Soybean Market Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global soybean market reached a value of about USD 157.3 Billion in 2021. The industry is projected to grow at a CAGR of around 3.30%. in the forecast period of 2022-2027 to reach a value of USD 185 Billion by 2027.

The global soybean market gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. Soybeans are primarily less expensive and important bean in the world, that are supplying plant protein for millions of people plus ingredients for a lot of chemical products. It is extensively utilised as vegetable oil and applied significantly as a resource for industrial purposes such as soy milk, soy flour, soy protein, etc. The key demand indicator in industry report is the highest category spender by region— China and Spain.

Industry Definition and Segmentation

Soybean is also known as soya beans is an annual legume and an edible seed of the pea family (Fabaceae). Its scientific name is Glycine max. Soybeans are the most economically important bean in the world, supplying plant protein for millions of people plus ingredients for a lot of chemical products. It is the most important source of protein for livestock feed, which, in return, provides animal protein for human consumption. They consist of considerable quantities of phytic acid, B vitamins, and dietary minerals.

Soy vegetable oil, extensively used in food and industrial applications, is a substantial soybean processing product. Furthermore, it is believed to be an almost-perfect dairy replacement with products like soy curd, tempeh, tofu, and soy milk. The soybean market industry report comprises segments based on end-use products and application. By application, the market is divided into animal feed, aquafeed, biofuel, food and beverages, personal care, dietary supplements, pharmaceuticals, lubricants, industrial solvents, adhesives, building materials among others. End-use segments are divided into whole soybean, fermented soybean, non-fermented soy food, meal, and oil. Geographically, the important segments in the international soybean market are North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa.

North America – the United States, Latin America, and Asia Pacific – India and China Regions are Driving the Growth of the Industry

The main factors that are driving the growth of the global soybean industry are increasing spending power of the people, rising population and urbanisation, growing demand from the crushing industry, increasing health and wellness awareness owing to the higher standard of living, high demand for dairy substitutes, and growth in the automobiles and construction sectors.

People across the globe have become more health-conscious which is leading them to shift to healthier cooking oil alternatives like soybean oil, especially in developed nations, such as the United States. Additionally, the growth in the adoption of vegetarianism in the western regions of the world due to the acceptance of plant-rich proteins in the diet is another important driver for the growth of the market. Soybean oil-producing companies are topping up their output so that they can distribute their products at reasonable prices.

Because of climate alterations, the global soybean market faces grain price fluctuations. Ambiguity arises due to seasonal and climatic changes that impact the crops because of the uneven rainfall patterns which influence its production. Besides, based on various studies there may be possible side effects like menopause symptoms, rise in cholesterol levels, and cancer risks and allergies linked to soy food items.

Best Procurement Practices

The global soybean industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major soybean by-products utilising regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

One of the most important pulse crops supplying a great amount of protein and oil requirements globally is soybean. Management of the nutrient level of the soil is a key aspect of achieving a greater output of crops. Efficient management of nutrients also supports the crop to survive with various kinds of biotic and abiotic stress. For the soybean crop, a total of fifteen nutrients are required consisting of macronutrients such as nitrogen, phosphorous, potassium, calcium, magnesium, and sulphur, which are comparatively needed in large quantities, and nine micronutrients which comprise iron, boron, zinc, cobalt, copper, manganese, molybdenum, nickel, and chlorine. With the help of soil incorporation or foliar spray of commercially available fertilizers, such nutrients are supplied to the soybean plants.

Numerous collaborative aspects are accountable for the excellent harvest of the soybean crop. Factors like selecting the variety wisely, engaging in superior agronomic practices, and coping with the production restrictions strategically can enhance its production that can help meet the increasing demand for soybean crops. The crops are further processed into oil by following steps like preparation and dehulling, extraction, desolventizing, oil refining, and processing.

High Nutrition Value and Increasing Popularity of Vegan Lifestyle is Further Driving the Procurement of Soybean

The adaptability of edible forms and the wholesome value of soybean act as growth drivers for the global soybean market. As consumers shift toward diet-conscious regimens, soybean offers a perfect substitute for meat, dairy, and poultry-intensive diets. The demand for its side-products such as oil cake, soybean meal, and other related items have soared over the past few years. Because of its high nutritive value, soybean by-products have led to its popularity amongst consumers. Increased disposable income of the consumers and improved productivity of soybean in the developed countries has led to a higher demand for soybean by-products.

As soybean meal has a special amino acid outline which makes it a great substitute for cereal proteins resulting in it being a good feed for both humans and animals. Furthermore, it consists of plant-based proteins and hence supports people who are moving toward veganism. The growth in the adoption of vegetarianism in the western regions due to the acceptance of plant-rich proteins in the diet is another important driver for the expansion of the market.

The regional markets for the industry can be divided into are North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa.

Key Industry Players Mentioned in the Soybean Market

• Olam International
• Fuji Oil Co., Ltd.
• CHS Inc.
• Cargill
• The Scoular Company
• House Foods Group Inc. 
• Archer-Daniels-Midland Co.

Market Landscape

The soybean market is demonstrating steady growth, even with the cut in the demand for biofuel amidst the economic crisis between 2020-2021. The competitive price of soybean oil, compared to that of palm and sunflower oil, coupled with the potential demand growth for biofuels and increasingly conducive environmental norms, indicate substantial opportunities for the further growth of the global soybean market.

The crushing industry – producing soy meal, soy oil, and other soy products - is primarily operating and controlling the global market. The end products have wide applications in the food and feed industries. Soy meal is used in the animal feed industry, whereas soy oil has its applications in various industries, including oleochemicals, biodiesel, and food industries. China imports more than 60 percent of its soybean to meet its regional demand, especially in the crushing industry. Its nutritional properties and high-quality protein consistency result in an increase in its demand which further encourages the expansion of its production.

Key Initiatives by Companies

• In Jan 2022, there was an announcement made by the farmer-leader of the United Soybean Board (USB) on the innovative strategic plan that focuses on sustainable soy solutions for both global and local customers at the same time ensure value and profitability for the United States soybean farmers.
• In 2020-2021, Cargill committed to altering its soy supply chain that would be free from deforestation whilst safeguarding local vegetation beyond forests, encouraging responsible production, recognising, and maintaining the rights of workers and native communities, and protecting the high standards of transparency by reporting cases of important metrics and grievances.