Preliminary research of Fairfield Market Research indicates a promising growth outlook for global soybean derivatives market during the course of next few years.
Rising Boom Around High-protein Foods Acts as a Key Driving Force for Soybean Derivatives Market
With the rising protein consumption, soybean derivatives are widely used in the food and beverages industry, which drives the global market for these products. To make salad dressings, baked items, sauces, bread, mayonnaise, and potato chips, soybean derivatives are processed. Throughout the forecast period, the market is anticipated to benefit from expanding the food and beverage industries in China, India, and the Middle East. The production of China’s leading beverage companies increased by 12% annually to more than 183 million tonnes in 2021. In the upcoming years, it is projected that the worldwide soy derivatives market will be driven by population increase, rising meat and soy-based health product consumption, and rising demand for biodiesel as a fuel substitute. Toasted residual fiber from the extraction of soybean oil is used to make feed for pets, livestock, and aquaculture. Demand for animal protein products and the expansion of the animal feed sector is anticipated to drive the growth of soybean derivatives market over the forecast period.
Animal sources comprise more than 60% of the protein in the United States and other developed economies but only 20–25% of total protein in Africa, India, and other food-insecure nations. Growing environmental consciousness on the need to reduce greenhouse gases (GHG) emissions has aided the market expansion of naturally generated goods. The US Environmental Protection Agency (EPA) and the European Commission have developed numerous laws to increase the use and production of biodiesel. Over the projected period, it is anticipated that this trend will increase demand for the raw materials needed to produce biodiesel. Since they have qualities like high elasticity, outstanding surface quality, and superior corrosion resistance, soybean derivatives are used more frequently by businesses to make polymers for farming equipment. The leading companies in the soybean derivatives market are focusing heavily on R&D to create innovative products and technologies. In February 2021, Mitake Food Industry, one of Japan's major rice flour manufacturers, introduced Rice Tempura Flour in the United States. This product contains emulsifiers, soy, modified starch, and an alternative to wheat flour.
Soybean Derivatives Market: COVID-19 Impact
The new coronavirus is causing rot in the world market. For businesses, the two biggest worries now are labor shortages and logistical constraints. However, the soybean business is still in operation, with farmers in Brazil, Argentina, and the United States crushing record numbers of soybeans, despite the high rate of COVID-19 cases in important producing regions. Since meat production is the business's main customer, the widespread industrial closures and logistical snags have also impacted livestock farmers and, in turn, soybean growers. However, the industry's constant expansion can be supported by the growing demand for plant-based protein sources. Furthermore, as the United States exports almost 40% of all soybeans to China, the ongoing trade conflict between the two countries has significantly changed how soybean commerce flows internationally. There may be unanticipated market effects as a result of this clash.
Rocekting Livestock Production Leads to Demand Surge in Soybean Derivatives Market
Since soy is not only safe for human consumption but also relatively inexpensive when compared to sources of animal protein, it plays a vital role as a source of plant-based protein to improve community nutrition. One of the few plant-based foods that contain all nine necessary amino acids is soybean. This has led to it being a substantial animal and human protein source. About 70-80% of its crop is used for animal feed, with the remainder going directly into human food. The demand for soybeans is currently correlated with the world's meat consumption and is anticipated to increase over the future years as a result of increased animal output around the world.
Soybean Derivatives Market Rises High with an Excellent Nutrition Profile, and Soaring Popularity Among Vegans
Since soy products offer superior nutritional profiles, there has been a strong demand for them. Eighty to one hundred calories, four grams of carbs, and roughly seven grams of protein are included in one cup of soy milk. Additionally, because the product is made from plants, the milk it produces is very low in saturated fats, and cholesterol. Since a large portion of the population is becoming lactose intolerant—roughly 68% of people worldwide have some sort of lactose malabsorption—this would allow the soy-milk alternatives to flourish. With the global trend toward veganism and the model of living sustainably, which maximizes benefits to the environment, cattle demand will significantly decline in 2020. According to data, up to 10 million Americans, or around 3% of the country's total population, are either fully or partially vegan. These elements would enable the soy derivatives market to expand steadily.
High Unsaturated Fatty Acid Content May Deccelerate Soybean Derivatives Market Performance
Over the ensuing decades, there will be an increase in demand for soy derivatives. However, a decline in agricultural land and deteriorating soil quality brought on by the use of toxic fertilizers is anticipated to impede soybean derivatives market expansion in the years to come. Furthermore, it is projected that soy's high percentage of unhealthy unsaturated fatty acids for human health may impede the growth of soybean derivatives market. The expansion of the soy derivatives industry may be constrained by the increasing use of biomass and other sugar derivatives like sucrose for the production of bioplastics.
Owing to the High Smoking Point, Soyabean Oil to Dominate Soybean Derivatives Market
In the forecast period, soybean oil commanded a sizable revenue share in soybean derivatives market. It is due to several populations' widespread use of soybean oil worldwide. Additionally, almost 62 million tonnes of soybean oil were produced and used as cooking oil in 2020. Soybean oil also has a high smoke point, around 450 degrees Fahrenheit. Therefore, soy oil has been widely used in cooking. Growth in the use of soybean oil by food processors and food service providers for baked and fried food products or for sale as cooking oil in packaged bottles is accelerating the growth of soybean derivatives market. In many countries, the recently developed biodiesel sector utilizes oil to make ecologically friendly renewable fuel. This is also anticipated to propel the expansion of soybean derivatives market during the anticipated time frame.
With Growing Vegan Population, Food Industry Continues to Dominate Soybean Derivatives Market
Numerous items, such as soymilk, soy flour, tofu, tamari, tempeh, edamame, miso, natto, and teriyaki, are made from soybeans. Tofu is more popular than ever, especially among vegan and vegetarian consumers. Cheese can still be ingested by people who are lactose intolerant, thanks to this fantastic alternative. Tofu's increased popularity can also be attributed to the fact that it resembles meat in shape, colour, flavour, and feel. Other soy food products, like snacks and beverages, are also seeing a steady increase in demand globally due to consumers' increased attention to their health. To broaden their product offerings and attract new clients, manufacturers are also investing in research and development activities to provide new variations of soyfood products.
Asia Pacific to Acquire a Dominant Share in Soybean Derivatives Market
Currently dominating the global soybean derivatives market, the Asia Pacific region is predicted to continue expanding at a rapid rate over the forecast period. Although soy consumption has increased significantly over the past few decades in the food and feed industries, soy consumption has been consumed in Asia for thousands of years. The market for the product has been encouraged in Asia by expanding demand for chicken and other meat, rapid urbanization, rising household income, and rising spending on plant-based food products. Over four million metric tonnes of poultry meat were consumed in India in 2021. The increasing consumer base, fierce competition, and rising product acceptance have forced running organizations to seek competitive advantages through creative approaches to providing services and product offerings. The local market participants are attempting to increase their share Asia’s soybean derivatives market by diversifying their product offerings. For instance, the Indian health beverage firm Life Health Foods introduced the So Good brand in February 2021. The business provides dairy-free plant-based milk under this new brand, and wholesome and nourishing soy beverages.
North America’s soybean derivatives market will most likely control the second-largest market share. The constant expansion of the American market is predicted to be supported by the growing consumer trend toward a vegan or vegetarian diet, the rise in the number of people who are lactose intolerant, and ongoing industry innovation. Veganism is practiced by 2% of the population in the United States. Women make up 75 percent of them. Key players' presence, the expanding area under soybean farming, and the region's easy access to raw materials like soybeans are all anticipated to benefit the overall growth picture. According to information from the Soy Nutrition Institute, around one-third of the world's soybeans are produced in the United States, with Brazil and Argentina close behind. Additionally, the US has been a major user, with a natural need for soybeans of about 31 kg per person. The potential for further soy ingredient production in the nation is growing due to this issue. Manufacturing goods containing soy protein, especially soy-based beverages, is expanding quickly in the health food sector.
Global Soybean Derivatives Market: Competitive Landscape
In April 2021, Nestle introduced a dairy-free plant Milo in Asia’s soybean derivatives market. The original recipe's milk is replaced with almond and soy milk in this updated version but the other two fundamental ingredients, malt and chocolate, remain the same. It will be released across Asia, beginning with Malaysia, a country with generations of Milo enthusiasts dating back to the company's inception in 1950. Aside from Milo, the company intends to introduce plant-based Nescafe lattes to the market. In February 2021, Life Health Foods (India) Pvt. Ltd., a pioneer in the health beverage segment situated in Mumbai, introduced its new brand, So Good protein+, dairy-free plant-based milk. The new So Good Protein+ Soy beverage delivers on the brand's promise of a healthy and nutritious beverage. So Good Protein+ is an absolute first and wonderful choice for health-conscious consumers, with 25% more protein than ordinary soy milk, and toned dairy milk. It is gluten and lactose-free, which is beneficial for those who have lactose sensitivity or want to minimize their dairy consumption and intestinal health.
A few of the players in the soybean derivatives market include Cargill Inc., Bunge Limited, Louis Dreyfus Commodities, Wilmar International Company, and Archer Daniels Midland Company.
Global Soybean Derivatives Market is Segmented as Below:
Key Elements Included In The Study: Global Soybean Derivatives Market
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