Soybean By-products Market

Global Market Study on Soybean By-products: Animal Feed & Food Processing Industry to Remain Prominent End Users

Market Snapshot

As per a new study conducted on soybean by-products by Persistence Market Research, Europe dominates the market with over 28% value share. The animal feed industry accounts for around 47% share of the global market, mainly as a result of increasing focus on animal nutrition across regions.

Overall, the global soybean by-products market is worth US$ 155 Bn at present, and is projected to reach close to US$ 278 Bn by 2031.

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Companies

  • Archer Daniels Midland Company
  • Cargill Inc
  • Adani Wilmar Company
  • Ruchi Soya Industries Limited
  • Bunge Limited
  • Yee Lee Corporation Bhd
  • Ragasa
  • DuPont
  • Ag Processing Inc
  • Owensboro Grain Company
  • CHS Inc
  • Gujarat Ambuja Exports Limited
  • AAK Limited
  • Adams Group
  • Sonic Biochem
  • Group Vandamme
  • Amaggi
  • Oleo-Fats, Incorporated
  • GIIAVA
  • Thai Vegetable Oil PCL

Key Insights Covered in Soybean By-products Industry Survey:

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, country-wise, and region-wise analysis
  • Competition mapping and benchmarking
  • Brand share and market share analysis
  • Key product innovations and regulatory climate
  • Covid-19 impact on soybean by-product sales and how to navigate
  • Recommendation on key winning strategies

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Sales Analysis of Soybean By-products from 2016-2020 Compared to Market Outlook for 2021-2031

From 2016-2020, the global market for soybean by-products expanded at the rate of 3.5%. Major market driver is increasing demand from animal feed, food processing, and food service industries. Soybean by-products have various functional and nutritional properties, making them a potent food ingredient for compounded foods.

Major demanding regions of soybean by-products are Europe and East Asia. These regions are expected to be demand accelerators for the growth of the market, owing to the fact that they enjoy dominance in the animal feed industry.

Spain has a market share of 13.8%, and Russia, Germany, and France have a combined share of more than 30% in the European market. China is a major market for soybean by-products in the East Asia region, as the country is restructuring its feed industry, which has intensified demand for soybean by-products.

The East Asia and South Asia markets are anticipated to reach US$ 55.8 Bn and US$ 42.3 Bn valuations, respectively, by 2031.

Overall, over the next ten years, the global market for soybean by-products is expected to expand at a CAGR of 6%.

soybean-by-products-market

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Will Consumer Inclination toward Plant-based Food Products Contribute to Soybean By-Product Sales?

Soybean by-products are gaining popularity among consumers due to increasing awareness about the health benefits associated with the consumption of plant-based food products. Recently, there has been significant growth of fitness and nutrition industries, which has further increased dependence on plant-based sources for the nutritional requirements of consumers.

Many consumers are inclining toward plant-based edibles and are choosing healthier alternatives to conventional dairy, eggs, and meat products. Rise of the plant-based edibles market has been ensured by a stream of innovations in flavors, forms, and ingredients, as well as good nutrition.

Furthermore, the fact that soybean is preferred as a great source of plant-based nutrition and its by-products such as milk, meat, frozen meals, etc., is a lucrative market growth opportunity. Growing awareness about the negative impact of animal-based products on the environment as well as animal cruelty is leading customers to look for plant-based options.

According to data published by the Plants Based Food Association, in 2019, U.S. retail sales of plant-based items increased 11%, bringing the total value of US$ 4.5 Bn to the overall plant-based products market.

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How is Increased Use of Lecithin in the Food Industry Bringing More Growth Opportunities for Soybean By-Product Suppliers?

Soy lecithin is used as a food additive; it not only acts as an emulsifier or lubricant when added to food products but is also used as a potent antioxidant and flavor protector. Lecithin has major applications in dietary supplements, ice creams & dairy products, infant formulas, bread, margarine, and other convenience foods.

Soy lecithin is a popular ingredient in the food industry as it can be used as a wetting agent, for viscosity reduction, and crystallization control, cholesterol control, and chlorine enrichment. Soy lecithin is safe as it is present in such small amounts, making it unlikely to be harmful to the general population and people who are allergic to soy.

Will Growing Edible Oil Market Drive Demand for Soybean By-products?

Oil extracted from soybeans is exceptionally versatile and used in cooking different food items. Soybean oil is more preferred by health-conscious people owing to the fact that it imparts several health benefits such as bone health, skin health, and maintains heart functioning.

Moreover, soybean oil is an affordable and ideal choice among edible oils, which again is a growth factor ensuring popularity and mainstream utilization. Soybean oil also has a high smoke point of around 450°F (230°C), which makes it an ideal option for high heat cooking methods such as baking, frying, sautéing, and roasting.

According to the data published by the Soybean Processors Association of India, from 2018 to 2019, around 62 Mn tons (56 Mn metric tons) of soybean oil was produced around the globe, making it one of the most consumed and most commonly available edible oil.

What are the Factors Restraining Sales of Soybean By-products?

In recent times, sunflower lecithin has emerged as a major competitor for soy lecithin, owing to a number of attributes. Sunflower lecithin offers many health benefits to consumers as it is extracted without the use of chemicals, unlike soy lecithin. Sunflower lecithin contains high chlorine and supports different physiological processes occurring in the body.

Sunflower lecithin also has the ability to reduce the risk of degenerative disorders such as Alzheimer's disease and Parkinson's disease. Sunflower lecithin tends to be more effective in controlling cholesterol, hypertension, and heart attack when compared to soy lecithin.

Another factor limiting the growth of the market is high processing costs in major demand geographies. Imports of soybean oil have increased in South Asian countries such as India with increasing consumer demand. But imports of soybeans are very minimal in such a demanding region due to high tariffs and phytosanitary requirements, and unit processing costs.

These factors tend to reduce domestic production and raise consumer soybean oil prices, while putting significant pressure on processors’ ability to pay growers.

Country-wise insights

Why Does Spain Account for the Largest Share of Soybean By-products in the European Region?

The market for soybean by-products is witnessing significant growth in Spain in the European region, with a value share of around 14%. The market has a value of more than US$ 6 Bn at present and is expected to close in on US$ 8.8 Bn by the end of the forecast period.

Demand for plant-based food products in the country is growing rapidly, which is proving favorable for soybean by-product suppliers.

Which Country Leads the East Asia Market for Soybean By-products?

China accounts for a major share of the East Asia market for soybean by-products. This is due to the fact that the country is one of the leading producers of animal feed in the world.

Increasing demand for different animal feed products will have a positive impact on the market. The share of China in the East Asia market is around 70%.

Category-wise insights

Which Type of Soybean by-Product is Among the Most Utilized in End-use Industries?

Major utilized product in end-use industries is soybean oil, which is accounts for over 50% market share on the basis of type. Soy oil is widely used in making a variety of food products and offers numerous health benefits to consumers, making it a preferable choice for health-conscious customers.

How is Bolstering Animal Feed Industry Bringing New Opportunities for Market Development?

Increasing use of soybean oil cakes in animal feed is due to the fact that it is a principal protein supplement and a source of metabolizable energy to animals. Soybean oil cakes are widely accepted in the animal feed industry as they are associated with high content of proteins and amino acid composition.

Market value of soybean by-products in the animal feed industry is expected to be US$ 124 Bn by the end of 2031.

What is the Impact of COVID-19 on the Global Market for Soybean By-products?

COVID-19's spread and resulting lockdown measures have impacted the market for soybean by-products. Soybean oil, one of the most important by-products of soybean processing, suffered a reduction in demand, owing to the pandemic's impact on restaurants that use more vegetable oils than at-home consumers.

Major soybean producing and exporting countries have announced bans due to food safety concerns. This created a gap between supply and demand, leading to decrease in the production of soybean by-products.

As the situation is coming back to normal, people have started to focus on their dietary patterns and are showing interest in consuming balanced and high-nutritious food. Furthermore, focus on animal welfare and livestock health will positively impact demand for soybean by-products.

Competitive Landscape

Most key players in the global market are inclined at investing heavily in expansion, innovation, and research & development practices, not just to obtain the purest quality products but also uncover various other applications of soybean by-products.

Companies are also looking forward to enhancing their operation and innovation capabilities.

  • In 2021, Cargill, Incorporated invested around US$ 475 Mn in its U.S. soy processing operations to improve operational efficiency and crush facility networks across seven states. With this investment, the company has focussed on the modernization and expansion of its facilities, which increased production capacity by 10%.
  • In 2019, AG Processing Inc. opened a US$ 300 Mn soybean processing plant in South Dakota, the U.S., which gave access to source soybeans from farmers locally. The new facility has increased the production capacity of the company and established transportation capabilities to export its products to the Philippines, Vietnam, Malaysia, and Indonesia.

Soybean By-products Industry Report Scope

Attribute

Details

Forecast period

2021-2031

Historical data available for

2016-2020

Market analysis

USD million for value

Key regions covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key countries covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key market segments covered

  • Nature
  • Type
  • End Use
  • Region

Key companies profiled

  • Archer Daniels Midland Company
  • Cargill, Incorporated
  • Adani Wilmar
  • Ruchi Soya Industries Limited
  • Bunge Limited
  • Yee Lee Corporation Bhd
  • Ragasa
  • DuPont de Nemours, Inc.
  • Ag Processing Inc
  • Owensboro Grain Company
  • CHS Incs
  • Gujrat Ambuja Exports Limited
  • AAK Limited
  • Adams Group
  • Sonic Biochem
  • Group vandamme
  • Amaggi
  • Oleo-Fats, Incorporated
  • GIIAVA
  • Thai Vegetable Oil PCL

Report coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Segmentation of Soybean By-products Industry Research

Nature:

  • Organic Soybean By-products
  • Conventional Soybean By-products

Type:

  • Soybean Oil
  • Oilcake
  • Lecithin

End Use:

  • Soybean By-products for Food Processing Industry
  • Soybean By-products for Foodservice Industry
  • Soybean By-products for Animal Feed
  • Soybean By-products for Retail/Household
  • Others

FAQs Answered in Market Study

  • How much is the global soybean by-products market valued at currently?

    The global soybean by-products market is currently valued at over US$ 155 Bn.

  • What are the main factors driving demand for soybean by-products?

    Health benefits offered by soybean & soy food, use of soy lecithin in the food industry, soy-based products gaining attraction in food applications, and increased veganism are providing market growth opportunities.

  • At what CAGR did demand for soybean by-products increase over the past 5 years?

    From 2016 to 2020, demand for soybean by-products increased at a CAGR of 3.5%.

  • What will be the demand outlook for soybean by-products through 2031?

    Sales of soybean by-products are projected to increase at 6% CAGR and be valued at close to US$ 278 Bn by 2031.

  • What are the key trends being witnessed in this marketplace?

    Increasing consumer preference for organic products, non-GMO products, plant-based edibles, free from additive food products, and transparency will enhance market growth.

  • What is the market share of the top 5 manufacturers of soybean by-products?

    Archer Daniels Midland, Cargill, Incorporated, DuPont de Nemours, Inc., Bunge Limited, and AAK Limited hold an approximate market share of 25%-35%.

  • How is the European market for soybean by-products faring?

    The main country in Europe with maximum share is Spain, followed by Russia.

  • Are sales of soybean by-products witnessing a rise across North America?

    The North America market for soybean by-products holds a value of US$ 29.4 Bn, and is anticipated to jump to US$ 47.7 Bn by the end of 2031.

  • How is the soybean by-products market faring in China and India?

    The market in China is expected to expand 1.8X, while that in India at 2X, over the next ten years.

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  • Is this research conducted by Persistence Market Research?

    Yes, the research has been conducted by expert analysts of Persistence Market Research, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by Persistence Market Research?

    Persistence Market Research follows a methodology that encompasses the demand-side assessment of the market and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

  • Who are the respondents for primary research?

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  • What are the sources of secondary research?

    Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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