Last updated on January 3rd, 2025
Have you heard of the Law of Large Numbers (LLN)? It’s a fundamental principle in probability and statistics that also has significant implications for economics. Essentially, the law states that as the number of independent random trials increases, the average of observed outcomes will converge toward the expected value. While LLN is typically applied in probability theory, we at Vegan Is Us explore its potential application and the economic benefits of veganism.
Market Demand
The law of large numbers suggests that as more people adopt veganism, the overall demand for plant-based products — including foods and alternatives — will likely increase. This surge in demand could lead to economies of scale, where manufacturers can produce larger quantities at lower costs. As production volumes rise, prices may decrease, making vegan options more accessible and affordable to a broader range of consumers.
Cost Reduction
Widespread adoption of veganism could influence agricultural practices and supply chains, potentially reducing costs. Increased demand for plant-based ingredients could encourage agricultural shifts, prioritising crops for human consumption rather than animal feed. This could reduce the resources required for animal farming — such as feed, healthcare, and transportation — and translate into overall cost savings.
Technological Innovation
As more individuals embrace veganism, the incentive for research and development in plant-based alternatives grows. LLN suggests that greater demand would drive technological innovation, improving food processing, manufacturing, and ingredient sourcing. This would likely result in more affordable and diverse vegan options. Advances in technology could reduce production costs while enhancing the quality and variety of vegan products, benefitting both consumers and the planet.
Investment and Infrastructure
An increasing vegan market might attract more investment into businesses and infrastructure. This could include the creation of vegan restaurants, production facilities for plant-based foods, distribution networks, and retail outlets. As the sector grows, investment will help optimise operations and improve efficiency, which can lower costs and contribute to the industry’s sustainability.
Supply Chain Optimisation
With a growing vegan market, supply chains can become more efficient, reducing waste and improving logistics. LLN suggests that, as demand for vegan products expands, supply chains will evolve to meet this demand. In the long term, this could result in improved economies of scale, lower prices, and better animal welfare practices, furthering the positive impact on the planet.
The Big Picture
While the law of large numbers provides valuable insights into potential economic outcomes, it’s essential to remember that economic dynamics are influenced by many factors — consumer preferences, government policies, technological advancements, and market competition. The law of large numbers offers a conceptual framework for understanding how the scale of veganism could shape economics, but its real-world impact depends on a complex web of interactions within the wider market.
In the long run, we hope that the growing adoption of veganism will foster positive outcomes for both the economy and our ecosystem. With time, the shift toward plant-based living could lead to measurable, sustainable changes that benefit the planet for generations to come making the economic benefits of veganism more visible.
