Market Trends of north america meat substitutes Industry
Tempeh prices in the region are highly dependent on the global soybean market
- Tempeh prices gradually increased over the years, mainly to combat inflation and rising soybean prices. The price of tempeh grew by 3.94% in 2022 from 2017. Since soybeans are the main ingredient used to make tempeh, the rising cost of soybeans in the global market is mostly contributing to increasing tempeh prices. With the rising production and raw material costs, regional manufacturers either import from their facilities in other producing countries or partner with a different manufacturer.
- Prices of tempeh are comparatively similar in Mexico and Canada, which is almost 50% less than in the United States. The market has seen the presence of numerous variants of tempeh, with plain tempeh being sold at a lower price compared to other value-added products. Organic tempeh is the most popular value-added tempeh form currently present in the market and is sold at a premium price. Players are offering products in various packaging formats, such as cans and plastic packs, to serve different utilities.
- The price of tempeh is directly linked to the price of soybeans in North America, and the market's future is highly dependent on soybean prices. In 2023, soybean prices weakened in May due to expected growth in supplies and a downward trend in outlook. Prices averaged 1,369 cents per bushel in May 2023, which was 8.0% lower than April’s price and also down by 17.6% from the same month in the previous year. Meanwhile, on May 31, 2023, the spot price was 1,300 cents per bushel, which was down by 10.0% from the same day of the previous month. Stricter customs checks in China, likely a government move to support demand for domestic soybean production, and weaker-than-expected economic data from China are expected to hinder market prices during the study period further.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Efforts by governments and rising demand are anticipated to optimize prices
- Market prices are anticipated to stabilize as the tofu market is maturing
