Ketogenic Diet Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Ketogenic Diet industry

The inclusion of Environmental, Social, and Governance (ESG) parameters within the financial reporting and decision-making processes result in responsible and transparent investing. Ketogenic Diet is a relatively new market that can be helpful in achieving certain ESG goals across the globe.

Some companies in the ketogenic diet sector might recognize that good health and well-being play a critical role in developing a sustainable society to which this sector can contribute positively. Ketogenic diets are identified to help consumers in maintaining a work-life balance by promoting a healthier, environmental-friendly way of living, and by educating them on issues of increasing rates of obesity and chronic diseases.

The escalating popularity of multiple chronic diseases such as cardiovascular disorders, metabolic disturbances, and neurodegenerative disorders are the prime factors operating the global growth of the sector. A few of the notable changes in the consumer demand for greater organic, green, and natural food products along with the advancements in the ready-to-eat options, and diverse categories of products have enhanced the market growth. Since then, ketogenic diets have been declared a crucial factor in growth strategies and initiatives by various stakeholders worldwide in the food industry and have received increased attention from investors interested in ESG impact investing.

ESG Trends

The ‘S’ in the ESG - the social criteria, is a crucial factor that makes investment and financing in this sector uniquely interesting to investors. Companies offering ketogenic diet promote good health and well-being, which offers increased access to nutrition, promotes diversity and inclusion, and offers equal opportunities for women and girls in the consumption of products. More significantly, this focuses on adapting to more sustainable and healthier communities.

Leading companies and organizations in the ketogenic diet industry are helping individuals in nutrition transition which is linked with the increasing cases of obesity and chronic diseases like cancers, and cardiovascular disorders by guiding them with proper consumption of ingredients both in quantity and quality. Further, this transition helps investors to remain competitive in the dynamic business landscape. 

This sector is complete, as it delivers extensive advantages in obtaining the United Nations - Sustainable Development Goals (UN - SDGs). A few of the major SDGs that form the basis are Good Health and Well-being, Gender Equality, Responsible Consumption and Production, and Reduced inequalities. Ketogenic Diets have also aided to ensure business continuity through the replacement of animal-based products with plant-based products with the technique called regenerative agriculture.

Promoting the utilization of Ketogenic diets has also resulted in combating neurodegenerative disorders along with the consumption of functional foods and fibers. Moreover, the ketogenic diet also helps in quantifying net carbohydrate consumption thus maintaining transparency and accuracy for controlling weight gains. One of the industry leaders in this Ketogenic Diet theme has enabled government agencies to adopt creative solutions to conserve various wildlife species and natural resources.

ESG Challenges

The major challenges faced by the ketogenic diet industry cover the responsibility of labeling all the ingredients used during the formulation of the products, to enhance and maintain transparency among its consumers. Since the ketogenic diet offers lower soluble fiber content thus hampering the health of the individuals initially, should be taken with special care to counter the side effects. Further, the consumers and other stakeholders should be aware of the ingredients that the company claims to have adopted to avoid any fall for false commitments. To close this nutritional divide, investors are focusing on investment opportunities to build nutritional and sustainable communities for good health and well-being.

Growth of the Ketogenic Diet Market

In 2019, the global ketogenic diet market size was valued at USD 9.57 billion and is expected to expand at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. Further, in 2019, the U.S. region stands out to be the biggest market for Ketogenic Diets accounting for more than 35% share of the North American component. While the Asia Pacific region is predicted to be expanding its regional market growth with a CAGR of 6.2% for the period from 2020 to 2027, with major growth countries covering the regions of China and India. In addition to this, there have been advancements in ketogenic products over time, like the development of keto butter creamers by Nestle S.A. along with the collaboration of Know Brainer Food in March 2018.

Key Companies in this theme

    • Ample Foods

    • Danone S.A.

    • Nestle S.A.

    • Pruvit Ventures, Inc.

    • Keto and Company

    • Perfect Keto

Scope of the Ketogenic Diet Industry 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 Ketogenic Diet Industry ESG Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the ketogenic diet sector, globally

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

    • Identifying ESG risks and opportunities to business among leading players in the industry

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