The Vegan Economy

The global plant-based food industry has grown from a niche health food category to a multi-billion dollar mainstream sector — with major implications for food companies, investors, and the future of farming.

The growth of plant-based food

The plant-based food market has seen extraordinary growth, particularly since 2015. This growth spans several categories:

• Plant-based meat — dominated by Beyond Meat (US, listed on NASDAQ) and Impossible Foods (US), with significant competition from Oatly (oat milk), Violife (cheese), and Alpro/Silk (dairy alternatives).
• Dairy alternatives — oat milk has become the fastest-growing drinks category in the UK and US. The segment includes milk, yogurt, ice cream, butter, and cheese alternatives.
• Egg alternatives — the smallest but fastest-growing category, driven by JUST Egg and similar products.

Investment in alternative proteins

The Good Food Institute reported that the alternative protein industry attracted $7.8bn in investment in 2020–2021 alone. Key investment themes:

• Plant-based meat — Beyond Meat's 2019 IPO was the most successful US IPO since 2008. Impossible Foods raised over $2bn in private funding.
• Cultivated meat — dozens of startups globally, with Singapore approving GOOD Meat for sale in 2020.
• Precision fermentation — using microorganisms to produce identical versions of dairy and egg proteins without animals. Companies like Perfect Day and Remilk.

Major players

• Beyond Meat — publicly listed US company; Beyond Burger, Beyond Sausage. Partnerships with McDonald's, Yum! Brands, and others.
• Impossible Foods — private US company backed by Google Ventures, Bill Gates, and others. Impossible Burger uses heme protein from soy.
• Oatly — Swedish oat milk brand, listed on NASDAQ. One of the most recognised plant-based brands globally.
• Unilever — owns The Vegetarian Butcher and has committed to growing plant-based food sales significantly.
• Nestlé — owns Garden Gourmet; invested heavily in plant-based.
• Danone — owns Alpro and Silk, the major dairy alternative brands.

The economics of food transition

Current animal protein production is heavily subsidised in most developed countries. The true cost of animal products — including environmental externalities like carbon emissions, water pollution, and antibiotic resistance — is not reflected in the retail price. Studies estimate the true cost of a beef burger is 2–10× higher than its retail price once externalities are included.

As alternative protein technology scales and costs fall (following the "learning curve" dynamics seen in solar and electric vehicles), price parity with conventional animal products is expected to arrive — the debate is about when, not if.