Nutrition is the number one priority as the holistic approach to wellness accelerates and increases consumer awareness about nutrition, health and food safety. In addition to its role in health and nutrition, people are also following the ‘better for you’ food consumption trend, which has led to the emergence of many new products and brands. Quality and taste are becoming more prominent, and people are increasingly looking to plant-based foods for their health and environmental benefits. Plant-based foods have growth potential in 2021 and beyond as demand for alternative proteins increases in Southeast Asia.
In recent years, due to the development of lifestyle, plant-based food has attracted more and more attention. China and Japan are well positioned for total plant-based food consumption, followed by South Korea, Malaysia, Indonesia and the Philippines. Plant-based food brands are quick to capitalize on growing consumer demand. This trend also extends to the growth of foodservice, either as a way to offer healthy fast food or to reduce our climate impact by substituting vegetable meat for beef.
In Southeast Asia, tofu and tempeh (Indonesian fermented soybean products) are popular plant-based foods that are an integral part of daily consumption, with tofu accounting for more than 98% of packaged plant-based foods in the region. Tofu and tempeh are commonly found in dishes such as tempeh mixed in Indonesian sauce, tofu braised in vinegar and sauce in the Philippines, and sulusa in Malaysia and Singapore. Due to consumer habits, familiarity and taste preferences for these local flavors and dishes, it is difficult for a new generation of plant-based foods to enter the market. Nonetheless, new brands have been aggressively entering the market through the foodservice channel, and there is still plenty of room for growth in plant-based foods in the Southeast Asian region.
The rise of flexitarianism also presents a market opportunity for meat alternative businesses. Consumers in Southeast Asia are trying to control their meat intake, making plant-based foods a bright future. This is partly due to religious influence and growing concerns about health and environmental issues. Religious reasons are of great significance in countries such as Thailand and Vietnam, where the practice of vegetarianism is related to Buddhism, and even non-vegetarians eat vegetarian food on occasions such as Vesak Day.
Consumers in Southeast Asia are increasingly concerned about their self-image and health, which is driving them to switch to healthier food choices, especially in the post-pandemic era. While many plant-based foods try to imitate beef in texture and taste, pork should also be considered, as pork is more widely consumed than beef in this regard. Therefore, before entering the Southeast Asian market, brands need to be properly localized.