Soybean Oil Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global soybean oil market reached a value of about 51.77 MMT in 2021. The industry is projected to grow at a CAGR of around 1.5% in the forecast period of 2022-2027 to reach a value of about 56.33 MMT by 2027.

The global soybean oil industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is driven by the increasing use of soybean oil in the food industry owing to its various health benefits. In the industry report, the key demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Soybean oil is a vegetable oil derived from soybean seeds (Glycine max) and is one of the most commonly used cooking oils. The industry report comprises segments by application (Industrial Use, Food Use, Feed Use) and region (North America, Europe, Asia Pacific, the Middle East, Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific region holds the largest share in the industry due to the increased consumption of the product within China and India. The increased purchasing power of Chinese and Indian customers has resulted in significant increases in use since they can afford to buy large quantities of oil. China is the world's largest consumer of soybean oil, with food being the primary end-use application. China's soybean oil consumption and output will rise as the country's population and soybean land grow due to government-led initiatives.

The soybean oil industry is primarily being driven by the various uses of the product in multiple sectors. The rising awareness is among individuals regarding the health benefits of soybean oil is propelling the market. It aids in improving immunity, reducing the risk of cognitive disorders, helping in osteoporosis, etc. The wide range of health benefits is gaining traction among health-conscious individuals. The oil is cheaper than most oils available in the market, like olive oil, etc., driving its demand. It finds application in manufacturing products like resins, caulks, and plastics, among others, that boost the industry's expansion. Furthermore, it is also a key ingredient in livestock feed due to its nutritional content increasing sales. Other factors such as rising health awareness, easy availability, environmentally sustainable, etc., are augmenting the industry's growth.

However, the availability of various oilseeds that might be used as a substitute or alternative can hinder the market's growth.

Best Procurement Practices

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

Category Management Studies

Soybeans are cracked, moisture content adjusted, heated to between 60 and 88 °C (140–190 °F), rolled into flakes, and solvent-extracted with hexanes to produce soybean oil. After that, the oil is refined, blended for various applications, and occasionally hydrogenated. Both liquid and partly hydrogenated, soybean oils are advertised as "vegetable oil" and are found in a wide range of processed goods.

Growing Advancements in the Product, Further Driving the Procurement of Soybean Oil

Researchers are developing new seed kinds with increased nutrition and other advantages. Seed firms created high oleic soybeans to provide a trans-fat-free oil with higher nutritional benefits than ordinary soybeans. They are also employed in the production of biodiesel fuel. Manufacturers have been concentrating on developing new bio-diesels made from soybean oil that may be used as a substitute for fossil fuels. The most prevalent method for manufacturing bio-diesel from vegetable and animal fats involves using methanol or ethanol in the presence of sodium hydroxide as a catalyst. Although the commercial use of biodiesel made from soybean oil has yet to be introduced to the market, many fuel companies have invested in research and production of bio-diesels that could be the next fossil fuel alternative.

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

Key Industry Players Mentioned in the Soybean oil Industry Report

• The Archer Daniels Midland Company
• Cargill Inc.
• Bunge Limited
• Wilmar International Ltd.
• Louis Dreyfus Company B.V.

Market Landscape

Key tactics used by companies in the Soybean Oil Market include product launches, mergers and acquisitions, joint ventures, and R&D activities. To govern majority shares in the market and establish a brand identity for their firm, essential players in the market use effective methods and the advice of their experienced advisers. One way to commercialise their brand is to purchase other businesses to get extra financial success.

Key Initiatives by Companies

• Cargill Inc. purchased Konspol in January 2019 to broaden the company's focus and deliver value-added protein to worldwide consumers.
• April 2021: Cargill, Inc. invested USD 25 million to expand its soybean crush facility in Fayetteville to increase soybean oil production.