Plant-based lifestyles are all the rage. And people are craving information about them. Take a look at the chart below… On Google, search interest for “plant-based diets” is at all-time highs.

But customers aren’t the only ones actively looking into meat-free diets… The world’s biggest brands don’t want to miss out on the opportunity of the decade. So they partner up with companies producing meat alternatives and plant-based products such as proteins.

This is a win for everybody.

The food giants get access to the most popular products without having to invest in research and development.

The companies producing plant-based food get a cash-rich partner with access to immense and established markets.

Beyond Patties

Global food and restaurant companies are making inroads into the plant-based space.

Beyond Meat announced on February 25 that it would work with McDonald’s and Yum Brands (which owns the KFC brand).

The exclusive deals it struck with these companies sent its shares soaring by 11% in less than one day.

And don’t forget that Beyond is a nine-billion-dollar enterprise. A smaller company would likely go up much more.

We wouldn’t be surprised to see a smaller stock double on this kind of news.

And we think that the companies that aren’t just focused on meat replacements are the future of the plant-based market…

The reason why we’re saying this is… well… there’s quite a bit of competition in the “fake meat” burger patty business.

Take a look… There is quite a bit of choice already.

So to stand out in this crowded market, you need to do something else.

And this is precisely what we see in the “Plant-based 2.0” industry.

Plant-Based 2.0

This is what we call the next wave of plant-based food startups… They have a vision beyond burger patties (although their products could be used there, too).

These companies produce proteins and other nutrients in a nature-friendly way.

They are early-stage startups that will be on the radar of every food major in no time. And because they use technology, their shares will command hefty premiums… As a rule, “tech” stocks trade at higher valuations because they grow faster.

Beyond Meat is trading at about 22 times its annual revenue… And this is one of the previous-generation “Plant-based 1.0” companies.

Which means that “Plant-Based 2.0” stocks would get an even more generous price from the market. Like 30 or 40 times their revenue.

For example, if a company like this generates just $25 million in revenue, its market capitalization could reach $1 billion. That would make it into a “unicorn.”

And before you tell us that we’re too aggressive, let us point you at a company like Else Nutrition (V.BABY). It trades at almost 293x its annual revenue.

A company that made $25 million in sales would be worth over $7 billion with a multiple like this.

And $25 million a year in revenue is within reach even for earlier-stage startups.

They have enormous market potential… and they can make millionaires of their early investors.

This is a trend you can’t afford to miss…

In our future updates, we’ll point you to some of the best stocks in this sector… the ones that could be tomorrow’s winners.

Stay tuned.

Thank you for your loyal readership,

The Financial Star Team