South and South-East Asia's shift to a Western diet could drive demand for Australian grain
Western food has become increasingly popular in Asia. (Reuters: Eriko Sugita)
In short:
More people across Asia are eating Western food, largely driven by globalisation and higher incomes.
High-quality grains are needed to produce the in-demand products, but the local region faces agricultural challenges, limiting yield potential.
What's next?
Australian grain producers have an opportunity to supply these markets as the popularity of Western food grows.
The dietary habits of South and South-East Asians are undergoing a significant transformation.
As Western fast food chains expand their reach and disposable incomes rise, more people across the region are shifting away from traditional diets.
This transition isn't just reshaping local food cultures — it's fuelling a growing demand for Australian grain, positioning the country as a key supplier to South Asia's evolving markets.
Why is the Western diet becoming more popular?
Across the Asian regions, the increased popularity of Western food has been driven largely by globalisation.
Farwa Aamer, director of South Asia Initiatives at the Asia Society Policy Institute, grew up in Pakistan and said international franchises had made Western food easily accessible.
Globalisation has contributed to the popularity of Western food in Asia. (Reuters: Thomas Peter)
"You were pretty excited as children when McDonald's first opened up or Pizza Hut was opened up," she said.
Despite home-cooked meals remaining central to South Asian households, the appeal of convenience is reshaping diets, particularly in cities.
Fast food and processed snacks have become a staple for younger generations.
"It was a gradual change, and over time, Western food became more embedded in daily life,"she said.
Economic growth is another driver.
"You've also seen more members of the household going into labour — women are working more, of course, so there's a little bit more sort of income rise. Your purchasing power parity has increased," Ms Aamer said.
"Hence, the demand and consumption have also increased."
With more disposable income and busier lifestyles, people are eating out more frequently and incorporating Western-style meals into their diets at home.
The convenience of fast food is becoming more appealing. (Reuters: Shailesh Andrade)
Importing grain from Australia
As Western eating patterns take hold, Asia's reliance on imported grains is increasing.
Vitor Pistoia, a grains and oilseeds analyst at Rabobank, says the trend is clear.
"The main reason is because those countries' populations are growing at a strong pace and they are changing their diets. They are moving to more Western diet style with more meat, more fast food,"he said.
"For those countries, if they choose to go to that path, they will need to import more because they have some environmental limitations.
"It's an opportunity in the coming three, five, 10 years for Australian exports to pick up momentum."
Asia's shift towards a Western diet could open up new opportunities for Australian grain farmers. (ABC Great Southern: Sophie Johnson)
He said South and South-East Asia face challenges in producing high-quality grains, including unsuitable climates, soil conditions and limited farmland.
This makes domestic production of key grains like wheat and barley difficult, increasing dependence on imports for these Asian countries.
Australia has several advantages in supplying this growing demand.
"First of all, we have an advantage that other countries don't have — we are the closest exporting nation to that region," said Mr Pistoia.
"A few days in the sea and the vessel can reach Vietnam or Malaysia."
In addition to logistical advantages, Australia produces high-quality wheat and pulses that align with Asian dietary needs, as well as supporting animal production with feed grain.
Mr Pistoia said that as South and South-East Asian countries moved closer to a Western diet, they were very likely to increase the consumption of animal proteins such as beef, or animal products including eggs.
Therefore, they will also need to import feed grains.
Demand for feed grain could also increase. (Supplied: Australian Lot Feeders' Association )
The growing popularity of vegetarian and plant-based diets is also driving demand for alternative protein sources, such as chickpeas and lentils.
"Legumes have picked up quite a lot of interest following India's decision to remove tariffs and their bad seasons over the last three years," Mr Pistoia said.
"They need to import more lentils, peas and chickpeas."
For Australian farmers and exporters, this shift presents an opportunity to strengthen trade relationships.
"The growing population, increasing GDP per capita, and shifting diets present a lucrative opportunity for Australian grain producers," said Mr Pistoia.
Vitor Pistoia says Australia has strategic advantages in selling to Asia. (Supplied: Rabobank)
Food security concerns with Western diet shift
With diets evolving and demand for grains rising, Ms Aamer is concerned for what this could mean for food security.
"When you look at the future of dietary patterns in this part of the world, you have to see how sustainable they are," she said.
The challenge is multifaceted.
South Asia is home to some of the fastest-growing populations in the world, putting immense pressure on food supplies.
Climate change is further complicating agricultural production, with unpredictable weather patterns, droughts and floods threatening staple local crop yields as well as fish stocks due to salinity.
At the same time, inflation has driven up the cost of basic food items, making nutritious meals increasingly out of reach for many low-income households.
"Fruits, vegetables, your pulses, all of these have, over the years, because of inflationary pressures, become really expensive,"Ms Aamer said
"When the Ukraine conflict happened, you kind of had a string of statistical questions, one of them being sort of inflationary pressures not only on energy prices, those on food prices, you know, grains and all became expensive."
While Western food habits gain traction, long-term affordability remains a concern.
Comparing the cost of each diet, when eating out in some countries, the Western diet costs on average $18 more per day than enjoying local Asian cuisine.
"In terms of affordability, I don't think that the Western diet will be affordable in South Asia, especially if it's imported," she said.