The Vegan Market Is Flourishing. How Can Niche Producers Keep Up with Demand?

Many small businesses, especially those in niche or newer industries, struggle to obtain competitive pricing when ordering from manufacturers in relatively low quantities. High production costs can hinder a small business from taking advantage of growth opportunities. As their products grow in demand, they may hit an uncomfortable stage of growth where they are forced to squeeze maximum efficiency out of their current processes to keep up with that demand. Consider, for instance, companies in the vegan food industry, producing items including alternatives to cheese and meat. The number of vegan consumers in the U.S. has risen more than 600% in the last five years, according to research firm GlobalData. This presents an attractive opportunity: entering a market niche with lower saturation to capture market share while competition is reasonably low.