New Zealander's are turning towards veganism because of rising meat prices.
Research shows the demand for plant-based products has surged in recent years, with food companies having to introduce new vegan products.
It has lead to warnings that meat and dairy producers face tough times ahead.
IBISWorld Senior Industry Analyst James Caldwell told Larry Williams meat and dairy prices have strongly increased.
"I think that the threat is real for New Zealand. Domestically, meat consumption has declined on a per-capita basis."
He says that environmental and health concerns are also contributing to the change in diets.
Caldwell says that "every couple of days" there are new vegan products coming onto the market, such as vegan ice-creams.
The one hope for the industry is trade. Caldwell says that the New Zealand meat and dairy industry is still expected to grow, but it is coming from exports and trade with overseas countries.
"Since China began industrialising and became wealthier, their citizens are increasingly demanding a Western diet."