Natto Market - Forecast(2024 - 2030)

● The COVID-19 pandemic had a mixed impact on the natto market. While initial disruptions in the supply chain and distribution channels affected market growth, increased consumer awareness of the health benefits associated with fermented foods like natto led to a surge in demand. Additionally, the shift towards healthier eating habits during the pandemic further boosted the market. However, economic uncertainties and fluctuations in raw material prices posed challenges for market players, impacting profit margins.

● The conflict in Ukraine had minimal direct impact on the natto market, as Ukraine is not a significant producer or consumer of natto. However, indirect effects such as disruptions in global trade routes and increased geopolitical tensions may have led to fluctuations in market dynamics. Instability in commodity prices, particularly soybeans used in natto production, could have affected production costs and pricing strategies. Overall, while the Ukraine crisis may have introduced some uncertainties.

According to the Natto Market analysis, in the Natto market share, Sticky Natto is analyzed to hold a dominant market share of 46% in 2023. sticky natto offers a unique combination of taste, texture, and nutritional benefits that resonate with consumers seeking wholesome and flavorful food options. Its characteristic sticky texture, derived from the fermentation process of soybeans with Bacillus subtilis bacteria, distinguishes it from other fermented foods and contributes to its appeal among consumers looking for novel culinary experiences. Sticky natto is renowned for its health-promoting properties, making it a sought-after choice among health-conscious individuals. Rich in protein, vitamins, minerals, and probiotics, sticky natto is perceived as a nutritious superfood that supports digestive health, boosts immunity, and provides essential nutrients. In August 2023, the National Cancer Center announced that high consumption of natto lowers mortality risk. Natto not only activates the immune system, but also contains a significant amount of vitamin K2, which can suppress brain inflammation, while the substance responsible for its stickiness lowers blood sugar levels. Moreover, the versatility of sticky natto in culinary applications has expanded its market reach and consumer base worldwide. From sushi rolls and salads to pasta dishes and sandwiches, sticky natto's adaptability in diverse recipes has contributed to its widespread acceptance and integration into global culinary landscapes.

In the Natto Market forecast, Online Stores segment is estimated to grow with a CAGR of 6.9% during the forecast period. Online stores offer unparalleled convenience and accessibility to consumers, allowing them to browse, purchase, and receive natto products from the comfort of their homes. With the proliferation of e-commerce platforms and mobile shopping apps, consumers can access a wide variety of natto products at their fingertips, eliminating the need to visit physical stores. Online stores provide a platform for natto manufacturers to reach a global audience beyond their traditional geographic markets. Through e-commerce channels, consumers from different regions and countries can discover and purchase natto products, contributing to the globalization of the market and expanding sales opportunities for manufacturers. E-commerce platforms leverage data analytics and personalized recommendations to offer tailored shopping experiences to consumers. By analyzing consumer preferences, browsing history, and purchase behavior, online stores can suggest relevant natto products, promotions, and discounts, enhancing the overall shopping experience and driving repeat purchases. In light of the COVID-19 pandemic and health concerns associated with in-person shopping, online stores provide a safer alternative for purchasing natto products. Consumers can avoid crowded spaces and minimize physical contact by opting for online shopping, aligning with their health and safety priorities.

According to the Natto Market analysis, APAC region is estimated to hold the largest market share of 53% in 2023. APAC countries, including Japan, China, and South Korea, have witnessed a surge in health consciousness among consumers. Natto, a fermented soybean product, is highly regarded for its nutritional benefits, including probiotics, vitamins, and minerals. As consumers increasingly prioritize health and wellness, the demand for natural and nutrient-rich foods like natto is expected to soar in the region. As urban lifestyles become increasingly hectic, consumers seek convenient yet nutritious food options. Natto fits this criterion as a convenient and ready-to-eat source of protein and essential nutrients. The burgeoning urban population in APAC countries presents a lucrative market for natto manufacturers. In Japan, the consumption of natto is very popular and about 7.5 billion of natto are consumed every year in Japan that rising the demand of natto which in turn driving the growth of Natto Market. In January 2023, according to U.S. Soyabean Export Council, currently, sustainable U.S. soy provides approximately 70% of the soybeans used by Japan’s natto industry. US researchers and growers continue to provide the high-protein, small-seed-size soybeans with a clear hilum to meet the growing demands of the industry.

The increasing consumer awareness regarding its health benefits. Natto is recognized for its high nutritional content, including protein, fiber, vitamins, and minerals, particularly vitamin K2. Moreover, it contains a unique enzyme called nattokinase, known for its potential cardiovascular benefits. As consumers become more health-conscious and seek functional foods, the demand for natto is expected to rise, driving market growth significantly. The increasing awareness of the health benefits associated with soy consumption fuels the demand for natto. Soybeans are rich in protein, fiber, vitamins, and minerals, making them a valuable component of a balanced diet. Natto, in particular, is renowned for its probiotic properties, attributed to the fermentation process involving Bacillus subtilis bacteria. These beneficial microorganisms contribute to gut health and digestion, further driving consumer interest in natto as a functional food. With growing concerns about wellness and preventive healthcare, the nutritional profile of natto positions it as a sought-after dietary staple, propelling market growth.

The expanding production levels of soybeans globally serve as a fundamental driver for the natto market. Soybeans are the primary ingredient in natto production, and as cultivation efforts increase, so does the availability and affordability of this essential component. The diversification of soy-based products beyond traditional markets contributes to the growth of the natto industry. As consumers become more health-conscious and seek alternative protein sources, soy-based foods gain popularity. This trend not only drives demand for soybeans but also creates opportunities for innovative soy-derived products like natto. The versatility of soy allows for the development of various textures and flavors, appealing to a broader consumer base and expanding the reach of natto into new markets. Cultural preferences and culinary innovation play a pivotal role in the increasing popularity of natto beyond its native Japan. While natto has been a traditional Japanese dish for centuries, its appeal is transcending borders as global consumers embrace diverse cuisines.

Natto, a traditional Japanese food made from fermented soybeans, possesses a unique flavor and slimy texture that may not align with the taste preferences of consumers from other regions. Its distinct aroma and stringy consistency could be off-putting to individuals accustomed to different culinary traditions. As a result, widespread acceptance outside of Japan may be hindered, limiting market expansion. Natto's strong flavor and sticky consistency might not align with the taste preferences of all consumers, especially those unfamiliar with fermented foods. The perception of natto as a novel or acquired taste could deter potential consumers from incorporating it into their regular diet, leading to slower market uptake. Convincing consumers to try natto and overcome their initial aversion could be a significant hurdle for market growth. Educational campaigns highlighting natto's nutritional benefits, cultural significance, and versatile usage could help address this challenge. Additionally, product innovation, such as introducing flavored or ready-to-eat natto variants, could attract new consumers and broaden the market appeal. 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Natto Market. The top 10 companies in this industry are listed below:

1. Meguminatto Inc.

2. Azuma Foods International, Inc.

3. Dairiki Natto Co., Ltd.

4. Suzuyo Kogyo Co., Ltd.

5. CAPTEK® Softgel International Inc.

6. Kawaguchi Natto Co

7. Asahimatsu Foods Co., Ltd.

8. Toyo Hakko Co., Ltd.

9. Mizkan Holdings Co., Ltd.

10. Takanofoods Co. Ltd.