Vietnam Plant Protein Market Forecasts from 2023 to 2028

The Vietnam plant protein market is projected to witness a compound annual growth rate of 7.89% to grow to US$50.614 million by 2028 from US$29.747 million in 2021.

The growing shift from animal-based diet to plant-based food in Vietnam is anticipated to boost the demand and market growth of plant protein in the country. In addition, the inclining shift from consuming rice towards rice protein in Vietnam is also one of the driving factors for the plant protein market. Pho, one of the main and most famous dishes in Vietnam, is also made using rice. However, there are some risks involved with the excess consumption of rice, such as increasing risk of developing cancer, heart disease, and type 2 diabetes due to the presence of arsenic in the crop. Thus, a gradual shift towards alternatives to rice, such as rice protein is being observed lately.

Growing Preference for Plant-Based Diet

According to the 2022 Environmental Awareness on Plant-based meat consumption in Vietnam released by the LAB University of Applied Sciences, a survey was conducted and published in April 2022, regarding the consuming habits of the Vietnamese population. The survey results revealed that over 65.6% of the Vietnamese population participating in the survey agreed to protect the environment. In another question, around 60.5% of the survey respondents believed meat production to be harmful for the environment. In addition, a major 84.1% of the survey respondents agreed to try consuming a plant-based meat diet. Another question asking about the replacement of meat with plant-based meat for daily consumption had about 47.7% respondents agreeing to it.

Increasing Demand for Soy Protein

Soy protein is a prominent sector and holds a significant share as soy is a very good source of protein, has low viscosity and solubility among others, and is extensively used across all sectors. Companies have recognized the need of people in Vietnam that are looking to switch towards a healthy diet and healthy lifestyle. For instance, in July 2022, Vinsoy launched the first plant-based yogurt drink called VEYO in Vietnam. According to the Observatory of Economic Complexity (OEC), the import value for soybean meal in 2021 was US$ 2.1 billion in 2021 and the major exporters were Argentina (US$ 1.4 billion or US$ 1,440 million), Brazil (555 million), India (55.4 million), the U.S. (25.5), and China (16 million). In 2021, Vietnam was the second-largest importer of soybean meals.

Increasing Prevalence of Health-Issues

The increased vegetarianism and veganism due to increasing incidents of obesity, asthma, blood pressure, and others among the population is providing an edge for market growth. For instance, as per the World Bank statistics, 6.1 million people in Vietnam suffer from diabetes, in 2021 and the prevalence is increasing year-on-year. The consumption habit of people can be one of the reasons which influence the growth of diabetes, demanding a change in eating habits. Moreover, the increase in vegan and flexitarian population is also increasing in the country. 15% of people in Vietnam follow Buddhism and the majority of these people are vegetarian and consume plant-based products.

Replacement of Pork Consumption

The increasing demand for plant-based protein increase can be attributed to the reason there is high consumption of pork among the locals in the country. As per the Organization for Economic Co-operation and Development (OECD) Vietnam is likely to be ranked second in terms of pork consumption in the Asia Pacific. OECD estimates that there would have been 3.4 million tons of consumption of pork by the year 2022, and excessive consumption of pork can lead to foodborne illness. Pork is high in protein and if people wish to switch to a plant protein diet soy can be a perfect alternative for pork as it is in reducing bad cholesterol, known as LDL cholesterol, and promote the increase of good cholesterol of HDL. The increasing use of soy as an alternative for meant by people in Vietnam is propelling the market growth for soy protein in the projected period.

Major Market Players

• Roquette is a global leader in the production of plant-based ingredients and a pioneer of plant proteins and a leading provider of pharmaceutical excipients. The company, in its plant protein business, has NUTRALYS® T protein is environment-friendly and clean-textured plant protein to easily formulate nutritious plant-based foods. The company has commercial units, production units, and research and development centers in more than 40 countries including Vietnam.

Key Market Developments

• Dupont, a renowned market player, launched its plant-based Danisco Planit portfolio in July 2020 to expand its plant-based protein offerings.
• Vietnamese dairy company, TH Group, in May 2023 launched its own plant-based oat milk consisting of 0.5 gram of protein per 100 ml of serving.
• In July 2022, Vinasoy launched one of the Vietnam's first plant-based yogurt drink VEYO which reported to be having 1.2 grams of protein per 100 ml of serving.
• In June 2023, Alt-protein firm a green rebel offers plant-based protein dishes. The company plans to start its operation in August 2023, the reason the company chose Vietnam for the operation was stated as the country has higher meat consumption in the region.

Segmentation:

By Source

• Pea
• Rapeseed
• Soy
• Hempseed
• Others

By Form

• Protein Concentrates
• Protein Isolates
• Protein Hydrolysate

By Application

• Dietary Supplements
• Food and Beverages
• Pharmaceuticals
• Animal Feed

By Distribution Channel

• Online
• Offline