Soybean oil is extracted from the seeds of the soybean plant and is identified as one of the most extensively manufactured, produced and consumed oil after palm oil. Soybean oil is rich in omega 3 fatty acids, negligible saturated fats, and no trans fats, making it a popular emulsifying agent marketable among soybean oil suppliers across the globe. Soybean oil also carries elements such as plant sterols, minerals, and vitamins which are considered good for health.
Soybean plantation, farming, and production rates are observed to be growing and expanding many folds. The market for soybean not only finds application in the food but also in the automobile, paints and cosmetic industry. Soybean oil makes up an active ingredient in canola meals and is foreseeing a consistent market consumption in developed nations.
In recent times, the maximum percentage of global soybean oil is being consumed by the food sector, followed by industrial and animal feed. The fastest growing segment is, however, the industrial sector making use of soybean oil. Geographically, China and America compete for being the largest manufacturer and consumer of soybean oil, although they make use of soybean oil in different industries.
Reasons why Soybean Oil Is In Demand
Growing environmental concern and health awareness alongside a global increase in disposable income are few of the key market drivers for soybean oil globally.
- Increase in global demand for protein:
The soybean market is driven by a combination of a perpetual expansion in the global demand for protein as well as because of greater manufacturing of U.S. distillers grains (DDGS) across the globe. US distillers grains are increasingly including soybean oil and soybean seeds in the feed mixture required in poultry and animal farms. The expansion of DDGS in various neighboring countries is encouraging soybean and soybean oil production.
- Increase in the global demand for ethanol:
Along with this, the gradual growth of the ethanol industry is also a reason for an increased demand for soybean oil. Ethanol is a market-friendly chemical that is produced after the transesterification of soybean oil. Any increase in the demand for ethanol directly impacts the manufacture of soybean oil.
- Increase in demand for global food security:
A global increase in human population and consequential demand for food security drives the soybean oil market. The demand for meals is one of the largest determinants for increased import and export of soy in developing countries.
- Biodiesel demand fueling the demand for soybean oil:
Biodiesel usage is predicted to increase by few folds that indirectly increases the demand and relevance of soybean oil worldwide. Domestic use of biodiesel in developing countries of the Asia Pacific and the Middle East region is further encouraging the inclusion of soybean oil in industrial operations.
- Soybean oil is healthy and is recommended by doctors worldwide:
Global consciousness towards a healthier, more balanced diet plan is driving soybean oil demand among developed and developing nations. Soybean oil caters to the rising demand for transfat-free substitute of oil. Soybean oil has also been found to regulate cholesterol levels thereby reducing the risk of heart diseases. Doctors recommend soybean oil as it boosts immunity, improves bone density and even prevents Alzheimer’s disease.
Industrial uses of soybean oil include its application in manufacturing candles, insecticides, bio-composites, industrial lubricants as well as of hydraulic fluids. The U.S is identified as a major exporter of soybean oil worldwide. Soybean oil giants such as Cargill Inc and Archer Daniels Midland Company (ADM) are observed to use technological and botanical upgradations in their manufacturing and supply chain mechanism. Other major soybean oil producing nations include Brazil, Morocco, India, and Argentina to name a few.