Alternative plant-based protein manufacturers in the Asia-Pacific are diversifying product mixes for baby food, to address the needs of children who suffer from lactose intolerance or milk allergies and the growing number of vegan and flexitarian parents.
As a result, plant-based products are expected to rapidly make inroads into the estimated USD 54 billion Malaysian baby food market in the coming years, according to GlobalData.
Tim Hill, Key Account Director at GlobalData Singapore, said Malaysia's population is expanding, unlike Japan and China. However, fertility has dropped below the required population replacement rate of 2.1 percent.
With over 492,000 new births in 2022, Malaysia is a promising baby care and childcare product market, particularly baby food. Consumer spending on such products is rising as parents value quality over price. This was validated by GlobalData's 2023 consumer survey, wherein 32 percent of Malaysian respondents chose high-quality products and ingredients with good value for baby care and childcare products, compared to 28 percent who said the same for low-price and cheap products.
Bobby Verghese, Consumer Analyst at GlobalData, said consumers are also growing concerned about the ingredients used in baby food, particularly about the presence of residual pesticides, antibiotics, and growth hormones from livestock farms in children's food and snack.
Due to the high prevalence of lactose allergy among Malaysian adults, parents are also concerned about the presence of allergens in baby food. Moreover, many young Malaysians are adopting vegetarian, vegan, and flexitarian lifestyles for health or environmental/ethical concerns and want products that align with their diets for their children. This is spurring demand for plant-based milk formulas and snacks for toddlers.
"Several brands of plant-based baby food, such as Miwako and Smile Organic, are already available in Malaysian stores," said Hill.
Hill continued that in early 2023, Australian company Sprout Organic announced plans to debut its plant-based infant formula and snacks for toddlers in Malaysia. These products are described as vegan and cruelty-free offerings free from common food allergens, such as dairy, soy, gluten, and nuts. Manufacturers also claim their products are free from genetically modified organisms, artificial colours, flavours, and preservatives.
Verghese added that besides product safety, plant-based baby food manufacturers needed to focus on improving products' flavour, aroma, and mouthfeel to gain success in Malaysia. GlobalData's 2023 survey corroborates this. Seventy percent of Malaysian survey respondents said that undesirable taste, texture, and smell put them off from buying alternative food and drink for their children, for example, free-from, low to no, plant-based, and lab-cultivated.
In contrast, only 22 percent were put off by the high prices of these products. Halal certification was a priority for the predominantly Muslim population in Malaysia.
