How veganism affects business choices too

On World Vegan Day, it’s time to take stock of the lifestyle choice’s impact beyond animal welfare and better health, which remains the movement's major pillars. Thanks to younger generations embracing the choice in larger numbers today, there is also a business case to be made
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While celebrating the 50th year of the Vegan Society in 1994, Louise Wallis, the then president and chair of the organisation, institutionalised this day as the World Vegan Day.

Veganism as a lifestyle has seen a substantial surge in recent years. According to a 2024 estimate, there are approximately 88 million vegans in the world. The largest vegan population resides in India (11 percent of the world), followed by the US and China (4 percent each). Gen Z and millennials constitute a sizable share of vegans (around 27 percent each) followed by Gen X (23 percent).

Year on year increase in the enrollment for ‘Veganuary’, a popular campaign calling for vegan practices in January is an indication of growing popularity of veganism. Around 7,00,000 people from 228 countries took to this 31-day challenge in 2023. As young people are increasingly looking for products that are cruelty free, plant-based and sustainable, there is a considerable swell of clean label and plant-based choices in the market. 

Generational impact

Veganism and vegetarianism are not new as the practices can be traced back to ancient Indian and Greek cultures. Many religions such as Hinduism, Buddhism and Jainism advocate these practices to encourage healthy, harmonious and non-exploitative lifestyles.

The best way to assess the rise of veganism is to look at consumer market data. The US vegan retail alternative food sales saw a jump from $3.9 billion to $8.1 billion between 2017 and 2023. The same worldwide from 2019 to 2023 grew from about $21.6 billion to $29 billion.

Experts opine that more Gen Z may adopt a vegan lifestyle in future. The digital native and climate anxious Gen Z is in the process of shaping the world with their values. This generation has its identity influenced by Covid-19, a shift in financial paradigm, digitisation and factors such as climate change. Gen Z consumes considerable online content, which influences their decision-making.

Gen Z are bombarded with information on the alarming rate of climate change and destruction of sustainable ecological patterns. A Stanford University study done in 10 countries, covering teenagers and young adults and published in The Lancet, gives substantial evidence on climate change and the deep-felt psychological impact it has on young people. Young activists like Greta Thunberg have quit school to prioritise climate advocacy and the support they receive is an example of how Gen Z is prioritising climate change.

According to data, around 80 percent of the world’s agricultural land is used for farming related to conventional diet, leading to increased deforestation, emission of greenhouse gases and a loss of biodiversity. Besides, there are other challenges such as air and water pollution coming from farm-based animal and poultry rearing. Animal suffering is also a no-go with this generation, leading them to opt for plant-based alternatives. 

Influence of investors

While regulations around sustainability had been governing companies for a considerable period of time, the current environmental, social and governance (ESG) imperative is substantially influencing the investment landscape. The 2016 Paris agreement to keep global warming well below two degrees has profound influence on nations. This mandate triggered the momentum for investors to consider ESG commitments by corporates when investment decisions are made. Be it ‘profits and purpose’ or ‘purpose over profits’, investors certainly are getting noticeably interested in ESG-based investment.

Today the corporate world has substantial pressure from investors, shareholders, consumers, advocacy groups and communities to be sustainable, compelling them to follow practices good for the environment but expanding to the social aspects of inclusion and ethical governing practices. The ripple of this is visible in India, with some legacy brands introducing sustainable and healthier alternatives, while others are inorganically building healthier arms. Presently, India is witnessing a vegan startup boom fueled by market demand.

There are diet risks often cited against vegan lifestyle such as vitamin B12 deficiency. Similarly, protein availability in vegan food is also questioned. Vegans advocate to mitigate these risks with mindful meal and supplement planning.

Animal welfare and better health are still the major pillars of vegan values. However, the best argument for veganism is sustainability. There are heightened chances for more deforestation, pollution and drought in future if conventional diet is continued. Further, livestock emissions account for considerable methane emission, which adds 80 times more power to global warming than carbon dioxide.

There’s unanimity in the assumption that if the world goes vegan, it can reduce greenhouse gas emissions profoundly. However, its implications are not fully comprehended. For example, the effect of single source food dependency in a ‘crop disease pandemic’ situation. Further, the effect of this hypothesis on ecology is unclear. Future research may elucidate how to mitigate these risks, fueling more vegan lifestyle endorsements.

Bindu Sivasankaran Nair

Environmental, social and governance consultant; Founder, Beyond Pink

(Views are personal)

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