Growing health concerns are the primary factor fueling consumer demand for plant-based dairy, meat, eggs, and seafood alternatives. The alternative protein market in Thailand is booming as manufacturers address various consumer needs and pain points through product innovation. Spurred by the entry of more multinational companies and startups into the space, the dairy alternatives and meat substitutes market in Thailand will expand by a value compound annual growth rate (CAGR) of 3.5% over 2022–27*, according to GlobalData, a leading data and analytics company.
Bobby Verghese, Consumer Analyst at GlobalData, notes: “The COVID-19 pandemic elevated public awareness about the health risks due to lifestyle-related disorders, such as obesity and cardiovascular diseases. Subsequently, more consumers are curtailing their consumption of animal-derived proteins to manage their blood cholesterol or body weight. Plant-based meat is aiding these consumers in transitioning to low-/no-animal-protein diets.”
Tim Hill, Key Account Director at GlobalData Singapore, comments: “While vegans and vegetarians are the target cohort for alternative proteins, they make up only a small proportion of the Thai population. For instance, only 3% of Thai respondents claimed to be vegans and vegetarians in GlobalData’s 2023 consumer survey**. Contrarily, 25% of Thai consumers in the same survey have adopted a flexitarian, pescetarian, or low-meat diet. Alternative protein makers are thereby widening their focus to consumers who are reducing their animal protein intake for myriad factors.”
Verghese adds: “However, the differences in sensorial properties, nutritional value, and price compared to animal-derived proteins are the key barriers to mass-retail consumer acceptance of alternative proteins. Manufacturers are thereby striving to improve the organoleptic properties of alternative proteins by using a wider range of ingredients and novel technologies, and processes. Plant-based products fortified with proteins, fiber, calcium, omega-3 fatty acids, and B vitamins are also gaining more shelf space, thereby making a compelling proposition for health-conscious shoppers. Alternative protein makers are also securing environmental and ethical certifications from reputed organizations to attract eco-conscious Thai youth.”
Hill opines: “The limited product range and product availability are the other key pain points for the alternative protein sector. However, with more multinational and regional companies venturing into the space, a plethora of products are making their way to retail outlets, ranging from supermarkets to mom-and-pop stores. Going beyond entry-level products, such as plant-based burger patties, sausages, and meatballs, manufacturers are developing new alternative protein products that are customized for Thai palates and versatile for Thai dishes and culinary practices. They are also unveiling sophisticated product formats, such as ground beef, chicken breast, bacon strips, crab cakes, fish sticks, shrimp dumplings, and ready-to-eat meals.”
Verghese concludes: “The presence of allergens is marring the healthy halo of soy, wheat, and nut-based alternative proteins, which presently dominate the Thai market. To circumvent this, major food companies and startups are exploring other protein sources such as mushrooms, algae, seaweed, and legumes. Dairy and meat substitutes made with green peas, fava beans, chickpeas, and lupin beans are thereby rapidly gaining appeal in the Thai market. However, the high price differential of alternative proteins will impact the segment’s short-term growth amid spiraling inflation. In the coming years, companies are expected to roll out more hybrid products blending animal-derived proteins and alternative proteins to tap the best of both worlds and overcome consumer resistance.”
* GlobalData Consumer Intelligence Center – Market Analyzers, accessed in May 2023
** GlobalData Q1 2023 Consumer Survey – Thailand, with 508 respondents, published in May 2023
