Asia's economic growth and seemingly constant transformation is buttressed by the continent’s growing affluence and surging middle classes, underpinned by a young, diligent and aspirational population. And, as the region grows richer, the demand for higher-quality, more diverse and healthier produce, especially for protein-rich food, is also rising.

However, as the urbanization of the region continues apace, enormous pressure is put on the natural resources required to produce a sustainable supply of food to match these growing and changing tastes.  

Climate change worries, the Covid-19 pandemic and the dilution of natural resources have aggravated and exposed food security and supply-chain concerns in Asia.

Adding to this, out of nowhere, Russia invaded Ukraine and, in a matter of weeks, Black Sea ports were choked shut, disrupting shipments of oats, wheat and other grains to Asia.

Within Asia, domestic political pressure was applied to keep a lid on food prices and supplies stable. As a result, both India and Indonesia – citing food security concerns  – implemented export bans on wheat and palm oil respectively. Although, Indonesia, after seeing domestic palm oil prices ease, expects to lift the ban on May 23.

Local solution

However, with Asia being home to more than half of the of the world’s population, the sequence of recent events has served as a warning on the need to secure the region's food supply and look at home-grown solutions with an eye to becoming more self-sufficient.

The Singapore government was an early backer of the alternative protein industry, which has led to the city-state becoming a magnet for food innovation firms.

And as one of the region’s key financial, legal, technology and shipping centres – with a plethora of family offices whose next-generation investors are keen to invest in sustainable and environmental ventures, such as alternative protein products –  the future looks bright for the sector in Singapore.

In 2021, Singaporean state investor Temasek launched the Asia Sustainable Foods Platform to focus on addressing the challenges of scaling up the production of alternative proteins, as well as accelerating the growth of sustainable foods in Asia.

The sovereign fund has invested in high-profile California-based Impossible Foods and Singapore firm Next Gen, which produce plant-based meat and dairy substitutes.

It is also an investor in Growthwell Foods, a Singapore-based manufacturer of plant-based alternative meat and seafood products. Unlike other producers, Growthwell works with retailers to help them build in-house brands or private-label plant-based products of their own.

Huge potential

Speaking to The Asset, Manuel Bossi, group CEO of Growthwell Foods discussed the next phase of growth for the sustainable plant-based food and nutrition industry, and how products can be designed to meet the demands of Asian palates.

TA: How big is the potential Asian plant-based protein market?

MB: Although the market is growing from a smaller base (as compared with Europe and the US), the potential in Asia is tremendous. The region has already seen a steady growth in the plant-based market over the last few years and this will continue to accelerate.

According to a research report study by DuPont Nutrition & Biosciences and IPSOS, the demand for plant-based meat in the region is expected to increase by 25%, or US$1.7 billion, in market size over the next five years. 

That is just for the plant-based meat category. By 2030, Asia is expected to account for 70% of global fish consumption. However, the depletion of fish stocks and concerns about antibiotic use in fish farms are growing, and these will generate a demand for plant-based seafood options.

TA: What does investment from Temasek do for your company’s stature?

MB: The investment signals the potential of the industry, especially in Asia. Faced with climate change and declining production yields, Temasek recognizes our ability to develop novel solutions tailored to not only be more efficient in meeting global food security needs, but make a positive impact on the environment while contributing to Singapore’s strategic interests.

TA: What is the cost involved in innovating new plant-based products? Is the research and development of plant-based proteins very expensive?

MB: Offering quality products at an accessible price point is key. Thus, we make conscious decisions in selecting the right ingredients and processes when developing our products to ensure low costs and viability in the market. There is a constant process of learning from the market in making our products affordable.

TA: Do you have ambitions for a public listing for Growthwell Foods?

MB: Our key mission is to nourish a billion lives all over the world. We believe in our innovation and our products, and will continue to strive to deliver the best to our customers. It will always be a priority to make great tasting plant-based nutritional choices that are accessible and affordable.

Technological advances

TA: Asia’s generational change is seeing greater awareness and commitment to sustainability and environmental, social and governance criteria, will plant-based foods be able to leverage off this movement for the long term and why?

MB: The plant-based movement has gained significant momentum in the last few years, and we expect it to keep growing. Asians have been including plant-based food as part of their diet for a long time with common food items like tofu and mock meats.

However, what has really propelled the growth of the plant-based movement in the last couple of years is the uptake of a flexitarian diet due to various reasons, such as people wanting to improve their overall health and a greater awareness of the impact of meat consumption on the environment.

Furthermore, due to the advancement of technology in creating plant-based alternatives, we are able to innovate and introduce plant-based products, such as seafood and meat, that are similar in taste and texture to the real thing.

We recognise the importance of taste and texture in our products. Coupled with a greater awareness of the health and environment benefits, and the availability of tasty plant-based options in the market, plant-based foods are here to stay and will continue to improve as consumer demand grows.

TA: Does Growthwell Foods have ambitions or plans to open production plants/hubs elsewhere in  Southeast Asia?

MB: Our focus for this year is to expand our presence in Malaysia, Taiwan, China and, outside of Asia, into Europe. We are currently exploring opportunities to work with other companies in extending our products and services to other businesses and consumers in these markets.

Given the positive impacts plant-based products have on the environment, we understand the need to reduce our carbon footprint where possible. Thus, we are also exploring options to get access to production capacity closer to these markets.