Soybean Meal Market

Soybean Meal Market Size, Growth, Trends, and Forecast 2026:

The Soybean Meal Market is estimated to experience reasonable growth to record a CAGR of 4.19% throughout the estimated period (2022 - 2027).

Soybean meal is the main source of animal feed that improves the metabolism and the immunity process of growing cattle. Soybean meal is a concentrated source of protein and energy and contains less fiber than most other oilseed meals available to the feed manufacturer. The higher protein, energy, and fiber content of soybean meal allows nutritionists to formulate more energy-efficient diets that are more efficient at turning food into meat.

Soybean meal is a by-product of soybean oil extraction. Soy flour is a rich source of protein that is used as food for humans and livestock. Soybean meal is mainly classified into two types, protein soybean meal containing 47% -49% protein from shelled seeds and conventional soybean meal containing 43% -44% protein in the shell. Soy flour is used in the widest variety of products, including animal feed, baked goods, health foods, cosmetics, and the manufacture of antibiotics.

Impact of covid-19 on Soybean Meal Market:

The start of the coronavirus pandemic coincided with the peak harvest season. As markets are closed, there is a threat to the harvest on over 100 lakh hectares in the country.

Even between different segments, the impact varies considerably between different regions and between producers and salaried workers. This impact will reverberate throughout the economy and will last for more than a few months. Problems emerged after the COVID pandemic. Despite all the measures and given the continued restrictions on the movement of people and the movement of vehicles, concerns have been expressed about the negative implications of the COVID19 pandemic on the agricultural economy. Today's agriculture's immediate problems are classified mainly into two headings: For crop production, most of the planting process will be virtually unchanged in the summer. Therefore, there would be no impact as such on the availability of seeds at the moment. But if the same scenario continues until the end of the year, then seed availability can certainly be a problem. Due to the disruption of world trade, farmers face shortages of agricultural inputs such as fertilizers and pesticides. In a shorter period, there is little dearth to wait. In the longer term, the delivery of fertilizers through international markets could become a problem, as some production plants in China have been closed.

Recent Developments:

• Bunge Netherlands B.V. and Bunge France SAS announced the successful completion of the acquisition of two crushing facilities from Cargill, following approval and closing of the transaction. The soybean and rapeseed crushing and soybean oil refining plant at the port of Amsterdam in the Netherlands and part of the bulk port terminal assets have now been transferred to Bunge, and the soybean crushing plant and rapeseed located in the port of Brest, France. Both sites and their staff are now an integral part of Bunge's regional operations in Europe, the Middle East and Africa (EMEA), and the global soybean crushing platform.
• Trade-in 2018-19 was boosted after Iran began accepting post-US rupee sanctions.
• After the US sanctions, a sharp increase in demand from Iran's feed industry has improved the outlook for soybean meal exports from India. According to the latest data released by the Solvent Extractors Association of India (SEA), soybean meal exports to Iran for the year 2018-2019 amounted to 508,050 tons, much more than 22,910 tons last year.
• As the average price of a ton of soybean meal fell slightly in the first half of this month, some have said that the chicken farmer's purchasing power in relation to this raw material increases. However, this is only true compared to the previous month (in the first half of March, a drop of just over 1% compared to the average of last February). Because, until now, the price of soybean meal remains, monthly, at the second-highest level in history.
• Consolidated Grain and Barge Co. (CGB) acquired the food-grade soy division of Quality Technology International, Inc. (QTI). The new food-grade soy business will market, ship, and sell specialty feed soybeans through containers in Japan and domestically for processing and resale to Japanese food manufacturers.

Drivers and Restraints of Soybean Meal Market:

Soybean meal is expected to generate extremely good income in 2017-2027 because it is rich in protein. It can be used as food for humans and livestock, used in health products, and in the preparation of protein shakes. Due to the increasing demand for soybean meal for the manufacture of protein supplements and animal feed at a high rate, manufacturers are manufacturing and launching several new soybean meal products with improved protein content. These factors are the main drivers of this market, and demand is expected to increase year on year. To meet the growing demand, manufacturers are strategizing to remain the key player. The production of soybean meals at a high rate due to the increasing demand is a limitation for the soybean meal market because the production is limited. The growing trend of the companion animal and pet health segment is another factor driving the market demand for soybean meals.

REPORT COVERAGE:

Soybean Meal Market Segmentation:

The market segmentation for Soybean Meal can be divided into Raw Materials, the process of production, the food industry, and distribution channel. Soybean meal is segmented on the basis of raw material as organic and inorganic. Due to increasing health problems, people prefer organic soy flour because organic products are good for health. 

The soybean meal market is segmented according to the process of production as normal soybean meal, shelled soybean meal [min. 50% protein] Hipro and shelled [min. 48% protein] Hipro soybean meal, toasted defatted soybean meal, and toasted defatted soybean flakes are commercially available. Regular soybean meal has a lower protein content than shelled soybean meal, which has about 45-46% crude protein content. Cockles are by-products that are eliminated because they have no place in human food but are used for ruminants. According to its application in the food industry, Soy flour is segmented according to beverages, dietary supplements, and health products. In the food market segment, soybean meals can be used to make soybean chunks and soybean granules.

Deflated soy flour is used to make nutritious cookies. Soy flour protein isolates are used as protein shakes. Soy flour products are healthy and nutritious, so the market demand for the food and beverage market segments is high. In the health products market segment, soy flour is used to make products that contain isoflavones that have chemical similarities to estrogen. Demand from the dietary supplement market segment is higher as soy flour is used to make supplements rich in calcium, magnesium, iron, and folic acid. Soy flour is segmented according to the distribution channel: supermarket, specialized stores, online stores, and retail stores. Online stores are the preferred mode of purchase for both consumers and manufacturers because they are convenient for both. Supermarkets have also acquired a good consumer base over the last ten years and are expected to grow at a significant rate.

Regional Analysis:

North America is holding with the dominant shares of the market. Soy flour must be manufactured at a higher rate to meet the needs of the market. But with increasing harvests, there is a threat of disease. Soybean rust is a fungal disease that originated in Asia. It has spread to soybean fields in South American countries such as Brazil, Argentina, Chile, and finally to the US; the prevention and control of soybean rust require fungicides, which are expensive, and the damage to yield is extreme. This disease represents a potential threat to the growth of the soybean meal market.

According to the Soybean Meal Information Center, almost 60% of total soybean meal is consumed in China, the EU, and the United States together. China is the main producer of soybean meal, followed by the United States, while the main importers of soybean meal are Vietnam, Belgium, and Spain, exports are dominated by the United States, Italy, and India. One of the biggest improvements in soybean cultivation is the rapid adoption of no-tillage technologies by farmers in South and North America. Although soy is produced mainly in a limited number of countries, it is widely traded, and soy flour is available in almost all countries.

Leading Company:

Vippy Industries ltd had the largest share of the Soybean Meal Market in terms of sales revenue in 2021.

Key Players:

The Soybean Meal Market is concentrated with well-established players. Key players in the Soybean Meal Market include Vippy Industries ltd, Mukwano Group, Granol Industria, Zhongken Guobang (Tianjin) Co. Ltd., Gauri Agrotech Products Pvt. Ltd., Bonne Vie Soybean Meal, Gimatex Industries Pvt. Ltd., Eco Export, Shafer Commodities Inc., and Nordic Soya.