Thai dairy alternatives and meat substitutes market to grow 3-5% CAGR by 2028

Manufacturers are using new ingredients and technologies to improve their products.

Thailand's plant-based dairy and meat alternatives market is expected to grow at a compound annual growth rate (CAGR) of 3–5% between 2023 and 2028, according to a report by GlobalData. 

The rising focus on health, driven by concerns over lifestyle diseases like obesity and cardiovascular issues, is pushing consumers towards plant-based substitutes for meat, dairy, eggs, and seafood.

Mani Bhushan Shukla, consumer analyst at GlobalData, noted that many consumers are cutting back on animal proteins to manage cholesterol and weight. 

“The COVID-19 pandemic has significantly raised awareness about the health risks linked to lifestyle-related illnesses, such as obesity and cardiovascular diseases,” he said.

“Plant-based meat alternatives are playing a crucial role in assisting these consumers in adopting low- or no-animal-protein diets,” Shukla added.

Tim Hill, key account director for Southeast Asia, pointed out that although only 4% of Thais identify as vegans or vegetarians, 17% follow flexitarian, pescetarian, or low-meat diets, boosting demand for alternative proteins.

Challenges like taste, nutrition, and pricing compared to animal proteins remain, but manufacturers are using new ingredients and technologies to improve their products. 

Companies are also adding health benefits like extra protein and omega-3s, and obtaining ethical certifications to attract younger, eco-conscious consumers.

As more global and regional companies enter the market, product variety is expanding, with new items like plant-based ground beef, chicken breast, and shrimp dumplings catering to local tastes. 

However, allergens in current alternatives and high prices continue to be hurdles, though hybrid products blending plant and animal proteins could help overcome these issues.