The surge in health-related issues is the key factor driving consumer preference for plant-based substitutes for dairy, meat, eggs, and seafood. In Thailand, the alternative protein market is experiencing significant growth as manufacturers respond to diverse consumer demands and challenges through innovative product development. The entry of more multinational companies and innovative startups is anticipated to propel the dairy alternatives and meat substitutes market in Thailand, resulting in a compound annual growth rate (CAGR) of 3–5% during 2023–28^, says GlobalData, a leading data and analytics company.
Mani Bhushan Shukla, Consumer Analyst at GlobalData, comments: “The COVID-19 pandemic has significantly raised awareness about the health risks linked to lifestyle-related illnesses, such as obesity and cardiovascular diseases. As a result, an increasing number of consumers are reducing their intake of animal-derived proteins to better control their blood cholesterol levels and body weight. Plant-based meat alternatives are playing a crucial role in assisting these consumers in adopting low- or no-animal-protein diets.”
Tim Hill, Key Account Director, Southeast Asia, GlobalData, notes: “Although vegans and vegetarians represent the primary audience for alternative proteins, they constitute only a minor segment of the Thai population. For instance, only 4% of Thai respondents claimed to be vegans and vegetarians in GlobalData’s 2024 consumer survey*. Contrarily, 17% of Thai consumers in the same survey have adopted a flexitarian, pescetarian, or low-meat diet. Producers of alternative proteins are broadening their scope to attract consumers who are cutting back on animal protein for a multitude of reasons.”
Shukla adds: “Differences in sensory characteristics, nutritional value, and pricing compared to animal-derived proteins are significant hurdles to the mass retail acceptance of alternative proteins. To address these issues, manufacturers are focused on improving the sensory appeal of alternative proteins using diverse ingredients and cutting-edge technologies and processes. Additionally, plant-based products enriched with proteins, fiber, calcium, omega-3 fatty acids, and B vitamins are increasingly occupying shelf space, appealing to health-oriented consumers. In addition, alternative protein companies are securing environmental and ethical certifications from well-regarded organizations to attract environmentally conscious Thai youth.”
Hill continues: “A major challenge for the alternative protein industry is the limited range of products and their availability. However, as more multinational and regional companies enter this market, an increasing variety of products are becoming accessible in retail environments, from large supermarkets to small local shops. Manufacturers are moving beyond basic items like plant-based burger patties, sausages, and meatballs to develop alternative protein products that cater to Thai tastes and fit seamlessly into local culinary practices. Additionally, they are introducing advanced product formats, including ground beef, chicken breast, bacon strips, crab cakes, fish sticks, shrimp dumplings, and convenient ready-to-eat meals.”
Shukla concludes: “The presence of allergens is compromising the healthy reputation of soy, wheat, and nut-based alternative proteins, which currently dominate the Thai market. To address this issue, major food corporations and startups are turning to other protein sources, including mushrooms, algae, seaweed, and legumes. Consequently, dairy and meat substitutes derived from green peas, fava beans, chickpeas, and lupin beans are rapidly becoming popular in Thailand.
“However, the substantial price disparity of alternative proteins may pose challenges to the segment’s short-term growth amid rising inflation. In the years ahead, it is anticipated that companies will introduce more hybrid products that combine animal-derived proteins with alternative proteins to leverage the advantages of both and address consumer hesitance.”
^GlobalData Consumer Intelligence Center – Market Analyzers, accessed in September 2024
*GlobalData Q1 2024 Consumer Survey – Thailand, published in April 2024, with 509 respondents
