The meat substitutes market in India is experiencing rapid growth, driven by an increasing consumer shift towards plant-based diets and a heightened focus on sustainable living. Estimated at USD 355.85 million in 2024, the market is projected to grow to USD 651.85 million by 2029, registering a compound annual growth rate (CAGR) of 12.87% during the forecast period according to Mordor Intelligence report. This upward trend reflects the evolving dietary preferences in the country and the rising acceptance of plant-based protein alternatives as viable and healthy substitutes for traditional meat.
Textured Vegetable Protein (TVP) Leads the Market
Textured vegetable protein, or TVP, is the predominant meat substitute consumed in India. Its growth from 2018 to 2021 was remarkable, with a 35.38% increase in market value. The popularity of TVP is largely due to India’s long-standing culinary traditions of using soybeans and pulses as protein sources. As a highly versatile and protein-rich meat substitute, TVP aligns with current health and wellness trends, attracting consumers seeking innovative and trendy options.
The growing number of soy-based food producers in India is further fueling this trend. These manufacturers are expanding their product offerings to meet the increasing demand for plant-based protein options. As the market matures, there is substantial opportunity for continued innovation in TVP products, catering to the preferences of health-conscious consumers.
Tempeh Emerges as the Fastest-Growing Meat Substitute
Tempeh, a fermented soybean product, has emerged as the fastest-growing meat substitute in India, expected to register a growth rate of 16.19% by value during the forecast period. Known for its functional health benefits, tempeh fits well within the functional food category, catering to the growing interest in healthy eating and sustainable protein sources. The product’s high protein content, coupled with a low-calorie profile, makes it an appealing alternative to paneer and other popular vegetarian ingredients.
The “Tempeh Today” initiative aims to capitalize on this trend by establishing at least 100 Small Fermentation Units (SFUs) across India by 2025. This initiative seeks to boost tempeh production to an annual total of 10,000 tons, providing a substantial increase in the availability of this nutritious food. As the country’s consumers continue to embrace healthy and plant-based lifestyles, tempeh’s role in the Indian diet is set to expand significantly.
Key Drivers of Market Growth: Changing Consumer Attitudes and Government Support
The rapid growth of India’s meat substitute market is not only a result of evolving consumer preferences but also due to the rising number of startups and established players entering the sector. Between 2019 and 2020, eight new alternative meat startups were launched, and several international and domestic companies made inroads into the market in 2020-21. With 63% of Indians expressing high interest in purchasing plant-based meat regularly, India is now one of the largest consumer bases for meat substitutes in the world.
Government initiatives have also played a critical role in supporting this sector. The Ministry of Health and Family Welfare’s “Eat Right India” campaign is one such example, aiming to encourage healthy dietary choices and promote the adoption of sustainable, plant-based foods. This initiative not only addresses individual health but also ties into broader environmental objectives, such as combating climate change through reduced reliance on animal-based food products.
Tempeh’s Pricing and Soybean Dynamics
The average price of tempeh in India increased slightly from USD 7.53 per kg in 2018 to USD 7.64 per kg in 2020, reflecting a 0.72% growth over the period. This price hike is primarily driven by the rising cost of soybean, which forms the raw material for tempeh production. Although India is a major soybean producer, with significant cultivation in states like Madhya Pradesh, Maharashtra, Rajasthan, Karnataka, and Telangana, regional price variations do occur. In August 2021, the highest soybean price was recorded in Maharashtra at USD 122 per quintal, while the lowest was in Telangana at USD 74.65 per quintal.
To meet the rising demand for soybeans, India has turned to imports in recent years. For instance, soybean seed imports surged from 242 tons in 2018 to 10,641.64 tons in 2019, a staggering 4,297% increase. This trend continued in 2020, with imports reaching 10,137.85 tons. As demand for plant-based proteins grows, the pressure on domestic soybean supply could lead to further price adjustments.
The Future Outlook: Opportunities and Challenges
The meat substitutes market in India presents a promising outlook, driven by an increasing shift toward plant-based diets and the quest for healthier and more sustainable living. The price of tempeh is projected to reach USD 8.08 per kg by 2028, reflecting steady demand growth. Given India’s large vegetarian population and the ongoing consumer shift towards healthier alternatives, tempeh and other meat substitutes are expected to play a key role in the country’s dietary landscape.
However, the market does face some challenges. The fluctuating price of soybeans and the need for sustainable soybean farming practices are critical factors that could impact the cost and availability of meat substitutes. Additionally, consumer education on the benefits of plant-based diets and the development of robust supply chains will be essential in ensuring long-term growth.
India’s meat substitutes market is undergoing a significant transformation, driven by consumer preferences for healthier and more sustainable food choices. With a projected market size of USD 651.85 million by 2029 and a strong CAGR of 12.87%, the future looks promising for players in the plant-based protein sector. As textured vegetable protein and tempeh continue to gain popularity, supported by government initiatives and innovative market players, India’s meat substitute landscape is set to redefine the way the nation consumes protein.
