Dairy Alternatives Industry ESG Thematic Report, 2

Dairy Alternatives Industry ESG Thematic Report, 2023

Compliance, ESG Challenges & Framework, ESG Trends

  • Published Date: Nov, 2022
  • Report ID: Astra-100139
  • Format: Electronic (PDF)
  • Number of Pages: 63

Environmental, Social, and Governance (ESG) in the Dairy Alternatives Industry

ESG is a framework that assists stakeholders in comprehending how a company manages the risks and opportunities associated with sustainability-related concerns. From being a mysterious and specialized idea, ESG has become a frequently used phrase globally. Investors create ESG goods, businesses use ESG tactics, and regulators create ESG regulations. An enormous expansion in the quantity of ESG data, which in turn drove ESG reviews, has propelled this activity.

The process of making investment decisions will increasingly include ESG focused due diligence, which is already becoming more prevalent in the food and beverage sector. In the upcoming months and years, investment businesses will examine ESG credentials considerably more closely. Prior to making those investments, companies will be closely examined in terms of how they treat their employees and customers, particularly during times of a global crisis, the viability of the products and services that make up their revenue stream, and the honesty and integrity of their leaders.

Plant-based businesses are becoming more prominent. And money is following suit. Beginning as a movement to stop animal exploitation, veganism also raised awareness of its positive impact on the environment and human health. Consumer demand appears to be trending toward products that are better for both the environment and for ourselves. As people's awareness of their health and the environment grows, so does their interest in healthier options, especially those that are lactose-free and more environmentally friendly.

Environmental Impacts From Dairy Alternatives Industry:

Milk production is one intriguing subject that is frequently disregarded. More people are choosing dairy alternatives as a result of milk allergies and lactose intolerance, worries about the use of hormones, pesticides, and antibiotics in cows, a desire to reduce sugar and enhance our health and wellness, and concerns about these factors. Diets that are more environmentally sustainable tend to be healthier than diets that are less sustainable.

Some popular milk alternatives in the market today are cashew milk, soy milk, almond milk, and rice milk. Compared to dairy, these products emit less carbon and methane emissions. It is projected that choosing dairy alternative products over dairy products results in a 6 million tonnes CO2e reduction yearly. On the earth, there are approximately about 270 million dairy cows. Agriculture, livestock, and the lands and forests required to raise them are thought to be responsible for 23% of the world's GHG emissions. That is equivalent to powering 1 million homes for a year. We can have a greater impact on reducing carbon emissions if we encourage more people to replace their dairy consumption with alternatives.

For every half gallon of milk produced, dairy milk uses 4.2 times more land than plant-based alternatives. Additionally, compared to dairy, the manufacture of plant-based beverages uses 80% less water and generates 60% less carbon dioxide per half-gallon.

ESG Challenges:

There are certain downsides to plant-based milk. Milk made from plants has a very distinct flavor characteristic than milk made from dairy. Despite having less cholesterol and fat than dairy milk, plant-based milk is almost protein-free and must be supplemented with vitamins and minerals to match the nutritional profile of dairy milk. Plant-based milk typically costs more than twice as much as dairy milk, and it also requires more expensive blending and bottling techniques, as well as more expensive packaging supplies. In addition, intellectual property conflicts may be a problem for alternative dairy products.

Social and corporate governance issues, such as workplace safety and cleaner equipment, are taken into consideration extensively during due diligence in the food and beverage sector.

Growth of the Diary Alternatives Market

The global dairy alternatives market size was valued at USD 23.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.5% from 2022 to 2030. The market is being driven by sustainability. Even if these products seem more environmentally sustainable, some plant-based milks are more nutritious and sustainable than others.

Key Companies in this theme:

    • ADM

    • The Whitewave Foods Company

    • The Hain Celestial Group, Inc.

    • Daiya Foods Inc.

    • Eden Foods, Inc.

    • Nutriops, S.L.

Scope of the Dairy Alternatives Market ESG Thematic Report: 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Dairy Alternatives Market ESG Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the Dairy Alternatives Sector globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in this sector

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment

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