David Yeung: 5 Reasons Why Asia’s Food System Is About To Be Massively Disrupted By Plant-Based Protein
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Being an investor and the Asian distribution partner of Beyond Meat since its early days, I have the honour of having a front-row seat on their epic IPO. There is no doubt the record-shattering listing of BYND sent shockwaves around the world, as people suddenly woke up to the disruption happening in the food industry. In the past few days, I, along with the Green Monday/Green Common team, have been receiving an overwhelming number of media, investor and general public enquiries about the outlook of the plant-based industry, especially here in Asia.
While many remain skeptical about whether the momentum will be carried over to Asia, here are the five reasons why I believe this phenomenon is about to be unleashed in this region in a big way.
1. Influence From Western Trend
From fashion to wellness to overall lifestyle, Asian consumers are strongly influenced by Western aspirational brands and trends. The time-lag varies country by country, but in the age of social media, it is unlikely to take long. Given how plant-based is officially disrupting the global food industry and consumer behaviour, it is not exactly a bold prediction to foresee Asia picking up the trend very soon. In the case of Hong Kong and Singapore, it is already happening, as new-age titans Beyond Meat and Impossible Foods make regular headlines and take the mainstream food scene by storm.
2. Proven Momentum of Plant-Based Brands
As Green Common introduces emerging brands in the Food 2.0 space, not just in Hong Kong but also in Singapore, Taiwan and soon China and Thailand, we witness first-hand how the likes of Beyond Meat, Gardein, Daiya and Califia are swiftly gaining tremendous traction. Beyond Meat sales in this region have tripled every year since its launch in 2015. Omnipork, which targets Asian palettes and cuisines, has been incredibly well received since its launch. Non-dairy brands such as Oatly and Califia are a natural fit and an instant hit because many Asians are lactose-intolerant. Daiya and Miyoko’s Kitchen are constantly surprising us on the positive side with their growing fan base.
3. Ramp-up in Investment & Innovation
A few years ago, most people were wondering why Bill Gates, Li Ka-shing’s Horizon Ventures and Singapore’s Temasek invested in the “Future Food” industry. Not one single soul predicted that the store and distribution network of Green Common would grow this fast in such a short period of time (many in fact were predicting our demise). Today investors and entrepreneurs, along with certain governments, are waking up to the urgency of the climate/food crisis and the opportunities that come with it. The awareness and activity level in the region has noticeably ramped up over the past 6 months. As more capital and resources come in, it will certainly lead to exciting breakthroughs and innovations.
4. Existing But Underserved Demand
Vegetarianism isn’t exactly a new thing in Asia. The demand for plant-based food due to religious, cultural and ethnic reasons has always been here. India of course has the biggest vegetarian population in the world. Countries such as China, Japan, South Korea, Thailand and Malaysia all have huge Buddhist population. It wasn’t until the infusion of Western meat-and-dairy-heavy culture that led people to drift away from such traditions. Vegetarianism began to get a bad rap as old-fashioned, boring and un-nutritious. Now the narrative is turning 180 degrees. Millennials and Gen Z consumers are the ones who are consciously turning vegan for ethical, sustainability and health reasons. The religious/traditional folks who have always preferred plant-based are still here as they enthusiastically embrace these long-awaited new food options.
5. “Black Swan” for Industrial Animal Farming
Pork is the most consumed meat in China, making up 65% of total meat consumption by its 1.4 billion population. With the deadly and highly contagious African Swine Fever threatening hundreds of millions of pigs, all signs are pointing to a potentially devastating “perfect storm” for industrial animal farming. The reality is that the animal protein-oriented food supply chain is unsustainable and has been stretched way beyond its breaking point for a long time. The planet and the outdated food system simply cannot keep up with insatiable human population growth and demand. It is only a matter of time before it collapses, and that time may be NOW.
Lead image courtesy of David Yeung.