I’m searching for the best growth shares to buy for my portfolio. Here are two I’d buy to hold for at least the next 10 years.
Cutting-edge
The use of meat substitutes in menus has massive commercial potential. The decision by Burger King to offer vegan-only menus at one of its prime London restaurants is evidence of this. The chain has plans for its menus to be 50% meat-free by the end of the decade.
Supermarkets and restaurants across the globe are rapidly changing their product ranges to mirror changing consumer tastes. And one UK share I think is a great way to ride this theme is Agronomics (LSE: ANIC).
This business invests in fledgling food businesses that make cultivated (in other words laboratory-grown) meat. It’s a sector that’s tipped for fast growth as people try to remove animals from their diet on ethical and environmental grounds.
Analysts at McKinsey & Company believe the lab-grown meat market will be worth $25bn by the end of the decade.
Playing the meat-free boom
Agronomics has invested in various cultivated meat niches to make the most of this opportunity. Some of the businesses it’s ploughed capital into include lab-grown beef specialist Mosa Meat and ‘cultivated’ seafood firm Shiok Meats. And last month it launched a joint venture to develop animal-free pet food under the Good Dog Food brand.
As I say, the animal-free food market is becoming increasingly attractive. The problem for Agronomics is that it’s also getting increasing attention from other food producers. The industry’s big beasts (like Tyson Foods) are piling in and the tiny operators that Agronomics champions might struggle to make a splash.
I still find the firm appealing, however. The size of the market opportunity makes it a highly attractive growth share in my book. Some of the companies in its portfolio might also emerge as takeover targets from some of the food industry’s larger players.
Another top growth share
A less speculative (but also extremely attractive) growth share I’m also considering buying today is Spire Healthcare Group (LSE: SPI).
This UK share operates dozens of private hospitals and clinics across the country. And demand for its services is rocketing as the free healthcare system in Britain buckles. Latest NHS data last week showed waiting lists for hospital treatment hit new record highs.
It’s going to take a long time for lists to start to decline as the government wrestles with the consequences of Covid-19. As a result, businesses like Spire (which saw revenues rise 20% in 2021) can expect demand for their services to continue growing.
A sudden influx of cash into the NHS could hit private healthcare providers if services improve. But as things stand, I think the outlook for Spire and its peers remains pretty bright.