Supercharging soy sales: Tofu enters a ‘new era of popularity’

Soy – and especially tofu – is “enjoying a new era of popularity” in the US thanks in part to its affordability, innovative new formats, nutritional benefits, increased interest in flexitarian and vegetarian diets and improved farming techniques that are enhancing its sustainability, according to industry experts. However, soy and tofu manufacturers and farmers must address common misconceptions about the ingredients’ impact on hormones and uncertainty about how to prepare it, if the category is going to reach its full potential in North America, which Mordor Intelligence reports could exceed $500 million in 2024 and almost $900 million by 2029. “Demand for soy as a protein source in the US is evolving as consumers embrace its sustainability, versatility and nutritional benefits,” according to Pam Smith, a registered dietitian nutritionist and US Soy expert. Widespread inflation and rising food prices are also buoying consumer interest in soy and tofu as a less expensive option compared to animal proteins and meat alternatives, Smith said. “As households continue to mind grocery spend, the cost of fresh tofu remains 50% of the cost of meat alternatives – giving this whole food ingredient a significant advantage among budget-conscious consumers,” Smith explained, noting that by October 2023, the fresh tofu category reached $140.6 million in sales. This builds on the increased consumer interest in tofu that occurred during the pandemic, when overall sales and adoption of the ingredient surged. According to Nielsen, US sales of tofu spiked 40% in the first half of 2020. “Throughout the pandemic, consumers spent more time cooking and eating at home and had the opportunity to explore the benefits of plant-based proteins at unprecedented levels. Since then, we have seen interest in tofu continue to grow. Consumers who were introduced to tofu during the pandemic continue to incorporate it into their diets,” recalled Ellen Kim, director of marketing communications and consumer insights at Pulmuone, parent company for Nasoya. Innovation in the category centered on convenience, nutrition, taste and texture has helped maintain and expand consumer interest in tofu – especially when paired with industry efforts to address misconceptions about its flavor and how to prepare it, said Kim. “In recent years, the plant-based protein category has continued to evolve and innovate to meet changing consumer demands and needs. The market has expanded beyond traditional products to include a wide array of innovative offerings, such as meat substitutes, flavored tofu, snacks and dairy alternatives. There has also been an increased focus on convenience and accessibility, with new products that are easy to prepare,” Kim explained. For example, Kim said, tofu can be intimidating and many consumers overlook it as “bland and difficult to cook” – but it doesn’t have to be. “Tofu is actually incredibly versatile and has a neutral and subtle flavor, making it a perfect blank canvas for other flavors and spices,” said Kim. “There are also great products on the market that serve as an introduction to tofu – like Nasoya’s pre-marinated and pre-baked TofuBaked and the brand’s Super Firm Tofu, which is pre-pressed and drained for easy preparation.” Nasoya also is meeting demand for new products with the recent expansion of its Plantspired line, which features ready-to-eat products made with Nasoya’s tofu and soy proteins, said Kim. “We recently launched Plantspired Plant-Based Steak and Plant-based Chik’n – both ready to enjoy in just minutes. These products are accessible for those who follow a plant-based diet and those who are just looking to try new plant-based foods,” Kim said. Smith added innovations like bulgogi-styled tofu, tofu noodles and silken tofu with on-trend and indulgent flavor profiles are also inspiring Americans to consume more of the ingredient. Likewise, Smith said, “in the ongoing quest to dial up umami and deliver on the promise of craveability, many chefs and home cooks are finding a new world of flavor in soy foods like koji and natto.” She explained that koji is a mold cultivated on grains, and natto is a fermented soybean dish from Japan that “offers menu developers an assertive, earthy, nutty and somewhat acidic flavor profile.” Both can help elevate plant-based and animal protein dishes, she added. Smith, along with other registered dietitians, are helping to elevate soy and tofu by collaborating to create healthy recipes available at Soy Connection, which is supported by the US Soy and the United Soybean Board. Finally, an increased interest in global flavors – and Asian cuisine in particular – has shifted consumer preferences toward tofu and other soy-protein, said Kim. Misconceptions about the health impact of tofu or lack of awareness of its benefits is a “major” hurdle for the plant-based protein industry, as well as an opportunity to drive incremental growth, according to Kim and Smith. “There are many common misconceptions that impact the adoption of soy and tofu, including myths around adverse health effects,” said Kim. These include fears that soy foods affect testosterone levels, sperm parameters and exert “feminizing effects,” according to Smith, who pointed to a recent meta-analysis published in the National Library of Medicine that found soy consumption – even if it exceeds typical Japanese intake levels – does not impact male sex hormones. Additional research from the University of Toronto suggests naturally occurring phytoestrogens in soy, known as isoflavones or ‘plant estrogens,’ do not affect key markets of estrogen-related cancer – “distinguishing them from the human hormone to recommend soy confidently for women’s health,” added Smith. She also noted that consuming soy foods and soybean oil is linked to a reduced risk of cardiovascular disease, which she said is “of particular concern for postmenopausal women.” In addition, research suggests soy protein may help reduce ‘bad’ LDL cholesterol levels, which could further lower the risk of heart disease, Smith noted. “As it concerns food manufacturers, it is well worth mentioning that soybean oil, which is high in omega-6 unsaturated fatty acid, is associated with reduced inflammation and reduced risk of cardiovascular disease, type 2 diabetes and overall mortality,” Smith added. To help consumers understand the health benefits of tofu – and address misconceptions – Nasoya launched this month a Power of 9 campaign that is “named for the nine essential amino acids that make up a complete protein, including tofu,” and which “highlights the importance of protein for women and supports them with information to make decisions about how to fuel their bodies,” Kim said. The campaign draws on insights from Board-Certified Sports Dietitian Kelly Jones and plant-based “rising WNBA star Aaliyah Edwards, who proves that you can be plant-based and still perform at peak physical performance,” Kim explained. Nasoya also recently launched Tofie – an AI chatbot – to help answer consumer questions about tofu on Nasoya’s website and offer recipe ideas, tips and more, Kim added. At a more basic level, soy is one of the few plant-based foods that is considered a “complete protein” with all nine essential amino acids, which makes it a potential go-to ingredient for consumers and manufacturers alike to meet rising demand for the macronutrient. As a complete protein, soy “promotes satiety and healthy weight loss,” said Smith. She added that an uptick in interest in protein-rich “mini-meals” also is opening the door for more soy consumption and innovation. “Younger consumers especially have embraced ‘snackification.’ This clockless dining will be magnified with the adoption of GLP-1 drugs as consumers seek out smaller, high protein and high fiber meals. And as flexitarian diets are on the rise, soy foods like tofu or tempeh are an ideal staple, with room to play with texture and flavor profiles,” said Kim. She added: “Food companies are responding quickly to the rise of GLP-1 drugs by ‘healthifying’ their offerings, adjusting portion sizes, and marketing more nutrient-dense options to cater to the changing dietary preferences of GLP-1 users. US Soy anticipates a major growth opportunity for soy protein in product innovation as consumers on GLP-1 drugs seek nutrient-dense, high-protein options.” Consumers not only are interested in foods that are healthy for them – they want ingredients that are healthy for the planet as well. According to a US Soy Protein Survey conducted in 2023, 42% of consumers said they are increasing their plant-protein consumption for environmental reasons. “US soybean farmers are stepping up to meet the demand – reducing their carbon footprint by 19% since 2015 while increasing yields by 24%,” said Smith.