Asia Plant Based Food Market Forecast (2021-2026)

Asia Plant Based Food Market Overview

Asia Plant Based Food market size was valued at $ 17,473million in 2020, and is anticipated to grow at a CAGR of 10.8% during the forecast period 2021-2026. Plant based food is primarily obtained from plants. It includes fruits, vegetables, oils, whole grains, legumes, and seeds among others. Plant based food are high in fiber and water content that increases the energy. It helps to prevent diabetes by reducing insulin resistance and improving insulin sensitivity. Increasing prevalence of chronic diseases along with the population explosion contributes to increased demand of plant based food in Asia. Increasing inclination of consumers towards vegetarian food, increasing use of plant based food in beverages, and rising prevalence of diabetes are the main drivers for Asia Plant Based Food Market. Additionally, technical advancement in food and beverage sector is also increasing the growth of the market during the forecast period 2021-2026. The Asia Plant Based Food industry growth rate is attributed to the various governmental initiatives coupled with the growing awareness regarding neonates’ care which is poised in bringing new opportunities.

Report Coverage

The report: “Asia Plant Based Food Market Forecast (2021-2026)” covers an in-depth analysis of the following segments of the Asia Plant Based Food Market:

By Source: Fruits, Vegetables, Seeds & Nuts, Legumes, Whole Grains and Others.

By Product Type: Foods and Beverages.

By Distribution Channel: Modern Trade, On Premise and General Trade.

By Geography: China, Japan, India, Malaysia, Philippines, South Korea, Indonesia, Taiwan and Rest of Asia.

Key Takeaways

• Country wise, China region held the highest market share in 2020.
• The factors such as the increasing demand for plant based foods and increasing awareness regarding the health benefits related with the use of plant products are amongst the major factor projected to impel growth of Asia Plant Based Food market.
• Additionally, factors such as government measures and increasing competition for vegetarian and vegan products are to create opportunities paving a way for the growth in the market during forecast period 2021-2026.

Asia Plant Based Food Market Segment Analysis - By Product Types

On the basis of product types, beverages segment accounted for the largest segmental revenue of the Asia plant based food market in 2020. The large share can be attributed to the increasing number of lactose intolerant consumers and the various nutritional benefits offered by plant based food products. Increasing incidences of animal milk allergies and hypercholesterolemia is increasing the demand of the plant based beverages among the consumers thereby, increasing the growth of the Asia Plant Based Food Market.

On the other hand, food segment is projected to dominate over the forecast period 2021-2026 with a CAGR of 12.1%. The food segment is to witness a surge in growth owing to the increasing adoption of vegetarian or vegan lifestyle among consumers increasing the adoption of plant based foods that increases the demand of foods and are plant based which expands the growth of Asia Plant Based Food Market. Furthermore, various regulatory bodies are promoting plant-based diets through various offline and online channels such as advertisement and social media channels owing to various benefits of plant-based foods that expand the production of plant based foods and are rising the growth of this market.

Asia Plant Based Food Market Segment Analysis - By Distribution Channel

In 2020, on the basis of distribution channel, modern trade segment accounted for the largest segmental revenue of the Asia plant based food market on account of the fact that the demand for modern trade segment is increasing owing to the growing number of supermarkets and hypermarkets along with the increasing number of sales with easy availability and accessibility. Moreover, this segment is projected to witness healthy growth throughout the forecast period 2021-2026 with a CAGR of 11.3% since there is an increasing expense on vegan food products and this is also set to increase the growth of the market during the forecast period 2021-2026.

Asia Plant Based Food Market Segment Analysis - By Country

China is the major region dominating the Asia Plant Based Food market with a market share of 37.9% in the year 2020. This can be attributed to the rising demand for ready-to-eat products, increasing innovation of new plant based products and growing investments in R&D activities, thereby increasing the growth of the market in China. Furthermore, China is projected to be the significant-growing market during the forecast period 2021-2026 owing to increasing number of plant based food products in China that are investing to expand their coverage and is set to increase the growth of the Asia Plant Based Food Market in China over 2021-2026. Apart from this, rising adoption of technologies for product innovation and increasing investments by government in food research & development is increasing the growth of the market in Asia Pacific region.

Asia Plant Based Food Market Drivers

Growing Awareness of Protein Diet for Health & Immunity Growth

The Asia plant based food market is poised to receive upswing owing to the fact that in the current pandemic situation, most customers are purchasing protein-based supplements to enhance their health and immunity, as well as a growing understanding of the value of immunity. The increased demand for protein ingredients in Plant Based Food has fueled the demand for these ingredients. Furthermore, Plant proteins, for instance, have a lower content of essential amino acids than animal proteins, significantly less limiting amino acids. The various rating systems currently used to determine protein quality from plant sources aid in raising the market sales growth. Plant-based proteins and their capacity for reducing and preventing metabolic syndrome, diabetes management, and weight management are the various rating systems currently used to determine protein quality from plant sources. According to a study published in Research Gate, protein supplements were the most commonly consumed form of dietary supplement among those who had consumed dietary supplements at some point in their lives. Growth in the Asia Plant Based Food is driven by rising health consciousness, contributing to the consumption of functional and nutritious foods among consumers.

Rise In Product Sales Owing To Use Of Online Sales Channels

Plant proteins are readily available and there is a growing demand for the finished goods. This has caused the number of small-scale producers to increase the business. Such manufacturers face the burden of different costs if conventional sales strategies are selected. With the rise in online sales channels in recent years, more manufacturers are able to enter the market and sell products without associated costs such as that for logistics, storage and more. Online sales channels offer freedom of sales and shipping to various countries as well with help of online marketplace. Green Monday, a plant-based Chinese start-up, announced in May 2020 that COVID-19 had caused its online sales to more than double in the previous two months. Omni pork, a pork substitute used in dumplings, noodles, and rice, was one of the most common purchases. When companies gain a better understanding of their target audience, they may also develop marketing strategies. Such companies focus their product creation and marketing efforts on consumer desires, showcasing their creativity, efficiency, and product protection in response to their customers' needs. Furthermore, most vendors are now using online platforms to sell their goods and their buyers prefer online channels since they have a larger selection and variety of products to choose from. The ease of purchasing and availability of items, in addition to the low price, have fueled the use of online platforms.

Asia Plant Based Food Market Challenges

Significant Preference For Animal-Based Products Restrict The Market Growth

One of the major factors lowering the Asia Plant Based Food unit sales is owing to the fact that livestock animals play an important role in human health and well-beings. Meat production and consumption have risen dramatically in recent decades, especially in developing countries. Global demand for livestock products is expected to rise 70% by 2050, according to the OECD-FAO, owing to population growth and increasing affluence. Animal proteins come from animal products like eggs, milk, meat, and fish. Since they produce and provide sufficient quantities of essential amino acids, animal-based products are also referred to as higher-quality proteins. Plant-based products, on the other hand, have limited quantities of certain (but not all) amino acids. Western diets now contain a significant amount of animal protein. Animal sources account for about two-thirds of dietary protein, according to the National Diet and Nutrition Survey 2018. Significant investments in processing are especially important in the case of plant-based dairy substitutes, since they often require large amounts of oil, fats, and added nutrients to mimic the taste of their animal-based counterparts. This restriction, however, can be overcome if manufacturers find ways to reduce the amount of time and money spent on processing. Moreover, it also raises the cost of the final end products and leads to a rise in the demand for cheaper.

Asia Plant Based Food Market Landscape

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Asia Plant Based Food market. In 2020, Asia Plant Based Food market share is fragmented by the top ten players present in the market. The Asia Plant Based Food market top 10 companies are Beyond Meat Inc., Premier Foods PLC, Garden Protein International Inc., Amy’s Kitchen Inc., The Hain Celestial Group Inc., Nestle SA, Fresh Del Monte, General Mills, Ningbo Sulian Food, Whole Perfect Food Co. Ltd. and others.

Acquisitions/Product Launches

• In April 2021, Beyond Meat Inc has expanded its production by opening a production facility in Shanghai to potentially reduce the carbon footprint of its products and to tap the country’s supply chain resources. This facility also focuses on R&D responsibilities to invent new plant-based products for the region.
• In February 2021, Nestle has launched plant-based food products in Thailand owing to the growing demand for plant-based alternatives which are friendly to the environment and contain nutritional benefits. The company has launched plant-based food products under its gourmet brand to capture wellness trends.