The global vegan market size was valued at $12.69 billion in 2018 with a CAGR of 9.6% for the forecasting period (2019–2025). The vegan population in North America has increased significantly, especially because of the growing awareness of healthy diet and fitness lifestyle. This trend has reached even celebrities and athletes alike, prompting a quick development and popularity for the industry. In addition, animal health and animal cruelty have encouraged people to shift to plant-based food products. According to The Vegan Society, meat-free food demand grew by 987% in recent years.
Key Facts
- People adopt the vegan lifestyle for numerous reasons — the most important one being animal welfare.
- The number of vegans in the USA grew by 600% in 2017.
- Over 400 million fewer animals were killed in 2014 compared to 2007.
- 6% of U.S. consumers say they are vegan, which is a 60% increase compared to just 1% in 2014
- Nearly 40% of millennials identify themselves as vegans
- In Canada, veganism was a top search trend in 2017
- Roughly 10% of Australians have adopted a plant-based diet in 2018
- The global plant milk market was worth over $8 billion in 2016 and it is estimated to reach $21 billion by 2024
- Allied Market Research named Beyond Meat as one of the leading meat substitute products
- A 2018 Oxford University study found that the best way to reduce your environmental impact is to avoid animal products
- A 2010 United Nations report found that a plant-based diet is necessary to help starvation, poverty, and impacts of climate change.
The Movement
The rise in veganism has become mainstream thanks in large part to the benefits that this industry brings. Take a look at a few below:
Animal Welfare
Veganism isn’t just about adopting meat-free diets. It’s also about standing up to animal cruelty and fighting for their rights. Millions of animals around the world are raised on cruel factory farms. They are confined to cages and overcrowded spaces and eventually suffer extremely painful deaths. Animal cruelty can be broken down into two categories: active and passive and one does not supercede the other. Active means there is malicious intent and a person will deliberately cause harm to an animal. Passive means there is a serious neglect and the crime is ignoring to meet the animal’s needs for basic survival. We may never know the real reason why people hurt animals. One could be that they view them as mere objects. The other could be for monetary gains. Whatever the reasons are, animals need human supporters to fight for them.
Environment
The University of Oxford conducted a study and found that implementing a vegan diet will reduce an individual’s carbon footprint from food by up to 73% and ultimately increase global farmland by 75%. This will result in a significant reduction in greenhouse gas emissions and make room for more agricultural lands. Producing meat requires lots of land and energy. It’s even estimated that 1 pound of beef is equivalent to 200 square feet of destroyed rainforest. In addition, veganism will help conserve water around the world. Currently, nearly 1 billion people live without sufficient access to clean water. To be more specific, there is only 2.5% of freshwater on Earth and we have only 30% of it that’s available to us. Unlike the majority of plant-based foods, raising animals requires vast amounts of clean water. In general, adopting plant-based foods to your diet is more efficient and helpful for the world. It requires less energy, land, and water.
Health
The most common reason why people adopt veganism is for the health benefits. Vegan diets are popular for helping people lose weight efficiently. Not only this, they are rich in several nutrients and help people combat severe illnesses. A plant-based diet will reduce risks for type 2 diabetes, cardiovascular disease, heart attack, hypertension, stroke, obesity, and even cancer. They are abundant with vitamins B1, C, and E, folic acid, magnesium, and iron. Vegan diets can be for anyone of any age, including children and elderly.
Investing in the Vegan Market
Veganism’s popularity has brought traditional food industry to incorporate a wide variety of vegan options into their menu. For example, big chains such as Pret a Manger, Pizza Hut, Taco Bells, and Burger King set up new menus for vegans. Additionally, new competitors are also entering the market. Startups, YouTube channels, and restaurants are starting to support this movement and encourage people to embrace the plant-based lifestyle. AT Kearney conducted a research and found that sales of plant-based meat alternatives will grow by 20%-30% annually in the next few years. You can get massive exposure to the rise in veganism through investing in vegan stocks, backing venture capital trusts that invest in vegan stocks, and trading soft commodities that support vegan and plant-based diets.
Beyond Meat was the first vegan IPO to be in the market. When it first became public, it had over 11 million shares priced at $25 dollars per share. Beyond Meat has paved a way for other animal-free food companies to become public. There is a lot of future growth to anticipate in the coming years and investors are actively searching for opportunities to enter the market.
