The Unyielding 'Tofu Market'... Turning Eyes Overseas

Domestic Tofu Market Stagnant for Years
Seeking Overseas Opportunities Amid Slowing Growth
"Expanding Export Countries and Products Through Localization and Diversification Strategies"

Pulmuone USA Tofu Products. / Photo by Pulmuone

[Asia Economy Reporter Song Seung-yoon] As the domestic tofu market has stagnated for several years, tofu manufacturing companies are turning their attention overseas.

According to the industry on the 4th, the domestic tofu market is worth around 530 billion KRW annually, remaining at an average growth rate of 1-2% for several years, showing somewhat stagnant growth. The domestic tofu market, which was valued at 488.7 billion KRW in 2018, grew to 486.2 billion KRW in 2019 and 526.9 billion KRW in 2020, with an average annual growth rate of 1.46% over three years. Since the annual consumption volume is relatively stable and with the transition of COVID-19 to an endemic phase, the industry expects this growth trend to slow further. On the other hand, the global tofu market has been steadily growing. According to statistics from Euromonitor, a market research specialist, the tofu market size in Europe and North America grew from $372 million (approximately 469.278 billion KRW) in 2016 to an estimated $705 million (889.2165 billion KRW) last year, nearly doubling in five years.

Accordingly, domestic tofu manufacturers have early on turned their eyes to overseas markets. Pulmuone recently completed its second factory specializing in tofu products in Pinggu District, Beijing, China, expanding its annual tofu production capacity from 15 million to 60 million blocks. This has facilitated smoother supply of tofu products throughout China. Notably, Pulmuone holds a 75% market share in the U.S. tofu market and plans to continue this growth. With the operation of the Fullerton factory in the western U.S. this year, productivity is expected to improve significantly. Additionally, Pulmuone began exporting to Singapore, Australia, and New Zealand in August last year, increasing its global market share. Localizing tofu products and diversifying them by usage have greatly contributed to expanding the base. Pulmuone’s ‘Health-Conscious Tofu Noodles’ surpassed cumulative sales of 10 million units about two years after its launch in May 2020, and last month, it introduced ‘High-Protein Thin Tofu Wraps.’

CJ CheilJedang, anticipating a slowdown in the domestic tofu market growth, plans to focus on promoting various uses of existing tofu products aligned with health trends and new products such as tofu noodles launched last year to consumers both domestically and internationally. The export countries for the Happy Bean brand are expanding to include the U.S., Europe, Australia, New Zealand, as well as Middle Eastern countries and Southeast Asia. Daesang has also been selling processed foods including kimchi and tofu through major distribution channels in the Middle East since 2020 and plans to expand its overseas business by increasing product lines and countries centered on its overseas bases.

Meanwhile, according to the Food Industry Statistics Information System (FIS), as of the first half of last year, Pulmuone holds a dominant market share of 42.12% in the tofu industry for several years. CJ CheilJedang ranks second with 21.46%, and Daesang third with 7.63%, with these three companies securing over 70% of the market share. By brand, Pulmuone and CJ CheilJedang’s Happy Bean hold 24.46% and 20.43%, respectively, ranking first and second, followed by Pulmuone’s Soga Tofu at 15.7% and Daesang’s Jongga Jip Tofu at 7.62%. This structure has been maintained similarly for several years with only slight differences.

This content was produced with the assistance of AI translation services.