Market Research Report
Soybean Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
|Soybean Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 125 Pages
Delivery time: 2-3 business days
The soybean market is projected to register a CAGR of 3.5% during the forecast period (2021-2026). The supply chain disruptions due to the trade restrictions have impacted the market for soybean during the COVID-19 pandemic. These factors have reduced the production of soybean by-products like meal, oil, cake, etc which has been reflected on the market for soybean as well.
The United States, Brazil, Argentina, Canada, Paraguay, and Uruguay are the largest producers and exporters of soybean in the world, accounting for more than 85.0% of the global production. For many years, the United States was the world's major producer and exporter of soybean. However, in 2019, soybean production has increased dramatically in Brazil surpassing Brazil's soybean production. The increased production of Soybean can be attributed to the favorable growing conditions augmented by the soil quality, weather conditions, and water availability. The market for soybean is driven by the increasing adoption of veganism in western countries owing to the popularity of plant-rich proteins in the diet. The increased health awareness among consumers due to the higher standard of living has also impacted the market affirmatively.
The demand for by-products of soybean like soybean meal, oil cakes, etc has been increasing over the past few years. The high nutritional value of the products has enhanced the popularity among consumers. The increased disposable income of consumers in developed countries along with the improved productivity of soybean in these countries has contributed to the enhanced demand for soybean by-products. As per the USDA, in 2020, the soybean oil production in the United States was recorded at 11.3 million metric ton, showing an increase from 9.9 million metric ton in 2016. The demand for soybean oil in the country has contributed to the production of the commodities. This is anticipated to drive the market during the forecast period. Soybean meal has a unique composition of amino acids and can be used as an alternative for cereal proteins. Therefore, soybean meal is used as a feed for animals and human consumption as well. The main reasons behind the increasing demand for protein-enriched foods are its health benefits and the growing number of livestock, cattle, ruminants, and other animals in the global market.
In the South America, Brazil was the largest exporter of soybeans which accounted for 44.4% of total global exports, followed by the Argentina and Paraguay in 2020. The soybean production in Brazil which accounted for 96.43 million metric ton in 2016, which has increased to 114.2 million metric ton in 2019, and thus, this increase in production will boost exports of soybean in the upcoming years. The low value of Brazilian currency in 2020 has made the soybeans price competitive in the international market. The increased awareness among farmers pertaining to the cultivation of soybean along with the well-equipped nature of cultivation in regionhas enhanced the production of soybean. The domestic and global demand for oilseeds like soybean has been rising over the recent years, which has impacted the prices of soybean and the revenue of farmers positively. The United States-China trade war has contributed to the growing exports from Brazil to China. The enhanced livestock population and the growing demand for soybean meal have improved the exports from South American countries in the Asia Pacific and Europe region.