Organic Soybean Market - 2023-2030

Overview

Global Organic Soybean Market reached US$ 1.8 billion in 2022 and is expected to reach US$ 2.97 billion by 2030, growing with a CAGR of 6.5% during the forecast period 2023-2030.

Organic farming is trending in the market due to increased health and environmental concerns. Many protests are emerging about the use of synthetic pesticides and fertilisers. These harmful chemicals are dangerous to human health and even damage the environment. Organic farming decreases human and animal health hazards and protects the soil and environment. Thus, the several benefits of organic farming are raising the demand for organic products.

Increased advancements and technological approaches in organic farming boost the market growth. Organic soybeans have various applications, from food & feed to biofuels. They also have increased applications in personal care, pharmaceuticals and biofuel production. Due to its beneficial activities, the organic soy lecithin liquid is used in skincare and hair products.

The market had greater investments due to increased consumer demand for these products. Many manufacturers are investing in expanding their company production facilities to maintain a better position in the market. For instance, in September 2021, CHS announced its market expansion by developing soybean processing facilities in its Mankato plant to increase soybean oil production. This act will positively impact the company's renewable diesel market position in the market.

Dynamics

Growing Adoption of Organic Products

The rising consumer demand for natural products drives the market growth. The growing knowledge among consumers about the functional advantages of organic products increases their demand in the market. The improved production of organic products hype the market growth. APEDA says organic crop production reached about 3.2 million metric tons in India. Organic products have lower exposure to harmful chemicals. No synthetic pesticides or fertilizers in their production makes them a healthier choice.

The rise in consumer awareness about the adverse effects of synthetic chemicals on human health drives the need for organic products that are free from all toxic materials. Organic products are loaded with beneficial nutrient content. They are considered to be healthier than conventional products due to reduced levels of preservatives and other additives.

Rising Demand for Plant-Based Proteins

The rich nutrients in soybeans, including protein, and other essential vitamins and minerals, make it a healthy food choice. Soybean seeds contain almost 40% crude protein, making them ideal for use as a healthier substitute for animal protein. The growing consumer awareness regarding the adverse health effects of animal-based food products drives the market for plant-based products.

Rising consumer awareness in the field of the benefits of a soy-based diet boosts these products demand. According to USDA, there were about 416,000 MT of soybeans sales. The soybeans are used to prepare meat analogues, driving their need. With the growing use of soybeans, consumers demand the organic form of these products, driving market growth.

High Prices

The price fluctuation of organic soybeans and soy-based products can be a major restraining factor for the market. The climate changes and seasonal variations immensely affect crop production and harvest of the soybean. The limited availability of organic soybean seeds and challenges related to organic cultivation techniques increase production costs.

The high prices of these products compared to conventional soybeans can be a significant hindering factor as price-sensitive people will prefer to choose cheaper goods. The factors maintaining the strict prohibition of cross-contamination in production and processing units can be a challenge for manufacturers. In addition, the increasing prevalence of soy allergy among consumers negatively affects the market growth. The National Institute of Health estimates that the prevalence of soy allergy is around 0.3%.

Segment Analysis

The global organic soybean market is segmented based on type, category, form, distribution channel, application, end-user and region.

Increasing Demand for Soy-Based Food Products

The global organic soybean market is segmented based on application into human food and beverages, animal feed and pet food, personal care and cosmetics, pharmaceuticals, biodiesel and others. The human food and beverage segment accounts for a higher share, due to the availability of a wide range of organic-soy-based products in the market. The growing consumer knowledge about the health benefits of organic soy-based food and beverage products drives market growth.

Change in consumer shifts in food preferences and higher demand for the plant-based protein diet drives the segment growth. There are various food products available in the market with organic soybeans. Soymeals, processed food like tofu and soymilk are some of the famous organic soybean products. Many companies are providing various organic soy-based products driving the segment growth.

Geographical Penetration

Increasing Health Consciousness Among People

The North American region holds the most prominent geographical segment in the organic soybean market due to the increased demand for healthy food products. Consumers are highly aware of the importance of soybeans in their daily diet to induce health benefits. The increased health consciousness among consumers of this region is growing the need for organic products free from synthetic pesticides and other chemicals.

According to the Centers for Disease Control and Prevention, around 37.3 million Americans, equal to about 11.3 % of the total population, suffer from diabetes in 2023. The growing prevalence of lifestyle disorders, including obesity and diabetes, fuels the adoption of healthier food habits. The growing vegan population and increasing need for plant-based protein with healthy benefits positively affect the market growth in this region.

New product launches and various acquisitions among the major market players of this region expand the market vigorously. For instance, West Life, a California-based company now part of SunOpta, is famous for its soymilk. The company provides organic unsweetened soymilk in plain and flavoured forms. Rising living standards, increasing disposable incomes, and affordability of people in this region may positively impact organic soybean products.

Competitive Landscape

The major global players in the market include Shanti Worldwide Private Limited, Grain Millers, Tyson Foods Inc, Simmons Grain Company, Perdue Farms, Radiance Overseas, Divine Soya and Agro Food Private Limited, AFG Brasil S/A., Adams Group and Professional Proteins.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic negatively impacted the global organic soybean market. The uncertain pandemic condition resulted in the loss of production and availability of various products. The decreased production and availability of soybeans and other raw materials halted organic-based soy product production. The strict regulations from the government resulted in the shutdown of many manufacturing industries. negatively impacted the market.

The disruption in the supply chain activities decreased the demand for organic soybeans in various applications as most of the industries were shut down due to strict government regulations. The producers faced economic problems due to decreased revenue. The import and export restrictions production distributions. Due to reduced income opportunities, the market for organic products decreased due to the high costs of these products.

The increased health consciousness among people and developing demand for healthy and safe products positively affected the market. In addition, the increased use, accessibility and popularity of the e-commerce sector and the wide availability of these products in online sales increased the market demand.

Russia- Ukraine War Impact

The Russia-Ukraine war had a negative effect on the organic soybeans market. The war disrupted many crops and products, leading to food security. The economic disturbance resulted in the increased prices for all the products. According to NIH, food and fuel prices are increase in the first half of 2022, due to this war. The political and economic uncertainty created due to the war had a negative impact on the organic soybean market.

The supply chain and distribution channel disturbance had a negative impact on the market. Many people lost their jobs. According to the Economy Ministry, in 2022, about 5 million people became jobless due to this war. The low employment of these people resulted in the lower affordability levels decreasing the market for expensive products like organic soybeans.

By Type

• Full-Fat Soybean
• Defatted Soybean

By Category

• Fresh Organic Soybean
• Dry Organic Soybean

By Form

• Whole
• Protein
• Oil
• Meal
• Others

By Distribution Channel

• Direct Sales
• Indirect Sales
  • Modern Retail Formats
  • Convenience Stores
  • Online Stores
  • Others

By Application

• Human Food and Beverages
• Animal Feed and Pet Food
• Personal Care and Cosmetics
• Pharmaceuticals
• Biodiesel
• Others

By End-User

• Household
• Industries
  • Fuel industry
  • Food industry
  • Pharmaceutical Industry
  • Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In February 2023, a technology-based commodity price risk management solutions provider, Stable, announced the launch of their first organic soybean meal hedge, to meet the demand for the growing organic soybean products.
• In January 2023, a global brand, Japan Keystone, announced the launch of SoyJOCK TVP Strips Vegan Meat with organic soybeans.
• In 2021, a joint venture was launched between a global food processing and commodities trader, Archer Midland Company and an American-based petroleum company, Marathon Petroleum Corp, in the initiative to produce the required soybean oil demand for the increasing demand for sustainable diesel fuel.

Why Purchase the Report?

• To visualize the global organic soybean market segmentation based on type, category, form, distribution channel, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of organic soybean market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global organic soybean market report would provide approximately 85 tables, 89 figures and 189 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies