Soy Chemical Market
Soy Chemical Market Study by Soy Oil, Soy Wax, Fatty Acids, Soy Polyols, Soy Isoflavones, and Soy Methyl Soyate for F&B, Plastics & Polymers, Biodiesel, Cosmetics, and Paper & Pulp from 2024 to 2034
Analysis of Soy Chemical Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Soy Chemical Market Outlook (2024 to 2034)
The global soy chemical market is estimated to reach a valuation of US$ 28.1 billion in 2024 and has been forecasted to expand at a noteworthy CAGR of 7.6% to end up at US$ 58.5 billion by 2034.
One of the primary drivers behind rapid global soy chemical market growth is increased emphasis on sustainability and environmental consciousness across most parts of the world. Soy, a renewable and biodegradable resource, has emerged as an eco-friendly option compared to fossil fuel-derived chemicals. Concerns over the environmental impact of traditional petrochemicals, as well as the depletion of non-renewable resources, have prompted governments, industries, and consumers alike to look for alternative, more sustainable materials.
Soy chemicals are used across various sectors, from personal care to industrial uses. Also, advancements in soy processing and extraction technologies have improved the cost-effectiveness and performance of soy-based chemicals, further driving their adoption in the global market.
Report Attribute | Details |
---|---|
Estimated Market Value (2024E) | US$ 28.1 Billion |
Forecasted Market Value (2034F) | US$ 58.5 Billion |
Global Market Growth Rate (2024-2034) | 7.6% CAGR |
United States Market Share in North America (2024) | 71.9% |
China Market Growth Rate (2024 to 2034) | 8% CAGR |
Key Companies Profiled | Archer Daniels Midland Company (ADM); BASF; Cargill; Soy Technologies LLC; Elevance Renewable Sciences; Vitasoy USA Inc.; Vertec Biosolvents; Soyaworld Inc; Columbus Foods Co. Other Prominent Players. |
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Historic Analysis (2019 to 2023) and Future (2024 to 2034) Pathway Analysis for Soy Chemicals
Value of the soy chemical market was US$ 19.5 billion in 2019, which increased to US$ 26.1 billion by 2023, expanding at a CAGR of 7.2%.
- Short Term (2024 to 2027): According to current soy chemical market trends, soy-derived emulsifiers, thickeners, and other functional ingredients will see increased usage in various food and beverage applications. Global rise in the demand for processed, packaged, and convenience foods will positively impact the consumption of soy chemicals.
- Medium Term (2027 to 2030): Growing popularity of electric vehicles and the shift toward green mobility will push demand for soy-based materials in automotive applications. Soy-derived chemicals will be used in vehicle interiors, sealants, adhesives, and other components to enhance sustainability.
- Long Term (2030 to 2034): Research and development in areas such as synthetic biology, genetic engineering, and fermentation technology will lead to breakthroughs in soy-based chemical production. These advancements will expand the range of soy-derived chemicals, improve their performance, and enhance their cost-competitiveness in the long run.
On the back of the aforementioned factors, the soy chemical market size is projected to grow at a CAGR of 7.6% during the forecast period from 2024 to 2034, according to Fact.MR, a market research and competitive intelligence provider.
What are the Factors Propelling Global Sales of Soy Chemicals?
“Product Versatility Fueling Widespread Industrial Adoption”
Versatility and adaptability of soy-derived chemicals are key factors driving their increasing usage across a wide range of industries globally. Soy-based chemicals are finding applications that go far beyond their traditional uses, as they often offer comparable or even superior performance to conventional petroleum-derived chemicals.
In the plastics industry, soy-based bioplastics are gaining traction as sustainable alternatives to traditional plastic materials. These soy-derived plastics can be designed to mimic the properties of conventional plastics, while providing enhanced biodegradability and a smaller carbon footprint. Similarly, in the coatings and lubricants sectors, soy-based formulations are replacing fossil fuel-derived products due to their renewable nature, improved lubricity, and enhanced environmental profile.
The personal care industry has also embraced soy-derived ingredients, incorporating them into a variety of products such as soaps, shampoos, and cosmetics. Soy-based emulsifiers, surfactants, and active compounds come with gentle, natural, and skin-friendly benefits, catering to the growing consumer demand for green and sustainable personal care solutions.
As soy-based chemicals continue to demonstrate their versatility and adaptability, their penetration into new and diverse application areas is driving global sales growth. This trend is further being amplified by increasing emphasis on sustainability and shift toward eco-friendly, renewable alternatives in various industries worldwide.
“Growing Demand for Bio-based Products Worldwide”
Rising consumer preference for sustainable and eco-friendly products is a key factor driving worldwide demand for bio-based chemicals, including those derived from soy. Soy-based chemicals are considered more environment-friendly compared to traditional petrochemical-based alternatives, since they are renewable, biodegradable, and have a smaller carbon footprint.
Consumers, particularly in developed markets, are increasingly seeking products that align with their environmental values and green lifestyle choices. This has led to a surge in the adoption of bio-based materials such as soy-derived chemicals across a variety of industries, including plastics, coatings, personal care, and more. These soy-based products are often perceived as more natural, gentle, and socially responsible, appealing to the growing consumer base that prioritizes sustainability and environmental consciousness.
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What are the Challenges Encountered by Manufacturers of Soy Chemicals?
“High Cost of Production Associated with Soy Chemicals”
One of the key challenges faced by soy chemical manufacturers is higher production costs compared to their petrochemical-based counterparts. Producing soy-derived chemicals can be more expensive, particularly at smaller scales, due to the high cost of soybean feedstock, processing, and scaling up production.
Achieving cost parity with well-established and subsidized traditional chemical products remains a challenge for soy chemical manufacturers. Differences in production methods, supply chains, and economies of scale between bio-based and petrochemical-derived materials make it difficult for soy chemical manufacturers to match the prices of their conventional competitors.
Country-wise Insights
Why is Adoption of Soy Chemicals High in the United States?
“Presence of Major Soy Chemical Producers”
Attribute | United States |
---|---|
Market Value (2024E) | US$ 4.5 Billion |
Growth Rate (2024 to 2034) | 7.9% CAGR |
Projected Value (2034F) | US$ 9.8 Billion |
Companies such as Cargill and ADM, which are among the world's largest producers of soy-based chemicals, have leveraged their strong manufacturing capabilities, extensive distribution networks, and deep industry expertise to establish a dominant position in the U.S. market. These leading market players have the resources and scale to invest in research and development, improve production efficiency, and offer a wide range of soy-derived products to meet the diverse needs of various industries.
Competitive advantage and economies of scale enjoyed by these leading soy chemical producers have helped them drive down costs, enhance product quality, and maintain a consistent supply to their customers. This, in turn, has made soy-based chemicals more accessible, affordable, and appealing to American manufacturers, further bolstering the growth and adoption of these eco-friendly materials across the country.
Why is China a Lucrative Market for Soy Chemicals Manufacturers?
“High Demand for Bio-Based Chemicals, including Soy Derivatives, Amid Industrial Expansion”
Attribute | China |
---|---|
Market Value (2024E) | US$ 3.4 Billion |
Growth Rate (2024 to 2034) | 8% CAGR |
Projected Value (2034F) | US$ 7.3 Billion |
China presents a highly lucrative market for soy chemical manufacturers, with the country emerging as an attractive destination for investments and expansion. China is the world's second-largest producer of soybeans, providing a readily available and cost-effective supply of the primary feedstock for soy-based chemicals. This abundance of soybean resources in the country enables Chinese manufacturers to source their raw materials locally, reducing transportation costs and logistical complexities.
China's rapidly expanding industrial base, coupled with the country's increasing focus on sustainability, is driving the demand for bio-based chemicals, including soy-derived products. Sectors such as automotive, construction, and consumer goods are rapidly adopting soy-based materials to meet evolving environmental standards and consumer preferences.
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Category-wise Insights
Which Type of Soy Chemical is Widely Preferred?
“High Demand for Soy Oil Due to its Green Creds”
Attribute | Soy Oil |
---|---|
Segment Value (2024E) | US$ 6.5 Billion |
Growth Rate (2024 to 2034) | 8% CAGR |
Projected Value (2034F) | US$ 14 Billion |
Soy oil is one of the most widely produced and consumed vegetable oils in the world. It is prized for its versatility and health benefits. It is commonly used in a wide range of food and industrial applications such as cooking, baking, and frying; and the production of biodiesel, lubricants, and personal care products. Soy oil is relatively low in saturated fat and high in beneficial unsaturated fatty acids, making it a healthier alternative to several other vegetable oils.
Increasing global focus on sustainability and shift toward renewable, bio-based materials have also contributed to the rising demand for soy oil. As consumers and industries seek to reduce their reliance on fossil-fuel-derived products, soy oil has emerged as a versatile and eco-friendly substitute, increasing the soy chemical market share across various sectors worldwide.
Why Does the F&B Industry Account for Extensive Use of Soy Chemicals?
“Versatile of Soy-Derived Ingredients Enhancing Food Quality”
Soy-derived ingredients offer a wide range of functional and nutritional benefits for food and beverage applications. Soy proteins, emulsifiers, and oils are commonly used to improve the texture, stability, and shelf-life of various food products. High-quality protein content and versatile functionality of soy-based ingredients make them an attractive for manufacturers looking to enhance the nutritional profile and processing characteristics of their formulations.
Growing consumer demand for healthier and plant-based food options has further propelled the adoption of soy chemicals in the industry. As consumers become more conscious of their dietary choices, they are increasingly seeking products that are perceived as natural, sustainable, and nutritious, a profile that soy-based ingredients align with.
Competitive Landscape
Key players in the soy chemical market are Archer Daniels Midland Company (ADM), BASF, Cargill, Soy Technologies LLC, Elevance Renewable Sciences, Vitasoy USA Inc., Vertec Biosolvents, Soyaworld Inc, and Columbus Foods Co.
Manufacturers are expanding their product portfolios beyond traditional soy oil derivatives, developing innovative soy-derived solutions to cater to a diverse array of applications across various industries. This strategic shift toward more sustainable and versatile soy chemicals reflects the industry's commitment to providing greener alternatives that meet the evolving demands of environmentally-aware consumers and businesses.
- In March 2022, BASF launched Plantapon® Soy, a bio-based anionic surfactant derived from soy protein, which offers sustainability benefits and aligns with the growing consumer demand for natural cosmetics. Formulated from non-GMO soy and coconut oil, it meets vegan and natural cosmetic standards, while also being 100% natural and cruelty-free.
By launching new soy-based products, companies are positioning themselves at the forefront of the growing market for renewable and bio-based materials.
Fact.MR has provided detailed information about the price points of key manufacturers of soy chemicals positioned across regions, sales growth, production capacity, and speculative technological expansion, in this recently updated market report.
Segmentation of Soy Chemical Market Research
-
By Type :
- Soy Oil
- Soy Wax
- Fatty Acids
- Soy Polyols
- Soy Isoflavones
- Soy Methyl Soyate
- Others
-
By End Use :
- Plastics & Polymers
- Food & Beverages
- Cosmetics
- Biodiesel
- Paper & Pulp
- Other End Uses
-
By Region :
- North America
- Latin America
- Western Europe
- Eastern Europe
- East Asia
- South Asia & Pacific
- Middle East & Africa
- FAQs -
How big is the soy chemical market in 2024?
The global soy chemical market is estimated at US$ 28.1 billion in 2024.
What value CAGR did the soy chemical market exhibit over the last four years?
The market for soy chemicals expanded at 7.2% CAGR from 2019 to 2023.
What are the future projections for the soy chemical market?
The global market has been forecasted to expand at 7.6% CAGR and reach US$ 58.5 billion by 2034.
Which type of soy chemical held a leading market share in 2023?
Soy oil accounted for 22.9% share of the global market in 2023.
Which is a key regional market for soy chemicals?
North America is estimated to account for 22.5% share of the global market in 2024.
How is the market for soy chemicals faring in Japan?
The market in Japan has been placed to reach a value of US$ 3.6 billion by 2034.