K-Tofu Exports Soar Amid COVID-19... Pulmuone Expects 10 Million Units Export This Year

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[Asia Economy Reporter Choi Saeng-hye] Amid the COVID-19 crisis, Korean tofu is performing remarkably well in the global market. This is due to the worldwide growing interest in health foods that boost immunity, as well as the steady increase in demand for salad and topping uses driven by the rising vegetarian population. The leading company driving tofu exports is Pulmuone.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) agri-food export information on the 23rd, tofu export volume reached 5,251 tons by September, more than tripling from 1,637 tons the previous year. Export value also rose 2.7 times from $3.03 million to $8.13 million.

The country with the most significant increase in export volume is the United States. According to aT, the U.S. ranks first among major countries importing Korean tofu, accounting for 75% of the total tofu export volume.

aT reported that out of the total 5,251 tons exported by September, 3,925 tons were shipped to the U.S. The U.S. tofu market continues to grow steadily due to the spread of vegetarian trends. According to Nielsen data, the U.S. tofu market grows annually by 7-8%. The market size surpassed $100 million for the first time last year and expanded by about 50% in the first half of this year compared to the previous year.

Two Types of Tofu Products Sold by Pulmuone in the United States

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Pulmuone is the leading company in tofu exports. According to Pulmuone, total export volume, including the main export country the U.S., is expected to increase significantly from 160,000 blocks in 2018 and 150,000 blocks in 2019 to over 10 million blocks this year. Pulmuone holds about a 75% market share in the U.S. tofu market, maintaining steady growth above 70% in recent years.

A Pulmuone representative explained, "We began expanding our business in earnest after acquiring the No.1 U.S. tofu brand 'Nasoya' in 2016. Thanks to the popularity of tofu products as immune-boosting and vegetarian foods, we achieved remarkable results, including recording a quarterly profit locally for the first time in 29 years during the second quarter."

Pulmuone is striving to meet demand by operating all three Pulmuone tofu factories on the U.S. East and West coasts at 100% capacity. Since the spread of COVID-19, local factory production has struggled to keep up with demand, leading to monthly exports of over 1 million tofu blocks from the domestic Eumseong factory.

Not only Pulmuone but also CJ CheilJedang's tofu exports increased by more than 40% year-on-year as of October. Major export destinations include Europe, Oceania (Australia, New Zealand), and Singapore.

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