According to ConsumerIntel360, plant protein consumption increased at an annual growth rate (AGR) of 30.0% during 2018-2019, in Indonesia. One of the major drivers of the Indonesia plant-protein market is the increasing demand for soy proteins. However, the key sources of protein differ from region to region. For instance, in Java consumers prefer tempeh and tofu, whereas, fish is one of the major sources of protein in Nusa Tenggara. This difference is also seen in the social groups: on one side, the consumption of protein is considerably higher among wealthier social groups while the energy and protein intake is inadequate among 60% of the poor and middle-income Indonesian households.
In Indonesia, animal-based proteins are predominantly consumed proteins. However, various trends are setting the path for the growth of the plant-based protein market in Indonesia. Given the big gap in protein intake, several small and big companies are capitalizing on the opportunity in the Indonesian market. The plant protein market is still in the nascent stage and hence there are fewer players in the market. Apart from established companies like Cargill, Inc., and Archer Daniels Midland Company, several startups are emerging to tap the growing opportunities in the market. These startups are working towards developing newer blends and sources of plant-based proteins. For instance, Better Nature, a food technology startup, is on a quest to revolutionize tempeh, the high-protein traditional Indonesian fermented soybean product that is a staple of the daily diet of the nation.
The plant-based protein companies in Indonesia are competing with companies of two different industries at the same time. In the first place, they have to compete with large animal-based protein suppliers. Companies like Charoen Pokphand Indonesia, Japfa, Comfeed Indonesia, Malindo Feedmill, and Sierad Produce are the large animal-based protein companies in Indonesia. Secondly, they have to face competition from companies of their own kind who are striving to spread awareness related to the nutritional values of plant-based protein and foods.
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