Soy sauce market heats up: Cross-industry players flood in, will traditional giants or new forces dominate the billion-yuan landscape?

The competitive landscape of the condiment market is undergoing profound changes due to the influx of cross-industry players. In the billion-yuan soy sauce sector, companies like Fufeng Group, Lotus Holdings, and Fuling Zhacai have launched new products, attempting to carve out new battlegrounds in a market traditionally dominated by giants. Behind this industry shift are urgent needs for companies to achieve performance breakthroughs and underlying structural opportunities brought by consumer upgrades.

The traditional soy sauce market has entered a stage of stock competition. Data shows that domestic soy sauce production peaked in 2015 and has been steadily declining, with per capita consumption dropping from 7.28 kg to less than 5 kg. However, the market size is expected to surpass 100 billion yuan in 2024 and expand at a compound annual growth rate of 4.8% over the next five years. This shift from volume decline to price increase has prompted companies to focus their competition on product upgrades, with high-end, health-focused, and scene-specific products becoming new breakthroughs.

Cross-industry entrants are adopting diversified strategies. Fufeng Group, the world’s largest MSG producer, launched a clean-label soy sauce under the “Fufeng Uxian” brand, while also expanding into both catering and household channels. Jialong Co., a chicken essence manufacturer, and Fuling Zhacai, a leading pickled vegetable brand, are entering the market through technological empowerment and brand collaborations. Retail giant Pang Donglai leverages its channel advantages to introduce black bean soy sauce. These companies generally avoid direct confrontation with giants like Haitan and Chubang, instead focusing on specific consumer groups or niche scenarios.

Performance pressure is a key driver for cross-industry moves. For example, Fufeng Group’s revenue in 2024 declined by 0.89% year-over-year, with net profit dropping 26.45%. The decline in the average price of its MSG products by 16.1% has forced it to seek new growth points. Zhongjing Food, although leading in mushroom soy sauce with its Xianggu sauce, has an annual sales of only 625 million yuan—just 12% of Laoganma’s—making it urgent to break through its single-product ceiling. Fuling Zhacai also faces bottlenecks in its pickled vegetable category, making cross-industry expansion a necessity.

Product innovation shows a clear trend toward high-endization. Songxianxian brand introduced matsutake—a premium ingredient—into soy sauce, creating the “Natural Fresh” concept, combined with zero additives, reduced salt, and organic features. Over three years, its revenue growth exceeded 300%. Yili’s Black Truffle Soy Sauce targets fine dining scenarios, with Four Seasons Pavilion under Haitan Flavor Industry quickly following suit. These innovations not only enhance product premiumization but also redefine soy sauce consumption—from traditional seasoning to a health food with gift attributes.

Raw material innovation has become central to differentiated competition. Zhongjing Food developed mushroom soy sauce; Man Guo Xian launched broad bean soy sauce; Biorchi introduced black bean soy sauce—all leveraging specialty ingredients to build technological barriers. Ingredients like black truffle and matsutake, once exclusive to high-end restaurants, are now entering mass consumer markets through industrialized production, satisfying health needs and creating new price tiers. This innovative approach is reshaping industry rules and accelerating traditional companies’ transformation.

Channel reform and consumer upgrades are resonating. Retailers like Pang Donglai turn their own brand soy sauces into competitive advantages through their channels; Unilever’s Jiale brand focuses on the catering channel, launching chef-specific soy sauces. The rise of live-streaming e-commerce has also fostered emerging brands like Songxianxian, which rapidly build market awareness through content marketing, disrupting traditional condiment promotion models. These changes indicate that soy sauce market competition has expanded from a single product focus to a comprehensive industry chain capability contest.

In response to industry shifts, traditional giants are adjusting strategies. Haitan Flavor Industry is strengthening its advantage in zero-additive products while accelerating its organic soy sauce market layout. Zhongju Gaoxin is developing functional soy sauces to meet new challenges. However, the impact of cross-industry entrants cannot be underestimated—if matsutake soy sauce can sell at three times the price of ordinary products, and black truffle becomes a standard for high-end soy sauces, the industry’s rules are being rewritten. In this fierce competition, those who can accurately grasp consumer trends will carve out new incremental space within the existing market.