VEGAN BUSINESS SECTORS

Vegan businesses encompass a broad range of sectors including:

Wholesale and consumer food products
Personal care and cosmetic products
Restaurants, particularly small chain
Travel and lodging
Leisure services, e.g. spa, yoga and massage
Clothing, shoes and accessories
Publishing and Media
Dietary supplements
Companion animal products
Cleaning and household products
Home furnishings
Biotechnology, including alternatives to animals for research and drug and product testing
Humane, non-lethal wildlife control

MARKET ANALYSIS

The growing market trends of environmental, personal health and animal welfare concerns have created a growing demand for vegan products by non-vegans as well, resulting in a significant growth of the U.S. and international markets.

Current Market

Sales of vegetarian foods in the U.S. were estimated at $2.8 billion in 2006, which represented a constant-price growth rate of 72% since 1998.
3.2% of U.S. adults follow a vegetarian diet, up from 2.8% in 2003 and just 2.3% in 2000.
4% of adults in Canada follow a vegetarian diet and 10% of the English identify themselves as either vegetarian or vegan.
Younger people are moving towards vegetarianism, with 10% of the 25 to 34 year olds saying that they never eat meat.
the vegetariansite.com, an internet business that sells a wide variety of vegan products, has seen 20% annual growth with increasing orders from Canada, Europe and Japan.
The July-December 2007 newsstand sales of Vegetarian Times increased 19.4% over the same period in 2006.
In the last year, three books advocating a vegan diet have been on the New York Times bestseller list: Quantum Wellness by Kathy Freston, Skinny Bitch and Skinny Bitch in the Kitch by Rory Friedman and Kim Barnouin.

Key Drivers of Future Growth

Climate Change/Environmental Sustainability
Public Health and Disease Prevention and Treatment
Ethics

Climate Change/Environmental Sustainability

Individuals are looking for ways to reduce their carbon footprint and address climate change. The major benefits of a vegan lifestyle include:

Reduction of greenhouse gas emissions
Reduction of animal waste/water pollution
Reduction of toxic chemicals
Reduced fresh water depletion

Reduction in greenhouse gas emissions

As people look for ways to reduce their environmental footprint, many are turning towards vegan products. Research has shown that the single biggest impact an individual can have on their carbon footprint is to switch to a plant-based diet. In the 2008 Vegetarian Times survey, 47% of respondents cited environmental concerns as a reason for their vegetarianism/veganism.

Water Pollution/Fresh Water Depletion

Another reason for the switch to vegan products is their lower impact on water depletion and pollution, two major issues that individuals are looking for ways to control. As the livestock industry is among the major contributors to this problem, the Fund will look to support companies that will provide alternatives to livestock production.

Leather Production

Tanneries today produce leather using many toxic substances, including mineral salts (chromium, aluminum, iron and zirconium), formaldehyde, coal-tar derivatives, and various oils and dyes, some of them cyanide-based. The Fund will look to find companies that can provide alternatives to the leather industry, including alternatives for footwear, clothing, luggage and furniture.

Health Issues

Health issues are a major reason people select a vegan diet. According to a recent Vegetarian Times survey 53% of people who follow a vegetarian diet do so to improve their overall health. This should create demand for restaurants, retail food products, and publishing of vegan cookbooks.

Ethical Issues

As there is more transparency on the impact of factory farming on animal welfare there is more of a shift to alternatives. Animal welfare is also a key reason that people use vegetarian and vegan products, and it is a strong motivation for loyalty to those products. 54% of respondents to the Vegetarian Times 2008 survey cited concern for animal welfare as a reason for their vegetarian diet.

This concern supports a wide variety of vegan products including clothing, personal care products and animal testing alternatives as well as food products.