As global consumption power continues to rise and people's eternal demand for food fuels the market, food and beverage stocks have become a key focus for savvy investors. These stocks possess inherent defensive qualities; whether the economy is booming or in recession, consumers' purchasing power for food and drinks remains consistently stable. If you want to build a more resilient investment portfolio, food and beverage stocks are definitely a sector worth focusing on.
Why Are Food and Beverage Stocks a Must-Have in Your Portfolio
The reason why food and beverage stocks are favored by investors worldwide mainly lies in their unique business characteristics. First, these companies deal with essential goods, maintaining a stable customer base and continuous revenue streams. Regardless of macroeconomic fluctuations, people's daily dietary needs do not disappear when the market declines. Second, many food and beverage brands have established strong brand power, creating highly loyal consumer groups, which provides the companies with