Tempeh Market Report

The rising awareness for organic products drives the organic industry with remarkable development. As per the USDA, the increased prices paid to producers for organic products compared to those grown conventionally, known as price premiums, encouraged the growth of organic production in the United States more than 4.89 million acres of land are certified as total organic land due to the surge of organic agriculture practices. Meanwhile, it will focus consumer awareness on healthy food alternatives and promote organic tempeh production for health-conscious consumers. Thus, consumers are driven to purchase additional organic products due to their perception of being healthier. The main factors for purchasing organic food are concerns about pesticides, hormones, GMOs, antibiotics, and a preference to avoid heavily processed foods and synthetic chemicals.

However, with the increased popularity of organic tempeh, the flavoured tempeh is standing out as a functional food choice among consumers. The consumers shifting interest with respect to busy life schedules search for the flavoured tempeh along with organic demand. In order to fulfil this demand, one of global companies like ‘The Tofurky Company, Inc.’ offers consumers flavoured tempeh like smoky maple bacon, sesame garlic, organic five-grain, and original soy cake for consumers who prefer the normal soy cake instead of the flavoured tempeh options.

Consumers consider the cost of the product when choosing a meat alternative. Many customers have expressed concerns about the higher prices of plant-based meat substitutes in certain countries, as they can be more costly than real meat. Due to such conditions, the increased prices of meat substitutes are likely to hinder market expansion more than the consumer thought, as consumer curiosity in meat alternatives is still evolving and expensive costs may discourage even those who are going to experiment with them. However, the tempeh has an alternative-looking product called tofu, which is a low-calorie product that contains iron, potassium, and calcium, while calcium is the double amount as compared to tempeh. In addition, one of the surveys disclosed the soy allergy for infants and young children under age 3, which limits the acceptance rate of tempeh among the allergic consumers. Even though, as per the USFDA information, there are 9 major food allergens. Out of these 9 major food allergens, soybeans are one of them.

Key players in the industry employ strategies focused on introducing new products, merging with other companies, and acquiring businesses to expand their customer base and improve their product portfolio. In March 2024, Greenleaf Foods, SPC, the company behind popular plant-based brands Lightlife and Field Roast, and a subsidiary of Maple Leaf Foods Inc., introduced a new product, Tempeh Protein Crumbles, to its already successful Lightlife Tempeh line, the top tempeh brand in both the United States and Canada. As the desire for healthy, clean protein solutions increases among consumers, the plant-based foods industry leader identified the need for additional convenient and tasty choices. Moreover, in April 2023, Tooties, the newly established tempeh company, began expanding and standardizing their production. In addition, in February 2023, the Samworth Brothers, a food company from the UK announced its plans to make an investment in a new start-up focusing on plant-based meat called Tiba Tempeh. The company aims to grow its presence in the United Kingdom and Europe in the coming years.

The Asia-Pacific region is anticipated to dominate the tempeh market during the forecast period. Originating from Indonesia, Tempeh is culturally significant in Southeast Asia, particularly in countries such as Indonesia, Malaysia and Thailand. It is popular in local diets mainly since it is nutritious and useful in traditional cookery. However, soybeans, widely grown in nations such as Indonesia, Thailand, and China, are the essential element in the production of tempeh. The presence of affordable, top-notch soybeans promotes the local making and eating of tempeh. In addition, as per one of the studies, Indonesia is the leading global producer of tempeh and also the largest producer of soybeans in Asia. Up to half of Indonesia's soybean consumption is in the form of tempeh. 40% is made up of tofu, while 10% is made up of other products like tauco, tofu, and oncom and a condiment made from soybeans.

The tempeh market is expected to see the fastest growth in the North America region over the forecast period. Health benefits are making plant-based meals more acceptable. This is because tempeh has high protein content and is also fat-free, all these meet dietary needs of many North American people who have adopted vegan or vegetarian diets. Tempeh is a flexible meat alternative that complements these diets effectively. However, as per the studies, the United States population in 2023 was generally 336 million and followed vegan diets.