Vegan Food Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Vegan Food Industry

The vegan food industry is gaining importance recently due to the increasing limelight on animal cruelty and environmental concerns. Vegan foods exclude all dairy and animal products and are derived from plant-based sources. Health benefits of vegan food products is far reaching than animal meat and thus has become an easy alternative to the conventional food products. Studies show that vegan food products provide more fiber, antioxidants and are rich in potassium, magnesium thus help in preventing cardiovascular diseases, cholesterol, prostate cancer, colorectal cancer to name a few.

A large-scale study conducted by the Journal of the American Heart Association revealed that the lesser consumption of animal foods with higher consumption of plant-based food significantly reduced heart diseases and eventually death in adults. From an environmental perspective, a switch to vegan foods considerably reduces the negative impact of emissions on the environment as animal-based foods tend to contribute to higher greenhouse gas emissions.

ESG Trends

According to Bloomberg Intelligence, plant-based vegan food market would constitute 7.7% of the plant market globally by 2030. With the increasing emphasis on mindful carbon footprint of an individual and health concerns among individuals due to the consumption of high-fat diets, investment in Vegan food market has untapped opportunities. Investment in Indian market is still in its nascent stage. However, regulatory shifts towards sustainable development globally and regionally have grabbed the attention of the industry among the investors.

In 2018, the global vegan food market was valued at USD 16.9 billion and is expected to grow at a CAGR of 9.6% from 2019 -2025. The market could also aid in achieving some of the accomplishing United Nations’ - Sustainable Development Goals (UN – SDGs) like ‘Responsible Consumption & Production’, ‘Good Health & Well-being’ and ‘Climate Action’

ESG Challenges

Although the health benefits from vegan food products are superior to that of animal-based food products, there exists environmental and health concerns that the vegan food sector needs to address. An unplanned transition to vegan food-based diet can result in severe nutritional deficiency and result in anemia, depression, hormonal imbalance. It’s extremely imperative to balance out the meal to avoid health concerns. Companies operating within this industry face significant challenges in achieving UN SDG 3 – Good Health & Well-being for all.

Although the animal meat industry produces a significant amount of greenhouse gas, the plant-based vegan food Industry has the potential to contribute to even higher emission. Research from University of Oxford has pointed out that the market must be conscious of what products are being sold and what people are consuming. For instance, air-transported fruits or vegetables may contribute to equal amount of emission as the animal meat industry does. In such cases, it is essential for companies operating within the sector to promote inclusivity by supporting local traders and sourcing from them, which will also ensure that emissions due to transportation are kept at check.

Key Companies in this theme

    • VBites Foods Ltd

    • VITASOY International Holdings Ltd.

    • The Archer Daniels Midland Company

    • Amy's Kitchen

    • Daiya Foods, Inc.

    • Beyond Meat

    • Plamil Foods Ltd.

Scope of the Vegan Food 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 Food Industry ESG Thematic Report: 

    • Identifying: Policies & Regulations, Environmental Opportunities and Social risks impacting the Market globally.

    • Understanding key risks and opportunities in the industry.

    • Obtaining a clear understanding of the company’s products and identifying relevant investment opportunities