Veganism is a growing trend in Indonesia, supported by the country's large Hindu and Buddhist population. Meat consumption is expected to rise in Indonesia, primarily driven by population growth and economic growth. However, because of the influence of the government's health campaigns, more accessible online health-related information, and consumers becoming more health-conscious. Further, middle to upper-class urban Indonesian consumers is migrating to a healthier diet and becoming vegan, vegetarian, or flexitarian. Global companies can identify this opportunity by launching plant-based alternatives in the Indonesian market.
A significant downturn has been forecasted in animal protein consumption in Indonesia. With the growing number of COVID-19 cases, Indonesia was forced to impose drastic measures to control the outbreak. The lockdown impacted the agribusiness sector and caused a slowdown of the country's GDP, capital outflow, and job cuts, ultimately weakening consumer confidence across the country. Industry analysts forecast more negative economic impacts in terms of global recession and global decline for Southeast Asian export economies.
Supply chain and industry productions were hampered due to migrants leaving the country, while Indonesia being highly dependent on migrant workers. Restrictive measures imposed by the government have resulted in the exodus of migrant workers. The reduction of migrant workers in food processing and agriculture sectors will severely disrupt production, supply chains, and distribution. It is estimated that the economic slowdown will impact the overall animal protein sector.
The pandemic, however, is also expected to encourage many Indonesian companies to explore the plant-based foods and proteins market. The protein requirement in the country is usually met by a mix of protein sources, which includes meat, eggs & dairy, fisheries or aquaculture, and plant-based proteins. Food preferences are expected to change in the coming years in the wake of the alleged connection between meat consumption and COVID-19 spread. Everyone is searching for an alternative to fulfill their daily protein needs. This is expected to benefit the plant-based protein market ultimately.
