Soybean Market

According to Stratistics MRC, the Global Soybean Market is accounted for $50.10 billion in 2022 and is expected to reach $71.49 billion by 2028 growing at a CAGR of 6.1% during the forecast period. The soybean is one of the most important food plants of the world, and seems to be growing in importance. It is an annual crop, fairly easy to grow, that produces more protein and oil per unit of land than almost any other crop. It is a versatile food plant that, used in its various forms, is capable of supplying most nutrients. It can substitute for meat and to some extent for milk. It is a crop capable of reducing protein malnutrition. In addition, soybeans are a source of high value animal feed.  

As per the USDA, in 2020, soybean oil production in the United States was recorded at 11.3 million metric ton, increasing from 9.9 million metric ton in 2016. The demand for soybean oil in the country contributed to the production of commodities, which is anticipated to drive the market during the forecast period. Soybean meal has a unique composition of amino acids and can be used as an alternative for cereal proteins. Therefore, soybean meal is used as a feed for animals and for human consumption. The main reasons behind the increasing demand for protein-enriched foods are their health benefits and the growing number of livestock, cattle, ruminants, and other animals in the global market.



Market Dynamics:

Driver:

High nutrition value of soybean

The demand for soybean by-products such as oil cakes, soybean meal, and other similar items has increased. The high nutritional value of products has augmented their popularity amongst consumers. Consumers in advanced countries now have increased disposable income, and augmented productivity of soybean has improved in these countries, ensuing in higher demand for soybean by-products. Soybean meal comes with a special amino acid profile that makes it a good substitute for cereal proteins. As a result, soybean meal is used as a feed for both human beings and animals.  The medical benefits of protein-enriched foods, as well as the rising number of ruminants, cattle, and livestock, and other animals are likely to support growth of the market.
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Restraint:

Fast deforestation

Soybean cultivation in the Amazon is affecting fast deforestation in the province, and receiving protest from all over the world. If cultivation continues on this scale, there will hardly be any land left to cultivate. Environment-friendly agriculture techniques, with a clear view of not causing deforestation are the best ways against this challenge.

Opportunity:

Growing popularity of vegan lifestyle

Plant-based proteins such as soybean are likely to be in high demand across the globe as numerous people are steadily moving toward a vegan lifestyle. Furthermore, the world is becoming healthier and fitter, necessitating higher protein content on our plates. Soybean is a great source of protein that also happens to have a lot of health benefits. It aids in the maintenance of our digestive health and can be moulded into various shapes for use in daily dishes. Soy consumption on a daily basis has been linked to better hair and skin health. Soybean is high in amino acids and is particularly advantageous to people who have lactose intolerance.

Threat:

Increasing accessibility of substitute and alternate oils

The market is highly affected by the availability of numerous other oilseeds that can be used as an alternative or a substitute for soy oil. Palm oil, olive oil, rapeseed oil, sunflower oil, and canola oil are major competitors of this oil. Palm oil is the only vegetable oil in the world that is repeatedly priced at a discounted price, which significantly hampers the growth of the market. Palm oil has higher saturated fat content than soybean. Furthermore, the growing awareness regarding nutritional and healthy oils such olive oil among consumers has considerably affected the utilization of this oil across retail aisle.

Covid-19 Impact

The spread of the COVID-19 pandemic and nationwide lockdown measures have led to a trivial impact on soybeans. However, soy oil, one of the main by-products of soybean processing, has experienced a decreased consumption, mainly due to the impact of the pandemic on the foodservice sector, a most substantial user of vegetables. Likewise, as the fuel demand reduced, biodiesel consumption decreased. Demand for biodiesel has decreased primarily in the U.S., which has the largest usage of the oil for biodiesel. Biodiesel demand has been growing sharply in Brazil in recent years. This demand has been impacted due to the pandemic. However, as the lockdowns uplift worldwide, the market is expected to increase across restaurants and other foodservice channels. The growing concerns regarding health among consumers are anticipated to drive the demand for non-GMO and organic soy products over the forecast period.

The Organic segment is expected to be the largest during the forecast period

The Organic segment is expected to be the largest during the forecast period, owing to increasing preference of consumers to prefer organic foodstuffs with minimum or no chemicals and increase in awareness has primarily been possible owing to the fact of the additional chemicals and artificial additives used in foods are usually detrimental for health.

The Dietary Supplements segment is expected to have the highest CAGR during the forecast period

The Dietary Supplements segment is expected to have the highest CAGR during the forecast period. Soy protein products have most often been used by adults in doses of 40 grams by mouth daily for up to 5 months. The active ingredients in soy, called soy is flavones, have been used in supplements in doses of 120 mg by mouth daily for up to 6 months. Soy supplements may contain soy protein, isoflavones (compounds similar in structure to the female hormone estrogen), or other components. Soy products are promoted for menopausal symptoms, bone health, improving memory, high blood pressure, and high cholesterol levels.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. The U.S. is the major consumer of this oil owing to the fastest growing and expanding food processing industry. This oil is widely utilized for margarine, and shortenings are extensively used in the food processing industry across the province. The rapidly growing bakery industry in North American countries further fuels its demand. The growing knowledge regarding the health benefits of organic food has significantly increased the demand for organic soy oil among consumers. The rising use of this oil to produce biofuel is expected to drive market growth in the upcoming years.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period owing to the increasing utilization of soy oil for biodiesel production. The increasing government intervention to drive biofuel production has considerably fuelled the market growth in the province. The highly evolved food sector in the region has changed consumer buying patterns. Consumers nowadays seek healthier oil options which boost the demand for variants such as non-GMO, non-PHO, and organic soy oil in European countries. The rising interest in plant-based food products is predictable to drive the market growth across the province.



Key players in the market

Some of the key players profiled in the Soybean Market include House Foods Group Inc, SunOpta Inc., Pulmuone Co. Ltd., Aceitera General Deheza, E.I. du Pont de Nemours & Co., Cargill Inc., Ag Processing Inc., Wilmar International Ltd., Batory Foods, The Scoular Company, CHS Inc., Archer-Daniels Midland Co., The Hain Celestial Group Inc. and The WhiteWave Foods Company. 

Key Developments:

In August 2021: ADM and Marathon Petroleum Corp announced a joint venture to produce soybean oil to fulfill its rising demand to produce renewable diesel fuel.

In September 2019: CHS, Inc., a leading oilseed processor in the U.S., announced the expansion of its Minnesota soybean processing plant. This expansion will enable the company to increase its soybean crush and soy oil production capacity.

Sources Covered:
• Organic
• Conventional (GMO and Non-GMO)
 
Applications Covered:
• Aqua Feed
• Pharmaceuticals
• Coatings
• Hydraulic Fluids
• Industrial Solvents
• Animal Feed and Pet Food
• Building Materials
• Biofuel
• Personal Care and Cosmetics
• Dietary Supplements
• Industrial Solvents
• Adhesives and Sealants
• Food and beverages
• Lubricants
• Other Applications
 
End Products Covered:
• Meal
• Whole Soybean
• Oil
• Other End Products
 
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan       
o China       
o India       
o Australia 
o New Zealand
o South Korea
o Rest of Asia Pacific   
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances