TOKYO - Japan's tofu industry is facing mounting financial pressure, with 39 producers going bankrupt, suspending or closing operations, or dissolving their businesses between January and October 2026, as rising soybean prices and sluggish sales leave nearly 40% of manufacturers operating at a loss.
Tofu, long regarded as one of Japan's most affordable staple foods and a symbol of price stability, is increasingly caught between soaring production costs and consumers reluctant to pay higher prices.
According to a survey by credit research firm Teikoku Databank released on November 10, tofu manufacturers producing packaged products for supermarkets and other retailers are struggling to maintain profitability as the cost of soybeans, their main raw material, continues to rise.
Despite efforts to pass higher costs on to consumers through price increases, sales volumes have remained sluggish as households become more cautious about spending in response to broader inflation.
Financial results for fiscal 2025 showed that approximately 40% of tofu producers reported losses. Including companies whose profits declined from the previous fiscal year, the proportion experiencing deteriorating business performance approached 60%, highlighting the increasingly difficult operating environment across the industry.
Tofu manufacturers face particular challenges because their products have traditionally been sold at low prices, with supermarkets frequently using tofu as a heavily discounted promotional item to attract shoppers.
This pricing structure makes it difficult for producers to pass rising raw material and production costs on to retailers and consumers without risking a further decline in demand.
Teikoku Databank warned that the industry's difficulties could eventually threaten the stable supply of tofu, a staple of Japanese diets.
"Tofu is particularly likely to be used as a promotional bargain during periods of rising prices," the research firm said, warning that unless consumers and retailers develop a greater understanding of appropriate pricing, the stable supply of tofu could be jeopardized.
The findings underscore the growing strain on food manufacturers supplying inexpensive everyday products, as persistent cost pressures and price-sensitive consumers make it increasingly difficult for producers to sustain their businesses.
Source: FNN
