Soybean oil is one of the most popular cooking oils that is consumed by many people across the globe. Around two-thirds of soybeans processed globally are utilized for making soybean oil. The production of soybean oil across the world has soared substantially over the past few years. The main reason behind this is due to the widespread and increasing application of soybean oil in the food and beverage industry.
Being a low-cost and readily available oil, soybean oil is extensively used for frying, baking, and garnishing salads. Soybean oil is also used in manufacturing drying oil and paint. It is even used as a raw material for making alkyd resins. A study by Fact MR states that the global soybean oil market would have a moderate CAGR during 2017-2022 and would surpass a valuation of US$ 21,373 Mn.
Soybean oil is of two types: processed and virgin. The processed soybean oil is made by extracting crude oil from its bean and converting it into an end product that is free from impurities. On the other hand, virgin soybean oil is rich in polyunsaturated and monounsaturated fatty acids and has several health benefits.
Additionally, the industries that are the major end-users of soybean oil are food service, food processing, and the retail industry. Soybean oil is distributed to these industries through four major channels: franchise outlets, modern trade, online stores, and specialty stores.
Global Consumption of Soybean Oil
Globally, the consumption of processed soybean oil is presumed to remain higher than its virgin variant. Currently, processed soybean oil accounts for about two-thirds market share when it comes to revenue and is expected to rise by 70 BPS by the year 2022. One can use processed soybean oil for cooking purposes directly as it does not require any refining or purification obligations. Thus, it is preferred by most consumers.
If we consider the consumption of soybean oil-based on end-use, it is expected that the retail segment might remain attractive throughout 2017-2022. Currently, the processed soybean oil segment accounts for more than 38% of the market revenue share. It is estimated that the valuation might reach US$ 8,156 Mn by the year 2022. Also, meanwhile, the segment catering to foodservice is forecasted to retain its second position.
Based on the distribution channel, modern trade is estimated to remain the leading market segment in the forecast period. At present, the segment accounts for nearly one-third share of the market when it comes to revenue. Meanwhile, online retail stores are also emerging as one of the key distribution channels for soybean oil.
Consumption of Soybean oil in Europe
Europe, going by the current soybean oil trends, is expected to remain as one of the leading markets for soybean oil over 2017-2022. The European market for soybean oil is estimated to increase at a constant CAGR by 2022. In the European market, soybean oil has a substantial usage both as a fuel and a feed. The region of Asia Pacific, excluding Japan, is also expected to remain as an attractive market for soybean oil. This is because there are high consumption and production of soybean oil in countries like India and China.
Tracking the Competition
There are some key players in the soybean oil industry. According to the Fact MR’s report, the key companies of soybean oil are Ruchi Soya Industries Ltd, Archer Daniels Midland Company, The Adani Wilmar Ltd., Associated British Foods (Ach), Beidahuang Group, Bunge Limited, Cargill Inc., Adams Group, Borges Mediterranean Group, Fuji Vegetable Oil, Olympic Oils Limited, Inc., Inc., American Vegetable Oils, Marico Limited, ConAgra Foods, and Ach Food Companies.
The global soybean market is segregated based on geography. With increasing awareness, consumers are getting to know the advantages of soybean oil, thus driving its demand significantly. The versatility is expected to turn up as an opportunity and attract several manufacturers in the long run.