Soybean Oil Market

Soybean Oil Market Outlook (2022-2032)

The global soybean oil market is projected to expand steadily at a CAGR 5.1% value, during the forecast period 2022-2032. In the year 2022, the market size is projected to expand and gain a global market valuation of US$ 21 Billion. Considering this steady growth along with the booming demand in the global market, the soybean oil market is expected to reach US$ 34 Billion by 2032.

The term "soybean oil" describes a transparent, yellow vegetable oil that is obtained from soybean seeds. It is a plentiful source of proteins, vitamins, plant sterols, and fatty acids among other important components.

Soybean oil assists in boosting skin and eye health, avoiding osteoporosis, controlling heart health, enhancing immunity, decreasing cholesterol levels, and minimizing the risk of cognitive impairments. Owing to its neutral flavor, high smoke point, and minimal saturated fat level, soybean oil has evolved over time into a favored option for cooking in restaurants and at home.

Attributes	Details
Anticipated Base Year Value (2021)	US$ 28 Billion
Expected Market Value (2022)	US$ 21 Billion
Projected Forecast Value (2032)	US$ 34 Billion
Global Growth Rate (2022-2032)	5.1 %
Expected Growth Rate of the US Market (2022-2032)	5.2% CAGR
Anticipated Growth Rate of China Market (2022-2032)	5.1% CAGR
Prominent Players in The Global Market	Ruchi Soya Industries Ltd. The Adani Wilmar Ltd. Archer Daniels Midland Company Associated British Foods (Ach) Bunge Limited Beidahuang Group Cargill Inc. Borges Mediterranean Group Adams Group Fuji Vegetable Oil Inc. Olympic Oils Limited American Vegetable Oils Inc. Marico Limited Ach Food Companies Inc ConAgra Foods (Agrotech Foods Ltd)

The low cost of soybean oil is among the main factors influencing its high demand globally. Comparatively speaking, soybean oil is less costly than the majority of other edible oils, including groundnut, canola, coconut, and olive oils. It is therefore extremely popular in price-sensitive markets, especially in developing nations.

Consumers today are adding soybean oil to their food if they have health issues like obesity, high blood pressure, or cardiovascular ailments. The market for soybean oil is expanding as a result of a shift away from ready-to-eat (RTE) foods and toward home-cooked foods due to rising health consciousness.

In addition to its health advantages, soybean oil has a number of functional qualities that allow it to be used in both food and non-dietary applications. To prepare dressings, sauces, margarine, shortening, potato chips, mayonnaise, whipped toppings, and non-dairy creamers, the food sector uses soybean oil. In contrast, soybean oil is used to make caulk, glue, mastic, biodiesel, plastics, animal feed, and insecticides in the non-food sector.

2017-2021 Soybean Oil Market Demand Analysis vs. Forecast 2022-2032

According to market research and competitive intelligence provider Fact.MR- the market for soybean oil reflected a value of 3.5% during the historical period, 2017- 2021. The market saw a skyrocketing demand post the pandemic with the increasing health-conscious consumers along with the trend towards opting for plant-based foods.

Demand for soybean oil has increased significantly worldwide in recent years due to growing knowledge of its health advantages. Additionally, sales of refined soybean oil are predicted to increase by 70 BPS by 2022 and now hold a percentage of revenue exceeding 2/3rd of the global market.

By 2032, the market for soybean oil is expected to reach more than US$ 33 billion, with a CAGR of 5.1%. Manufacturers will probably focus on the Asian market, which has the majority of the market shares at about 35% in 2022.

Prominent Growth Drivers Influencing Soybean Oil Consumption

Multifunctionality of Soybean Oil to boost Global Market Demand

In the upcoming years, increasing soy oil used for biodiesel is projected to gain popularity. The amount of soybean oil used as a feedstock for biodiesel has increased overall, the EIA reports, from 15% in 2010–11 to 35% in 2019–20. As it meets close to 2-3% of the nation's fuel demand, it is predicted to lower carbon emissions.

According to a survey by the North Carolina Soybean Producers Association, soy-based lubrication is just as effective as petroleum-based lubrication but these can handle more heat. They are non-toxic, sustainable, and ecologically friendly, which is more significant.

Soybean meal is primarily consumed by the swine and poultry sectors. More than half of the soybeans used to make livestock feed are fed to poultry, while only approximately one-fourth are provided to pigs. The remaining soybeans are used to make pet food, cattle, and dairy cattle.

A slight increase in both domestic usage and exports will hence be possible due to the anticipated growth in the US soybean supply. Thus, with such notable developments during the forecast period, the market for soybean oil will see extreme demand.

Health benefits and Eco-Friendly Nature to accelerate Demand Globally

The growing popularity of soybean oil is a result of its numerous health advantages. Unsaturated fats and the existence of omega-3 fatty acids reduce the risk of heart disease and boost immunity. Thus, this oil is considered to be apt cooking oil for cardiac patients.

However, the production of alkyd resins for use in oil paints and inks has increased the global market sales. Soybean oil is still a cheap cooking oil that is widely accessible on the market. Soy oil's significant nutritional advantages and eco-friendliness are further elements encouraging consumer demand for it. With the rising demand for this oil, the demand for soybean oil will boom during 2022-2032.

What Could Possibly Hinder Soybean Oil Market Demand?

Limited Shelf Life and Elevated Raw Material Costs to impede Demand

Although soybean oil is full of potential health benefits, it is likely to cause some side-effects within the individual's body. Additionally, most soybeans grown in the United States have undergone genetic modification.

Due to worries about their long-term health impacts as well as problems like antibiotic resistance and increased allergenicity, many people decide to stay away from genetically modified organisms. Such factors can impede the growth of the global soybean market during the forecast period.

Furthermore, as part of a balanced diet, hydrogenated soybean oil should be completely avoided. These lipids contain trans fats, which may increase the chance of developing chronic diseases like cancer, cardiovascular disease, diabetes, and other illnesses. These can be some of the significant reasons that can stymie the growth of the soybean market during 2022-2032.

Category-wise Insights

Which Product Type is forecast to gain the Maximum Market Share?

Virgin Soybean Oil to dominate the Global Market during the Forecast Period

The virgin category is expected to lead the global soybean oil market in 2022 and is likely to retain its dominance throughout the forecast period. The segment is predicted to gain a global market share of 65% by 2022.

Due to its high smoke point, soybean oil is a suitable choice for cooking at high temperatures. Also, virgin soybean oil is highly preferred by the health-conscious consumers as the virgin form of the oil is cold-pressed. This means that it is directly extracted from soy without any external heat or process.

This virgin soybean oil is not only being used for cooking but also for various skin and face treatments. Thus, with such rising usages of this form of the oil, the virgin segment is expected to see rapid demand during the forecast period. The expected CAGR is predicted to be around 5.1% during 2022-2032.

By End-Use, which Category is expected to benefit the Maximum in terms of Sales?

Soybean Oil for Retail Consumption to remain prominent

In 2022, the retail segment is expected to hold the major portion of the soybean oil market by application, accounting for almost 30% of the global market share.

Demand from this industry is expected to grow at a rate of around 4.8% CAGR due to the rising trend of buying products from various retails stores present in the global market. These retail stores have started to provide huge discounts to consumers, which is a lot more than that is provided in other end-use industries. With such developments, the global soybean oil market is expected to gain new heights within the forecast period.

Country-wise Analysis

What is the outlook of the U.S Soybean Oil Market?

Federal Biofuel and Domestic Usage will boost Market Demand

The US market will be the most lucrative market for soybean oil during the forecast period. As per Fact.MR, the US market is expected to gain a market share of 45% in 2022. The US Energy Information Agency reports that a growing portion of the soybean oil consumed in the U.S. is converted into biodiesel, which accounts for around 30% of domestic soybean oil disposal at the moment.

Federal biofuel requirements and other factors that pushed a bigger portion of the domestic soybean oil production to be utilized as a biofuel feedstock combined with growth in biodiesel manufacturing. By 2021, the nation's consumption of soybean oil is anticipated to reach around 10 million metric tons.

The United States is the second-largest exporter of soybeans in the world and the global highest producer, according to the U.S. Department of Agriculture. About 90% of the oilseeds produced in the United States are soybeans, which will likely increase demand for the nation's food processing industry.

What can be expected from the Chinese Market for Soybean Oil?

Increased use of Antiperspirants to boost the Regional Demand

China has emerged as one of the most profitable markets for the marketing of soybean oil and is also expected to register the highest CAGR during 2022-2032. During the forecast period, the Chinese market for soybean oil is expected to grow at a 5.2% CAGR. The population of China consumed around 11.77 million metric tons of soybean oil in 2020. The numbers are expected to rise high with increased usage of this oil.

The market for soybean oil in this region is expanding as a result of rising urbanization and the number of health-conscious consumers. After dropping to a projected 82.5 MMT in FY 19-20, China's crushing output rose to 85 MMT in FY 20-21. Such developments will surely boom demand in this regional market during the forecast period.

Start-up Scenario

• Ekologie Forte Pvt. Ltd. is a manufacturer of soybean oil. The majority of these come in 200 kg barrels. Used in biscuits, bakery foods, ice cream, dairy goods, cheese, confectionery, beverages, margarine, and instant food as a thickening, emulsifier, humectant, and nutritional supplement. These goods are all USDA-approved as well.
• Bulk Apothecary is a prominent distributor of soybean oil mainly for the ink, culinary, oil paint, personal care, and insect repellant industries. There are also hemp seeds, coconut, castor, argan, golden jojoba, vitamin-E, and apricot kernel oils available.

Competitive Landscape

• The construction of North Dakota's first specialized soybean crusher and refinery plant was announced by Archer Daniels Midland Company in May 2021. The roughly $350 million crushing and refining complex, based in Spiritwood, North Dakota, will process 150,000 bushels of soy per day and use cutting-edge automated technologies. The plant will have access to both international and domestic markets for soybean oil and flour thanks to its advantageous location in a significant soybean-producing region and to ADM's extensive global logistical network. Before the harvest in 2023, the facility is anticipated to be finished.
• Ruchi Soya Industries declared in 2022 that, it has acquired the entire food division of Patanjali Ayurved for Rs. 690 Crores (US$ 8.6 Million). The 21 products offered by the newly acquired food company include, to name a few, honey, ghee, juices, spices and atta. The acquisition of Patanjali Ayurveda's food business into Ruchi Soya had also received board approval. With effect from June 24, Ruchi Soya Industries will now be known as Patanjali Foods. According to a filing with the exchange, the company has also obtained its certificate of formation from the Ministry of Corporate Affairs.

Key Segments Covered In the Soybean Oil Market Report

• By Product :

  • Processed
  • Virgin

• By End User :

  • Foodservice
  • Food Processor
  • Retail

• By Distribution Channel :

  • Modern Trade Channels
  • Franchise Outlets
  • Specialty Stores
  • Online Distribution Channels

• By Region :

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