The global soybean market is mainly witnessing a splendid growth owing to extensive efforts taken by prominent companies to manufacture high quality soybean products. With a rising awareness of the health benefits of soybean, a surge in the demand for associated products is propelling the relevant market to witness splendid growth. Soybeans have increasing applications in various end use segments, thus comprising a huge market space all over the globe. From an overall perspective, the global soybean market is prophesized to grow with leaps and bounds as companies are anticipated to churn out top-notch quality products.
From a statistical perspective, analysts peg this market to gain revenue worth US$215.746 bn by 2025, which is a decent increase from the earlier revenue valued at US$146.23 bn in 2017. This growth is anticipated to occur at an impressive CAGR of 5.0% during the forecast period from 2017 to 2025.
Rising Awareness about the Benefits of Organic Foods Spurs Growth in Organic Segment
The global soybean market is mainly classified under various categories such as source type, by end products, and by end use. Under source type, conventional and organic are two main segments that mainly comprise the market space. With respect to end products, whole protein, oil, and meal, are key segments present in the market. Whereas, by end use, the primary sections present in the market are, food and beverages, personal care, dietary supplements, pharmaceuticals, and animal feed.
In terms of source type, the organic segment is more popular because of the increasing preference of consumers to prefer organic foodstuffs with minimum or no chemicals. Such an increase in awareness has mainly been possible due to the fact that the additional chemicals and artificial additives used in foods are usually detrimental for health. Over the next few years, the segment is expected expand at an impressive CAGR of 8.1%, thus clocking revenue worth US$1.38 bn.
Under end use, the segment of animal feed accounts for maximum share in the global soybean market, which is around 75.1% in current times. During the next few years, the animal feed sector is predicted to expand at a healthy pace. Under this segment, the soy meal segment accounts for the largest share and is followed by the soy oil segment.
Asia Pacific Comes out as a Winner Owing to Increased Soybean Consumption
From a geographical perspective, the global soybean market is spread across Asia Pacific, Europe, the Middle East and Africa, Latin America, and North America. Of these, Asia Pacific is expected to hold a leading share thanks to rising demand for quality food products and supplements, mainly due to a rapidly increasing population. With an increasing awareness about the protein benefits of soybean products, many people from this region who mostly belong to emerging nations, are expected to increasingly buy soybean products. This factor has certainly made the Asia Pacific market grow tremendously in recent times.
Apart from Asia Pacific, the runners-up in terms of revenue generated are North America and Asia Pacific. According to market experts, Asia Pacific and Latin America together are expected to account for approximately 78.1% share by the end of 2025. The demand for soybeans in the three key regional markets is primarily being driven by the increasing consumption of soybean as a natural alternative to meat and dairy proteins. Consumption of sports drinks that contain soybean as a key ingredient too has been responsible for making these three regions dominate the market.
Kerry Inc., Fuji Oil Group, House Foods Group Inc, The WhiteWave Foods Company, E.I. du Pont de Nemours & Co., CHS Inc., Cargill Inc, The Scoular Company, and Archer-Daniels Midland Co., are some of the major companies present in the global soybean market.
Global Soybean Market: Brief Overview
The global soybean market is driven by the increasing awareness among consumers regarding the health benefits of soybean and therefore it's increased number of applications. Today soybean is also used in animal feed. Since soybean helps in improving the metabolism, people can gain weight in a healthy manner and also have better digestive health, thus driving its demand.
Soybean can help defend against cancer, reduce the impact of menopause, enhance the health of bones, protect the heart, and protect against birth defects. It also decreases the risk of diabetes and increases circulation. All these factors are anticipated to fuel the demand for soybeans in the next few years. On the other hand, daily protein ingredients are increasingly gaining consumer acceptance which will threaten the demand for soya bean. Manufacturers are increasingly finding it difficult to maintain the final price of the product on account of the volatility in terms of raw material supply and demand.
As per Transparency Market Research (TMR), the global soybean Market is anticipated to rise from US$146.23 bn in 2017 to US$215.746 bn by 2025, expanding at a 5% CAGR between 2017 and 2025.
Global Soybean Market: Trends and Opportunities
There are two types of soybean sources, organic and conventional. Of these, it is expected that the organic segment will expand at a faster pace as consumers are now preferring products which are natural and devoid of any additives. It is most likely that the organic segment will expand at an 8.1% CAGR between 2017 and 2025. By end use, the global soybean market is segmented into dietary supplements, food and beverages, pharmaceuticals, personal care, and animal feed. Of these, the highest revenue was generated from the animal feed segment. The animal feed segment accounted for 75.1% of the total market and is expected to continue to expand at a healthy pace in the years to come. Oil, protein, milk, tofu, fiber, soy milk are key products of soya bean. Of these it is anticipated that the soybean meal segment will dominate in the market, accounting for 72.9% of the total market.
Global Soybean Market: Geographical Analysis
On the basis of geography the global soybean market is segmented into Asia Pacific, Europe, North America, and the Rest of the World. Among these, Asia Pacific is leading in terms of highest demand. The high population, increasing number of people in emerging nations who have developed a strong inclination for healthy food, and rising awareness about the protein content of soybean among consumers will drive the Asia Pacific soybean market. The demand for soybean from nutraceuticals sector will also help the market to grow in this region. In addition to this, the animal feed industry is also stoking the growth of this market.
Latin America is expected to be the second leading segment, region wise for the soybean market followed by North America. Latin American and Asia Pacific are expected to collectively account for a whopping 78.1% of the total market by 2025. Increasing consumption of soybean in place of dairy proteins and as a alternative to meat will fuel the growth of this market in these two regions. Soybean is also used as an active ingredient in clean label products and sports nutrition products.
Global Soybean Market: Companies Mentioned
Players within the soybean market are attempting to develop innovative soybean based foods which have improved functionality. Players are also experimenting with newer blends in order to enhance the application areas of soybean. Some of the prominent players within the market include: Fuji Oil Group, Kerry Inc., House Foods Group Inc, E.I. du Pont de Nemours & Co., The WhiteWave Foods Company, CHS Inc., The Scoular Company, Cargill Inc, and Archer-Daniels Midland Co.
Global Soybean Market, by Source
Global Soybean Market, by End Products
Global Soybean Market, by End Use
- Food and Beverages
- Personal Care
- Dietary Supplements
- Animal Feed
Global Soybean Market, by Region
- North America
- Latin America
- Asia Pacific
- The Middle East and Africa