The tensor product is not only used for composite systems, even for a single particle moving in space the 3d base kets are built as a product of 1d kets
$$\left|x,y,z\right\rangle =\left|x\right\rangle \otimes\left|y\right\rangle \otimes\left|z\right\rangle $$
As I see it, the tensor product is an abstract formalization of the following fact: Let ##\psi(x_{1,}x_{2})## be a two-particle wave function and ##{\phi_{n}(x)}## an orthogonal basis of functions for the one particle Hilbert space ##L^{2}## (say, the Hermite polynomials). Then you can write ##\psi(x_{1,}x_{2})## as a linear combination of functions of the form ##\phi_{n}(x_{1})\phi_{m}(x_{2})##. If we write this using an abstract vector, we are basically defining a tensor product.