Market Trends of Soybean Meal Industry
This section covers the major market trends shaping the Soybean Meal Market according to our research experts:
Increasing Demand for Protein-enriched Food for Humans and Animals
Soybean meal has a unique composition of amino acids and can be used as an alternative to cereal proteins. Soybean meal is used in both animal feed and human food industries. The main reasons behind the increasing demand for soybean meal include the health benefits associated with this protein-enriched food and the increasing population of livestock, cattle, ruminants, and other animals that are fed soybean meal. The other reason for the increase in demand is the restrictions placed on slaughterhouse byproducts, which in turn, has increased the market for soybean meal. This is further expected to enhance the market for soybean meals during the forecast period.
The main reasons behind the increasing demand for protein-enriched foods are its health benefits and the number of livestock, cattle, ruminants, and other animals that are fed soybean meal. The other reason for the increase in demand is the restrictions placed on slaughterhouse byproducts, which in turn, has increased the market for soybean meal.
China was the largest soybean meal-producing country, with a capacity of 78.4 million metric ton, followed by the United States with 46.9 million metric ton, in 2020. The major importers of soybean meal are Vietnam, Belgium, Spain, and other countries. The major exporters are the United States, Italy, India, and other countries. Owing to the large numbers of swine, poultry, and aquaculture in these countries, they demand quality protein ingredients to formulate feeds, which supports the commercial production of meat, milk, and eggs.
Asia-Pacific Dominates the Market
Asia-Pacific is the dominant region in the soybean meal market, holding the major share of the market. China, India, Bangladesh, Thailand, Pakistan, and Japan are the major producers of soybean meal in the region. According to the USDA, soybean meal production increased from 69.69 million metric ton and 7.2 million metric ton in 2016-2017 to 78.41 million metric ton and 7.6 million metric ton in 2020-2021 in China and India, respectively. Soybean meal is majorly consumed by the animal feed industry in the region. Soybean meal is widely used in the larger varieties of products like bakery products, health food, cosmetics, and in the manufacturing of antibiotics.
Higher feed production is expected for the remainder of the calendar year 2021 and into 2022 as changes in the livestock and poultry industry drive moderate growth of soybean meal (SBM) use. As China imports large quantities of beans to crush at home to meet its increasing demand for protein meal, in the near future, it is set to become the world's largest producer of soybean meal. Argentina is the biggest soybean meal exporter, followed by Brazil, the United States, and India.
