Asia-Pacific Soybean Products Market Outlook to 2030

Asia-Pacific Soybean Products Market Overview

• The Asia-Pacific Soybean Products market was valued at USD 82.1 billion in 2023. The market's growth is primarily driven by increasing demand for plant-based protein sources, rising health consciousness, and growing applications of soybean products in various industries including food and beverage, animal feed, and biofuels.
• Major players in the market include Archer Daniels Midland Company, Cargill, Inc., Wilmar International, COFCO Corporation, and Bunge Limited. These companies dominate the market due to their extensive processing capabilities, strong supply chain networks, and strategic partnerships with local and Asia-Pacific agricultural producers.
• In March 2024, Wilmar International announced the launch of a new range of organic soybean products in China, catering to the rising demand for organic and non-GMO food products. This initiative aligns with the growing consumer preference for healthier and sustainably sourced food options.
• Shanghai, Tokyo, and Mumbai are the dominant cities in the Asia-Pacific Soybean Products market. Shanghai leads with extensive processing facilities and a strong demand for soybean-based products, driven by both food consumption and industrial applications.

Asia-Pacific Soybean Products Market Segmentation

The Asia-Pacific Soybean Products market is segmented by product type, application, and region.

• By Product Type: The market is segmented by product type into Soybean Oil, Soybean Meal, Soy Protein, and Whole Soybeans. In 2023, Soybean Oil holds the dominant market share, driven by its widespread use in food processing and cooking across the region, particularly in China and India.

• By Application: The market is segmented by application into Food & Beverage, Animal Feed, Industrial, and Others. In 2023, the Food & Beverage segment leads this segment with the highest market share. This dominance is attributed to the growing demand for plant-based protein and dairy alternatives among health-conscious consumers.

• By Region: The market is segmented by region into China, India, Japan, South Korea, Australia, and the rest of APAC. China holds the largest market share due to its massive population, rising disposable incomes, and increasing adoption of soybean products as a key source of nutrition.

Asia-Pacific Soybean Products Market Competitive Landscape

• Archer Daniels Midland Company: Archer Daniels Midland Company (ADM), founded in 1902, reported a revenue of $88.77 billion and a net income of $2.60 billion in 2023. The company employs around 40,210 people and operates in over 160 countries, focusing on food and beverage ingredients, agricultural commodities, and nutrition solutions to meet global demand.
• Cargill: Cargill completed the acquisition of Owensboro Grain Company in January 2023, enhancing its soybean processing capacity. Owensboro Grain, founded in 1906, processes over 100,000 bushels of soybeans daily, producing various soy products. This move supports the rising demand for oilseeds in food, feed, and renewable fuel markets.

Asia-Pacific Soybean Products Market Analysis

Asia-Pacific Soybean Products Market Growth Drivers:

• Increasing Demand for Plant-Based Protein: In 2023, nearly 35% of consumers in the Asia-Pacific region reported adopting plant-based diets, driven by health concerns and the popularity of vegetarian and vegan lifestyles. This shift is reflected in a 50% increase in domestic consumption of soybeans in China over the past decade, highlighting the growing demand for soybean-based products.
• Expansion of Soybean Processing Facilities: China's investment in soybean processing facilities surpassed USD 2 billion in 2023, enhancing its production capabilities. This investment is part of a broader strategy to increase domestic soybean output, with projections indicating a rise in soybean meal feed inclusion due to stable demand in poultry and aquaculture sectors.
• Growing Applications in Animal Feed: In 2023, soybean meal accounted for about 45% of the soybean products market in the Asia-Pacific region. The animal feed sector's demand for high-protein soybean meal is driven by the growing poultry and aquaculture industries, which are increasingly incorporating soybean meal into their feed formulations.

Asia-Pacific Soybean Products Market Challenges:

• Fluctuating Soybean Prices: In 2023, soybean prices averaged $12.55 per bushel, a decline from $14.20 in 2022, reflecting a substantial drop in market value. This volatility is attributed to favourable supply conditions, with U.S. soybean production forecasted to reach 4.6 billion bushels for the 2024/25 marketing year, impacting profitability for producers.
• Concerns Over GMOs: In 2023, 62% of consumers expressed a preference for non-GMO options, influenced by varying GMO labelling laws across countries. This consumer sentiment creates barriers for producers, as regulatory complexities hinder the adoption of genetically modified soybean products, complicating market entry for manufacturers looking to meet consumer demand.

Asia-Pacific Soybean Products Market Government Initiatives:

• China's Agricultural Modernization Plan: China aims to increase soybean production by 40% by 2025, targeting 23 million tonnes, up from 16.4 million tonnes. This initiative is part of the 14th Five-Year Plan, emphasizing self-sufficiency and food security, as China currently relies on imports for 85% of its soybean needs.
• India's National Food Security Mission: India's National Food Security Mission allocates subsidies to soybean farmers, with a budget of around 1,790 crores for pulses in 2023. This initiative has resulted in a 20% increase in soybean acreage over five years, supporting domestic production and reducing import dependency, enhancing food security in the country.

Asia-Pacific Soybean Products Market Future Market Outlook

The Asia-Pacific Soybean Products Market is expected to reach USD 110.8 billion by 2028, driven by increasing demand for plant-based proteins, expanding applications across various industries, and supportive government initiatives.

Future Market Trends:

• Growth in Organic Soybean Products: By 2028, the demand for organic soybean products is projected to increase substantially, driven by consumer preferences for sustainable and non-GMO options. In 2023, organic soybean consumption in China rose by 30%, with Japan also showing a strong inclination towards organic foods, reflecting a broader trend across the Asia-Pacific region.
• Expansion of Soy Protein Applications: The deployment of soy protein in food products is expected to become widespread across major cities in the Asia-Pacific by 2028. In 2023, soy protein accounted for 25% of the plant-based protein market in China, with increasing applications in meat alternatives and functional foods, particularly among health-conscious consumers.