Market Trends of textured vegetable protein Industry
TVP prices are anticipated to grow at a minimum rate owing to its improved market structure
- The average global price of textured vegetable protein (TVP) grew by 0.43% from 2017 to 2022. As TVP is mostly bought by large corporations as a texturant to produce their branded meat and meat substitute products, steep price variations have not been witnessed in the market. Unlike tofu and tempeh, the prices of TVP are not completely dependent on a single raw material. The prices of soybean, wheat, and peas also play key roles in determining the price of TVP.
- The demand for TVP will only continue to increase as it has become a commoditized product manufactured by many companies. The rising grain and legume prices play a huge role in the market equilibrium of TVP. For instance, on average, at the global level, wheat prices rose from USD 4.62 per kg in March 2019 to as high as USD 11.78 per kg in May 2022. One of the major reasons for the rise in prices was the abrupt suspension of exports from Ukraine, one of the major wheat exporters, due to the war with Russia. This situation further exacerbated global supply concerns. Soybean prices also witnessed a similar trend, rising from USD 8.32 in April 2020 to USD 17.32 in May 2022.
- Competition from the very established, conventional meat industry has made costs a challenge for plant-based innovators. For example, in 2019, vegetarian chicken cuts were USD 0.83 more expensive per 100 g in the Netherlands than their animal counterparts. In 2022, meatless chicken cuts were only USD 0.13 more expensive per 100 g. The price differential for ground beef decreased from USD 0.26 to USD 0.06 over the same period. Apart from price positioning, consumers are highly influenced by the product's taste and local flavors, making it essential for product manufacturers to thrive in this market.
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