Japan's Tofu Tradition Under Threat as Producers Struggle to Survive
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. (News On Japan)
Japan's tofu industry is grappling with financial struggles as 39 producers have gone bankrupt, suspended or closed operations between January and October 2026, due to rising soybean prices and declining sales. Tofu, once a staple food enjoyed by many for its affordability and price stability, is now caught between high production costs and consumers unwilling to pay higher prices.
A survey by credit research firm Teikoku Databank revealed that approximately 40% of tofu manufacturers operating in fiscal 2025 reported losses, with this figure rising to nearly 60% when including companies whose profits declined from the previous fiscal year. The main issue lies in the traditional low pricing strategy employed by tofu producers, who often sell their products at discounted rates to attract consumers.
This pricing structure makes it difficult for them to pass on rising costs to retailers and consumers without risking a further decrease in demand. Teikoku Databank warned that the industry's challenges could eventually jeopardize the stable supply of tofu, a vital component of Japanese diets.
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