2025 must be filled! Food and beverage stock group for retail investors

Why Are Investors Turning to Food and Beverage Stocks?

During times of global economic volatility, food and beverage companies become the focus of large funds and long-term investors. Why? Because people need to eat every day, regardless of whether the market is red or green. This is a key characteristic of food stocks—they are “defensive stocks” with repeat consumption, strong brands, and predictable cash flows.

Besides stability, this industry is also full of opportunities—world population is increasing, consumers are becoming more health-conscious, innovations in food and pet products are expanding rapidly, and most companies in this sector pay consistent dividends.

How Many Types of Food and Beverage Stocks Are There?

Stocks in this sector are not limited to ordinary food producers but cover various related businesses:

• Agriculture and Food Processing: Companies producing and exporting meat and livestock products, such as CPF (Charoen Pokphand) or Tyson Foods (USA)
• Beverage Manufacturers: From soft drinks, coffee, beer to health drinks, like Coca-Cola or Carabao
• Milling and Sugar Producers: Companies specializing in flour and sugar as core ingredients
• Restaurant Chains and Supermarkets: Distributors of food products to consumers

Market Overview and Trends for 2025

Global food demand continues to rise steadily, driven mainly by:

• Population Growth: More consumers worldwide, increasing food demand accordingly
• Health Trends: Consumers turning toward organic, plant-based, and health foods
• Technology and Innovation: Companies adapting to sustainable production and utilizing new technologies will have competitive advantages

8 Leading Stocks to Watch

Thai Food and Beverage Stocks

1. Charoen Pokphand Foods (CPF)

A leader in the integrated food industry since 1978, with a network in over 17 countries and exports to more than 40. Core businesses include:

• Animal feed production (the largest segment)
• Poultry, aquaculture, and other livestock farming
• Food processing and distribution of finished products

Data: Current price 22.0 THB | P/E 11.9x | Target price 30.00 THB | Yield 2.06% | Market cap 183.41 B THB

2. Thai Union Group (TU)

An established leader in seafood since 1977, now fully expanding into the US and European markets, with global brands like Chicken of the Sea and TUNY.

Data: Current price 12.40 THB | P/E -4.01x | Target price 16.90 THB | Yield 4.51% | Market cap 52.93 B THB

3. Asian Sea Corporation (ASIAN)

Thailand’s largest processed seafood producer with a worldwide marketing network, founded in 1983.

Data: Current price 7.85 THB | P/E 7.8x | Target price 30.00 THB | Yield 9.29% | Market cap 6.31 B THB

4. The Minor Food Group (MINT)

Started as a French-style pizza restaurant in the 1970s, then expanded into a major restaurant and franchise operator with international brands like Burger King, Dairy Queen, and The Coffee Club.

Data: Current price 22.0 THB | P/E 42.7x | Target price 30.00 THB | Yield 2.06% | Market cap 183.41 B THB

Foreign Food and Beverage Stocks

5. Nestlé (NESN)

The world’s largest food and beverage company, founded in 1866 in Switzerland. Its portfolio includes Nescafé, KitKat, pet food, and more, operating in over 190 countries.

Data: Current price 74.04 CHF | P/E 17.28x | Target price 87.64 CHF | Yield 3.99% | Market cap 193.12 B CHF

6. Coca-Cola (KO)

Iconic global beverage brand founded in 1886, now owning over 200 brands including soft drinks, sports drinks, bottled water, and fruit juices.

Data: Current price 25.37 USD | P/E 25.37x | Yield 3.14% | Market cap 263.08 B USD

7. Pepsi (PEP)

More than just a beverage company, Pepsi was formed from the merger of Pepsi-Cola and Frito-Lay, making it a major food and beverage conglomerate with brands like Lay’s, Doritos, Gatorade, Tropicana, and Quaker Oats.

Data: Current price 142.64 USD | P/E 20.91x | Target price 177.89 USD | Yield 3.70% | Market cap 195.70 B USD

8. Unilever (UL)

Formed from the merger of Margarine Unie and Lever Brothers, now operating in over 190 countries with products in three main categories: foods & beverages, personal care, and cleaning products, including Knorr, Hellmann’s, Dove, and Magnum.

Data: Current price 55.13 USD | P/E 21.56x | Yield 3.29% | Market cap 139.56 B USD

Comparison Table of Food and Beverage Stocks

New Trend: Health Food Stocks

The health food market is growing rapidly, so investors should keep an eye on these companies:

• Beyond Meat (BYND): Leader in plant-based proteins, catering to consumers avoiding meat and concerned about the environment
• Oatly (OTLY): Leading oat milk producer, ideal for those avoiding cow’s milk
• Tattooed Chef (TTCF): Frozen plant-based ready meals for busy but health-conscious consumers
• Danone (DANOY): Leading producer of plant-based yogurts and drinks
• Ingredion (INGR): Specializes in healthy food ingredients

Advantages of Investing in Food and Beverage Stocks

1. Stable and Continuous Business

People need to eat daily; whether the economy is good or bad, food companies can generate steady income. Predictable cash flows make their stock prices less volatile compared to other sectors.

2. Resilience During Crises

In economic downturns, consumers cut back on luxury spending but still buy food. This is why food stocks are considered “defensive stocks.”

3. Steady Dividends

Many companies in this sector have long histories of paying dividends. Firms like Coca-Cola and Unilever are part of the “Dividend Aristocrats,” increasing dividends annually.

4. Long-term Growth Trends

Global population growth increases food demand. Companies that adapt to innovation and new trends, such as health foods, will benefit most.

5. Continuous Innovation

The food market is full of opportunities. Companies introducing new foods that appeal to modern consumers can achieve attractive returns.

Risks to Watch

1. Economic Slowdown

If employment drops, consumers may switch to cheaper products, potentially hurting high-priced food companies.

2. Rising Raw Material Costs

Inflation, natural disasters, and climate change all push raw material prices higher.

3. Increased Competition

The food market is attractive, attracting new entrants, which intensifies competition.

4. Changing Consumer Preferences

Food trends can change rapidly; companies that fail to keep up risk falling behind.

How to Invest in Food and Beverage Stocks

1. Direct Purchase via Broker

Open a securities account with a local or international broker, such as Bualuang Securities, Finansa Securities, or global brokers. Benefits include true ownership, dividends, and voting rights.

2. Invest via Mutual Funds

If you prefer not to pick stocks yourself, consider mutual funds focused on food and beverage sectors. Fund managers select stocks for you, providing passive income.

3. Use CFD (Contract For Difference)

A derivative instrument allowing you to “speculate on the price” of stocks without owning them directly. Advantages: leverage, ability to trade both up and down. Disadvantages: higher risk.

Summary

Food and beverage stocks are a good choice for investors seeking stable stocks with consistent returns and long-term growth potential.

Key points to study include:

• Company fundamentals
• Technical analysis of stock prices
• Financial ratios such as P/E, Dividend Yield, Revenue Growth
• Market and industry trends

Investing involves risks; thorough research and careful planning are essential before acting.