Market Trends of asia-pacific meat substitutes Industry
A hike in raw material prices driven by multilayered distribution is inflating tempeh prices
- The average price for tempeh in Asia-Pacific was USD 7.07/kg in 2022. In the same year, the highest price was recorded in India and Australia, at USD 8/kg. The lowest price for tempeh in 2018 was USD 6 kg, recorded in China and Indonesia. Indonesia is the largest tempeh producer in the world and the largest soybean market in Asia. Around 50% of Indonesian soybean consumption is in the form of tempeh. The need for imported soybeans to produce tempeh in Indonesia is expected to reach 3 million tons per year. Since the beginning of 2021, tempeh producers have experienced difficulties in setting the price of their products and have chosen to reduce production by 30% to reduce production costs in line with the continuous increase in the price of imported soybeans.
- In addition, other problems cause the purchase price of imported soybeans to remain high even though world soybean prices have decreased. The current high price of soybeans was caused by cartel practices and bureaucracy. Prices of imported food, such as soybeans, are relatively cheap. However, it becomes expensive when it reaches consumers because of its multi-layered distribution.
- To tackle rising soybean prices in Asian countries, associations of soybean processors in various countries have asked their governments to get involved to reach a sustainable solution. For instance, in June 2021, the Soy Food Promotion and Welfare Association (SFPWA), which represents the Indian soybean food processing industry, requested the Indian government to permit the processing sector to import 50,000 metric tons of food specialty soybeans from the United States duty-free as domestic soybean prices had increased by 50% over the previous six months.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Players in the industry are focusing on stabilizing products to encourage consumers
- Uncertainty in soybean production is causing a spike in prices
