Soybean Derivatives Market

The Soybean Derivatives Market size is estimated to reach $ 323.4 Billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.7% over the forecast period of 2022-2027. Soybean has been a prime legume, and often grown in rotation with corn as both the crops have the same acreage. Additionally, yield grows multitudes if grown in reputation. The phytic acid content in soybean ranges from 1-1.47%, which represents around 51% as total phosphorus in seeds. Soybean has been prevalently used as a steroid hormone owing to soybean phytosterols. Genetically modified proteins or glyphosate-tolerant soybean have been actively used by farmers. Soybean has been extensively used in biodiesels as growing concern owing to climate changes. Chelating agent on soybean composition has been widely used which acts a prevalent factor. Also, fat-free soybean meal is a cheap source of protein for animal nutrition and for the packaged meals.

The growing use of soybean derivatives as a biodiesel owing to sustainable energy trends along with the rampant increase in the vegan population demanding soy products due to high protein value have been the key drivers for the market in the projected period of 2022-2027.

Soybean Derivatives Market Segmentation Analysis- By Type

The soybean derivatives market based on type can be further segmented into Soybean Oil, Soy Flour, Soy Nuts, Soy Meals, Soy Protein, Soy Milk, and Others. Soybean Oil held a dominant market share in the year 2021. It is owing to a rampant use of soybean oil by various populations across the globe. Further, around 62 million tons of soybean oil has been produced and consumed in forms of cooking oil. Additionally, soya bean oil has relatively high smoking point of about 450-degree Fahrenheit. Hence, for cooking purposes, the soy oil has been rampant. Soy Milk is estimated to be the fastest-growing, with a CAGR of 7.1% over the forecast period of 2022-2027. It is owing to the rampant adoption of plant-based milk in diets of many. Additionally, as per various surveys, it has been noticed that consumers are now preferring vegan milks and are ready for further advancement which would make it taste close to cow’s milk. Innovations with other flavors such as vanilla, chocolate, and others would allow for better product reach.

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=504902

Report Price: $ 4500 (Single User License)

Soybean Derivatives Market Segmentation Analysis- By Application

The soybean derivatives market based on application can be further segmented into Food Industry, Feed Industry, Biodiesel, and Others. Feed Industry held a dominant market share in the year 2021. Feed Industry held such share owing to the nutritional profile of soybean, with having around nine essential amino acids, which allows for greater use in animal feed/ livestock demands. As per FAO, the demand from livestock such as swine and beef are projected to grow at 16% and 14% over the next eight years. Hence, the industry of soybean is not only dependant on vegan part of population but acts as a key need for meat products. However, Biodiesel is estimated to be the fastest-growing, with a CAGR of 6.9% over the forecast period of 2022-2027. It is owing to the mounting government pressures, the YoY growth for biodiesels for the last decade has been ranging between 4.5%-6%, however, the YoY growth rate should be close to 14% to achieve the net zero emissions. Biofuels (from feedstocks) have to provide around 45% of total demand by 2050, which currently only online provide 7%. Owing to such reasons, the overall market growth is assured.

Soybean Derivatives Market Segmentation Analysis- By Geography

The soybean derivatives market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. North America held a dominant market share of 36% in the year 2021. Consumption and production have been a prevalent reason for soybean within the US. Additionally, the U.S. has been a prime consumer, with around 31 kg/per person being the natural demand for soybean. The market size for the US is around $26 billion in 2020. While, the world production has reached close to 381 million tons, while USDA has projected it to increase at a steadfast pace. However, Asia-Pacific, is expected to offer lucrative growth opportunities to the marketers in the projected period of 2022-2027. It is owing to the rampant increase in the consumption within China and India. China imports value equivalent of around $18 billion in 2020.

Soybean Derivatives Market Drivers

The growing pressure to support biodiesel fuel production to eradicate net-emissions has set the market on growth track

The demand from bio-fuels and bio-diesels have been growing rounds in the World Community. Further, the global target to reach net zero emissions by 2050. Owing to COVID-19, the market for soybean derivatives observed a negative YoY growth of 8%. However, if the average of the last decade is seen in context, the growth has been closing to 5%. As per IEA, the said growth rates should touch 14% YoY basis to meet the targets of net-zero emissions. Biodiesels and fuels are extremely important for trucking, shipping, and aviation with few other low-carbon technology options. Furthermore, recommendations from various agencies and other mounting global pressures would aid the market growth. For example, in Brazil, the National Petroleum reduced the biodiesel blending mandates to 10% from earlier 13%. While Indonesia would introduce 40% biodiesel blending mandates from 2022/23. Additionally, Europe’s Fit for 55 package has set a target of 13% decline in GHG intensity of transport fuels by 2030, and raises that 28% of the transport fuels would be renewable.

The slated demand for soy derivatives owing to high nutritional value coupled with rising vegan population would act as a ready driver

Soy products have been in keen demand owing to their excellent nutritional profile. Soy milk contains 80-100 calories, with four grams of carbs, and around 7 grams of protein from a single cup. And since, the product is plant-based, the milk obtained is free from cholesterol and is extremely low in saturated fats. Since, the population is growing heavily lactose intolerant, with around 68% of the global population suffering from some form of lactose malabsorption, would allow the soy-milk counterparts to grow. Furthermore, the world has started growing vegan owing to the template of following a sustainable living, while providing maximum value to the environment around, livestock demand suffered immense hit in 2020. Within the US, around 300% increase has been seen from 2004 to 2019 in the number of vegans. As per our analysis, around 3% or close to 10 million of the US population are now either partially vegan or complete vegan. Such factors would allow the market to grow at a steadfast pace.

Direct Purchase link @ https://www.industryarc.com/purchasereport.php?id=504902

Soybean Derivatives Market Challenges

A high input cost coupled with growing competition from other vegan competition impedes the market growth

Prices for soybean oil has shot to an all-time high in June 2021. As per Chicago Board of Trade, the soybean oil futures soared around 70% from 2020, which has been one of the highest ever YoY jump. One of the major factors is the fresh demand being seen from various regions owing to net zero emissions target. USA must have reduced 50% of their fuels with renewable sources, and biodiesel supports the major fracture of such policy introductions. As per USDA, biofuels sector would consume around 12 billion pounds of soybean oil in 2021-2022, which is up from forecasted 9.5 billion in 2020-2021, thereby making the demand soar high. Furthermore, within the application segment of protein, a lot of new plant-proteins are gaining traction such as almond, pea, and rice. Owing to such factors, the market’s growth would recede.

Soybean Derivatives Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the global Soybean Derivatives Market. Soybean Derivatives top 10 companies include:

Bunge Limited,

CHS Inc,

Ruchi Soya Industries Limited,

AG Processing Inc,

DuPont Nutrition and Health,

Wilmar International Company,

Noble Group Ltd.,

Archer Daniels Midland Company,

Louis Dreyfus Commodities

Cargill Inc.

Recent Developments

In April 2021, Philips 66 secured their feedstock renewable fuel supply via investment in a soybean processing plant. The processing plant is situated in Iowa and would allow Philips to grow their renewable portfolio. The plant, which is pending state and local approvals, will yield approximately 4,000 barrels per day of soybean oil. Phillips 66 has an agreement to purchase 100% of the plant’s soybean oil production that will be used to make renewable fuels. Additionally, company has shown interest in increasing ins renewable diesel value chain through widespread investments.

In April 2021, ADM announced that it would build new Soy Crushing Facility in North Dakota. The said move has taken place to meet the ever-increasing demand for renewable products. Company further said that the move was much needed owing to fast growing demand from food-feed-industrial-biofuel customers. The company further said that it would invest $350 million crush and refining complex, which would feature state-of the art technology and will have the capacity to process up to 150,000 bushels of soybean per day.

In March 2021, Cargill announced that it would upgrade soy processing operations by investing $475 million. Once completed, the company estimates the $475 million in investments will improve operational efficiencies, while also increasing capacity—by 10% in one location and doubling capacity in another, to better meet growing demand for U.S. soy products. With such hold on the market, Company estimates that it would better the access of soybean to feed stocks.

Key Takeaways

Geographically, North America’s soybean derivatives market held a dominant market share in the year 2021. It is owing to the presence of major portion of land for producing soybean, and USA ranks second in terms of exports for soybean to the entire world. Additionally, the demand for soybean has been rising in the sates and others’ owing to an increasing proportion of population preferring vegan diets. However, Asia-Pacific is expected to offer lucrative growth opportunities to the marketers in the projected period of 2022-2027. It is owing to a vast proportion of demand being seen in China and India, with former being the lead importer of the said commodity.

The growing use of soybean derivatives as a biodiesel owing to sustainable energy trends along with the rampant increase in the vegan population demanding soy products due to high protein value have been the key drivers for the market. However, a close tie with other vegan products offering the same notch functional values have impeded the market growth.

A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Soybean Derivatives Market Report.

Relevant Title

A. Oilseeds Market

https://www.industryarc.com/Report/17801/oilseeds-market.html

For more Food and Beverage Market reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/