Soybean oil is one of the most widely used vegetable oils in the world. It is derived from the seeds of the soybean plant, which is native to East Asia and has been cultivated for thousands of years. Soybean oil is rich in essential fatty acids, vitamin E, and antioxidants, and has various applications in food, feed, biodiesel, cosmetics, and industrial sectors. 

Market Size 

According to the report by EMR, the global soybean oil market size reached a volume of 60.45 million metric tons (MMT) in 2023. The market is expected to grow further at a compound annual growth rate (CAGR) of 1.4% between 2024 and 2032, reaching a volume of 68.51 MMT by 2032. The market value is projected to increase from USD 57.1 billion in 2023 to USD 65.4 billion in 2032, at a CAGR of 1.6%. 

The growth of the soybean oil market is driven by several factors, such as the increasing demand for soybean oil in food and feed industries, the rising awareness about the health benefits of soybean oil, the expanding biodiesel production, the favorable government policies and subsidies, and the technological advancements in oil extraction and processing. However, the market also faces some challenges, such as the volatility in raw material prices, the environmental concerns over soybean cultivation, the competition from other vegetable oils, and the health risks associated with excessive consumption of soybean oil. 

Market Segmentation 

The global soybean oil market can be segmented by component, end-user, and region. By component, the market can be divided into crude soybean oil and refined soybean oil. Crude soybean oil is the raw material obtained from crushing soybeans, while refined soybean oil is the product of further processing and purification of crude oil. Refined soybean oil accounts for the majority of the market share, as it has a longer shelf life, better flavor, and higher smoke point than crude oil. Refined soybean oil is also used as a feedstock for biodiesel production. 

By end-user, the market can be categorized into food, feed, biodiesel, cosmetics, and industrial. Food is the largest end-user segment of the soybean oil market, as soybean oil is widely used as a cooking oil, salad oil, frying oil, baking oil, and as an ingredient in various food products, such as margarine, mayonnaise, dressings, sauces, snacks, and bakery products. Soybean oil is also used as a feed ingredient for poultry, livestock, and aquaculture, as it provides energy, protein, and essential fatty acids. Biodiesel is the fastest-growing end-user segment of the soybean oil market, as soybean oil is a renewable and environmentally friendly alternative to fossil fuels. Soybean oil is also used in cosmetics, such as creams, lotions, soaps, and shampoos, as it moisturizes, softens, and nourishes the skin and hair. Moreover, soybean oil has some industrial applications, such as lubricants, paints, plastics, and rubber. 

By region, the market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Asia Pacific is the largest and fastest-growing region in the soybean oil market, owing to the high consumption of soybean oil in countries like China, India, Indonesia, and Thailand, where soybean oil is a staple cooking oil. Asia Pacific is also the largest producer and exporter of soybean oil, as it has abundant soybean cultivation and processing facilities. North America is the second-largest region in the soybean oil market, as it is the largest consumer and producer of biodiesel, which mainly uses soybean oil as a feedstock. Europe is the third-largest region in the soybean oil market, as it imports a large amount of soybean oil from South America and Asia Pacific for food and feed purposes. Latin America and Middle East and Africa are the other significant regions in the soybean oil market, as they have a growing demand for soybean oil in food and feed industries. 

Key Players 

The global soybean oil market is highly competitive and fragmented, with the presence of many large and small players. Some of the key players in the market are: 

• Archer Daniels Midland Company (ADM) 
• Bunge Limited 
• Cargill Incorporated 
• Louis Dreyfus Company 
• Wilmar International Limited 
• Ag Processing Inc. 
• CHS Inc. 
• Perdue AgriBusiness LLC 
• Richardson International Limited 
• COFCO International 

These players are engaged in various strategies, such as mergers and acquisitions, joint ventures, partnerships, expansions, investments, product launches, and innovations, to gain a competitive edge and increase their market share. For instance, in 2021, ADM acquired Yerbalatina Phytoactives, a Brazilian natural plant-based extracts and ingredients manufacturer, to expand its portfolio of soybean oil-based products for food, beverage, and health industries. In 2020, Bunge Limited and BP plc formed a joint venture, called BP Bunge Bioenergia, to combine their Brazilian bioenergy and sugarcane ethanol businesses, and increase their production of biodiesel from soybean oil. In 2019, Cargill Incorporated and Louis Dreyfus Company announced a joint venture, called Covantis SA, to modernize and digitize their global agricultural commodity trade operations, and enhance their efficiency and transparency in the soybean oil market. 

Market Trends 

Some of the emerging trends in the global soybean oil market are: 

• The increasing adoption of high oleic soybean oil, which is a type of soybean oil that has a higher content of oleic acid, a monounsaturated fatty acid, than conventional soybean oil. High oleic soybean oil has several advantages, such as longer shelf life, higher heat stability, lower saturated fat, and higher oxidative stability, than conventional soybean oil. High oleic soybean oil is suitable for various applications, such as frying, baking, salad dressing, and snack food manufacturing. High oleic soybean oil is also more environmentally friendly, as it reduces the need for hydrogenation, a process that produces trans fats and greenhouse gases. 

• The rising popularity of organic and non-GMO soybean oil, which is a type of soybean oil that is produced from organically grown and non-genetically modified soybeans. Organic and non-GMO soybean oil is preferred by health-conscious and environmentally conscious consumers, who are concerned about the potential health risks and environmental impacts of genetically modified crops and synthetic pesticides. Organic and non-GMO soybean oil is also certified by various organizations, such as the USDA, the EU, and the Non-GMO Project, to ensure its quality and authenticity. 

• The growing demand for soybean oil in emerging markets, such as Africa, the Middle East, and Southeast Asia, where the consumption of vegetable oils is increasing due to the rising population, urbanization, income, and dietary changes. Soybean oil is one of the most affordable and accessible vegetable oils in these regions, as it is widely available and has a neutral taste and aroma. Soybean oil is also used as a cooking oil, a feed ingredient, and a biodiesel feedstock in these regions. The increasing production and export of soybean oil from major suppliers, such as Brazil, Argentina, and the US, also facilitate the market growth in these regions. 

Industry News 

Some of the recent news and developments in the global soybean oil market are: 

• In June 2021, the US Environmental Protection Agency (EPA) proposed new renewable fuel standards for 2021 and 2022, which would increase the minimum volume of renewable fuels, such as biodiesel and ethanol, that must be blended into the US transportation fuel supply. The proposal would boost the demand for soybean oil as a biodiesel feedstock, as biodiesel is the largest source of renewable fuel in the US. 

• In May 2021, the European Commission announced a new legislative proposal, called the Fit for 55 package, which aims to reduce the greenhouse gas emissions in the EU by 55% by 2030, compared to the 1990 levels. The proposal would include measures to increase the use of renewable and low-carbon fuels, such as biodiesel and ethanol, in the transport sector. The proposal would also enhance the sustainability criteria for biofuels, and promote the production of advanced biofuels from waste and residues. The proposal would affect the demand and supply of soybean oil as a biodiesel feedstock in the EU. 

• In April 2021, the World Trade Organization (WTO) ruled in favor of China in a trade dispute with the US over the anti-dumping and countervailing duties imposed by the US on the imports of Chinese biodiesel. The WTO panel found that the US had violated the WTO rules and regulations in calculating the duties and subsidies for Chinese biodiesel, and recommended that the US revise its measures. The ruling could have implications for the trade and prices of soybean oil as a biodiesel feedstock in the global market. 

Application Insights 

Soybean oil has various applications in different sectors, such as food, feed, biodiesel, cosmetics, and industrial. Some of the examples of the applications of soybean oil are: 

• Food: Soybean oil is used as a cooking oil, salad oil, frying oil, baking oil, and as an ingredient in various food products, such as margarine, mayonnaise, dressings, sauces, snacks, and bakery products. Soybean oil is also used as a flavor enhancer, a texture modifier, an emulsifier, and a preservative in food products. Soybean oil provides energy, essential fatty acids, vitamin E, and antioxidants to the human body. 

• Feed: Soybean oil is used as a feed ingredient for poultry, livestock, and aquaculture, as it provides energy, protein, and essential fatty acids to the animals. Soybean oil also improves the palatability, digestibility, and performance of the animals. Soybean oil is also used as a carrier for vitamins, minerals, and medications in animal feed. 

• Biodiesel: Soybean oil is used as a feedstock for biodiesel production, which is a renewable and environmentally friendly alternative to fossil fuels. Biodiesel is a biodegradable, non-toxic, and low-emission fuel that can be used in diesel engines without any modifications. Biodiesel also reduces the dependence on imported oil and enhances the energy security. 

• Cosmetics: Soybean oil is used in cosmetics, such as creams, lotions, soaps, and shampoos, as it moisturizes, softens, and nourishes the skin and hair. Soybean oil also has anti-inflammatory, anti-aging, and anti-wrinkle properties, as it contains phytoestrogens, vitamin E, and antioxidants. Soybean oil also helps to heal wounds, scars, and burns, and protect the skin from sun damage. 

• Industrial: Soybean oil is used in industrial applications, such as lubricants, paints, plastics, and rubber, as it is a biodegradable, renewable, and low-cost raw material. Soybean oil also improves the performance, durability, and quality of the industrial products. Soybean oil also reduces the environmental impact and health hazards of the industrial products. 

FAQs 

Here are some of the most frequently asked questions (FAQs) about the global soybean oil market: 

• Q: What are the main types of soybean oil? 
• A: The main types of soybean oil are crude soybean oil and refined soybean oil. Crude soybean oil is the raw material obtained from crushing soybeans, while refined soybean oil is the product of further processing and purification of crude oil. 

• Q: What are the main benefits of soybean oil? 
• A: The main benefits of soybean oil are that it is rich in essential fatty acids, vitamin E, and antioxidants, and has various applications in food, feed, biodiesel, cosmetics, and industrial sectors. Soybean oil is also a renewable and environmentally friendly resource. 

• Q: What are the main challenges of soybean oil? 
• A: The main challenges of soybean oil are that it is subject to volatility in raw material prices, environmental concerns over soybean cultivation, competition from other vegetable oils, and health risks associated with excessive consumption of soybean oil. 

• Q: What are the main regions in the soybean oil market? 
• A: The main regions in the soybean oil market are Asia Pacific, North America, Europe, Latin America, and Middle East and Africa. Asia Pacific is the largest and fastest-growing region in the market, followed by North America and Europe. 

• Q: What are the main trends in the soybean oil market? 
• A: The main trends in the soybean oil market are the increasing adoption of high oleic soybean oil, the rising popularity of organic and non-GMO soybean oil, and the growing demand for soybean oil in emerging markets. 

• Q: What are the main sources of information for the soybean oil market? 
• A: The main sources of information for the soybean oil market are the research reports, industry publications, trade associations, government agencies, and news articles. Some of the examples of the sources are XYZ Research, Oil World, International Oil Millers Association, US Department of Agriculture, and Reuters.