Tempeh Market Size - By Source, By Product Type, By Flavor Type, By Distribution Channel & Forecast, 2024-2032

Tempeh Market Size

The global tempeh market size was valued at USD 4.3 billion in 2023 and is expected to grow at 5.3% CAGR from 2024 to 2032. This surge is largely attributed to the rising popularity of plant-based diets, a heightened consumer demand for healthier food choices, and an increasing awareness of the environmental repercussions of animal-derived protein sources.
 

Tempeh, a fermented soybean product rooted in Indonesian tradition, has carved out a significant niche in the alternative protein arena. Its ascent can be credited to its rich nutritional profile, adaptability in culinary applications, and an environmentally friendly production method. With a global pivot towards sustainable and plant-centric food solutions, tempeh has emerged as a favored choice for both health-conscious individuals and the vegan community. As consumers delve deeper into the health advantages of tempeh ranging from its protein richness and gut-friendly probiotics to its essential vitamins demand for the product has seen a notable uptick.
 

The tempeh market has also been buoyed by the increasing population of flexitarians individuals consciously moderating their meat intake. Contemporary trends, like the incorporation of tempeh in ready-to-eat meals, snacks, and as a substitute in meat products, have broadened its appeal and convenience for diverse consumers. Furthermore, the potent influence of social media, coupled with endorsements from celebrities, has cemented tempeh's status as a cornerstone in plant-based diets. In response, leading food retailers and service chains are weaving tempeh-centric dishes into their offerings, amplifying its market presence.
 

For instance, the food and beverage sector play a significant role in the economy of Europe. The food and beverage sector in the European Union produced a value added of USD 248.76 billion and a turnover of USD 1207.97 billion in 2020.
 

The tempeh industry's business landscape has been reshaped by technological strides in food processing and fermentation. Breakthroughs in packaging, production efficiency, and shelf-life extension have not only enhanced product availability but also bolstered shelf stability. This evolution has rendered tempeh increasingly attractive to the broader consumer base. Consequently, there's been a pronounced migration of tempeh products from specialized health food outlets to mainstream supermarkets and digital marketplaces, underscoring its escalating acceptance and demand.
 

Tempeh Market Trends

Globally, the tempeh industry is witnessing swift expansion, propelled by several pivotal trends. A primary driver is the surging consumer appetite for plant-based proteins, aligning with a wider movement towards healthier and more sustainable eating habits.
 

As individuals grow increasingly health-conscious and cognizant of the environmental repercussions of animal farming, foods like tempeh are rising in favor. This is due to tempeh's rich protein profile, benefits for gut health, and its essential nutrients. Furthermore, the ascent of flexitarians where individuals curtail meat consumption without fully embracing vegetarianism has spurred heightened interest in tempeh as a versatile and nutritious substitute for meat.
 

Product innovation is another significant force molding the tempeh market. Manufacturers are rolling out an array of tempeh-centric offerings, including pre-flavored tempeh, convenient ready-to-eat meals, and alternative meat products such as tempeh burgers and sausages, thereby appealing to a wider audience. The burgeoning sway of social media, coupled with endorsements from plant-based influencers, has amplified the market's momentum, enlightening a broader audience about tempeh's adaptability and its significance in a well-rounded diet.
 

Tempeh Market Analysis

Soybean-Based Tempeh held USD 2.7 billion in 2023, and it is anticipated to expand at an 5.8% of CAGR during 2024-2032. Soybean-Based Tempeh, with its traditional roots and high protein content, continues to dominate the market due to its widespread availability. Yet, alternative sources like Multi-Grain Tempeh and Chickpea-Based Tempeh are gaining momentum, particularly among consumers seeking variety and specific dietary benefits, such as enhanced fiber content or distinct nutrient profiles.
 

Additionally, other Legume-Based Tempeh varieties, including those crafted from lentils or black beans, are rising in popularity, catering to individuals with soy allergies or those preferring a broader spectrum of plant-based proteins. This trend towards plant-based diversity has spurred manufacturers to innovate, offering a wider array of tempeh options to satisfy the growing consumer demand for alternative protein sources.
 

The fresh tempeh segment was valued at USD 2.1 billion in 2023 and garner a 5.7% CAGR from 2024 to 2032. The tempeh market is diversifying its product types to cater to varied consumer lifestyles. Fresh Tempeh remains a staple for traditionalists and health-conscious individuals who favor minimally processed foods. In contrast, Frozen Tempeh is surging in popularity, thanks to its extended shelf life and convenience, making it a staple in mainstream supermarkets. Ready-to-Eat Tempeh products, including pre-cooked or marinated options, are trending, appealing to busy consumers desiring quick, nutritious meals.
 

Furthermore, Tempeh Burger Patties and Tempeh Strips are carving a niche in the plant-based meat alternative market, attracting consumers seeking familiar formats as they transition from animal-based products. This diverse product range enhances tempeh's accessibility to consumers with varied preferences and dietary habits.
 

The unflavored segment was valued at USD 2.6 billion in 2023 and garner a 5.4% CAGR from 2024 to 2032. Unflavored Tempeh appeals to those who appreciate its natural nutty taste or wish to season it to their liking. On the other hand, Flavored Tempeh is witnessing a surge in popularity, especially among newcomers or those prioritizing convenience. The expansion of pre-seasoned varieties, such as barbecue, smoky, or teriyaki, simplifies meal preparation for consumers, allowing easier incorporation of tempeh into their dishes. This flavor variety enhances tempeh's appeal, reaching a broader audience, including those unfamiliar with the traditional product.
 

Supermarkets and hypermarkets held USD 1.9 billion in 2023 and expected to expand at a 5.8% CAGR during the forecast period. Supermarkets & Hypermarkets have become dominant distribution channels, fueled by rising consumer demand for plant-based alternatives and the allure of one-stop shopping. Specialty Stores cater to health-conscious and vegan consumers, often showcasing organic or artisanal tempeh varieties.
 

The surge of e-commerce and direct-to-consumer models has elevated the role of Online Retailers in the distribution network, allowing brands to tap into a global audience. Moreover, the Food Service sector, encompassing restaurants and cafés, has increasingly featured tempeh in their menus, especially in plant-based or vegan dishes, bolstering the product's mainstream recognition.
 

North America tempeh market is expected to hold a USD 1.6 billion in 2023 and expected to grow at a 5.7% CAGR. North America stands as one of the largest and most lucrative markets for tempeh, spearheaded by the United States. This surge in tempeh's popularity can be linked to the rising embrace of vegan and vegetarian lifestyles, heightened awareness of the environmental and health ramifications of meat consumption, and tempeh's growing presence in mainstream supermarkets.
 

Demand for plant-based products has surged in major U.S. cities, propelling tempeh sales in both retail and foodservice sectors. Furthermore, established players like Tofurky and an expanded tempeh menu in restaurants have further strengthened North America's market.
 

Tempeh Market Share

The global tempeh industry competitive landscape is ever evolving, featuring a blend of established players and emerging brands competing for market share. Companies are adopting diverse strategies to set their offerings apart and cater to a growing consumer base. A primary strategy in the industry is product innovation, with manufacturers rolling out flavored and seasoned tempeh products to attract a wider audience. Furthermore, many brands are emphasizing organic, non-GMO, and gluten-free products, addressing the needs of health-conscious consumers and those with specific dietary restrictions.
 

Brand differentiation stands out as a pivotal strategy in the tempeh market. Tofurky, renowned for its plant-based meat substitutes, capitalizes on its strong brand recognition and extensive distribution network to secure a competitive advantage. In parallel, Henry's Tempeh and Gwen Tempeh are carving their niche by emphasizing artisanal, locally produced high-quality tempeh. Meanwhile, Nutrisoy Pty Ltd and Noffoods are tapping into the growing consumer demand for environmentally responsible products by adopting eco-friendly and sustainable production practices.
 

Tempeh Market Companies

Top companies operating in the tempeh industry include:

• Tofurky 
• Gwen Tempeh
• Henry's Tempeh
• Impulse
• Nagel GmbH
• Noffoods
• Nutrisoy Pty Ltd
• Rhapsody Natural Foods
• Schouten
• Tootie’s Tempeh
   

Tempeh Industry News

• In December 2023, Tofurky expanded its plant-based sausage line by introducing two new tempeh products: Chorizo and Mango Chipotle sausages. This expansion is part of Tofurky's broader strategy to cater to changing consumer preferences, even amidst a rising anti-vegan sentiment in the market. Tofurky, undeterred by legal challenges concerning labeling regulations for plant-based meats, continues to be a dominant player in the plant-based sector. These latest additions underscore Tofurky's dedication to innovation and its responsiveness to the demand for a wider variety of plant-based protein options (Vegconomist).
   

The tempeh market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Million) (Tons) from 2021 to 2032, for the following segments:

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Market, By Source

• Soybean-based tempeh
• Multi-grain tempeh
• Chickpea-based tempeh
• Others

Market, By Product Type

• Fresh tempeh
• Frozen tempeh
• Ready-to-eat tempeh
• Tempeh burger patties
• Tempeh strips 

Market, By Flavor Type

• Flavored
• Unflavored

Market, By Distribution Channel

• Supermarkets & hypermarkets
• Specialty stores
• Online retailers
• Food service
• Health food stores

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA