The global food and grocery retail market was valued at nearly $12 trillion in 2024, making it one of the largest and most essential industries in the world. As the population grows and food demand rises, the sector is expected to expand steadily in the years ahead. For investors, food stocks offer a way to own shares in the companies that produce, process, distribute, and sell the food people buy every day.
Some forecasts suggest the industry could approach $15 trillion by the early 2030s. That scale highlights both the stability and the competition in the space, with many companies vying for a share of consumers’ food spending. For investors, that creates a wide range of potential opportunities across a sector people rely on in any economic environment.
Top food stocks to consider
The best food companies have strong brands that compel consumers to pay up for their products, and they also enjoy economies of scale that keep costs low. Pricing power and cost advantages are particularly important now, with inflation squeezing budgets and supply chain costs rising.
While there are many food stocks to choose from, not all of them belong in your portfolio. Here are a few that stand out as the best food stocks:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| General Mills (NYSE:GIS) | $25.9 billion | 5.01% | Food Products |
| Tyson Foods (NYSE:TSN) | $22.4 billion | 3.09% | Food Products |
| Mondelez International (NASDAQ:MDLZ) | $76.6 billion | 3.27% | Food Products |
| PepsiCo (NASDAQ:PEP) | $227.2 billion | 3.38% | Beverages |
| Beyond Meat (NASDAQ:BYND) | $323.1 million | 0.00% | Food Products |
| Sprouts Farmers Market (NASDAQ:SFM) | $6.8 billion | 0.00% | Food and Staples Retailing |
1. General Mills
NYSE: GIS
Key Data Points
NYSE: TSN
Key Data Points
Meat products will likely continue to be a staple of U.S. diets. If you’re looking to invest in the meat industry, Tyson Foods (TSN +0.37%) is a reasonable choice, especially if you want to bet on the continued consumption of meat.
Tyson certainly doesn’t have the pricing power of a packaged food company with well-known brands, given that meat is largely a commodity. Meat processing in the U.S. is highly concentrated among a small number of companies, such as Tyson, owning a relatively small number of massive facilities. The company’s results are partly dictated by supply and demand for beef, pork, and chicken, with margins heavily influenced by pricing.
The meat industry is contending with factors like inflation that may lead consumers to choose cheaper cuts or reduce meat consumption. Tyson's beef business has been facing challenges, including a decline in the nation's cattle herds.
To address these challenges, Tyson Foods has announced the closure of several plants. The company is focusing on its diversified protein portfolio, including chicken, beef, and pork, to meet consumer demand. Tyson Foods is still reporting profits, and revenue is growing.
3. Mondelez International
NASDAQ: MDLZ
Key Data Points
Like General Mills, Mondelez International (MDLZ -0.12%) boasts a long list of well-known brands. These include Cadbury, Chips Ahoy!, Oreo, Philadelphia, Ritz, Wheat Thins, and many others. The company sells products in more than 150 countries. Mondelez's business is structured around several key segments, each featuring a portfolio of brands, including biscuits, chocolate, gum, and candy.
Rising cocoa prices are significantly affecting Mondelez, with the company forecasting as much as a 15% reduction in adjusted earnings per share in 2025 due to "unprecedented cocoa cost inflation." However, the company is still coming from a position of financial strength, and Mondelez’s geographic diversification and its strong slate of brands are attractive assets as economic uncertainty grows.
The company has consistently paid a dividend that it has raised every year for over a decade, and which yielded about 3.7% based on share prices in late 2025.
4. PepsiCo
NASDAQ: PEP
Key Data Points
PepsiCo (PEP +2.01%) is another packaged food company with a large portfolio of leading brands. On the beverage side of the business, Pepsi, Mountain Dew, and Gatorade top the list. On the food side, Lay’s, Doritos, Quaker Oats, and Cheetos are just a few examples from the company’s portfolio.
Over the last few years, PepsiCo has faced challenges. These have included declining sales volumes in North America, particularly in its snack and beverage businesses, due to consumer pullback amid inflation and shifting preferences.
Consumers are becoming more price-conscious and are reducing spending on discretionary items like snacks and sugary drinks, impacting PepsiCo's core businesses. The rise of health-conscious eating habits and the popularity of weight-loss drugs are also contributing to a decline in demand for traditional snacks and beverages.
PepsiCo is adopting a more granular approach to pricing, focusing on value interventions for specific products and channels rather than a blanket promotional strategy. The company's international business has been a bright spot, helping to offset weakness in its North American operations and further strengthening its overall pricing power.
PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2025 was the company's 53rd consecutive annual dividend increase. The stock yields just shy of 4% based on current share prices, a yield that has risen lately as share price performance has been weaker.
Different types of food stocks
There are many ways to invest in the food industry, depending on the kinds of businesses you want in your portfolio. Investors can choose from grocery store chains, packaged food makers, beverage companies, quick-service restaurants, and food retailers or distributors.
You can also branch into more specialized niches, such as meat processing, organic foods, plant-based proteins, and vegan stocks -- companies that focus on animal-free products and brands. Because food stocks fall under consumer staples, they often hold up relatively well during economic downturns since people still need to eat.
Pros and cons of investing in food stocks
Here are some other pros to consider if you are thinking about investing in food stocks:
- Reliable dividends: Many established food companies generate stable earnings and cash flow, which they often return to investors in the form of reliable dividends. This can provide a steady income stream for investors focused on building long-term wealth.
- Inflation hedge: Companies with strong brand loyalty and pricing power can pass on rising costs to consumers through price increases. This helps protect their profitability during periods of inflation.
- Familiarity and accessibility: Many food stocks represent brands that investors use and trust in their daily lives, and this familiarity can be a great starting point for those new to the market.
A few downsides to consider include:
- Slow growth: Compared to high-growth sectors like technology, the food industry tends to deliver slower, more modest growth. This can result in less dramatic stock price movements and limited upside potential.
- Low profit margins: The food industry is known for its modest net income margins, which can make companies particularly sensitive to supply chain disruptions and input costs.
- Sensitivity to external factors: Food stocks are vulnerable to a variety of external risks, including geopolitical strife, disease outbreaks, and weather events.
Factors to consider before investing in food stocks
The food industry is highly influenced by consumer demand, and investors should evaluate how effectively a given company is innovating to meet these shifts. Profitability is often challenged by factors like volatile input costs for raw materials, labor, packaging, and freight.
Companies that can effectively implement supply chain optimization and have pricing power can offset these pressures and protect their margins. Strong, resilient brands tend to command greater customer loyalty and pricing power. However, the rise of private-label brands and new direct-to-consumer entrants has intensified competition.
As with any stock from any sector, traditional financial metrics remain crucial. Be sure to analyze a company's revenue growth, profit margins, debt levels, and valuation metrics before putting cash to work.
How to invest in food stocks
If you want to invest in food stocks, you can follow the same investment process you would for buying shares of any other publicly traded company:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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