Food & Beverage Asia February/March 2020

INGREDIENTS
17
When asked why plant-based alternative
is particularly targeted at the younger
generation, Hindocha explained that this
is due to their willingness in accepting
changes, as compared to the older
generation who are already accustomed
to consuming traditional foods and
ingredients.
Another aspect contributing to the rise of
plant-based foods involves the companies
operating in the same space. These
companies, he added, focus their marketing
efforts on social media platforms to reach
out to their audiences. As a result, the
younger generation, who is more digital
savvy, has a higher chance of being
influenced by these marketing efforts.
A study by The NPD Group identified
millennials, born 1981-1996, as the
top consumers of plant-based meat
alternatives. Entitled The Future
of Plant-based Snapshot, the report
highlighted this generation group has
adopted plant-based meat alternatives
as a way to indulge sensible while
addressing their long-term health
goals and animal treatment concerns.
The study further revealed that Gen Xers,
born 1965-1980, are also a core consumer
group of plant-based meat alternatives,
and because many in this group are
parents of Gen Zs, born 1997 to present,
they raised their Gen Z children on plantbased
beverages and foods.
Hindocha continued, “I believe there
is more than a hype to plant-based
alternatives. There are some evidences
showing that plant-based foods actually
contribute positively to the planet, and is
also a healthy alternative. Whether that will
completely revolutionise, it’s happening to
a certain extent in some areas. We have
never seen this number of new start-ups
and drive towards plant-based than we
do today, but we will have to wait and see
exactly how that will turn out.
“AAK has always been in the plant-based
space. Our solutions in vegetable oils,
combined with the work we work on codevelopments
with customers, place us
in a good position to be part of the plantbased
trend.”
Last June, AAK introduced AkoPlanet,
a new portfolio with solutions for food
manufacturers developing plant-based
alternatives to products within the meat,
dairy and ice-cream segments. AkoPlanet
not only enables food manufacturers to
meet a variety of industry opportunities,
such as health, nutrition and sustainability,
but also the growing demand for plantbased
products among consumers,
particularly millennials.
Sustainable sourcing is a crucial aspect
for the plant-based movement, and all raw
materials used in the AkoPlanet portfolio
are traceable to the growing region, the
company claimed. With this new portfolio,
AAK will leverage on its co-development
approach to work with customers to create
tailor-made solutions.
However, price point of plant-based
alternatives is poised to be another issue
to overcome in converting people who are
currently eating meat to meat alternatives.
The price of plant-based meat alternative is
generally more expensive than traditional
meat due to the ingredients required to
produce. Despite higher prices, some
researches have showed that consumers
are willing to pay more for plant-based
alternatives, at least for now.
Hindocha said, “It depends on the
applications and the goals the food
company would like to achieve. In some
cases, they might be able to optimise their
costs, but when it comes to choosing the
ingredients that will make an impact for the
planet and sustainability, they can think in
perspective of the consumers if they are
willing to pay extra for these solutions. It’s
really a balance on the final application,
and how the food company want to position
it in the market.”
Wong Li Na, Senior Marketing Manager of
AAK, acknowledged Hindocha’s views on
price point, and pointed out that millennials
are more willing to pay for a premium to
know where the ingredients in their food
come from. She cited an example of a
food company which piloted a blockchain
technology project to allow consumers
to track their food back to the farms, and
further predicted that many other global
brands will soon to follow.
The AAK Co-Development approach brings the company’s expertise in vegetable oils and fats into
collaboration with its customers
Under this “premium” market also lies
indulgence, where consumers are placing
increasing focus on innovation and even
personalisation. Hindocha highlighted that
this premium indulgence trend is especially
true in Asia as people are starting to earn
more, resulting in higher purchasing power,
and thus more demands on the types of
foods they consume. Beyond taste, it is
about the additional nutrition and selfsatisfaction
values these foods create
that empowers consumers to “feel good”,
he added.
FOOD & BEVERAGE ASIA FEBRUARY / MARCH 2020