APAC Plant-based Industry Performance by Category

Overview of Plant-based Alternatives in APAC

According to the Good Food Institute (GFI), the global plant-based food alternative industry in 2022 generated USD 27.7 billion in retail sales. Retail sales of plant-based food alternatives across the Asia-Pacific (APAC) region were worth USD 10.2 billion in 2022, making this region the largest in the world, ahead of Europe and North America. APAC accounts for 36.93% of the USD 27.7 billion global plant-based food market, making this region a lucrative market for plant-based food companies to enter. Europe accounts for 32.22% and North America holds 23.05% of market share, leaving Latin America and the Middle East and Africa with the remaining 4.62% and 3.18%, respectively.

Figure 1. Global plant-based retail sales by region in 2022

According to United Nations (UN) population estimates, around 60% of the global population resides in the APAC region. However, the APAC region falls far short of accounting for 60% of the global expenditure on plant-based foods. This can largely be attributed to lower disposable income in some APAC countries, such as China and India, compared to countries with higher disposable income in North America and Europe.

However, this situation is changing. According to Euromonitor, per capita disposable income in the APAC region has risen by 24% since 2017 in USD prices, which has enabled more consumers to purchase sustainable products such as plant-based food options, which often retail at higher prices. Thus, higher disposable income in the region could help explain the high levels of investment in recent years and help drive a growth spurt in the industry in the APAC region. APAC could experience a significant surge in plant-based consumption in coming years as disposable income rises and plant-based alternatives become more widely adopted by the general population.

Plant-based Alternatives by Category in APAC

Plant-based food categories in the APAC market are in various stages of development, ranging from the well-developed multi-billion-dollar plant-based milk category to the small plant-based cheese category. This section explores the four major categories of plant-based food in the APAC region compared to other global regions, namely plant-based meat and seafood, plant-based milk, plant-based cheese, and plant-based yogurt.

Plant-based Meat and Seafood

The APAC region’s plant-based meat and seafood market was worth USD 326 million in 2022, accounting for only 5.35% of global plant-based meat and seafood sales. This compares to Europe and North America, which together account for more than 85% of global sales. Thus, the plant-based meat industry in APAC is still in its infancy, with large scope for growth, especially considering the large population in the APAC region.

That does not mean that the plant-based meat and seafood market in APAC has not seen its share of growth in recent years. According to Euromonitor, the plant-based meat and seafood market in the APAC region has grown at a compound annual growth rate (CAGR) of around 12.5% between 2018 and 2023, outpacing the global average of around 12%. Plant-based meat and seafood consumption in APAC peaked in 2021, with 42% growth.

However, Euromonitor expects APAC to experience more subdued growth in the future with a CAGR of around 5.5% predicted between 2023 and 2028. The focus of industry players in the coming years will be to generate interest among consumers after consumers reacted negatively to unpleasant experiences with products that did not meet taste expectations during the early era of innovation. Taste continues to be a major barrier to increased consumption for plant-based meat on a global scale. Thus, plant-based meat companies aiming to increase sales in the APAC region should focus to address this issue.

Figure 2. Global plant-based meat and seafood retail sales by region in 2022

Plant-based Milk

The plant-based milk market in APAC was worth USD 9.8 billion in 2022, accounting for 51.26% of the global market. This far eclipses the North American and European markets, which have market shares of 18.83% and 21.44%, respectively. The market share of APAC more closely aligns with its large share of the global population, suggesting a mature plant-based milk market in APAC. The plant-based milk market accounts for an astounding 96% of the total plant-based food market in APAC.

According to FoodNavigator Asia, the popularity of plant-based milk in the APAC region is due to three main factors (1) the prevalence of lactose intolerance among Asian consumers, which makes them more receptive to dairy alternatives, (2) increased environmental concerns among Generation Z and Millennial consumers, and (3) individual taste preferences among consumers.

Furthermore, Milieu reports that mounting calorie concerns and the growing preference for vegan diets are driving the popularity and growth of plant-based milk alternatives in the APAC region. This is especially true in Singapore, where the plant-based milk market is rapidly gaining mainstream popularity, with 87% of consumers having tried a plant-based milk beverage and a significant 62% consuming it regularly. However, price remains a barrier for rapid expansion and mainstream adoption.

Similarly, oat milk is gaining rapid popularity in China. Even though other dairy alternatives such as soy, coconut, and almond milk dominate the plant-based milk market, oat milk is rapidly growing following the introduction of Oatly in 2018. According to Euromonitor, oat milk has grown to account for 2.5% of the plant-based milk market in China in 2022. Thus, although the plan-based milk market is well-established in APAC, there is still room for growth.

Figure 3. Global plant-based milk retail sales by region in 2022

Plant-based Cheese

The plant-based cheese market in APAC was worth USD 12 million in 2022, accounting for a mere 1.38% of the global market share. The vast majority of the global plant-based cheese market share is concentrated in Europe (60.92%) and North America (34.14%), with very little consumption in the rest of the world. It is possible that plant-based cheese has not found widespread adoption outside of the western world, hence the low sales in APAC.

Figure 4. Global plant-based cheese retail sales by region in 2022

Plant-based Yogurt

The plant-based yogurt market in APAC was worth USD 96 million in 2022, accounting for 5.9% of the global market. Similar to the global cheese industry, the yogurt market is highly concentrated in Europe (61.5%) and North America (30.26%), with very little consumption in the rest of the world. However, plant-based yogurt consumption appears to be on the rise in APAC compared to Latin America and the Middle East and Africa, suggesting slightly higher adoption.

Figure 5. Global plant-based yogurt retail sales by region in 2022

Conclusion

In conclusion, although the plant-based industry in APAC is the largest in the world in terms of global regions, it is still relatively underdeveloped when considering its large population. The plant-based milk sector is well developed and mature. However, the plant-based meat, cheese, and yogurt sectors still have significant scope for growth and development. Plant-based companies should focus on introducing more diverse offerings to consumers across APAC and foster adoption of the more underdeveloped product categories in an effort to foster growth in the industry.