Vegan Food excludes all animal-based products and goods. The objective of Vegan Food is to decrease the carbon footprint, limit animal suffering, and improve the health benefits. However, some of the main basic elements of vegan food items comprise mushrooms, nuts, grains, legumes, fruits, and vegetables. Today, we’ll discuss the PESTLE analysis of Vegan Food; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Vegan Food
Some of the main political factors in the Vegan Food PESTLE analysis are as follows;
I-Government Regulations
The consumer protection government regulations and policies are very strict and tight for the Vegan Food producing companies. They comprise of health and food safety laws, consumer protection regulations, labor laws, food sourcing, and others. However, the goal of strict government regulations and policies is to ensure the health and safety of ordinary consumers.
II-Trade Policies
Vegan Food companies procure food ingredients and supplies from various countries across the globe. The trade policies of different countries are variable depending their foreign policy and diplomatic relations with other countries. For instance, if a country doesn’t have good relations with supplier country, they would impose strict regulations and high tariff to reduce the trade with them.
III-Political Stability
The stable political environment of the country plays a key role for the growth of businesses and companies. For instance, if the procuring or the supplier country is going through the political crisis comprising of road blocks and processions; then it causes delays and disruption in the delivery of Vegan Food products and goods to the end consumers.
Economic Factors Affecting Vegan Food
Some of the main economic factors in the Vegan Food PESTLE analysis are as follows;
I-Economic Growth
The economic growth of the country directly impacts the retail sale of Vegan Food products and goods. For instance, if the country has a stable political and economic environment, it creates multiple employment opportunities for its people. When people have stable employment and sufficient disposable income, they’re willing to spend their income on a strict dietary plan and expensive Vegan Food items.
II-Vegan Market Demand
The demand of Vegan Food products and goods has been increasing significantly for the past few years. It presents a great opportunity to the Vegan Food companies to expand their vegan business and launch new products and goods. However, it allows them to increase their sale of vegan products and amplifies their revenue and profitability.
III-High Material Cost
Material, ingredient sourcing, and harvesting costs and expenses have increased in recent years. This is due to the increasing labor costs, high fuel prices, ethical practices, high quality standards, and other factors. However, high material and ingredient costs would ultimately increase the retail price of the finished goods.
Social Factors Impacting Vegan Food
Some of the main social factors in the Vegan Food PESTEL analysis are as follows;
I-Healthy Diet Trend
The consumer market has become highly cautious about the healthy food and diet. They prefer products and goods that are organic, natural, low sugar, low calories, and rich nutritional values. However, Vegan Food items meet their healthy and dietary food requirements and quality standards, and it would increase their sales and revenue.
II-Culture and Lifestyle Changes
The culture and lifestyle of the consumer market is changing. They are leading busy lives and they’re often doing non-physical labor work. However, the young generation comprising Generation-Z and Millennials are cautious about the ethical consumption of food and they prefer organic, natural, and dietary food. Vegan food companies should be familiar with the needs of the young customer market, and this will allow them to amplify their sales and revenue.
Technological Factors Affecting Vegan Food
Some of the main technological factors in the Vegan Food PESTEL analysis are as follows;
I-Tech Food Processing Methods
Vegan food companies and farmers should employ technological food process methods and strategies. It allows them to increase the yield in the limited space and reduce the wastage of resources. As a result, it helps it to increase its sales, revenue, and profitability.
II-Online Ordering
Vegan Food companies and farmers should invest their capital resources on the development of e-commerce platform. The online vegan food ordering and home delivery service would help them to amplify its customer market reach, network and sales.
III-Digital Marketing
Vegan Food should employ digital marketing and social media marketing campaigns for the promotion of their vegan products and goods. It allows them to approach various segments of the customers market and increase the conversion through referrals and testimonials.
Legal Factors Impacting Vegan Food
Some of the main legal factors in the Vegan Food PESTEL analysis are as follows;
Regulatory Compliance
Vegan Food companies need to comply with the government regulations and policies of various countries. They focus on consumer protection laws, health and food safety, labor laws, trade policies, and others. Regulatory compliances would help them to amplify its customer market reach, network and sales.
Environmental Factors Affecting Vegan Food
Some of the main environmental factors in the Vegan Food PESTEL analysis are as follows;
Sustainability Initiative
Vegan Food companies should make a strong commitment to the environmental sustainability initiatives. It comprises of investing in the renewable sources of energy, biodegradable packaging, and ethical sourcing of raw material and ingredients to decrease the carbon emission rate. However, it helps them to keep up with the growing environmental sustainability initiatives.
Conclusion: Vegan Food PESTLE Analysis |PESTEL Analysis of Vegan Food |External Environmental Analysis of Vegan Food | Strategic Analysis of Vegan Food
After an in-depth study of the pestle analysis of Vegan Food; we have realized that Vegan Food is growing exponentially. If you are learning about the Vegan Food PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economical, 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.
