Soybean Oil Market Overview
The Soybean Oil Market is estimated to reach $69.7 billion by 2030, growing at a CAGR of 4.4% over the forecast period of 2023–2030. Soybean oil is a major source of vitamins, proteins, fatty acids and plant sterols, among other important components. Soybean oil aids in boosting skin and eye health, regulating cholesterol levels, reducing the risk of cognitive impairments, preventing osteoporosis and improving immunity. Refined soybean oil is created by further processing crude soy oil through degumming, refining, bleaching and deodorizing. Next to palm oil, soybean oil is the most popular vegetable oil traded in global markets. According to the National Commodity & Derivatives Exchange Limited (NCDEX), soybean oil accounts for 24% of the total usage of vegetable oil. Soybean oil is high in polyunsaturated fat and devoid of cholesterol. Soybean Oil has a mild flavor and almost no odor.
Soybean Oil Market Report Coverage
The report: “Soybean Oil Market – Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Soybean Oil Market.
- Asia-Pacific dominates the Soybean Oil Market in 2022, due to the growing adoption of a healthy lifestyle in the region. North America is anticipated to grow at the fastest rate during the forecast period of 2023–2030, as soybeans are used in salad dressings and margarine, which have high demand and consumption in the region.
- The advantages of Soybean Oil over other vegetable oils or cooking oils are becoming increasingly known by consumers, which has increased the Soybean Oil market size.
- The easy availability and low cost of Soybean Oil used for various foods and industrial purposes are driving the Soybean Oil industry.
- A detailed analysis of strengths, weaknesses, opportunities and threats would be provided in the Soybean Oil Market Report.
Soybean Oil Market Segment Analysis – by Application:
Based on application, the Soybean Oil market is further segmented into Food (Cooking & Frying, Salad Dressing, Margarine and Others), Pharmaceutical, Cosmetics, Personal Care Products, Biodiesel, Paints & Coating and Others. The Food segment held the largest revenue share of the soybean oil market in 2022, as soybean oil is used in many food applications like cooking, frying, salad dressings and margarine. According to research on Deep Frying, the saturated fat content of soybean oil is 16g per 100g, the monounsaturated fat content is 23g and the polyunsaturated fat content is 58g.
However, the Personal Care Products segment is anticipated to grow at the fastest CAGR of 5.3% over the forecast period of 2023–2030. This is because vitamin E, a substance that aids in promoting skin health, is found in soybean oil. It helps the skin retain moisture and offers protection against irritation. The antioxidant components in soybean oil serve to protect the skin by scavenging free radicals found in the environment. They also help maximize the effects of personal care products like lotions for anti-aging or skin whitening.
Soybean Oil Market Segment Analysis – by End-user:
Based on End-user, the Soybean Oil market is further segmented into Food Services, Household and Industrial. The Food Services segment held the largest revenue share of the soybean oil market in 2022. This is due to the increase in restaurants, hotel chains and other food services worldwide. The National Restaurant Association estimates that food and beverage sales in the U.S. food service sector hit $789 billion in 2021, an increase of 19.7% from the previous year. However, the Household segment is estimated to grow at the fastest CAGR of 6.2% over the forecast period 2023-2030, as cooking oil is a necessary ingredient in home kitchens and is used in a variety of meals. Soybean Oil is a fantastic option for cooking, frying, dressing and many other food purposes.
Soybean Oil Market Segment Analysis – by Geography:
Based on geography, the Asia-Pacific Soybean Oil Market accounted for a 32% share of global revenue earned by the soybean oil market in 2022. This is due to the growing demand for soybean oil for household purposes as well as in the food service industry across developing countries like India and China. According to the Foreign Agriculture Service, China was projected to import a record-breaking 100 million metric tons of soybeans in the marketing year 2021–2022. However, the North American region is estimated to grow at the fastest CAGR during the forecast period of 2023–2030, as the demand and consumption of soybean oil are rising in the region. According to the National Commodity & Derivatives Exchange Limited (NCDEX), Soybean Oil makes up nearly 75% of all vegetable oils used in the U.S.
Soybean Oil Market Drivers
Healthy Properties of Soybean Oil:
Soybean Oil consumption has been associated with a number of health advantages, including enhanced bone health, lowered blood pressure, lowered cholesterol and a decreased risk of heart disease. The numerous health benefits of soybean oil are the reasons for its rising popularity. Soybean oil is rich in Vitamin K, which may support bone health maintenance and lower the incidence of fractures. Additionally, an animal study discovered that the oil might stop bone deterioration. The majority of the lipids in soybean oil are polyunsaturated fats, which have been associated with lower cholesterol levels and a lower risk of heart disease. Omega-3 fatty acids and unsaturated fats both lower the risk of heart disease and strengthen immunity. This oil is therefore thought to be a suitable cooking oil for cardiac patients. According to the American Heart Association, cardiovascular disease diagnoses increased by 26.6% globally in 2022. The deaths attributable to the condition have increased globally by 17% over the past ten years.
Rise in the Demand for Soybean Oil in the Skincare and Haircare Industries:
The soybean seeds are cold-pressed to create Soybean Oil. Soybean oil offers a wide range of advantages. These advantages extend beyond health. Soybean oil also has a significant favorable impact on the condition of both skin and hair. According to the Hair Society Organization, the majority of people in the world experience greater hair loss than they could have ever imagined, starting at age 35 with a 40% loss rate for males and increasing to a 70% loss rate for men at age 80. These people would want professional services to help them regrow their hair. Women who are experiencing hair loss would be in the 80–90% range by the time they turn 60. Linoleic acid, vitamin E, essential fatty acids and lecithin are all found in large quantities in soybean oil. The oil contains vitamin E, a potent lipid-soluble antioxidant that is crucial for protecting the skin's and mucosa's cell membranes from damaging oxygen-free radicals and maintaining their structural integrity. Some of the benefits of soybean oil for the health of skin and hair include preventing premature aging, getting shinier hair, preventing hair loss and avoiding problems with dry scalp.
Soybean Oil Market Challenge
COVID Impact on Soybean Production:
The emergence of the COVID-19 pandemic and widespread lockdown measures have had little effect on soybean production. The consumption of soybean oil, one of the primary by-products of soybean processing, has dropped significantly. The pandemic had affected the food service industry. According to the U.S. Department of Agriculture, the demand for soybean oil for feed and food consumption is still being weakened by COVID-related limitations in China. As a result, soybean imports for marketing years 2021–2022 and 2022–2023 are reduced to 92 million metric tons and 96.5 million metric tons, respectively. The prediction for soybean output for marketing years 2022–2023 is significantly lower at 18.1 million metric tons due to reduced yields brought on by extreme heat and drought in minor soybean-producing regions. The pandemic has had an impact on the demand for soybeans, which is restraining the Soybean Oil market.
Key Market Players:
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Soybean Oil Market. The top 10 companies in the Soybean Oil Market are:
- Cargill, Incorporated
- Louis Dreyfus Company
- Wilmar International Limited
- Bunge Limited
- Archer-Daniels-Midland Company
- Corteva Inc.
- Ag Processing Inc.
- Ruchi Soya Industries Limited
- LE Group Industries
- Agro Food Group
- In September 2022, Corteva acquired Symborg, a pioneer in microbiological technology with headquarters in Murcia, Spain. The well-known biologicals firm Symborg has a growing biocontrol pipeline, skilled personnel with in-depth scientific understanding and skills in demand generation. A sizable current portfolio is another asset for Symborg.
- In February 2022, Wilmar purchased the remaining 50% equity stake in Wilmar Chocolate Pte. Ltd., held by Kwan Hoi Chee Deborah Connie, Richard Lee Keng Chian and Foodlever. The 50% equity investment purchased represented a net asset value of US$1,281,581.
- In January 2022, Bunge acquired a 33% stake in Sinagro to support its grain orientation strategy in Brazil. With a considerable presence in the Cerrado savanna of Brazil, Sinagro is a key distributor of grains and agricultural products. In terms of sourcing, processing and supplying oilseed and grain goods and ingredients, Bunge is a global leader.
Report Code: AGR 0062
Report Code: AGR 0057
Report Code: FBR 0275
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