Textured Soy Protein Market

Textured Soy Protein Market Outlook

Latest released industry analysis on the textured soy protein market by Fact.MR estimates global sales of textured soy protein at US$ 880 Mn at present, which is expected to witness a CAGR 6.4% to surpass a value of US$ 1.6 Bn by 2031.

Textured vegetable protein has a protein content and vital muscle building properties that range from 50% to 85% in terms of concentration. Texturized vegetable protein stands out when compared to other protein sources since it is environment friendly.

The market is also witnessing a healthy growth rate due to increase in demand from various end-use industries such as dairy alternatives, bakery, and others.

Textured soy protein business research performed by Fact.MR includes key findings such as latest and speculative production capacity, capacity utilisation rates of each manufacturer, recent and speculative pricing, and price optimization strategy across the value chain, as well as an economic evaluation of textured soy protein production.

Sales Analysis of Textured Soy Protein from 2016 to 2020 Vs. Future Market Projections for 2021 to 2031

Consumer awareness about healthy lifestyles and benefits of nutritional food is rising, causing them to gravitate towards natural food products, which is boosting the growth of the global textured soy protein (TSP) market.

According to The National Soybean Research Laboratory (NSRL) of the University of Illinois, the soybean plant provides complete protein required for the human body. Thus, the nutrition properties of soybean are driving demand for textured soy protein among health-conscious consumers.

According to the Fact.MR consumer survey, nearly 40% of customers purchased plant-based products because they believe plant-based products are healthier. 35% purchased products because they wanted to try them, and 25% purchased because someone in their family has lactose intolerance. Plant-based alternatives hold a smaller share of the overall market than the product.

However, the plant-based category has expanded dramatically in recent years. The market for plant-based foods and beverages shows no signs of slowing down. According to the Plant-based Foods Association (PBFA), retail sales of plant-based foods increased 11.4% in 2019. Despite the COVID-19 pandemic, sales have not slowed.

Demand for healthy supplements in daily life to combat escalating health concerns is driving sales of textured soy protein globally. The global market is expected to remain stable, expanding at a CAGR of 6.4% through 2031, compared to a CAGR of 4.8% for 2016 to 2020, according to Fact.MR.

Many countries such as Switzerland, Mexico, Bulgaria, Germany, and others have restricted (fully/partially) farmers from planting genetically modified crops. Requiring obligatory GM content safety testing at various levels of the food value chain which has led to the adoption of non-GM soy crops in the European market.

Natural textured soy proteins are derived from organic soy in various forms such as concentrates, isolates, and others, and are widely used in snacks, meat substitutes, and nutritional supplements.

Is Continuous Development by Key Players Driving Market Growth?

To meet increasing demand for high-quality vegetable protein, key manufacturers are expanding their production capacity by establishing new manufacturing facilities.

• In 2019, ADM expanded its production line in Brazil by building a new soy protein production unit. The unit produces a variety of functional protein isolates and concentrates for ADM's current products.
• ADM increased its production of non-GMO vegetable protein to cater to emerging demand for non-GMO textured soy protein, at its Europoort, Netherlands facility, in 2020.
• Roquette Frères expanded the Food Customer Technical Service Centre (CTS) Tokyo in 2018 in response to rising demand for plant-based protein in Japan and other Asian markets.

How are Product Claims Positively Impacting Demand for Textured Soy Protein?

Nutrition and health claims are viewed as a means of endorsing a food's healthy qualities. Manufacturer claims such as fat-free food, vegan, gluten-free, kosher, and non-GMO influence consumer purchasing decisions when comparing products among competitors, as they are focused on value-based purchasing.

Manufacturers operating in the textured soy protein for food segment are focusing on offering products with various claims.    

• Wilmar International, a soy protein manufacturer, makes claims such as ISO certification, halal, and kosher.
• ADM provides a variety of textured soy proteins that are non-allergenic and naturally non-GMO, meeting consumer demand for added protein and positive nutrition.

Will Rising Vegetarianism, Veganism, and Demand for Plant-based Protein Drive Sales of Textured Soy Protein?

Growing trend of health-conscious foods and customer interest in plant-based protein have influenced the textured soy protein (TSP) market. In recent years, vegetarianism has grown in popularity. The product's importance in reducing the incidence of heart disease, osteoporosis, and some types of cancer is of particular relevance.

Due to the product’s high protein content and adaptability in the development of meat analogues and milk substitutes, textured soy protein is a nutritious solution for vegetarians.

Which Regional Market is Lucrative for the Sales of Textured Soy Protein?

In 2021, total sales of textured soy protein in Europe are expected to be US$ 614 Mn, accounting for roughly 45% of global sales. In 2020, Y-O-Y growth for the product in the region was around 4.2%, and it is predicted to expand at a CAGR of 4.4%.

Textured soy protein products appeal to a large percentage of European consumers, including those pursuing rigorous vegetarian or vegan diets, those wishing to exclude certain items from their diet, and those trying to boost the daily intake of plant-based meals.  New product development options are thus limitless in the European market, ranging from totally replacing animal-derived products with plant-based alternatives.

Growing popularity of non-dairy foods and beverages in Europe is also expected to drive demand for soy products.

Due to risks to consumers and the environment, the European Union (EU) has enacted strict rules for genetically modified (GM) crops. Soy is the most common vegetable protein source. However, if genetically engineered seeds are consumed, it may have negative consequences on humans. As a result, its use in the European region is restricted, and is therefore driving demand for non-GMO textured soy protein.

Country-wise Analysis

Is Rising Veganism Helping in Driving Sales of Textured Soy Protein in the U.S.?

North America is one of the major regions in the global market, according to FACT.MR, and it is predicted to develop at a healthy rate throughout the forecast period. The United States is expected to account for more than 90% of the North American market in 2021, according to the most recent analysis.

The United States is a leader in the vegan movement. The country's largest vegan population is between the age of 30 and 49. The United States Department of Agriculture (USDA) researched meat stews, chilli, barbecue sauces, and meat sauces to develop labelling guideline for the use of textured soy protein based on the ratio of fresh meat to dried soy equivalent in product formula

Why is China a Dominant Market in East Asia? 

Demand for textured soy protein in China is estimated to be valued at US$ 32.2 Mn in the year 2021. The country's demand for soy protein is extremely high. Protein processing firms in China are fast expanding as more and more players enter the market intending to capture a market share.

Rapidly expanding demand for textured vegetable protein products among health-conscious consumers in the country is one of the major drivers for the China textured soy protein market.

How is Demand for Plant-based Protein Driving the Market of Germany?  

In 2021, Germany had a market share of 16.5% in Europe. Various textured vegetable protein manufacturers are marketing their products while also attempting to resonate with the attitude of today's value-driven customers, opening up more options for both, legacy corporations and start-ups to enter the textured vegetable protein market.

Furthermore, numerous sources from which textured soy protein can be derived is enabling greater room for players to invest in the multiplicity of applications for which plant-based proteins can be used. Simultaneously, the industry has succeeded in creating more appealing meat analogues manufactured from rehydrated textured soy protein, either alone or in conjunction with wheat gluten.

These offerings are advertised as completely prepared, flavoured, and refrigerated ready-to-eat entrées. The current textured soy protein chunks marketing strategy aims to show them to the public as innovative, high-quality products rather than as low-cost meat alternatives. So far, this technique appears to be working, leading to the growth of the textured soy protein market in Germany.

How is Increased Soybean Production in India Fuelling Growth of the Global Market?

India accounts for 29% of the South Asia market for texturized soy protein, and is expected to expand at a CAGR of 8.2% to reach a value of US$ 68.8 Mn by 2031.

Indian farmers are likely to increase their soybean planting area by more than a tenth in 2021, as record-high prices for the oilseed and increased consumption of soy products may persuade some to abandon competing crops.

Category-wise Insights

Why Do Soy Protein Isolates Dominate the Market for Textured Soy Protein?

According to Fact.MR, soy protein isolate sales are expected to account for more than 59% market share, and are expected to witness increase at a CAGR 6.8% during the forecast period.  

Increase in demand from aquaculture companies for soy protein isolates is expected to boost the global market. Demand and usage of textured soy protein in feed has been rising. The health benefits of adding textured soy protein isolates to animal diets have been discovered by livestock producers, which is expected to drive revenue from soy protein isolates.

Aquaculture manufacturers are looking for more efficient and long-term solutions to raise healthy species to meet rising market requirements in a world where population and food scarcity are increasing. As a protein alternative in aqua feed, textured soy protein concentrates can also meet the diverse nutritional needs of aquaculture around the world. It has the potential to minimize strain on natural fishery stocks and has augmented consumption of textured soy protein in feed.

Soy protein concentrate is also utilized as a texturant, food emulsifier, water, and fat absorbent, and to boost the nutritional content of food. The tendency to absorb fat and water leads to more juiciness in the meal and allows the use of meat with greater fat content.

Another factor driving demand is textured soy protein concentrate’s low price. Cargill is one of the biggest soy protein concentrate suppliers globally.

Which is the Most Attractive Form of Textured Soy Protein?

Sales analysis of textured soy protein chunks recorded rising numbers due to use in various meat foods such as sausages, bangers, etc. In 2021, the chunk segment accounted for 25.1% of the global market, and is expected to rise at a CAGR of 6.7% from 2021 to 2031.

Demand for textured soy protein chunks is rising due to application in various end-use industries such as meat substitutes, bakery products, and cereals & snacks. Organic textured soy protein chunks are also gaining traction due to richness in protein and other nutritious minerals. These take considerably less time to cook and are popularly used in mid-day meal programmes.

Textured soy protein granules and textured soy protein slices jointly accounted for nearly 50% of the overall market share in 2021.

Is the Organic Trend Aiding Market Expansion?

High demand for organic food & beverage products containing textured soy proteins all over the world has opened up opportunities for producers globally.

Due to its diverse agro-climatic conditions, India has a lot of potential for producing a wide range of organic products such as organic textured soy protein to meet the growing demand for organic soy protein. The inherent heritage of organic farming is an added advantage in some sections of the country.

It therefore holds opportunity for product innovation in organic textured soy protein as an opportunity for producers in a market that is gradually expanding, both, domestically and internationally, which is estimated to drive sales of organic textured soy protein.

Conventional textured soy protein is estimated to account for US$ 705.5 Mn in 2021. Majority of products in the food industry are generated utilising commodity crops and traditional agricultural processes, such as soybean farming.

How is Demand for Textured Soy Protein as a Meat Substitute Faring?

On the basis of application, meat substitutes accounted for more than 38% of the overall market in 2021, but bakery products are expected to witness a lucrative growth rate at a CAGR 8.2% during the forecast period.

Increased applications of textured soy proteins in various end-use industries is driving the growth of the global market. Textured soy protein for feed is also one of the fastest-growing applications.

How Has COVID-19 Impacted Revenue Generation from Textured Soy Protein?

Impact of nutrition on the immune system has been well documented. Recent research has underlined the need of getting enough of certain nutrients such as protein in COVID-19, increasing the importance of textured soy protein consumption. Nonetheless, due to the disease's novelty, knowledge of the effects of certain nutrients is limited.

According to Fact.MR, sales of plant-based food products in the United States increased by more than 90% during the peak of pandemic buying at the end of March when compared to the same period the previous year, with sales of plant-based meat increasing 148%.

Competition Landscape

Presence of multinational players such as ADM, DuPont, and others characterizes the global market. In comparison to global manufacturers, local and regional players are focusing on strengthening their distribution channel in the local market Furthermore, regional players are attempting to expand their global influence. On the other hand, established players are bolstering their positions by acquiring local players. This making the global market a highly competitive space.

Fact.MR has provided detailed information about price points of textured soy protein of manufacturers positioned across regions, sales growth, production capacity, and speculative production expansion in the recently published report.

• CHS Inc., Ultra-Soy® textured vegetable proteins are certified Kosher Pareve under the supervision of the Union of Orthodox Jewish Congregations of America, and Halal under the supervision of the Islamic Food and Nutrition Council of America (IFANCA).

Similar, recent developments related to companies offering textured soy protein have been tracked by the team at Fact.MR, which are available in the full report.

Textured Soy Protein Industry Report Scope

Attribute	Details
Market size value in 2020	USD 880 Million
Market forecast value in 2031	USD 1.6 Billion
Growth Rate	CAGR of 6.4% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	MT for Volume and US$ Million for Value
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	United States Canada Brazil Mexico Germany U.K. France Spain Italy China Japan South Korea India Indonesia Malaysia Singapore Australia New Zealand Turkey South Africa GCC Countries
Key Market Segments Covered	Product Type Nature Form Application Region
Key Companies Profiled	Archer Daniels Midland DuPont Nutrition & Health The Good Scents Company Abbott Nutritionals Kerry Group Plc. Friesland Campina Cargill Inc. Costantino Special Protein New Alliance Dye Chem Pvt. Ltd Solae LLC Bunge Others
Pricing	Available upon Request

Market Segments Covered in Textured Soy Protein Industry Research

• By Product Type

  • Soy Protein Concentrates
  • Soy Protein Isolates
  • Others

• By Nature

  • Organic Textured Soy Protein
  • Conventional Textured Soy Protein

• By Form

  • Dry Textured Soy Protein
  • Liquid Textured Soy Protein

• By Application

  • Meat Substitutes
  • Dairy Alternatives
  • Infant Nutrition
  • Bakery Products
  • Cereals & Snacks
  • Animal Feed
  • Other Applications