of the company.
Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 31
Hormel Foods Corporation (NYSE:HRL) develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers internationally. The following key aspects make this company a standout investment. As per the report for the fourth quarter of 2024, the company’s net sales were $3.1 billion, operating income was $294 million, and adjusted operating income was $308 million, demonstrating that the company had a solid operating performance and incurred non-operational expenses that were excluded in the adjusted figure for profitability. Moreover, the company’s Happy Little Plants brand offers a ground plant-based protein alternative containing 20 grams of non-GMO soy protein per serving. This product is designed to appeal to consumers seeking healthier and more sustainable food options.
Overall STKH ranks 7th on our list of the best alternative meat stocks to buy. While we acknowledge the potential of STKH as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than STKH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.