The market for soybean is predicted to grow in the coming years. This prediction roots in the fact that the FMCG, as well as SMCG industry, is foreseen to have an aggressive growth. Increase in population and demand for edible products is also on a rise and is directly impacting the global soybean industry. The apparent improvement in the retailing network and rapid urbanization coupled with an increase in soy crop farming is also helping the soybean oil market to expand.
Factors Behind The Expansion Of Soybean Market
Soybean oil is extracted from soybean seed and is used extensively in cooking across households and restaurants. The oil also finds extensive application in shortening and margarine process in the baking industry. Its emulsifying ability and low-calorie content are few of the major factors that attract B2B consumers to prefer soybean oil over rice-bran, sunflower, and oil. Soybean is especially favored among all other oils as it contains negligible saturated fats and no trans-fat. Soybean oil is preferred and is in high demand from a wide variety of industrialists. Apart from cooking, soybean oil is also used in the production and application of industrial paints, oleochemical, bio-composites, and adhesives.
Global Market Scenario Of Soybean Oil Market
There is a growing stance in the awareness regarding the health advantages of soybean among consumers. A recent paradigm shift in the food choices among consumers that prefers omega-3 fatty acids and vitamin E in their diet is one of the key factors driving the expansion of the soybean oil market. The functional versatility of soybean oil is expected to be an emerging growth-ensuring factor for the manufactures and the investors across the world. Departmental stores, supermarkets, convenience stores, and hypermarkets are important elements in boosting supply-chain growth in the soybean oil market. Soybean oil is preferred among consumers suffering from ailments such as high cholesterol, cardiovascular complications, and obesity. Soybean oil is also observed to help improve immunity and neurological disorders.
However, the soybean oil market faces market challenges as there is a dominating presence of palm, rice-bran, rapeseed and olive oil.
- A region-wise market scenario of soybean oil
The global soybean oil market can be geographically segmented into Asia-Pacific, North America, and Europe. The Asia Pacific region, especially China is identified as the leading producer of soybean oil followed by countries such as India and Japan. The U.S. is also one of the leading producers of the product, however, it does not have a dominant share in the global market as most of the soybean oil produce gets consumed in the American domestic market.
Developing countries of the Asia Pacific and the Middle East region are making use of soybean oil majorly in the heavy-metal and automotive manufacturing industries. The dominance and influence of sunflower and vegetable oil are greater in developing countries as compared to the rising and sustained demand for soybean oil in developed regions such as the U.S. and Europian countries. However, with the help of technological developments and internet-aided online retail systems, soybean oil is also making gradual permeation in the eastern economies.