Tofu Market Size, Share & Trends Analysis Report By Distribution Channel (Supermarkets & Hypermarkets, Grocery Stores, Online, Specialty Stores), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global tofu market size was estimated at USD 2.31 billion in 2018 and is expected to expand at a CAGR of 5.2% from 2019 to 2025. Rising preference for vegan diet in developed countries including the U.S. and Germany on account of an increasing number of campaigns aimed at reducing animal slaughter is expected to remain a key driving factor. 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.

The major factor attributed to the growing demand for tofu is its predominant usage as a high protein source and vegetarian alternative to meat and dairy products. Tofu is incorporated in the preparation of a variety of foods such as burgers, hot dogs, sauces, ice creams, shakes, and desserts among others. Growing consumer preference for premium products is anticipated to significantly impact the demand for organic tofu. Some of the popular product varieties include extra firm, firm, silken, sprouted super firm, and cubed super firm tofu among others.

As the product is made from soy curd, it is considered gluten-free. 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.

About 65% of the global population is lactose intolerant. This factor is anticipated to drive the demand for lactose- and dairy-free alternatives such as tofu. This factor is anticipated to drive the growth of the market in the forthcoming years.

Distribution Channel Insights

Supermarkets and hypermarkets segment generated a revenue of USD 1.30 billion in 2018 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 7.77% from 2019 to 2025. 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.

Regional Insights

The Asia Pacific held the largest market share of 56.3% in 2018. Growing consumer awareness about the health benefits of the product is anticipated to fuel the regional product demand. Japan was the 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.

China is also considered one of the key markets with significant potential in terms of high concentration of middle-income age groups. 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.

North America is estimated to register the fastest CAGR of 6.1% from 2019 to 2025. 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.

Key Companies & Market Share Insights

Key market players include Invigorate Foods; Hain Celestial; House Foods Group Inc.; Hugli Holding Company; Pulmuone Co., Ltd; The Nisshin Oillio Group, Ltd.; San Jose Tofu; Tofurky; Eden Foods; and Morinaga & Company. 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.

Tofu Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Grand View Research has segmented the global tofu market report based on distribution channel and region:

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Supermarkets & Hypermarkets

  • Grocery Stores

  • Online

  • Specialty Stores

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa