Plant-based Milk is non-dairy milk and beverages extracted from plants. It is a great alternative to dairy milk and it provides you with a creamy mouthfeel experience. However, there are 17 different types of plant milk from different types of plants; pea, coconut, soy, oats, and almond. The thing about plant-based milk is that it is environmentally friendly and sustainable. Today, we’ll discuss the PESTLE analysis of Plant Based Milk; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Plant-Based Milk
Some of the main political factors in the Plant Based Milk PESTLE analysis are as follows;
I-Government Policy
The governments of different countries have flexible policies for organic products like plant-based milk. This is because plant milk is organic and sustainable and poses no damage or threat to the environment.
II-Trade Policy
Plant-based milk is suitable in various regions and countries across the world. This is because many countries don’t have the required plants for the extraction of milk. However, importing the plants from various countries would significantly increase the milk cost. In order to discourage the importation of products and goods, countries have introduced various types of legal and documentary restrictions and taxes to decrease the outflow of local resources.
III-Taxation Benefit
Some environmentally friendly modern governments offer tax benefits to the Plant plant-based milk-producing companies. The objective is to promote organic products and environmental sustainability among consumers.
Economical Factors Affecting Plant-Based Milk
Some of the main economic factors in the Plant Based Milk PESTLE analysis are as follows;
I-Interest Rate
The country’s Interest rate is the main economic indicator and it directly impacts the sale of Plant Based Milk. For instance, if the government and the central bank increase the interest rate, then it amplifies the business loan cost. As a result, companies won’t be able to expand their business operation, and the customers decrease their spending.
II-Economic Recession
The global economy has been going through an economic recession for the past few years. When people have limited disposable income, they won’t spend it on the luxury products like Plant Based Milk. Instead, they prefer products and goods that are readily and conveniently available to them.
III-Product Cost
The ingredient and extraction cost of Plant Based Milk is relatively higher than the traditional dairy milk. The product cost plays a key role in impacting the buying power of a vast majority of the consumer market. In fact, a large portion of the customer market is highly cost-conscious, and they easily switch to an alternative product with a small change in the price.
Social Factors Impacting Plant-Based Milk
Some of the main social factors in the Plant Based Milk PESTEL analysis are as follows;
I-Demographic Change
The proportion of the customer market demographic keeps on changing, and so do their needs and demands. The young demographic is highly environmentally friendly and they prefer organic products, rather than the elderly demographic population. Plant-based Milk companies should carefully analyze the demographic shift while launching and advertising their products to the target customer market.
II-Lifestyle Change
The young consumer market has shown a great interest in healthy lifestyle habits, physical fitness activities, and organic food. It presents a great opportunity for Based Milk producing companies to launch various types of plant milk with different traits to target specific segments of the customer market.
Technological Factors Affecting Plant-Based Milk
Some of the main technological factors in the Plant Based Milk PESTEL analysis are as follows;
I-Research and Development
Organic food-producing and extracting companies are investing a significant amount of capital resources in research and development. The objective of R&D is to increase production capacity and find new sources for planting milk plants. A high production rate would decrease the per-unit cost and amplify the customer market reach, network, and sales.
II-Automation Technology
Plant-based Milk companies are employing the latest advanced automation and robotic technology. It allows them to increase the yield, and production capacity, automating the milk extraction and processing operations. As a result, it helps the company to achieve efficiency and increase sales.
Legal Factors Impacting Plant-Based Milk
Some of the main legal factors in the Plant Based Milk PESTEL analysis are as follows;
Regulatory Compliance
Plant-based Based Milk companies should comply with the regulations of different countries. They comprise of food and health safety, food contamination laws, labor laws, production and sourcing policies, and other environmental laws. Regulatory compliance would help the Plant Based Milk brands to smoothly perform their production, harvesting, extraction, and distribution processes without any delays and restrictions.
Environmental Factors Affecting Plant-Based Milk
Some of the main environmental factors in the Plant Based Milk PESTEL analysis are as follows;
Environmental Sustainability
Plant Milk companies have a strong commitment to environmental sustainability. They have taken various steps like offering non-dairy milk alternatives, organic food, sustainable packaging, and organic sourcing to have a better impact on the environment.
Conclusion: Plant-Based Milk PESTLE Analysis |PESTEL Analysis for Plant-Based Milk |External Environmental Analysis of Plant-Based Milk | Strategic Analysis of Plant-Based Milk
After an in-depth study of the pestle analysis of Plant Based Milk; we have realized that Plant Based Milk is a great alternative to dairy milk. If you are learning about the Plant Based Milk PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
