Vegan Cheese Industry ESG Thematic Report, 2023

Environment, Social and Governance (ESG) in the Vegan Cheese Industry

The contemplation of Environmental, Social, and Governance (ESG) within the investment and decision-making processes points to responsible investing. Investment into ESG has been rocketing since beginning of 2013; equally, Vegan Cheese industry has garnered significant interest in terms of ESG.

Vegan cheese segment has been growing correspondingly with the veganism trend in the market, environmental impacts of dairy products and cruelty against animal for meat products. Vegan cheese can have derived from Soy milk, Almond milk, Coconut milk etc. However, mass production of vegan milk products is not possible when in comparison with normal diary production. Even though Vegan milk products is viable solution for health issues like lactose intolerance, there has been studies showing allergies arising out vegan milk products. Further, it may not be affordable to all community given its premium price and manufacturing capabilities. Thus, the vegan cheese industry challenges United Nations’ Development Goals (SDGs) – 3: Good health and well being and SDG 10: Reduced inequalities.

The companies which have been focused have been leading providers of vegan milk products like cheese with best sustainable practices followed up in the market.

ESG Trends

Vegan cheese segment focuses on both environmental as well as social aspect. This segment has a great potential to be a substitute product to normal cheese, reducing environmental impact, especially methane emission and helping companies in this segment focus on climate action (SDG 13). Moreover, it is one among the most viable option to eradicate or reduce cruelty against animals. Main focus for this segment is affordability and availabilityof vegan milk products in every store and market. Many vegan supporters are not able to avail this option due to poor value chain coordination among these segment, as vegan supporters are on a growing phase. Considering the health impact, it has been one of the top solutions for end-users who are facing health issues like gluten related diseases, IBS, Lactose intolerance etc. However, there has been studies indicating allergic side effects of vegan milks in some consumers due to specific body nature.

ESG Challenges

This segment faces several challenges, starting off with the supply chain and availability with end users as mentioned. Products are not easily available in the market due to adequate and sound supply chain. In terms of affordability, neither every economic class in the society can afford nor there are any subsidies for such vegan products. Even though it has a minority impact on the population, various studies showcase allergic side effects of vegan milk products. The companies in this sector have been able to keep methane emissions down and reduce cruelty against animals. However, the challenge is with the availability of raw materials which varies from season to season which can create an unsustainability in the supply chain and in terms of biodiversity.

Growth of the Vegan Cheese Market

The global vegan cheese market size has been valued at USD 2.43 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.6% from 2022 to 2030. Increasing acceptance of veganism, especially among consumers has led to potential market growth. The growing awareness regarding animal cruelty and the negative impacts on the environment caused by the dairy industry has encouraged consumers to choose for plant-based products.

Key Companies in this theme

    • Treeline Cheese

    • Follow Your Heart

    • Daiya Foods Inc.

    • Kite Hill

    • Violife

    • Dr-Cow Tree Nut Cheese

    • Tofutti Brands, Inc.

Scope of the Vegan Cheese 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 Vegan Cheese Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the vegan cheese space, globally

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

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

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