Taking advantage of the situation is one of the basic rules for successful investing.。Bank of America predicts that the global food solutions market will be valued at more than $300 billion by 2025.

What is Organic Food Stock?

The classic definition of an organic food producer is one that grows and produces food without using synthetic chemicals such as pesticides and artificial fertilizers.

From an investment perspective, this definition has been expanded to include farmers and producers who do not use genetically modified ingredients or do not irradiate food.。Animal welfare, environmental sustainability, and other ESG work practice elements are also important issues for organic farmers.

What are organic food stocks?

Simply Good Foods（NASDAQ：SMPL）

Simply Good Foods, headquartered in Denver, Colorado, was founded in 2017 and sells healthy snacks and meal alternatives.。The company's shares, listed on the Nasdaq exchange under the ticker symbol SMPL, have delivered positive returns to investors since going public.

The company focuses on the snack and meal replacement market and has great potential to capture market share from incumbents。Its product distribution is through "major retail channels, including groceries, clubs and mass merchandise, as well as e-commerce and convenience stores."。This strong network allows the company to "launch new products, expand distribution, and attract existing and potential consumers."

Sprouts Farmers Market（NYSE：SFM）

Sprouts Farmers Market, which began trading in 1943, is currently one of the fastest growing retailers in the United States.。The ambience of the farm store is still part of the shopping experience, but the market is wider。It currently operates more than 380 stores in 23 U.S. states, so there is plenty of room for growth in the domestic market before considering the international market.

About 60% of Sprouts' sales are organic, its green philosophy is also reflected in the priority sourcing of local products, and its suppliers must comply with strict codes of conduct and animal welfare standards, which exceed industry best practices.

General Mills（NYSE：GIS）

General Mills has been producing traditional food for the mass market since 1928, but is rapidly growing its organic food business.

During COVID-19, the company's organic food segment saw sales increase 7%。The non-organic food segment also achieved strong growth, with the company as a whole expecting revenue growth of 3% year-over-year in 2022..81%

General Mills was able to squeeze higher growth out of its organic product line, suggesting the company is looking to expand its organic product line.。At the same time, it has some critical mass that small organic companies don't have, and investing in new markets requires resources that General Mills has accumulated over the years.。The company is well positioned to offer a hybrid model of organic and standard foods that are affordable to most consumers.

Beyond Meat（NASDAQ：BYND）

Beyond Meat shares first traded on the stock market in 2019。Share prices quickly soared, with some first-stage investors earning more than 200% on their positions。Since then, the price of BYND has fallen back to its level at the time of listing.

The slide in Beyond Meat's share price reflects the fading of unrealistic excitement in the market, rather than any survival challenges the company faces.。In fact, this has led the company's senior management to consider a more realistic growth plan.

Ethan Brown, CEO, said: "Beyond Meat is fully shifting to a sustainable growth model, emphasizing positive cash flow operations."。In other words, Beyond Meat is focusing on being a well-run business, not a pacesetter for organic foods, which could be good news for investors.

Investing in Beyond Meat is riskier than investing in blue chips like General Mills。The question is whether a shift in management beyond Meat can stem its losses and buy the company enough time to capitalize on its market-leading brand.

Why Invest in Organic Food Stocks？

Not only is the organic food market growing in total size, the demographics of its major players also make it attractive to investors

Young consumers dominate the market, with Statista reporting that 36% of 18- to 29-year-olds prefer organic food, compared to just 12% of 50- to 64-year-olds.。Given the apparent difference in life expectancy between the two groups, there is a clear case for buying organic food stocks as a long-term investment.

Organic food buyers are not only younger, but more likely to come from higher-income groups。Any high-end product is at risk that a recession could affect discretionary spending on high-value products

Stocks of food companies and other staple food producers tend to perform well during recessions, which can offset the risk that organic foods may appear "overpriced," while discretionary consumer goods such as mobile phones are considered less vulnerable to recessions.

INVESTMENT IN ORGANIC FOOD STOCKS

COVID-19 may be a catalyst for sustainable food companies, but it now seems that a change in consumer habits is a sure thing。While the sector seems set to grab more market share, that doesn't necessarily mean all stocks will benefit to the same extent.

Large multinationals are already adapting their practices to cater to consumer demand for organic food, and their critical mass and deep pockets will make them challengers for smaller companies.。The industry's variability reflects a desire for change, but investors need to choose stocks carefully

Conclusion

Organic stocks prove that investing in what you believe in no longer requires sacrificing financial returns。Long-term buy-and-hold investors are ideally positioned to reap the rewards of this long-term underlying trend

Whether you are fully supportive of the development of "organic food" or are more interested in profitability, the above stocks seem to meet both of your needs

If you're new to investing and buying organic stocks is your first step into the stock market, following the step-by-step guide will help you master the entire process。You can even try trading with a demo account that supports test trading with virtual funds