The vegan food market is thriving, with experts predicting remarkable growth over the next several years. Vegan “meat” sales alone grew 72% between 2018 and 2020, and plant-based milk consumption in the U.S. increased by 61% in 2017. But what's driving this change in consumer behaviour? Drawing on insights from Uri Gneezy and John List's book "The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life", let's explore three key reasons behind why the vegan trend is booming.

1. The Power of Immediate Rewards and Social Norms

The authors of "The Why Axis" argue that people tend to favour immediate rewards over delayed gratification, a principle that could explain some of the challenges faced by the vegan movement. The benefits of a plant-based diet – such as improved health and a reduced environmental impact – may seem distant or intangible compared to the immediate pleasure of eating familiar meat and dairy products.

However, Gneezy and List also emphasize the power of social norms and pricing in influencing behaviour. The increasing social acceptance of veganism, and the growing availability of affordable and diverse plant-based food options, might be making it easier for consumers to see the immediate rewards of choosing vegan foods. This 'one-two punch' of social norms and pricing could be instrumental in driving the growth of the vegan market.

2. The Impact of Incentives on Behavior

Gneezy and List also explore how incentives can shape behaviour, a concept that's relevant to the diversifying vegan food market. From an expanding range of vegan chocolate products to innovative options like vegan eggs, consumers now have more choices than ever.

Yet, the authors caution that incentives can sometimes backfire. For instance, if financial incentives are perceived as coercive or manipulative, they can undermine the very behaviours they're intended to encourage. In the context of the vegan market, this suggests that consumers must genuinely enjoy vegan foods, not just see them as 'the lesser of two evils', for the market to continue growing.

3. The Influence of Movements like Veganuary

Movements like Veganuary, which encourages people to adopt a vegan diet for the first month of the year, have been successful in prompting dietary changes. This annual challenge educates consumers about veganism and many participants stick to their new diets for the rest of the year, indicating a shift towards healthier and more environmentally-friendly food choices.

This can be seen as an application of the book's insight:

The Veganuary movement, rather than merely promoting short-term dietary changes, aims to foster a long-term shift in consumer behaviour, aligning with Gneezy and List's call for 'corrective surgery' rather than 'bandages'.

Looking ahead, the vegan food market seems set for continued growth. As we grapple with challenges such as climate change and animal welfare, and as plant-based diets become more mainstream, more and more consumers are likely to explore vegan options. Understanding the 'why' behind these decisions – whether it's the lure of immediate rewards, the influence of incentives, or the impact of movements like Veganuary – will be crucial for businesses hoping to thrive in this burgeoning market.

Predicting the Future of Veganism

Looking ahead, the vegan trend seems set to grow even stronger. As per the principles of "The Why Axis", it's essential to remember that people don't respond well to delayed gratification. Therefore, the ongoing development of tastier and more diverse vegan options, which offer immediate satisfaction, will likely continue to attract more people to veganism.

As of now, vegan “meat” sales grew by 72% between 2018 and 2020, and plant-based meat accounted for 2% of the total US meat market in 2018​​. Moreover, the global plant-based milk industry, worth $8 billion in 2016, is expected to exceed $21 billion by 2024​​. Given these trends, it's reasonable to predict that vegan alternatives will continue to capture a growing share of the food market.

More and more people are adopting a vegan lifestyle because of their concern for both their health and the environment. Social norms and pricing also play a big role in this trend, as well as the desire to avoid the negative impacts of non-vegan foods. Considering these factors and the principles outlined in "The Why Axis," it's likely that the vegan trend will continue to grow in popularity in the years ahead.

Want to share your thoughts? Feel free to share them in the comments section below or on social media.