- KResearch forecasts that the market for alternative proteins from new food innovations will reach THB9,700 million in 2024, representing a 3.2% growth. This growth is attributed to the increasing number of products in the market and expanded sales channels, which have enhanced consumer access.
- The market remains highly competitive as there are both domestically produced and imported alternative protein groups with fluctuating raw material costs, which continue to pose risks to businesses.
Over 7.2 million Thais do not consume meat with more than 50% residing in the central region and Bangkok. Consumers are becoming increasingly familiar with alternative proteins from new food innovations, following over 5 years of market presence in Thailand. Currently, more than 7.2 million Thais follow a meat-free diet with over 50% residing in the central region and Bangkok (Figure 1). As a result, these areas are expected to remain promising for market expansion due to their higher purchasing power, compared to other regions (Figure 2). In 2024, the market value of alternative proteins from new food innovations is projected to reach THB9,700 million, with a growth of 3.2% driven by product diversity and an increasing number of consumers.The growing acceptance of alternative proteins from new food innovations has led to an increase in the number of products and sales channels, making it easier for consumers-especially flexitarians and vegans-to access these products. KResearch expects the market value of alternative proteins from new food innovations to reach THB9,700 million in 2024, representing a 3.2% growth. This growth is particularly notable during the Vegetarian Festival, when manufacturers increase their production capacity by more than 30% (throughout the 10-day festival). It is anticipated that sales can increase by approximately 30% as compared to normal periods. Although the beverage segment holds only a 39% market share, it continues to grow at a faster rate than the food segment, driven by its affordable prices and a wide variety of brands (Figure 4).KResearch forecasts that in 2024, the beverage segment of the alternative protein market, despite accounting for only 39% of the total, is projected to grow by 6.1%. This growth can be attributed to its affordable prices and increasing popularity as an ingredient in beverages, particularly among health-conscious consumers and those with dairy allergies such as lactose intolerance. While the food segment is projected to grow by only 1.4% this year, despite manufacturers' efforts to price their products competitively with traditional options like ready-to-eat meals from convenience stores, the high prices of certain items, such as plant-based ground meat and plant-based grilled pork stick, may deter consumers from frequent purchases.The business is still facing intense competition, both from domestic and imported products, as well as fluctuating raw material costs.1. The intense competition among alternative protein food products, both domestically produced and imported from countries like Singapore, China, and the United States-especially in the beverage segment-has resulted in over 100 brands in the market. Moreover, the wide variety of conventional food products, with different price ranges, types, and distribution channels, allows consumers, particularly those with low to middle incomes, to adjust their consumption patterns according to their financial capabilities at different times.
2. Raw material costs continue to fluctuate and are expected to rise, accounting for approximately 40-50% of total production costs. Fluctuating weather conditions may impact yields and prices, especially for soybeans, which are heavily reliant on imports. Additionally, domestic production of raw materials such as mung beans and split gill mushroom remains insufficient.
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