Shift to Plant-Based Foods Could Add Thousands of Jobs to US Economy

The work, commissioned by Faunalytics and conducted by BW Research Partnership, explores how this shift could impact key economic indicators such as job creation, GDP expansion, tax takings, and labor income by 2040. “These results signal that a plant-based food system likely isn’t a win-lose scenario — it’s a win-win”

The paper evaluates three hypothetical scenarios: a plateau in plant-based food marketplace share, a moderate expansion scenario, and a substantial expansion scenario. The results suggest that even a modest shift towards plant-based products could yield positive economic effects, particularly in job creation.

Under the moderate advance scenario, thousands of new positions could be generated. A more substantial shift, in which plant-based foods become markedly more common, could result in tens of thousands of new posts, surpassing a 3% increase in employment compared to current levels.

In terms of broader economic impact, the moderate advance scenario hints small but positive contributions to GDP (0.3%), tax income (0.2%), and labor income (0.4%). In contrast, the substantial growth scenario predicts more marked upticks, with GDP rising by 4%, tax takings by 2%, and labor income by 4%.

The work highlights that while the plant-based industry has grown in recent years, continued expansion would require further innovation, backing, and possibly government support. Despite the benefits outlined in the research, the authors caution that the full economic potential of a plant-based transition will only be realized if plant-based products gain marked market share, replacing animal-based foods at a much higher rate than they currently do.

Impact on agriculture and food production

Agriculture and food production are key components of the US economy, with more than 22 million jobs tied to these industries as of 2022. Given the current reliance on animal products in US diets, any marked shift in consumer behavior could have wide-reaching implications for the economy.

However, this transition has been difficult to quantify until now, as limited investigation has explored the economic impacts of a plant-based food system. The research calls for further investigation into the economic implications, including localized impacts, global trade effects. Strategies for mitigating potential job losses in industries that could be negatively impacted.

This could include worker retraining programs and targeted support for communities that are currently reliant on animal agriculture. “These results signal that a plant-based food system likely isn’t a win-lose scenario — it’s a win-win. More sustainable consumption habits are also better for employees and the economy.

To me, this indicates the importance of training and resources for workers in industrial animal agriculture. I’d like to see more NGOs tackle this head on,” explained Zach Wulderk, work scientist at Faunalytics.