As environmental challenges grow, there is an increasing need for sustainable innovation in Asia’s food and beverage (F&B) industry. Asia, home to approximately 60% of the world’s total population, has one of the most dynamic food markets globally. Population in the region is expected to increase to 5.27 billion people in 2050 from 4.64 billion people in 2020. This surging population, along with evolving consumer preferences and needs, is reshaping the F&B  market as sustainable practices become essential. 

According to reports, spending on sustainable food in Asia is accelerating and projected to surpass US$2 trillion by 2030. Post pandemic, consumers’ purchasing habits and food consumption patterns have changed, particularly among the middle class with disposable income. This shift is possibly driven by an increasing focus on well-being, health and environmental awareness. Data shows that by 2030, an estimated 65% of the world’s middle class will reside in Asia, up from 46% in 2015. 

Additionally, governments are also supporting  food sustainability through the implementation of  new laws and regulations. The numbers tell a story too: A survey by Rakuten Insight in December 2023 revealed that about 96% of respondents in the Philippines consider environmentally friendly, sustainable production important. This was followed by Indonesia at 93%, Vietnam at 90% and Thailand at 89%.

Similarly, another survey conducted among APAC consumers highlighted that over half of the respondents (54.6%) have adopted sustainability practices in their purchasing, up from 51.9% in 2022. Gen Z and millennials in the region were the most proactive, particularly in markets such as Indonesia, Thailand, the Philippines and Vietnam. This evolving market and changing consumer preferences are creating opportunities that blend health, food and sustainability.

Thanit Apipatana, a Bangkok-based entrepreneur, investor, and startup advisor, notes that post Covid-19, consumers are reassessing their eating habits and purchasing behaviours, which is influencing how food is produced, packaged and consumed.  

“In Southeast Asia, where sustainable agriculture is a key priority, big and small businesses have an immense opportunity to align with these changing consumer preferences and gain a competitive edge. From plant-based meat substitutes to sustainable business practices and technological innovations, the F&B landscape in the region is transforming, providing consumers with more choices for the food they consume,” notes Apipatana, who has advised and invested in companies across the region, including Singapore-based proptech startup Mogul.sg and Thailand-based Life Below Labs. 

The Growing Market for Plant-based Protein

Increased awareness among consumers about the health benefits of plant-based protein or meat alternatives and a rising demand F&B manufacturers, among other factors, could be contributing to the adoption of plant-based protein in the region. A Rakuten Insight survey conducted early this year found that 86% of surveyed consumers in Vietnam had tried plant-based food alternatives, the highest percentage in Asia. Revenue in the meat substitutes market in Asia is expected to be approximately US$3.74 billion in 2024, while the market is projected to grow annually by 10.17% between 2024 and 2029, according to data from Statista.

Another report suggests that the plant-based protein market in the Asia-Pacific (APAC) region is projected to reach US$7.27 billion by 2030, at a CAGR of 12% from 2024 to 2030.

Plant-based alternatives to meat have almost similar nutritional profiles as animal-sourced meats. These include soy protein such as tofu and tempeh, wheat gluten (seitan), which has a texture similar to chicken, as well as legumes, mushrooms, and jackfruit. These meat substitutes have enhanced nutritional value, higher fiber content, lower fat levels and zero cholesterol.

Seeing opportunity in the alternative protein sector, in 2022, Singapore’s Temasek, through its Asia Sustainable Foods Platform, and German agri-food major Cremer, jointly invested S$6 million to produce plant-based alternative proteins. With the contract development and manufacturing facility in Tuas, Singapore is expected to produce up to 1,300 tonnes of plant-based products annually.

According to Statista, as of the second quarter of 2023, total investments in Singapore’s alternative protein market reached US$320 million, while plant-based alternatives received the most funding in the APAC region. 

Sustainable Dining Option: Farm-to-Table

In the last few years, many restaurants in the region are prioritising locally-sourced produce, embracing zero-waste cuisine and implementing energy-efficient practices to cater to consumers’ growing preference for eco-friendly dining options.

These restaurants source ingredients locally, working closely with farmers, fishermen and suppliers to ensure the quality and freshness of their ingredients. This practice not only supports local communities but also minimises the carbon footprint of restaurants.

“By backing the farm-to-table concept and encouraging more locally-sourced produce, restaurants can play a vital role in promoting sustainable dining options, encouraging a culture of mindful eating that benefits the environment,” adds Apipatana. 

Similarly, food companies are also exploring innovative packaging methods, such as biodegradable materials and reusable containers, to minimise their ecological footprint.  

As consumers become more aware of the environmental and social impacts of their food choices, businesses are being pushed to adopt transparent and ethical practices. Last December, a survey by Rakuten Insight pointed out that about 77% of Thai respondents were willing to pay more for sustainable products. The same survey found that 62% of Thais had adopted sustainable consumption practices when purchasing products. 

In 2021, global investment firm Temasek launched the Asia Sustainable Foods Platform to back food-tech companies in product development and scaling business. The platform focuses on commercialising sustainable foods in Asia. Temasek has invested over US$8 billion in the farm-to-fork value chain, targeting companies that can reduce the environmental impact of the agri-food system and make healthier food more accessible.

The sustainable food market worldwide was valued at US$1.2 trillion in 2023 and is projected to reach US$2.5 trillion by 2030, growing at a CAGR of over 10% annually. 

Sustainable Packaging: The Future of the Food Industry

The F&B sector leads the eco-friendly packaging market in the APAC region, driven by the growing adoption of sustainable options like compostable materials and molded pulp. In 2023, the market was valued at US$67.69 billion, driven by increasing awareness of sustainable practices and stringent regulatory measures. The market is expected to reach US$124.36 billion by 2030. 

Rising environmental concerns have prompted stringent government regulations across multiple countries in the region. These regulations are encouraging industries to seek biodegradable plastic packaging solutions sourced from sustainable materials.

The F&B industry in the region is embracing sustainable packaging materials that reduce reliance on fossil fuels and offer compostable alternatives. Companies are innovating in packaging design to minimise waste and enhance recyclability. Adopting a circular approach involves evaluating the entire lifecycle of packaging, from extracting raw materials to disposal.

Achieving sustainability in the F&B sector is a complex yet essential task that requires the collective efforts of governments, business and consumers. Investing in innovation and research is key to meeting the evolving consumer demands and business dynamics while staying committed to sustainability. 

Who is Thanit Apipatana:

Thanit Apipatana is a Bangkok-based entrepreneur, investor, and startup advisor with a keen interest in venture building, real estate, F&B, sports and philanthropy. Mr. Apipatana has advised and invested in companies in the region, including Singapore-based proptech startup Mogul.sg and Thai-based Life Below Labs. As a thought leader, Mr. Apipatana shares his insights on entrepreneurship, F&B, education, sports and the social sector.