Market Trends of Tempeh Industry
This section covers the major market trends shaping the Tempeh Market according to our research experts:
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.
