The global plant-based food industry is experiencing significant growth, with emerging markets in Asia and Africa playing a pivotal role in this expansion. As consumer preferences shift towards healthier and more sustainable options, plant-based brands are making strategic inroads into these fast-growing regions. 

Market Growth and Consumer Demand 

In Asia, the plant-based sector has witnessed remarkable progress. According to Innova Market Insights, Asia experienced an 85% compound annual growth rate (CAGR) in food and beverage launches with plant-based claims between 2018 and 2022, the fastest globally. Organizations such as Dao Foods International are actively promoting the growing opportunity for plant-based foods in Asia and supporting a portfolio of companies poised to break through in various regions.

This surge is driven by increasing health consciousness, environmental concerns, and a rise in flexitarian diets among consumers. 

Africa is also emerging as a promising market for plant-based foods. The continent’s growing middle class and urbanization are contributing to a shift in dietary habits, with a greater openness to alternative protein sources. While specific data on plant-based market growth in Africa is limited, the global plant-based food market is expected to grow threefold, rising from USD 11.3 billion in 2023 to USD 35.9 billion by 2033, indicating substantial opportunities for expansion. Industry leaders, including Plant Based World Expo advisor Michelle Adelman, are specifically targeting the region of South Africa. The company Adleman founded, Infinite Foods, started with a 100% plant-based cafe in Johannesburg and evolved to offer leading plant-based CPG products to the local marketplace.

Latin America marks another market poised to break out as a plant-based powerhouse in coming years. Columbia on it’s own has a plant-based market poised to reach $521 Million by 2028. Brazil has made a multi year commitment to present a pavilion demonstrating product innovation at Plant Based World Expo North America and Europe in the same time span. Latin American markets are traditionally heavy meat consumers, opening up ample room for disruption from plant-based innovations.

While appetite for the plant-based products is high, a variety of challenges present themselves for increased adoption in these emerging areas. 

Challenges in Penetrating Emerging Markets

Despite the promising growth, plant-based brands face several challenges in these regions: 

Cultural Preferences and Dietary Habits: Traditional diets in many Asian and African countries are deeply rooted in local cultures. Introducing plant-based alternatives requires careful adaptation to local tastes and culinary practices. For instance, in Asia, where tofu and tempeh are already staple foods, new plant-based products must offer distinct value propositions to stand out.

Price Sensitivity: Consumers in emerging markets are often price-conscious. Plant-based products, which can be more expensive due to production costs and import tariffs, may face resistance unless they are competitively priced or perceived as offering superior value.

Supply Chain and Infrastructure: Establishing a reliable supply chain for plant-based ingredients can be challenging in regions lacking advanced logistics and storage facilities. This can affect product availability and shelf life, hindering market penetration.

Strategies for Success 

To navigate these challenges, plant-based brands are adopting several strategies: 

Localization of Products: Brands are tailoring their offerings to align with local tastes and culinary traditions. In Asia, for example, companies are developing plant-based versions of regional dishes and flavors to appeal to local consumers.

Strategic Partnerships: Collaborating with local distributors, retailers, and foodservice providers helps brands gain market insights and expand their reach. Partnerships with local influencers and chefs can also enhance brand credibility and acceptance.

Investment in Education: Raising awareness about the health and environmental benefits of plant-based diets is crucial. Many emerging global regions are rapidly moving towards a standard Western diet, and consumers in these regions are not yet accustomed to understanding the benefits of plant-based diets and animal product alternatives. Brands are investing in marketing campaigns and educational initiatives to inform consumers and shift perceptions. 

Future Outlook 

The plant-based food industry in Asia and Africa is poised for continued growth. As manufacturers, retailers and foodservice operators adapt to local markets and overcome existing challenges, these regions are expected to become significant contributors to the global plant-based movement. With increasing consumer awareness and demand, the opportunities for innovation and expansion in these emerging markets are substantial.