Asia’s path to a greener future
ALTERNATIVE PROTEINS ---------------
OVERALL
Alternative proteins are derived from sources like plants, fungi, algae and insects. This term can also refer to meat grown in laboratories using animal cells (also known as cultivated or cultured meat). 15,16 Home to a population of 4.7bn people and a growing middle class, Asia is expected to determine the global protein growth trajectory. 17 Estimates suggest that the alternative meat market in Asia will grow from 1% of the global market share in 2019 to 10% in 2029. By 2040 about 60% of meat consumption in the region is expected to come from alternative proteins, with 35% from cultivated meat and 25% from plant-based meat. 18 Alternative proteins provide a promising solution for Asia’s food security challenges, reducing the burden of growing grains to feed livestock. 19 They are not as resource intensive, using 38-91% less land, 53-95% less water and releasing 69-92% less carbon emissions, than meat-based products. 20 These products also have a longer shelf life, reducing the risk of food poisoning and spoilage, and eliminate concerns regarding the use of antibiotics for livestock. Despite multiple benefits, consumer perception remains a barrier in scaling this technology to its full potential, remarks Jolene Lum, Client Development Manager at Nurasa. She says that high costs, unappealing taste and formats for Asian consumers, and their highly processed nature pose hurdles in scaling the technology. “Asia is a highly price sensitive market and so consumers would choose the cheaper, less-processed option”, she says. Ms Lum also notes that the current format of alternative products makes them less appealing to Asians, as they are designed to cater to a more Western-centric diet, featuring items such as burgers and sausages. Moreover, there is resistance to specific alternative proteins in Asia. For example, consumers in some markets find insect proteins unappetising, which hinders marketability. 21 Concerns about the nutritional value of alternative proteins are driven by the fact that they can be highly processed and lack key nutrients such as iron, zinc and B12. 22 However, some companies in Asia are working on products with fewer additives.
IMPACT
SCALABILITY
FUNDING
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Regulatory support to address high costs and consumer awareness is lacking in the region. “It’s still not clear if alternative proteins make up a big part of many people’s diets, which is why it may not be on most health authorities’ radar yet. Potentially governments still think that people are eating the products for novelty, so that’s also a big perception [issue],” Ms Lum says. Alternative proteins have received moderate investments of around US$312m 23 in the region, with plant-based proteins accounting for the largest share, at 70%, followed by cultivated meat, at 20%, and fermentation-based foods, at 10%. 24 However, the fragmented nature of Asian markets, due to diverse geographies and cultures, poses barriers to investment, says Ms Lum. “Consumer insights, logistics, cost and other related aspects vary significantly across Singapore and Indonesia, even though they are geographically close. Unlike the US, Asia is a huge market with many different fragments that need to be worked on individually.” The alternative protein space in Asia is constantly evolving with new technologies and processes. Start-ups in the region are now using innovative fermentation processes to develop alternatives from mushrooms that are flavourful and nutritional. 25 Asia is also set to become home to the world’s first hybrid meat (alternative protein which includes both meat and plant-based ingredients) innovation centre, which is opening in Singapore in 2023. 26 The opportunity is there, but governments and businesses need to work together to give the market what it wants.
“Consumer insights, logistics, cost and other related aspects vary significantly across Singapore and Indonesia, even though they are geographically close. Unlike the US, Asia is a huge market with many different fragments that need to be worked on individually.”
Jolene Lum, Client Development Manager, Nurasa
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