The Vegan Economy

Veganism is on the rise. The phenomenon has spawned a burgeoning industry in alternatives to animal-derived products that’s already worth billions of dollars. It includes nondairy milk and cheese, imitation beef, chicken, fish and pork, and leather made from pineapple leaves or apple peel. A sizzling initial public offering by meat substitute maker Beyond Meat Inc. underscored optimism about a new “vegan economy.” The promise is rooted not just in consumers who choose to cut out meat and dairy for ethical reasons but also from the growing ranks of non-vegans concerned about their health — and that of the planet.

Many meateaters are cutting back on burgers, steaks and sausages, or say they’re trying. A U.S. survey found 31% of respondents labeled themselves “flexitarians” — people who regularly substitute other foods for meat. In other polls, one-third of Britons said they had scaled back or stopped meat purchases, while half of Australians reported eating less red meat. The change is happening even as global meat consumption rises, including in the U.S. and developing countries such as China with traditionally plant-heavy diets. It’s especially marked among younger people and has led to soaring demand for a new category of products with taste and texture similar to meat, milk and cheese. There’s the Beyond Burger and the Impossible Burger, vegan parmesan or ricotta, and milk alternatives derived from nuts, oats, rice and soy, to name a few. The fervor for Impossible Burgers (now on Burger King menus) and the oat milk drink Oatly led to shortages of both across the U.S. in 2019. While early funders included Microsoft Corp. co-founder Bill Gates, regular investors are now getting a taste: Beyond Meat’s shares surged 600% in the three months after its IPO in May 2019. Barclays Plc expects the meat-alternative industry to grow to $140 billion in the next decade, or 10% of the global meat market. More U.S. consumers are also shunning leather footwear and car interiors.