President of Brandigo China, a Shanghai-based full-service marketing communications agency.
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The alternative protein market in China is taking off and marketers are taking note. According to the report “China’s Alternative Protein Market – The next front in alternative proteins,” China is the new battleground for alternative protein and dairy players.
Investment has streamed into China’s alt protein market, fueling new domestic businesses and creating heavy competition between new, agile players and multinational food companies that are also trying to take advantage of the market possibilities.
There is a massive opportunity for consumer and B2B marketing efforts to educate and inform. What are some of the challenges, channels and ways to maximize marketing budgets?
No Strangers to Alternative Proteins
Alternative proteins have a rich history in China — dishes using tofu and other protein substitutes have been part of Chinese diets for centuries. In fact, the Chinese have dabbled in alternative proteins since the Western Han Dynasty when tofu was said to have been invented. Buddhism then brought with it temple cuisine, popularizing vegetarian diets.
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However, China is still the largest meat consumer market in the world, and vegetarian products are still considered a niche area. Marketers have their jobs cut out for them, and the winners — even if only growing the market by single digits — all want a piece of China’s animal protein market. The growth of flexitarians, who aim for a healthier diet without sacrificing meat, has continued to rise in numbers since Covid.
Not surprisingly, the key factors to success, according to the aforementioned report, are price, along with taste and nutritional profile. Without these two critical “Ps” — price and product — Chinese will still prefer traditional proteins. Sustainability messaging is not a strong enough driver on its own.
Positioned for Success
Finding the right position for new products that can appeal to China’s younger, upwardly mobile demographic is critical. However, consumers may not be ready to pay a premium for alternative protein over traditional proteins. Finding the right messaging to cut through to consumers is vital — and reaching early adopters and building loyal fans will be imperative. The demand for healthy products continues to grow, but the battlefield is becoming crowded.
Localized Products
Pork is by far the most popular protein in China, so companies like Beyond Meat, which have until now focused on Western food replacements, will have to work on their product portfolios. They’ve started a collaboration with Starbucks in China to offer Western snacks under Starbucks’ GOOD GOOD brand. Impossible Foods also launched its flagship burger at the China International Import Exposition, supported by live streaming, celebrity chefs and product sampling.
Plenty of restaurants serve burgers, at least in Tier 1 and 2 cities, but summer burgers and grills are not a part of the traditional culture. Local players such as OmniPork, Zhenmeat, YouKuai, Starfield, Hey Maet, HERO Protein and Haofood are using their local know-how of Chinese cuisine and eating habits to create products that appeal to the local market — for example, ground pork substitutes that can be used in Chinese dumplings, ground meat alternatives for stir-fries, as well as Chinese packaged snacks and mooncakes. Local brands are focusing on technology, ingredients and flavors optimized for Chinese food.
What Marketing Is Working?
We’re still in an early phase of plant-based food marketing, with a major focus on building brand fans and educating consumers. Here are some key tactics to pursue:
• Create a message that stands out and connects. If everyone is crowding into the same space, it’s vital to have a strong message. To create this type of compelling message, you have to step back and understand your target audience’s pain points, needs and what makes them excited or interested. But remember, your message in the West may not resonate in China.
• To get to that messaging, dig deeper into your target audience. Are they flexitarians or die-hard vegans? What will compel them to try something new? You can learn about your target audience through interviews. Even a series of 30-minute phone calls with 10 people in your target audience can yield valuable insights.
• Build early adopters. Brand fans can help you promote via word of mouth.
• Work with chefs. China loves a celebrity chef, and competing brands are already out in force in Tier 1 cities.
• Live stream and work with influencers. Do cooking classes and product introductions to reach across the nation. Investing in influencers (KOLs) and live streaming channels can be costly but also effective to reach target audiences.
• With taste as one of the critical measures, large-scale sampling campaigns can be set up in supermarkets and restaurants.
• Create events and collaborations featuring chefs in a competition-style setting. Zrou’s plant-based Chili Cook-Off is a good example of this.
• Develop unique products for fast food/QSR chains to reach the general public.
The alternative protein market in China is poised for growth, but investment and smart marketing are still critical to educate consumers and build brands.
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Author: Michael Golden, Forbes Councils Member
