The time to face the change of food model seems to have come and the industry is ready for this shift. The risks of shortages as a result of the overexploitation of nature and the excessive growth of the world’s population, coupled with an increased awareness of these issues, are shaping the type of food that will govern the future.

A healthy diet, together with a responsible stance on climate change, encompasses the so-called “sustainable healthy diet”, a concept introduced in 2019 by the FAO (Food and Agriculture Organization of the United Nations) and the WHO (World Health Organization), which refers to those dietary patterns that promote all dimensions of health and well-being of people, and that also have a low environmental impact, are accessible, affordable, safe and equitable.

At New Gen we believe that, as a key industry for the development of society, increasing investment options opens a path towards diversifying our portfolios, while generating a positive impact.

Main sectors

The food investment universe encompasses the entire value chain and, in this regard, we find varied options spread across three main sectors:

• Foodtech: Enabling better use of natural resources for higher yields. New digital technologies such as; biotechnological and genetic, Artificial Intelligence, big data, 3D printing, robotics and blockchain technology are drivers of food transformation. Companies that stand out in this area include Symrise AG and DSM Koninklijke.
• Vegetarianism: There are around one billion people in the world who are vegetarians or vegans. The reasons for this vary widely but the benefits are extensive, and it is clear that the trend is growing exponentially. Companies and ETFs such as Beyond Meat, Tyson Foods, Simply Good Foods or ETF US Vegan Climate Exchange Traded are just some of the options investors are looking at.
• Food retail and logistics: In the wake of the pandemic we have seen a proliferation of grocery retailing, particularly food delivery companies, from supermarkets that offer online grocery shopping, such as Getir, Gorillas, Dija or Gopuff, to fresh food preparation and delivery such as Fresh del Monte, Hellofresh, DoorDash or SunBasket. Although the pandemic seems to be dying down, this new food concept is here to stay.

 

In this way, investment options are diversifying while contributing to human health and well-being, but also to those of the planet itself.