General Mills vs. Conagra Brands: Which Packaged Food Stock is a Better Buy?

Deepening supply chain issues and high energy and transportation costs have led to a significant increase in food prices lately. However, strong demand for packaged food products should help companies overcome rising input costs by passing them on to consumers. Also, changing consumer tastes and rapid digitalization have been helping food companies to generate good sales by introducing new products in collaboration with leading industry participants.

Investors’ interest in this consumer defensive industry is evident from the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 10.6% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 4.3% returns. The global packaged food market is expected to grow at a 6.3% CAGR to reach $4.26 trillion by 2026.