Use of soybean meal is fast becoming a major source of protein across many commercial industries. Manufacturers of animal feed prefer soybean meal as a primary ingredient over corn and others. Protein in soy meal for animals is ideal because of its excellent amino acid composition and high level of digestibility. Top producers of soy meal are the U.S, China, Argentina, and Brazil.
Soy on the rise : New found recognition drives brisk sales
The price of oilseed meals is expected to rise through the next five years due to the increasing demand for protein meals. In 2016, soy meal accounted for more than two-thirds of the total global protein meal production. Animal feed is the major application for soymeal, with over 98% of the total soymeal production accounting for the same. Poultry dominates soymeal consumption in the animal feed industry. As the production of poultry and swine is increasing globally, the increasing demand from the feed sector is expected to drive the growth of the market during the forecast period.
Soy duality : Good for the health, bad for the environment
The increased production of soy has an adverse effect on the environment. The rising demand has led to farmers expanding soy plantations, leading to ecological imbalances. Forests are being cut down to accommodate these plantations. Also, the increasing use of pesticides in soybean fields has contaminated freshwater and groundwater, affecting the health of people and wildlife. Negatives aside, the growing awareness about the health benefits of soy products will help in increasing its consumption during the forecast period. Meanwhile, care must be taken that the environment isn’t adversely harmed as vendors chase after profits and sustainability.
Challenges galore : Facing upto the organic and GM soy
Intense competition among vendors like Archer Daniels Midland, Bunge, and Cargill, coupled with rapid technological changes, constitutes a significant risk factor for vendor operations. Therefore, to survive and succeed in this competitive environment, manufacturers need to distinguish their product and service offerings through a clear and unique value proposition.
The market for organic soy products has seen fast growth owing to the growing awareness about meat analogs and the health attributes of organic dairy alternatives. Also, due to the increase in the production of genetically modified (GM) soy and rising concerns about the health hazards associated with it, consumers are switching to organically grown soy that is GM-free. However, concerns about the harmful effects of GM soy-based food products among consumers will prove to be a challenge for the growth of the market during the next five years.
Understanding the soy market with Technavio’s market insights
Soy is set to be a prominent member at the kitchen table soon, as an additive in many common food commodities like wheat flour. Exploiting this demand calls for a fair bit of market insight and a feel for the competition and the challenges involved. Technavio’s comprehensive market research report pertaining to the global soy market familiarizes you to the vendor landscape, market trends and offers deep insights to offset the market challenges. Source the advantage by downloading your free sample today.
