Plant-Based Products Making Their Mark on the Economy
Veganism and vegetarianism have become increasingly popular in recent years. Whether you are in your local grocery store or a popular fast-food restaurant, it is common these days to see an alternative meat or dairy option. But what do these relatively new additions mean for the economy? For years, the largest producers in the food industry have focused on meat and dairy production, and while this is still the case, the plant-based food industry is slowly becoming a bigger part of the economy.
Last year, Bloomberg Intelligence predicted that by 2030, the plant-based food industry could reach a value of over 162 billion USD. This would be an increase of over 500% from the 2020 value of only 29.4 billion USD. If this happens the planted-based food industry will account for 7.7% of the total food industry in 2030. But why is the industry growing so fast?
As the climate crisis continues to grow, more and more people are resorting to veganism due to its positive environmental effects. Becoming vegan can reduce your carbon footprint by 73%, making it the most significant way to help the environment. With the increasing education about the severity of climate change more people, especially young people, are reducing their meat intake by becoming vegan, vegetarian, or flexitarian — a word first used in the 1990s meaning flexible vegetarian where people eat primarily vegetarian while occasionally eating meat or fish. Today, as many as 10% of adults in the US consider themselves vegetarian while a staggering 47% of American adults consider themselves flexitarian.
These growing numbers of non-meat eaters and people open to reducing their meat and dairy consumption have caused a huge growth in the plant-based food industry. Companies like Impossible Foods, which was only founded over ten years ago in 2011, are now worth 7 billion USD. Oatly, a slightly older company that has recently risen to popularity in the US, is now worth 1.58 billion. These companies are not only found in health food stores but also easily accessible at many fast-food restaurants. Chains like Burger King serve their Impossible Whopper alongside the rest of their meat-filled menu. And Oatly has become a staple in many coffee shops, including one of the most popular fast food chains, Starbucks. Even companies that aren’t purely vegan have started incorporating vegan food choices to accommodate the growing popularity of veganism. Nestle, for example, the largest food company in the world, has a whole page on its website dedicated to its plant-based options.
The growing economy for veganism will hopefully bring about more people considering their meat and dairy consumption and allow for plant-based food to become more accessible for all. Greater representation of plant-based products allows for people who may have never considered being vegan to try these products out and possibly cut meat and dairy products even slightly out of their diet. Simply cutting meat out of one meal a week can help contribute to saving the environment, and with meat and dairy alternatives making their mark on the economy this hopefully will become more possible for all.
Sources:
Eating Vegan Reduces Carbon Footprint by 73%, Study Finds
Half of Americans call themselves ‘flexitarians’ now, eating more plant-based options than meat
Impossible Foods Eyes $7B Valuation, Founder Hints At ‘Inevitable’ IPO
Plant-based Foods Market to Hit $162 Billion in Next Decade, Projects Bloomberg Intelligence
Plant-based portfolio | Nestlé Global
1 in 10 Americans say they don't eat meat - a growing share of the population