Interview, Fireside Chat
The Rise of Sustainable Consumerism
- Sustainable consumer brands have expanded across major sectors, with emerging household names including Beyond Meat (food), Vital Farms (beverage), Chobani Oat Milk, Oatly (beverage), Reformation (apparel), and Thrive (beauty).
- Consumer interest in sustainability rose from 10% of the general population in 2015 to 50% in 2019.
- Millennial interest in sustainability accelerated from 30% in 2015 to 70% in 2019 and continued to grow.
- The pandemic drove a dramatic shift in consumer behavior, as remote work increased home cooking and household inventory reviews, leading to deeper scrutiny of food ingredients and environmental impact.
- Beyond Meat requires 46% less energy, 99% less water, and 93% less land usage than a quarter-pound of U.S. beef.
- Beyond Meat was taken public in May 2019 and currently holds a valuation of $9 billion.
- Investor demand for sustainable products during the pandemic created a "win-win" scenario where trial adoption outweighed initial supply chain constraints.
- Oatly secured a private placement with a $2 billion valuation during the pandemic.
- Vital Farms was taken public and has grown into a $1.5 billion company.
- ESG investment criteria now emphasize specific metrics: environmental focus on carbon footprint and resource utilization; social focus on diversity, inclusion, and employee safety; and governance focus on board leadership and shareholder rights.
- A growing number of investors are demanding at least one female director on every corporate board.
- High-ESG stocks outperformed non-ESG stocks over the course of 2020.
- Global cumulative net equity inflows into ESG-focused funds have increased year-over-year.
- The current market trend represents an acceleration of existing concepts—such as electric vehicles and plant-based proteins—rather than the introduction of entirely new categories.