Market Trends of europe tofu Industry
The demand for soybeans from the animal feed industry is posing a threat to tofu production and prices
- With the increase in demand, the price of tofu rose by 3.41% between 2017 and 2022. The addition of numerous value-added products, such as barbeque tofu, Sriracha tofu, sweet chili bites, and scrambled tofu, is further aiding the rising price of the product. On-trade channels play an important role in driving consumers to try plant-based proteins as taste and flavor experiences are major factors considered, and price plays a lesser role as a barrier to consumption. In Europe, soy is the major source of tofu. Thus, the constantly rising production of soybeans in the region is a key reason for the nominal increase in tofu prices. However, the price of tofu is also impacted by food inflation in most parts of the region, mainly in Ukraine and Spain, which account for 22.4% and 10.12%, respectively, in terms of production. The destruction of Ukraine's agricultural land has had a major impact on the soybean supply in the country.
- Europe depends on soybean imports to cater to the high demand. Bean curd, which is used to make tofu, is getting expensive due to a few unusual market dynamics. Asian nations, especially China, are investing their soy stocks into feed grain as a part of improving their hog industry. They are sourcing feed grains from across the world and are stockpiling. This bulk purchasing caused the prices of soybeans fed to animals to rise even above higher-grade beans that go into human foods. The soy for animal feed costs around USD 27 per bushel compared to USD 23 per bushel for the human type. Hence, growers are selling beans that are usually destined for human products to livestock channels. However, the market will not experience sudden increases in prices due to the shortages as manufacturers secure much of their supplies in advance using forward contracts.
Understand The Key Trends Shaping This Market
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