SOYBEAN OIL MARKET TRENDS
Rising Utilization of Edible Oils across Various Food Segments to Drive Market Growth.

Over the past few years, the food industry has evolved tremendously across the world. Food manufacturers and processors are exponentially investing in developing innovative products to capitalize on the growing demand among consumers. The edible oil sector is witnessing prominent growth due to their rising application in various products such as bakery, cooking, packaged foods, snacks, and foodservice. The growth of the edible oil sector is also largely driven by the demand for cooking oils in retail aisles. The amplifying demand for plant-based foods has increased the utilization of soybean oil, palm oil, olive oil and coconut oil. The emerging trend of vitamin-fortified, organic, non-GMO oils among consumers to make healthy food is further driving the market growth.

SOYBEAN OIL MARKET GROWTH FACTORS
Increasing Utilization in Production of Biofuel to Drive Market Growth

Biofuel is an emerging sector due to the rising concerns related to non-renewable energy sources. Various countries are now actively investing in the production of biofuels. The increased biodiesel production capacity has a huge impact on the global demand for soybean derived oil. The use of the oil as feedstock for biodiesel production provides a higher BTU (British Thermal Units) value and burns more efficiently and cleanly. The U.S. government provides a USD 1 per gallon subsidy to biodiesel producers that produce biodiesel from virgin vegetable oil feedstock.

According to the May 2021 World Agricultural Supply and Demand Estimates report by the U.S. Department of Agriculture (USDA), the use of soybean oil for biofuel production is forecasted to be higher in the upcoming years. In June 2021, the oil’s demand on the Chicago Board of Trade soared almost 70% due to the growing demand from the biodiesel sector. The increasing investments by the governments of various countries and fuel producers to improve the biodiesel production process is anticipated to further propel the demand for soybean oil in the upcoming years.

Expanding Application Scope in Food Sector to Fuel Market Growth

The oils and fats sector is witnessing promising growth across the globe attributed to their rising use in food manufacturing and processing. According to the USDA, soy oil is the second-largest consumed vegetable oil in the world. It is extensively utilized for cooking, frying, shortenings, and margarines. Soybean oil usage has also increased across the bakery sector, which significantly fuels the market growth. The growing consumer knowledge regarding its health benefits ultimately propels the market growth. This oil is one of the leading poly-unsaturated cooking oils. It has a high smoke point (257°C), which enables setting oil at higher temperatures for deep frying. The higher shelf life of soybean oil also drives its utilization in food processing and foodservice industries.

In June 2018, the Food and Drug Administration (FDA) announced that all food manufacturers are required to remove partially hydrogenated oils (PHOs) from their food products. The oil manufacturers actively invest in the interesterification of high oleic soy oil to develop shortenings that closely match the properties of PHO.

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Source: https://www.fortunebusinessinsights.com/soybean-oil-market-106282