Global Tofu Market - 2021-2028
Tofu is a smooth, protein-packed soy product produced by curdling fresh soy milk and pressing it into a solid block. Tofu that has not been processed comes in a range of textures, including extra-soft, soft, silken, firm, and extra-firm. Its ability to absorb flavors from spices, seasonings, sauces, and marinades makes it popular in a variety of cuisines. With growing vegan population along with growing health-conscious population looking out for gluten free healthier meat alternatives is driving the growth of the market. The global tofu market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%
The increasing demand for gluten free products due to growing prevalence of celiac disease is driving the growth of tofu market. Tofu is made from soy curd and has a gluten-free content, which is why people especially looking for meat alternative along with gluten free content are highly preferring this. It has been observed that one out of every 133 Americans suffers from celiac disease. The prevalence of celiac disease was 4% in South America, 0.5% in Africa and North America, 0.6% in Asia, and 0.8% in Europe and Oceania. A high prevalence of the disease is expected to drive the production of gluten-free products such as tofu on a global level. Some of the popular gluten-free brands are Azumaya Tofu, House Foods Tofu, Nasoya Tofu, and Trader Joe's. Moreover, with growing vegan population, the demand for meat alternatives is increasing which is supporting the market growth across the globe. Tofu is considered as healthy and gluten-free food. One 3.5 ounce serving of this product contains 8% protein and 2% carbohydrates along with other nutrients. The U.S. Food and Drug Administration (FDA) recommends that daily consumption of 25 grams of soy protein ensures the proper protein intake along with the balanced cholesterol levels.
Supermarkets and hypermarkets segment generated a revenue of USD XX billion in 2020 and is expected to grow at a significant pace over the forecast period. Through these channels, consumers can access a variety of products in one place, which gives them an option to choose the product and its quantity as per their requirements Due to less operating and selling overheads, these channels offer products at lower prices. Many supermarkets offer quality assurance for their products which is anticipated to significantly drive the growth of the segment.
The online store segment is expected to register the fastest CAGR of XX% from 2021 to 2028. The established brands are entering online distribution to cater to the rising demand. Companies including Amazon and Alibaba sell products from different retailers at a single platform. The growing adoption of smartphones and the growth of the e-Commerce industry is anticipated to further fuel the segment growth. Ease of ordering and doorstep delivery of the products is expected to promote the utilization of online channels over the next few years.
Asia-Pacific holds the largest share of tofu market with China being the largest contributor. The encouragement shown by government towards reduction in consumption of meat has increased the demand for tofu in this country. According to an article posted by the vegan business magazine, the local plant-based industry is rapidly growing, aided by the Chinese government's goal of reducing meat consumption by half by 2030, which is highly supporting the market growth in this region. Moreover, domestic companies such as Zhenmeat, HERO Protein, and Hey Maet are customizing their goods according to the Asians taste, which is keeping up the demand for tofu among Chinese and other Asians. Key manufacturers operating in China are Hangzhou Huayuan Bean Food Co. Ltd., Hebei Gaobeidian DouDou Food (Group) Co. Ltd., Jiaxing Jiajiale Foods Co. Ltd., and Shanghai Xuyang Green Food Co. Ltd. Japan was the second largest regional consumer as a result of the easy access to the product due to the presence of a large number of manufacturers in the country. Many U.S.-based food manufacturers have started offering packaged tofu in Japan to meet high product demand.
North America is estimated to register the fastest CAGR of XX% from 2021 to 2028. Consumers prefer soy-based products due to health and philosophical reasons. The rising interest of U.S. based consumers in plant-based foods is anticipated to drive regional growth. The growing vegan population in the U.S. and Canada is anticipated to contribute to the regional demand as the product is considered a good meat alternative with high protein levels. Also, emerging nations of Middle East and Africa has huge opportunities to the global tofu market due to its high nutritional benefits. For instance, tofu is currently being used in shawarma, a fast food staple in the Middle East, as a substitute of meat, which boosting the tofu market.
The global tofu market is highly fragmented with large number of players like Olam International, Barry Callebaut, Blue Diamond Growers, Kerry Group, Zentis GmbH & Co. KG, Besana, Lubeca, Puratos, Almendras Llopis S.A.U., Kanegrade, Moll Marzipan. Companies are investing in emerging economies to increase their revenue share. For instance, in April 2019, Japan-based food manufacturer Invigorate Foods invested over USD 8 million in India to boost its soy-based product offerings in the country. In the same year, the company launched a product Genki-Ya Tofu, made of fresh soy milk extracts. Companies are also adopting mergers and acquisitions as one of the major business strategies. For instance, in January 2018, Keystone Natural Holdings LLC completed the acquisition of Canada based Superior Tofu Ltd.
The plant-based meat industry has made significant gains in recent months, with many new customers trying its products for the first time. One aspect of this was the fact that the availability of fresh meat was severely impacted by disruptions to regional and global supply chains. This was particularly problematic for meat compared to dry goods, which can be stockpiled comparatively easily. Furthermore, employees of meat-processing plants usually work in very close quarters. As a result, some facilities became the first Covid-19 hotspots, while many have had to be retrofitted entirely in order to be safe enough for people to return to work, further limiting the availability of meat products. Another factor was related to health and wellbeing. With people leading more sedentary lifestyles as a result of lockdowns, many have turned to what are perceived to be healthier eating alternatives.