soybean derivatives market was worth USD 191 billion in 2021 and is expected to increase to USD 346.91 billion by 2030 at a CAGR of 7.71 %.
Soybean Derivatives Market
The global soybean derivatives market size was worth around USD 191 billion in 2021 and is predicted to grow to around USD 346.91 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.71 % between 2022 and 2030. The report analyzes the global soybean derivatives market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the soybean derivatives market.
Soybean also called soya beans, are from the family of legumes and are native to East Asia. The cultivation of soybean is highly influenced by the purpose of accessing its edible bean which has multiple applications owing to the versatility of the food item. When unfermented, soybean can be used to produce soy milk which in turn is used to create tofu or tofu skin. After fermentation, the legume is used in the production of tempeh, soy sauce, natto, and fermented bean paste.
Fat-free or defatted soybean is consumed owing to its large-scale availability at low prices and since it is an excellent source of protein, soybean has become a preferred choice amongst vegan or vegetarian food consumers. Soybean is a rich source of vitamin B, dietary minerals, and phytic acid. Vegetable oil derived from soy is not only used for cooking purposes but has industrial applications too. Like other plants, soybean grows completely during various morphological processes starting from the seed stage to the final plant stage. The first process is the germination step and includes the emergence of seed radicles. The next step is the natural process followed by the flowering, and seed resilience process.
Changing consumption habits to propel market demand
The global soybean derivatives market is projected to benefit from the changing consumption pattern amongst end-consumers. With growing consumer awareness, more people are changing their inclination toward non-meat sources of nutrition. The trend has gained more momentum post-Covid-19 during which many people switched food habits to more natural sources or origins. Since soybean is an excellent source of protein, soybean derivatives like tofu are highly in demand. As suggested by official reports, the United Kingdom witnessed a surge in tofu sales by 81% in 2020 as many people switched to meat-free diets.
The reason for demand can be attributed to the excellent antioxidant property of the food product as well as its contribution to supporting a healthy heart. Tofu is considered, by many, a complete source of plant protein since it can also be consumed to manage blood sugar levels. The change in consumer preference can be attributed to the efforts undertaken by various non-profit organizations that work toward the welfare of animals since they have taken up massive awareness campaigns and advertising activities.
Growing deforestation associated with the cultivation of soybean to restrict the market growth
The production of soy, in recent times, has become a major contributor to deforestation when the indirect impact of cultivation is considered. Due to the growing expanse of land required to cultivate soy, the growth of other naturally occurring plants has diminished over the years since soy can only be grown on pasture land. Since soy derivatives are used as animal feed, the growing demand for meat directly impacts the requirement for soy and soybean derivatives.
Increasing applications of soybean derivatives to produce biodiesel may provide growth opportunities
As the world is moving toward rampant industrial growth along with growing population, modernization, and urbanization, the demand for fuel has increased tremendously. Soybean derivatives are finding wide applications in the production of biodiesel, which is being considered an important switch from non-renewable sources of energy for sustainable growth. Soybean oil is a major component in producing biodiesel and this aspect is projected to create more growth opportunities during the forecast period.
Controlling weed in soybean, is a major challenge for market players
Since soybean has presence of weed content, it can potentially damage the final yield of the legume. Market players have to invest in weed control to avoid losing the quality of the yield and subsequent derivatives. Some of the most damaging weed forms in soybean are Digitaria sp., Echinochloa colona, Cyperus iria, Dactyloctenium aegyptium, Euphorbia hirta, and others. If these weed bacteria remain in the crop for more than 3 weeks up to 8 weeks, they can potentially damage the soybean yield quality.
The global soybean derivatives market is segmented based on application, processing, product type, and region.
Based on application, the global market divisions are food, feed, and others. In 2021, the global market witnessed the highest demand in the feed sector. Since soybean and its derivatives are the main sources of amino acids and protein, they are used extensively for the production of animal feed. It also exhibits fewer chemical compositions, acting as an excellent choice for plant-based nutrition. As per estimates, more than 80% of soybean is used for animal feed, mostly concentrated toward the production of external supplements for chicken, beef, and egg. The global market may witness more revenue from the food segment as well due to the growing demand for plant-based sources of protein like cottage cheese and yogurt.
Based on product type, the global market divisions are soy oil, soy meal, soybean, and others. Soy oil was the most dominating segment in the global market during 2021 due to increasing product adoption as a cooking oil. More than 96% of soybean oil produced for commercial purposes is used in cooking including margarine and salad dressings. Since it also has industrial applications, the product witnessed higher demand. Unrefined soybean oil also known as crude oil is used in industries as it is used as a solvent by extracting it using chemical and mechanical methods.
|Report Attributes||Report Details|
|Report Name||Soybean Derivatives Market Research Report|
|Market Size in 2021||USD 191 Billion|
|Market Forecast in 2030||USD 346.91 Billion|
|Compound Annual Growth Rate||CAGR of 7.71%|
|Number of Pages||288|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Key Companies Covered||Cargill Inc., Bunge Limited, Wilmar International Company, Ruchi Soya Industries Limited, Archer Daniels Midland Company, DuPont Nutrition and Health, AG Processing Inc, and Louis Dreyfus Commodities.|
|Segments Covered||By Application, By Processing, By Product Type and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East and Africa (MEA)|
|Countries Covered||North America: U.S and Canada
Europe: Germany, Italy, Russia, U.K, Spain, France, Rest of Europe
APAC: China, Australia, Japan, India, South Korea, South East Asia, Rest of Asia Pacific
Latin America: Brazil, Argentina, Chile
The Middle East And Africa: South Africa, GCC, Rest of MEA
|Historical Year||2016 to 2020|
|Forecast Year||2022 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America to witness the highest CAGR during the forecast period
The global soybean derivatives market is projected to be dominated by North America in the coming years. The regional growth may be driven by the stronghold of the US and Brazil in the production of soybean supply as these two countries are responsible for at least 64% of the global soybean supply. Argentina ranks third in the list of top suppliers of soy. In 2021, Brazil produced more than 353,463, 700 metric tons of soy which was a rise of nearly 5% from the amount produced in 2020. Growth in North America may further be driven by the growing use of soybean derived in the animal feed sector. Brazil’s animal attrition industry stands at USD 11 billion as of 2021 and is projected to grow at a CAGR of 4% by 2030.
The global soybean derivatives market is led by players like:
By Product Type
The global soybean derivatives market is projected to benefit from the changing consumption pattern amongst end-consumers. With growing consumer awareness, more people are changing their inclination toward non-meat sources of nutrition. The trend has gained more momentum post-Covid-19 during which many people switched food habits to more natural sources or origins.
According to study, the global soybean derivatives market size was worth around USD 191 billion in 2021 and is predicted to grow to around USD 346.91 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.71 % between 2022 and 2030.
The global soybean derivatives market is projected to be dominated by North America in the coming years. The regional growth may be driven by the stronghold of the US and Brazil in the production of soybean supply as these two countries are responsible for at least 64% of the global soybean supply.
The global soybean derivatives market is led by players like Cargill Inc., Bunge Limited, Wilmar International Company, Ruchi Soya Industries Limited, Archer Daniels Midland Company, DuPont Nutrition and Health, AG Processing Inc, and Louis Dreyfus Commodities.