Tempeh Market - Growth, Trends, and Forecasts (2023-2028)

The Tempeh market is expected to register a CAGR of 15.05% during the forecast period.

With an increasing vegan population on the market, the demand for meat substitutes such as plant-based meat products has increased significantly in recent years. Tempeh is one of the most commonly consumed plant-based meats on the market. Tempeh is a nutrient-dense, versatile food that is becoming well-liked across the world with the increasing consumption of plant-based foods as tempeh is a nutritional mealtime option. Additionally, with increasing flexibility among the consumers in the market, However, the major challenge in this sector is the presence of a large number of competing products in the market, such as tofu, textured vegetable protein (TVP), seitan, and Quorn.

Additionally, in recent years, the growing concern about animal abuse for meat production has had a valuable impact on the way consumers think about meat consumption. This factor further changes the consumer's consumption choice towards plant-based meat products to reduce animal slaughtering for meat and thereby increase the demand for meat analogs in the market. Furthermore, various organizations consider slaughtering an ethical issue. According to Animal Clock, as of 2022, more than 55 billion land and sea animals will be slaughtered annually to support the food supply in countries like the United States.

Tempeh Market Trends

Rising Demand for Plant-based Food

Consumer preference for healthier foods has led to the demand for vegetarian and vegan foods such as soyfoods and tempeh. The soy segment is estimated to have grown significantly in recent years owing to the growing awareness among consumers regarding its health benefits, such as the reduction of obesity and blood sugar levels, and its wide application in various food products such as baked goods and snacks. Also, innovations in this sector have further fueled the market growth of tempeh. According to the United Soybean Board, the shares of consumers that consume soyfoods in the United States from 2016 to 2021 have constantly shown increasing trends. Although tempeh has a neutral taste and an unpleasant smell, consumers in the market prefer these products as they go with many Asian and Western cuisines. This encourages manufacturers in the market to offer tempeh products in odorless forms to attract consumers in the market. owing to the demand for these products, promotional campaigns, and investments to promote plant-based meat consumption among consumers. For instance, Denmark's government has invested an estimated USD 10 million in promoting plant-based innovation, sales, and education across the country.

Asia-Pacific to Witness Fastest Growth

The Asia-Pacific region has witnessed continuous growth in the tempeh market due to its lower cost in comparison with other meat substitutes. Furthermore, it offers various benefits such as increasing antibody production, reducing the risk of diabetes, and lowering cholesterol levels in the body, which has led to a surge in demand for tempeh. The largest regional consumer of tempeh is China, followed by Indonesia and South Korea. Tempeh is a staple protein source and a regular part of diets in Southeast Asian countries, particularly Indonesia. However, the production of soybeans is not sufficient to satisfy the consumption volume. Hence, the country heavily imports soybeans from the United States. According to Statistics Indonesia, more than 60% of soybeans imported from the United States, valued at USD 1,286.84 million, will be imported in 2021. Also, the American Soybean Association and International Marketing’s establishment of the Forum Tempeh Indonesia collectively offer financial and infrastructural support to local tempeh producers in Indonesia, contributing to the potential of the tempeh market in Indonesia.

Tempeh Market Competitor Analysis

The global tempeh market is highly competitive, with a large number of domestic and multinational players competing for market share, and innovation in products is a major strategic approach adopted by leading players. Additionally, mergers, expansions, acquisitions, and partnerships with other companies are common strategies to enhance the company's presence and boost the market. The key players in the tempeh market include Nutrisoy Pty Ltd., Future Food Group B.V., Tempeh Meades LTD., Noble Bean Inc., and Maple Leaf Foods Inc. Additionally, the leading players are focusing on leveraging opportunities to expand their product portfolios to cater to the requirements of various product segments, especially the snacking category. Moreover, these global companies are merging with local tempeh product companies to leverage their brand value, distribution, and supply chains.

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