Tempeh Market

Tempeh Market Outlook (2023 to 2033)

The Global Tempeh Market is valued at US$ 4,903.3 Million for 2023 and is expected to reach US$ 7,947.9 Million by end of 2033 with the growth of rate of 6.1%. The rising vegan aisle followed by growing preference for healthier foods has spurred the demand for tempeh in the global market.

Tempeh Consumption Analysis (2018 to 2022) Vs. Market Estimations (2023 to 2033)

During historical period of assessment (2018 to 2022), the market incurred the sales of approximately of around US$ 3,629.7 Million for 2018 and grew by 5.9% to reach the valuation of around US$ 4,082.9 Million by end of 2022.

Tempeh is an Indonesian staple food, which is an ideal meat alternative that is high in protein and resembles meat like texture. The growing concern about animal abuse for meat production, has changed the consumer perception due to which shoppers are gradually shifting towards plant-based meat which is likely to offer lucrative growth opportunity to tempeh market. Therefore, global consumers are increasingly exploring newer varieties in this category and new players emerging constantly in the market, the tempeh market is likely to witness an exponential growth globally, over the forecast period.

In the forthcoming years, the tempeh market is estimated to reach to US$ 4,082.9 Million by end of 2033 with growth rate of 6.1%, owing to rising consumer awareness regarding meat substitutes especially soy food products that is said to increase at an exponential rate over the forecast period.

What are the Key Trends in the Market for Tempeh?

“Rising Health Awareness and increasing vegan population”

Consumers are inclining towards plant-based meats in the recent years, and this has been dramatically increasing over the last few decades, owing to the growing concern animal abuse and cruelty. The sales of plant-based meats are expected to continue to show double-digit growth during the forecast period. In fact, the demand for plant-based meats is expanding significantly; consumer demand is exceeding some domestic supplies owing to a rise in the awareness about the critical health benefits gained by the consumption of plant-based food products,

In addition, over the past couple of years there has been a rise in the overall vegan population, globally. Among the vegan population, tofu remains the one of the most preferred meat alternative, and other soy food products like tempeh are gaining high popularity due to its texture, and sensory attributes.

Moreover, there has been concerns of rising obesity in most of developed countries like the United States and major parts of the European region due to the intake of unhealthy and high cholesterol content food. As a result, there is a shift in the preference for plant-based food products, such as plant-based meat products like tempeh, which promotes good health among these consumers.

“Initiatives by Government Bodies to Promote Tempeh Production”

Many organizations and government bodies are focusing on scaling up the sustainable processing and consumption in the Indonesian tofu and tempeh industry. The SWITCH-Asia project Soybean Processing (SCoPE) created a huge economic impact on the Indonesian tofu and tempeh industry, which achieved an annual saving of US$ 1,594.04 per small and medium enterprise (SME), shifted use of firewood to liquid petroleum (LPG), and improved energy efficiency by 27%, between the period 2012 to 2015. The total budget of the project was US$ 1.062 Million, and 80% of it was funded by the European Commission. Efforts are also being put in by the United States Soybean Export Council (USSEC) and Soyfoods Association of North America. In North America, consumers continue to consume tempeh which is available in natural or Asian food stores, and in the larger supermarkets in the frozen or fresh produce section.

“Consumption of plant-based foods is becoming increasingly mainstream”

Cutting off meat completely from the diet is difficult for many consumers; hence, flexitarians is regarded as an achievable dietary change for many, rather than going completely vegan or vegetarian. Flexitarian is a portmanteau of flexible vegetarianism and encompassed individuals whose protein intake is dependent on sustainable sources like plant-based foods, and drastically reduce the consumption of meat in their diet. Many food giants are backing this trend, which collectively supports the growth of all meat substitute products, even tempeh.

Manufacturers are also striving to develop plant-based food products, which offer meat-familiar texture, and taste attributes, with the help of advanced food technology. This demonstrates the intensity of consumer demand for plant-based meat substitutes. Another major concern about meat consumption is the carbon footprint and a potential negative change in the climate. All soy-based food production is being closely scrutinized for its carbon emissions, including tempeh and tofu production in Indonesia, to compare their sustainable advantages over the meat industry.

“High Cost coupled with availability of tempeh alternatives hindering market growth”

The price of the product is one of the factors that is considered by consumers while buying a meat alternative. Many consumers have expressed concerns over the prices of meat alternatives, which are relatively higher in some countries than meat itself. In such circumstances, these expensive prices of meat alternatives are likely to affect the market growth in a bigger way than it appears, as positive consumer approach towards meat alternatives is not very mature, and high prices may drive away even those consumers, which are ready to opt for meat alternatives.

Moreover, the availability of tempeh alternatives such as tofu is anticipated to give tough competition in forthcoming years, which may negatively affect the sales of tempeh in the global market. Thus, premium prices and other dominating plant-based meat alternatives are the major bottlenecks pertaining to the tempeh market.

Country-wise insights

Which region is dominating the global Tempeh market?

Asia-Pacific (APAC) is leading in the Tempeh market with the value accounted at US$ 3,789.1 Million for 2023. The market in the Asia-Pacific is expected to grow at value CAGR of 6.1% during 2023 to 2033, owing to rising demand for plant-based alternatives in the region.

What is demand outlook for Tempeh in North America?

The demand or consumption of plant-based meat in developed countries like Europe and North America is very high; therefore, the demand of tempeh in North America is anticipated to grow by value CAGR of 6.7% over the forecast period. Currently, the market value is pegged at US$ 222.0 Million for 2023 and is predicted to reach US$ 524.00 Million by 2033.

Category-wise insights

What is sales outlook for Multigrain Tempeh in the global market?

The multigrain tempeh market for estimated year stands at US$ 136.00 Million and is predicted to grow at 5.0% in impending years. Moreover, to offer consumers with more varieties of tempeh, especially the ones who are allergic to soybean, the multigrain segment is expected gain traction in the market over the forecast period.

Which type of Tempeh in gaining high demand in global market?

Based on product type, the tempeh market is classified into frozen, fresh and ready-to-eat segment. Among all category, the fresh tempeh holds the highest value share of above 60% in the global market, since consumers perceive fresh products healthy and safe to consume.

Competitive Dashboard

The global tempeh market is majorly characterized by the multinational players along with domestic players, which are adopting innovative strategy to meet market demand. The critical factor, which acts a gateway for the immense growth of the tempeh market globally is raising consumer awareness and the producers are justly putting their efforts to eradicate the lack of consumer awareness. Local producers are collaborating with local restaurant and café owners who feature tempeh on their menus, thereby promoting the product.

Moreover, tempeh players are focusing on merger, acquisitions, and partnerships with foodservice operators and other business-to-business players to enhance the company's presence and boost the market.

• Totally Tempeh is focusing on marketing and promoting its products through social media. The company is also strategizing on generating revenue to upgrade its equipment and production technology, to improve the quality of its products and enhance production output.
• Byron Bay Tempeh focuses on offering newer varieties of tempeh products which are rare in the market, such as non-soy tempeh. Hence, being one of the few companies who offer soy-free tempeh, target audiences such as consumers with soy-allergies opt for the company’s products, thereby enhancing its consumer base.
• Margaret River Tempeh is steadily expanding its local presence by establishing partnerships with retailers and foodservice centres. The company also focuses on offering a wide range of tempeh products produced from different sources, such as lupins, by collaborating with lupin processors. Lupin seeds are a soybean substitute, and a readily available raw material in Australia.
• Schouten Europe B.V. is robustly focusing on expanding its global presence, especially in those regions where consumers are already habituated to the consumption of meat substitutes and vegetarian food, which is likely to benefit the tempeh market.

Tempeh Industry Report Scope

Tempeh Industry Research by Category

By Source:

• Soyabean
• Multi-grain
• Others

By Nature:

• Organic
• Conventional

By Flavor:

• Plain
• Herbs & Spices

By Product Type:

• Frozen
• Fresh
• Ready-to-eat

By Distribution Channel:

• Business to Business
• Business to Consumer
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Specialty Stores
  • Online Retail

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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