The global tofu market size is expected to reach USD 3.28 billion by 2025, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 5.2% during the forecast period. Rising adoption of vegan diet owing to awareness regarding the advantages of plant-based foods among consumers from developed economies including U.S. and Germany is expected to remain a key growth driver. Furthermore, increasing number of people suffering from lactose intolerance and glutamic disorders is projected to play a key role in increasing the importance of dairy alternatives including tofu.
Tofu products are consumed as functional foods as they contain isoflavones which help lower the risk of breast cancer and cardiovascular diseases. Furthermore, the product is a rich source of iron, calcium, phosphorous, zinc, sodium, potassium, and magnesium among others. Therefore, tofu is expected to gain market penetration among health conscious consumers including gym and sports enthusiasts.
Supermarkets and hypermarkets distribution channel held a market share of 56.5% in 2018. These channels allow consumers to choose the products type and quantity as per their requirements. Due to less operating and selling overheads, the buyers benefit on account of less prices. Majority of supermarkets also provide quality assurance in terms of the choice of physical verification of the product before making the purchase decision. The convenience of buying due to the availability of a large number of products at a single selling platform attracts buyers to opt for these channels.
Online distribution channel is expected to be the fastest growing category on account of rising consumer preference due to the ease of product comparison and doorstep delivery service. Some of the key online retailers of operating in the tofu market include Amazon, AliExpress, and Grofers among others.
In 2018, Asia Pacific held the leading market share of 56.3%. Growing awareness regarding healthy products among consumers from developing countries such as China and India is expected to boost the market growth. Japan is one of the largest tofu consumers in the region. Over the past few years, some of the manufacturers from North America and Europe have started their strategic business units in Japan to tap increased buyers base.
Key market participants include Invigorate Foods; Hugli Holding Company; Hain Celestial; Pulmuone Co., Ltd; House Foods Group Inc.; San Jose Tofu; Tofurky; The Nisshin Oillio Group, Ltd.; and Eden Foods. Companies are adopting mergers and acquisitions strategy to expand their market share. For instance, in January 2018, Keystone Natural Holdings LLC acquired Canada based Superior Tofu Ltd.
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Further key findings from the report suggest:
- Online segment of the tofu market is expected to expand at a CAGR of 7.8% from 2019 to 2025
- Specialty stores generated a revenue of USD 187.6 million in 2018
- North America is expected to witness the fastest CAGR of 6.1% from 2019 to 2025