Market Trends of meat substitutes Industry
Rising soybean prices are impacting the prices of tempeh
- The average global price of tempeh grew by 0.93% between 2017 and 2022, mainly affected by soybean prices. As soybeans are the main ingredient used to make tempeh, the rising cost of soybeans in the global market contributes to the increasing tempeh prices. Prices of tempeh also depend on its variant. The market has seen the presence of numerous variants of tempeh, with plain tempeh being sold at a lower price than other value-added products. Organic tempeh is the most popular value-added tempeh form in the market and is sold at a premium price.
- Indonesia is the largest tempeh producer in the world and one of the largest soybean markets in Asia. In general, around 50% of Indonesian soybean consumption is in the form of tempeh. The need for imported soybeans to produce tofu and tempeh in Indonesia is expected to reach 3 million metric ton per year. Since the beginning of 2021, tempeh producers have experienced difficulties setting the price of their products and have chosen to reduce tempeh production by 30% to reduce production costs in line with the continuous increase in the price of imported soybeans. Indonesia experienced a price surge in the first half of 2022, caused by an increase in international commodity prices due to the war between Russia and Ukraine.
- In North America, soybean prices weakened in May 2023. The average price was 1,369 cents per bushel in May, 8.0% lower than April’s price but down by 17.6% from the same month last year. On May 31, 2023, the spot price was 1,300 cents per bushel, down by 10.0% from the same day of the previous month.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- TVP prices are anticipated to grow at a minimum rate owing to its improved market structure
- Inflation in soybean prices due to supply disruptions is having an effect on the market
