Axiom Foods Addresses Post-Chinese Tariff Pea Protein Market Challenges with New Vegotein™ N Neutral Production in North America

LOS ANGELES, Oct. 24, 2024 /PRNewswire/ -- The U.S. pea protein market has faced significant supply challenges since steep tariffs on Chinese imports were imposed in 2023. These tariffs, which reached 270% for antidumping and 340% for countervailing duties, retroactively applied to shipments going back to August 2023, targeted Chinese producers who had long dominated the U.S. market, accounting for more than 96% of pea protein purchased by the largest manufacturers.

These disruptions caused price hikes and forced manufacturers to reformulate products with alternative protein sources like soy or rice. However, Axiom Foods is turning the tables with its new Pea Protein Vegotein™ N, the most neutral pea protein of all sources on the market is now being produced on a large scale in North America, signaling a major shift in the global pea protein supply chain.

Turning the Tables on China's Market Dominance
Historically, China's pea protein exports were a byproduct of its massive pea starch industry, primarily used for producing vermicelli noodles. Like whey once discarded in cheese-making, the protein-rich liquid from pea starch extraction was initially wasted until its potential in the global market was realized and subsidized. The 2023 tariffs sought to level the playing field, and now, U.S.-headquartered Axiom Foods is stepping in to help fill the gap.

Vegotein™ N Pea Protein – A Sustainable Solution for the Future
Axiom Foods has responded to market conditions by expanding Pea Protein Vegotein™ N production. Leveraging Axiom's patented process, this pea protein is the most neutral tasting and smelling on the market, and the most functional based upon an independent survey comparing U.S. and Asian manufacturers. Key details include:

• New North American Production: Commercial facilities in North America can produce over 2,000 metric tons annually as of January 2025, with plans to double capacity within 12 months.
• Price Reduction: Vegotein™ N will now be priced competitively, offering the most neutral version at prices similar to basic, "earthy-tasting" versions offered by competitors.
• Guaranteed Allergen- and GMO-Free: Axiom ensures pea protein options are soy- and gluten-free (less than 20ppm) and non-GMO.

"The challenges of the past year have demonstrated the importance of having a reliable, local and affordable supply chain for pea protein," said David Janow, CEO & Founder, Axiom Foods. "With Vegotein™ N, we're not just filling the tariff-making gap; we're raising the bar by delivering the best tasting, more versatile, and cost-effective pea protein, produced here in North America. The patented innovation of our food science team is set to transform the industry and provide manufacturers with the high-quality ingredients they need to meet margins, plus retailer and consumer demand. We're sampling upon request and meeting with formulators at Supplyside West Las Vegas, October 30-31^st."

Global Markets and Organic Pea Protein Prospects
In addition to North America, Europe, Asia-Pacific, and Latin America, particularly Brazil, Chile, and Argentina, are emerging as key markets for pea protein due to the growing popularity of sports nutrition products and clean-label, allergen-free options.

The tariffs on Chinese imports, along with the USDA's 2024 SOE organic verification program, are eliminating counterfeit organic pea protein from the market. However, organic pea protein from North America remains scarce and with predictions of late 2025 availability.

Looking Ahead
Following the success of VegOtein™ CLEAR for low pH applications, Axiom Foods will continue launching new SKUs in the Vegotein N line by Q1 2025, including the lowest priced pea protein, with an anticipated 78% protein concentration, to meet lower cost demands of manufacturers and consumers alike.

Press Contact:
Kay Abadee
818-266-2461
[email protected]

SOURCE Axiom Foods