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.
Increasing Utilization in Production of Biofuel to Drive Market Growth
Biofuel is an emerging sector due to the rising concerns related to non-renewable energy sources. Various countries are now actively investing in the production of biofuels. The increased biodiesel production capacity has a huge impact on the global demand for soybean-derived oil. The use of the oil as feedstock for biodiesel production provides a higher BTU (British Thermal Units) value and burns more efficiently and cleanly. The U.S. government provides a USD 1 per gallon subsidy to biodiesel producers that produce biodiesel from virgin vegetable oil feedstock.
According to the May 2021 World Agricultural Supply and Demand Estimates report by the U.S. Department of Agriculture (USDA), the use of soybean oil for biofuel production is forecasted to be higher in the upcoming years. In June 2021, the oil’s demand on the Chicago Board of Trade soared by almost 70% due to the growing demand from the biodiesel sector. The increasing investments by the governments of various countries and fuel producers to improve the biodiesel production process is anticipated to further propel the demand for soybean oil in the upcoming years.
Expanding Application Scope in Food Sector to Fuel Market Growth
The oils and fats sector is witnessing promising growth across the globe attributed to their rising use in food manufacturing and processing. According to the USDA, soy oil is the second-largest consumed vegetable oil in the world. It is extensively utilized for cooking, frying, shortenings, and margarine. Soybean oil usage has also increased across the bakery sector, which significantly fuels market growth. The growing consumer knowledge regarding its health benefits ultimately propels market growth. This oil is one of the leading poly-unsaturated cooking oils. It has a high smoke point (257°C), which enables setting oil at higher temperatures for deep frying. The higher shelf life of soybean oil also drives its utilization in food processing and foodservice industries.
- 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.
- 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.
Key Segments Covered In the Soybean Oil Market Report
- By Product :
- By End User :
- Food Processor
- By Distribution Channel :
- Modern Trade Channels
- Franchise Outlets
- Specialty Stores
- Online Distribution Channels
- By Region :
- North America
- Latin America
- East Asia
- South Asia
- Middle East Africa