A delicious cervelat sausage, fine carpaccio of beef, braised lamb shank – the list of speciality sausages and meats could be extended ad infinitum. There is a vast range of products in the refrigerated section of food retailers and on restaurant menus. However, there are increasing numbers of people whose mouths do not, or no longer, water at the prospect of such classic dishes; they deliberately forego meat and sausages. According to a survey commissioned by Swissveg, in early 2017 one in every seven Swiss citizens was not consuming such products. 11% of those surveyed described themselves as vegetarian, while a further 3% reject animal products entirely and are eating a vegan diet. These percentages mean Switzerland stands out from other European countries. Whereas one in every ten people in the UK was vegetarian or vegan in 2017, the corresponding figure for Germany was just 6% (see graphic “Proportion of vegetarians/vegans in the population”). However, the Federal Republic ranks as one of the countries where the change in mindset is advancing particularly rapidly.
The reasons given by those taking part in the Swissveg survey for their alternative approach to nutrition are likely to apply across national borders. The dominant motive given was animal welfare. Further reasons were ethics, protecting the environment, global food supplies and an awareness of health issues (see graphic “Reasons for not eating meat in Switzerland”). This list alone demonstrates that the debate about the right food ranks amongst the big global issues of the future. In view of reports of dire conditions in animal husbandry, fires in the Amazonian rainforest, famines and progressive climate change, this growing awareness is hardly surprising. Celebrities and influencers are leading the way on this, with prominent vegetarians including Hollywood star Brad Pitt and the US singer Beyoncé, among others. In China, there is even a state-backed recommendation to eat less meat: in its new food policy, Beijing is calling on its 1.3 billion citizens to reduce their meat consumption by half. View more information on investment solutions on the topic "Vegetarianism: A growth market with a special flavour".
Naturally, the increased trend towards a healthy, humane and plant-based diet also has economic consequences. Nowadays consumers can obtain vegetarian and vegan products in far more than just small, specialist stores. These products are now to be found as part of the offer from any well-stocked retailer. Take Migros, for instance: the Swiss industry leader has configured its website to make it possible to search specifically for vegan items. A corresponding search on migros.ch throws up over 500 items. In mid-2019, Acumen Research and Consulting (ARC) published a forecast for the global market. In 2018, the volume was USDbn 12.8. Through to 2026, the US researchers are predicting an average compound annual growth rate (CAGR) of 9.1%. If they are right, at the end of the forecast period the market would be worth USDbn 24.3.
Currently, North America delivers the largest share of sales: in 2018, the continent accounted for a 31% share. According to ARC, the Asia-Pacific region is set to gain ground. At 11.5%, the experts predict the biggest CAGR in that region. When it comes to what kind of vegetarian or vegan foods are in demand, it is milk substitute products that dominate. They accounted for half of the sales achieved worldwide in 2018. “Around 65% of the world‘s population are lactose-intolerant, which is a major factor in the growing demand for alternative dairy products,” writes ARC. It is hardly surprising that such prospects are attracting the attentions of the food industry. Dairy giant Danone, for instance, has moved into this growth segment through its takeover of the US specialist Whitewave. In addition to the industry giants, many smaller and more specialized providers are contesting the veggie market. To conclude, the change outlined suggests that this is set to be a sustainable trend – in the truest sense of the word. And it is not just health-conscious consumers who can rejoice over that. Given the positive prospects, many investors should be licking their lips, too.
View more information on investment solutions on the topic "Vegetarianism: A growth market with a special flavour".