Plant-based Meat Substitutes: Opportunities and Challenges in Southeast Asia

Delivery

This report comes in PPT.

Key Findings

Coronavirus-based meat safety fears and possibility of meat shortages open doors for plant-based meat

Viral African swine fever has wiped out a large number of pigs globally, and the recent Coronavirus (COVID-19) outbreak has further dampened the global meat supply chain. Global epidemics and concerns over food safety have led to consumers becoming more selective in the food they consume and a preference for healthier foods. Moreover, the growing middle class in Southeast Asia means markets will reach an inflexion point in meat consumption where demand will outstrip supply of meat opening opportunities for plant-based meat alternatives.

Price is the biggest barrier to consumption

Price seems to be the biggest deterrent to plant-based meat consumption in both retail and foodservice. To cater to the generally lower GDP per capita in the region compared to the global average (except for Singapore and Malaysia), players would need to make plant-based meat more affordable through product promotions or simply creating dollar-parity dishes with meat.

There is much scope to expand distribution channels in the region

Plant-based meat substitutes are not widely available in the region yet, with most innovations taking place in Singapore, and even then restricted to specific retailers and higher-end foodservice outlets. Selling these products in more retailers and normalising them in the fast food or delivery channels can make them mainstream.

Growing middle income population in Southeast Asia leads to higher demand for meat

GDP per capita in Southeast Asia is at USD5,200 as of 2019, in comparison to USD63,000 in North America, limiting Southeast Asia consumers’ ability to purchase meat and the new- generation meat substitutes that often carry a high price tag. However, with GDP per capita still expected to grow at more than 5% yearly, demand for meat is expected to increase as it is commonly associated with wealth.

Preference for pork and minced format provide future opportunities

Southeast Asian consumers consume more pork than beef. Furthermore, instead of being consumed in patty formats, meat is traditionally incorporated in various dishes through mince. Hence, innovations such as Omnipork, focusing on minced pork substitutes, will see a greater opportunity in the region due to their ability to be incorporated in dishes.