Market Trends of Australia Soy Protein Industry
Rising Demand for Plant-based Protein Sources
- The emergence of vegetable protein from sources like soy demonstrates a change in customer demand from animal protein to plant protein with similar functional and nutritional characteristics. This incremental shift toward a plant-based diet is primarily influenced by various factors, including ecological concerns, health consciousness, ethical or religious beliefs, and environmental and animal rights. Although meat proteins provide the body with the necessary amino acid content, they are also associated with high cholesterol levels, obesity, digestion problems, and other related health issues. The country has a high per capita meat consumption, which is the main source of protein.
- For instance, according to The Organisation for Economic Co-operation and Development (OECD), in 2021, Australians consumed around 44.13 kilos of poultry on average. Increasing awareness of the negative effects of high meat consumption is leading many Australians to rethink their food choices and adopt a plant-based diet, further paving the way for soy protein products.
- Soy protein is considered an ideal meat substitute and is gaining higher traction among vegan and flexitarian consumers. This phenomenon augmented the growth of the product, which helps food manufacturers provide a meat-like nutrition profile to their portfolio of faux meat or vegan meat products such as nuggets, burger patties, sausages, and crumbles. In December 2022, Harvest B, a B2B protein alternative company, opened its meat substitute ingredient facility in Western Sydney. Harvest B states that the establishment is a modern facility equipped with the most up-to-date manufacturing equipment for the production of soy, peas, wheat, and oat proteins. Hence, the growth of the plant-based meat industry can play a crucial role in driving the market studied, as soy proteins are widely used in making meat substitutes.
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Animal Feed as the Largest Segment by End-User Industry
- Soy proteins are widely used in the animal feed sector in the country, owing to their distinct benefits, such as apt amino acid profile, among other benefits. Soy protein concentrates are widely used across the animal feed industry as they have high protein digestibility and optimal nutritional value, making them an ideal protein source for animal feed. Also, it being cheaper than isolates further drives its use.
- Approximately 85% of the total soybean meal usage in Australia is to feed pigs and poultry, thereby driving the application of soy protein in the Australian feed industry. Soy protein meal is processed for livestock feed. Soy animal feed is the single most important source of protein for farm animals. Soybean meal is the standard for poultry and other livestock, far surpassing other feeds when it comes to protein content.
- Additionally, animal feed manufacturers are continuously seeking new protein ingredients that are high-quality, cost-effective, and label-friendly. Soybean meals are frequently used by pig & poultry industries across Australia. Owing to this, companies have been offering products to cater to the growing demand. For instance, The Archer-Daniels-Midland Company offers soy proteins for the animal feed industry across Australia.
- To cater to the demand for meat across the nation, the rearing of livestock and production of meat has been rising in Australia. According to the Australian Bureau of Statistics, the gross value of poultry in Australia in the year 2022 was approximately AUD 3.18 billion (USD 2.89 billion). Hence, the growing poultry and other meat industry could, in turn, drive the soy protein market across Australia.
