U.S. Soybean Market: Overview
The growing trend of a fiber rich diet, increased usage of soybean oil as vegetable oil, and bulk transportation of soybeans are the major factors driving the growth of the U.S. soybean market. According to this research report from IndustryARC, the U.S. soybean market size was between $61,000 million to $62,500 million as of the end of 2018, and the market demand is projected to grow at a CAGR of 3.0% to 4.5% during the forecast period of 2019 to 2025. Since soybeans have proven their worth in reducing the risk of osteoporosis and coronary heart diseases, as the awareness increases, the market will witness added demand.
U.S. Soybean Market: Outlook
According to the World Health Organization, in 2017, the obesity rate among the major states of the U.S., such as Alabama and Michigan, amounted to 31.9% and 38.6% respectively. Soybean or soya bean is a legume bean widely grown for its oil-rich proteinaceous seeds and used as fat free food for people on diet, and animal feed. Analyst of the report says that animal feed and pet food application is dominating among other diverse applications such as beverages, and pharmaceuticals; it is estimated to grow with a good CAGR of 4.2% to 5.5% during the forecast period 2019-2025. Soybeans contains 47% to 49% protein concentrate, and 3% crude fiber which helps in improving growth performance, and nutrient digestibility in an animal. Soybean products such as soy milk, soy sauce, soy vegetable oil, and soy protein shakes are largely consumed by the various end-user industries such as food and beverages; which in turn growing the demand for the U.S. soybean market during the forecast period of 2019 to 2025.
U.S. Soybean Market: Growth Drivers
- The rise in obesity problems in the country has led to a shift towards soy made healthy snacks such as soy crisps, and chocolate soy nuts; which in turn leads to the growth of the market.
- Increasing intake of soybeans in order to prevent health conditions like anemia is driving the growth of the U.S. soybean market. Soybeans are rich in copper and iron which helps in improving circulation and oxygenation by the formation of red blood cells.
U.S. Soybean Market: Challenges
- The major challenge for the soybean farmers is that getting more yield out of each acre and more profits on the entire production, irrespective of environmental changes.
- Manufacturers are gradually finding difficult to maintain the final price of the product on account of the instability in terms of raw material supply and demand.
U.S. Soybean Market: Research Scope
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the U.S. soybean market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of U.S. soybean market, and their specific applications in different types of vehicles.
U.S. Soybean Market: Industry Coverage
Types of Soybeans: soybean food products, soybean oils, and soymeal
Applications of Soybeans: animal feed, pet feed, beverages, and pharmaceuticals
The U.S. soybean market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
North America: The U.S., Canada, Mexico
South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
Middle East and Africa: Israel, South Africa, Saudi Arabia
U.S. Soybean Market Players Perspective:
As China shifted soybean orders to South America after the price effect July 6, 2018, Archer Daniels Midland (ADM) operations in that region has increased. In another beneficial knock on effect is that aggressive Chinese buying in South America where drought-stunted crop yields forced other customers to buy U.S. crops. "The result was significantly higher volumes and margins for corn, wheat and soybean exports," says the ADM CFO Ray Young to analysts last week on the company's second-quarter earnings call.
The major players operating in the U.S. soybean market are Kerry Inc., Cargill, Senoj International, Sunshine Soybean, MEFTA, LLC, Grain Millers, Inc., Bluegrass Farms of Ohio Inc., Brushvale Seed, Inc., and Eden Organic Grains Inc.
U.S. Soybean Market: Trend
- In February 2019, China, the world's top importer of soybeans, resumed buying some 20 million metrics tons of U.S. soybeans. The reason behind this import is to outbreak the African swine fever in China used to make animal feed. China imported 31 percent of U.S. production in 2017, which is equal to 60 percent of total U.S exports and nearly one in every three rows of harvested beans. Over the next 10 years, Chinese demand for soybeans is expected to account for the growth in the U.S. soybean market.