Landscape of the APAC plant-based market

In Asia-Pacific, plant-based protein alternatives have been popular for a long time, with tofu, seitan and tempeh playing a major role in Asian diets. Nevertheless, meat consumption has increased in recent decades in some regions of Asia, such as China, Japan, Korea and Vietnam, as a reflection of rapid population growth and overall income growth. To satisfy the Asian demand for meat, sustainable alternatives and solutions need to be considered, such as plant-based products that mimic the texture, taste and nutritional intake of animal products. However, since many of the plant-based products have been developed in the Western countries, they tend to be oriented to meet the taste of Western consumers, favouring the reproduction of meat substitutes such as, for example, burgers, nuggets, and vegetable sausages. To please consumers there is a need to localize the product, developing and declining it according to the food tradition of Asia-Pacific.

In this scenario, the interest of Asian consumers for plant-based diets has increased, especially because of the emergency situation caused by the pandemic, which has led to re-evaluate the issue of health, also in terms of food. In fact, partially or totally plant-based diets are associated with the idea of healthy and sustainable nutrition, both from an environmental point of view and with regard to animals. For example, according to this article published by the research agency Mintel, 33% of Indian consumers are committing to eat less animal products, while 57% of Chinese urban consumers agree on the importance of environmental protection also through food choices.

Figures in APAC Region

According to data released by The Good Food Institute APAC, 2020 was a major year for investments in companies producing alternatives to animal products, reaching $3.1 billion, an amount three times higher than what was raised in 2019. Also, mentioning the report, the plant protein market in Asia Pacific has a high growth forecast of CAGR 6.1% during the period from 2020 to 2025. China is one of the major markets for plant-based products in the Asian region, due to the increasing incidence of health disorders such as obesity, attributed to the current consumption pattern. Soy protein is the predominant segment in the market as it is historically known and used in a wide range of applications.

Trends in APAC Region

The Asian market for plant-based products has developed very quickly, especially in recent years, bringing with it innovations and trends that define it, differentiating its offerings based on what Asian consumers want.

According to the Mintel’s report called Asia Pacific: The Good and Drink Landscape one of the biggest trends in plant-based food is the demand for lactose-free dairy products. This is because the issue of dairy digestibility is very important to Asian consumers: about two-thirds struggle with lactose absorption. Promoting lactose-free dairy products claiming about the easy digestibility, as well as added fiber to promote intestinal health, is drawing a wide range of consumers, not limited to people suffering from lactose intolerance.

Another growing trend in Asia-Pacific is including meat in typical Asian dishes, such as instant noodles, which are popular in Vietnam and Indonesia. Noodles with added meat are compared to a complete meal, resulting appealing as they have more protein than noodles alone. The claim emphasizing the higher amount of protein is very attractive in countries such as India, where there is a deficit in protein intake by about 26% of the population. In fact, in India, 4% of instant noodles launched between 2018 and 2020 carried claims such as “high protein” or “added protein” in the packaging.

The general trend for all food, both plant-based and conventional, lays on the idea of healthy food, with low fat and sugar, but rich in nutrients and protein. In addition to this, the issue of sustainability remains a factor influencing the purchasing choice of Asian consumers, who are much more concerned with how the food is produced. Finally, taste and convenience remain key factors for consumers, as well as the desire for greater differentiation of vegetable products on the market, no longer developed along the lines of Western cuisine and taste, but taking into account Asian culinary traditions.