Tempeh tipped to be Indonesia’s next big export to US as market for meat alternatives grows

What is tempeh? Tempeh is a food product made of fermented soybeans, and the fermentation process binds the soybeans into a cake-like form. It is a traditional food found in Javanese cuisine and has long represented a significant portion of protein in Javanese diets. However, tempeh is now becoming popular beyond the archipelagic nation, presenting global opportunities in the tempeh market. 

The current demand for meat alternatives in the US is high and is only continuing to grow. In fact, the industry is predicted to reach a valuation of $15 billion by 2029. Some people turn to meat alternatives because of health issues, others for environmental reasons, and many for ethical purposes. As more and more people begin to eat less meat, the demand for tempeh has grown significantly as well. The coronavirus pandemic has also boosted this increase by encouraging people to cook more meals at home instead of going to restaurants and eat healthier. According to US SOY, by 2026, the demand for tempeh is expected to grow up to $5.8 billion, a compound annual growth rate (CAGR) of 6.1% from 2018. A majority of this growth may come from North America, while APAC is expected to remain the largest market, followed by Europe. Moreover, in 2018, the ASEAN region accounted for around 96% value market share, while the APAC market may account for 77.6% of the market share in 2026. 

This is good news for Indonesia. Many Indonesian people have lived off of diets that are light on meat for years now and are therefore well-knowledged to coach Americans and others about meatless (or less meat) diets. Tempeh can even eventually become a key export from Indonesia to the US. Indonesian manufacturers may invest in tempeh production in international countries and are remaining open to new and unique opportunities. In economic terms, US trade with Indonesia already sits at nearly $33 billion annually. With an increasing demand for tempeh, this number will only continue to rise. Moreover, Indonesia is now looking to import soybeans from Indiana to ferment and turn into tempeh, only to sell it back to the US and other countries.

Leverage Export Portal to Achieve Success

Export Portal is dedicated to providing our users with a safe space to complete global trade transactions, along with all the information they need to trade confidently. We help small and medium-sized enterprises (SMEs) find new markets, secure new deals, and grow quickly and stably. Check out our site today and gain access to all our benefits!