The Price of Health and Kindness: Why Plant-Based Food Is More Expensive Despite Its Lower Environmental Cost

Eating plant-based is often framed as the ethical and sustainable choice. It requires fewer natural resources, emits far less greenhouse gas than animal agriculture, and reduces harm to animals. So, why does a package of Beyond Meat cost more than a pound of ground beef? Why do oat and almond milk still struggle to compete with animal dairy on price? The answer lies in a combination of economic, industrial, and political factors that shape our food system.

The True Cost of Animal-Based Foods

If we only looked at environmental impact, plant-based food should be cheaper. Producing animal products demands vast amounts of land, water, and energy, while generating significant pollution. The United Nations has reported that animal agriculture is responsible for about 18 % of global greenhouse-gas emissions—making it one of the largest contributors to climate change [1]. However, the price tags at grocery stores don’t reflect this reality—primarily because of government subsidies and entrenched industry advantages [2-5].

Why Are Plant-Based Products More Expensive?

1. Ingredient Sourcing & Processing

Creating plant-based alternatives that match the texture and flavor of meat and dairy isn't as simple as swapping in beans or vegetables. Many products rely on specialized ingredients like pea protein, soy isolates, or coconut oil. Extracting and refining these components is costly and requires sophisticated processing technology, driving up production costs.

2. Smaller Market Scale

Animal-based food industries have been operating at an enormous scale for decades, benefiting from streamlined production and distribution systems. By contrast, plant-based products are produced in smaller batches, increasing per-unit costs. Meat and dairy supply chains are well established, while plant-based companies still have to carve out space in the market.

3. Research & Development Costs

Plant-based food manufacturers invest heavily in research and development to create products that mimic the taste, texture, and cooking behavior of animal meat and dairy. This innovation isn’t cheap. The science behind plant-based meats, dairy-free cheese, and egg alternatives requires ongoing refinement, and these costs are passed down to consumers [6].

4. Supply Chain & Distribution Challenges

Many vegan brands are run by smaller companies without the large-scale distribution networks that animal meat and dairy producers enjoy. Retail shelf space is competitive, and smaller brands may face higher logistics costs to get their products into stores.

5. Government Subsidies & Financial Support

One of the biggest reasons for the price gap is government subsidies. The animal meat and dairy industries receive billions of dollars in subsidies worldwide, reducing their production costs and allowing them to sell at lower prices. Meanwhile, plant-based food companies receive a fraction of that support, despite their environmental benefits [2-6].

Recent research shows that shifting just 50% of federal beef purchases to plant-based proteins could reduce greenhouse gas emissions by 15%, methane emissions by 29%, and land use by 16%, while also reducing food-related costs by 2%—all while improving health and equity [5].

6. Perishability & Storage Costs

Certain plant-based products, particularly fresh alternatives, have a shorter shelf life or require specialized packaging to maintain quality. Unlike animal-based foods, which benefit from long-established refrigeration and storage logistics, plant-based alternatives may require new infrastructure investments, contributing to higher costs.

Will Prices Come Down?

The good news is that the plant-based food industry is growing. As more consumers shift toward plant-based diets, production will scale up, supply chains will become more efficient, and costs should decrease. Many brands are actively working toward price parity with animal products, and with continued demand, we can expect more affordable plant-based options in the future. 

Still, relying on market growth alone may not be enough to correct a system tilted by decades of subsidies and externalized costs. Policy has a role to play.

Closing the Price Gap with Policy

Governments could consider implementing environmental taxes—similar to those already used for products that carry public health costs. These include the well-established sugar taxes and soft drink levies, which aim to discourage overconsumption of unhealthy products and generate revenue for health promotion programs [7, 8]. Similarly, tobacco products have long been subject to targeted excise taxes due to their significant burden on public health systems [9].

Applying this approach to food policy would mean placing a climate and health tax on foods with the highest environmental and physiological costs—particularly red and processed meats, certain dairy products like cheese, and eggs. These products are not only high in saturated fat and linked to chronic diseases, but they also contribute disproportionately to greenhouse gas emissions, land degradation, and water pollution.

In fact, a 2018 study published in Nature modeled the effects of environmental taxation on food and concluded that taxing meat and dairy in proportion to their emissions could substantially reduce environmental impacts while improving public health outcomes [10].

If incorporated into the retail price, such a tax would help reflect the true cost of animal-based foods—costs currently externalized and borne by society through environmental damage and healthcare spending. This, in turn, could narrow the price gap between animal and plant-based products, making the sustainable choice a more affordable one for everyday consumers.

The True Value of Plant-Based Eating

While the price of plant-based foods may be higher at checkout, their real cost—when factoring in environmental damage, health implications, and ethical concerns—is often far lower than animal-based foods. By choosing plant-based, consumers are investing in a more sustainable future, supporting innovation, and advocating for a more just food system.

The price of health and kindness may be steep today, but as awareness grows and industries adapt, a more accessible and affordable plant-based future is within reach.

References

1. FAO. Livestock's Long Shadow: Environmental Issues and Options. United Nations Food and Agriculture Organization. https://www.fao.org/3/a0701e/a0701e.pdf
2. Environmental Working Group. Farm Subsidy Database. https://farm.ewg.org/
3. OECD. Agricultural Policy Monitoring and Evaluation 2023. https://www.oecd.org/agriculture/topics/agricultural-policy-monitoring-and-evaluation/
4. Union of Concerned Scientists. CAFOs Uncovered: The Untold Costs of Confined Animal Feeding Operations.https://www.ucsusa.org/sites/default/files/2019-10/cafos-uncovered-full-report.pdf
5. Better Food Foundation. US Federal Food Spending Could Accelerate Climate Mitigation & Equity, According to Research. PRWeb. https://www.prweb.com/releases/us-federal-food-spending-could-accelerate-climate-mitigation-equity-according-to-research-301982957.html
6. Good Food Institute (GFI). 2019 Year-in-Review. Washington, DC: GFI; 2020. https://gfi.org/wp-content/uploads/2021/02/GFI-YIR-2019.pdf
7. World Health Organization. Fiscal policies for diet and prevention of noncommunicable diseases. https://www.who.int/publications/i/item/9789241511247
8. Public Health England. Sugar Reduction: The evidence for action. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/470179/Sugar_reduction_The_evidence_for_action.pdf
9. Centers for Disease Control and Prevention (CDC). Economic Trends in Tobacco. https://www.cdc.gov/tobacco/php/data-statistics/economic-trends/?CDC_AAref_Val=https://www.cdc.gov/tobacco/data_statistics/fact_sheets/economics/econ_facts/index.htm
10. Springmann, M., Clark, M., et al. (2018). Options for keeping the food system within environmental limits. Nature, 562(7728), 519–525. https://www.nature.com/articles/s41586-018-0594-0