Market Trends of north america textured vegetable protein Industry
Efforts by governments and rising demand are anticipated to optimize prices
- The price of textured vegetable protein ranged between USD 32 and USD 33 during the review period (2017-2022). The market did not witness extreme price variations as large corporations mostly buy TVP as a texturant to produce their brands' products. However, TVP prices inflated further as more companies entered the market. Archer-Daniels-Midland Company initially dominated the market. The price of soybeans, wheat, and peas also play a key role in the cost of TVP.
- Rising prices have affected consumers and foodservice professionals alike. Rising prices are a top concern in purchasing food products, especially when it comes to plant-based protein, which is not a staple. A growing number of consumers have altered their shopping behavior and actively look for more affordable retailers and brands. The war in Ukraine, changes in interest rates, shifting weather patterns, and conditions in China all affect the soybean market. Soybeans are currently trading at near-record highs, with USD 15.20/bushel in February 2022. However, they are weather-dependent. La Nina and El Nino patterns are both major factors for US soybean yields and affect soybean prices more than 70% of the time.
- The demand for TVP is projected to drastically increase in the future, with new plant-based meat products being launched in the market regularly. The US government is making mitigation efforts to support farmers facing cultivation issues due to low prices. The Corona Aid, Relief, and Economic Security (CARES) Act was passed by the US Congress in March 2020. Under this, the US government set aside USD 2.2 trillion to support the economy during the COVID-19 pandemic. This aid included USD 349 billion in loans to small businesses. US farmers are eligible for loans through the Small Business Administration.
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