North America Soybean Oil Market Outlook, 2028

In North America the cultivation of soybeans can be traced back to the early 18th century when they were introduced by European settlers. Soybean oil production and consumption gradually gained prominence over the years. Soybean oil plays a central role in North American cuisine. It is used for a wide range of culinary applications, from frying and sautéing to salad dressings and baking. Soybean oil's neutral flavor and high smoke point make it a versatile choice for cooking. Soybean oil is often used in the fast-food industry for deep frying, including french fries, chicken nuggets, and other popular items. This has contributed to its widespread consumption in North America, where fast food is a cultural staple. The health-conscious culture in North America has led to a preference for cooking oils like soybean oil that are low in saturated fats and rich in unsaturated fats, particularly polyunsaturated fats like omega-3 and omega-6 fatty acids. North America's cultural diversity has led to the fusion of various culinary traditions. Soybean oil is used in dishes ranging from Southern fried chicken to Mexican tamales, showcasing its adaptability to different cuisines. Many North American households engage in home cooking, and soybean oil is a pantry staple. It is used in preparing family recipes and traditional dishes passed down through generations. As the popularity of vegetarian and vegan diets rises, soybean oil is often chosen as plant-based cooking oil, given its suitability for these dietary preferences. North America's culture of innovation extends to soybean oil. Research and development efforts continually seek to improve the quality and nutritional profile of soybean oil products. Soybeans (Glycine max) are originally from East Asia but have become one of North America's major crops. The soybean's adaptability to various climates and soils has made it a thriving crop across the continent. Soybeans are primarily grown for oil production. Soybean oil is one of the most commonly used cooking oils in North America and is a key ingredient in many processed foods, including salad dressings, margarine, and mayonnaise. In North America, a significant portion of soybeans is used to produce animal feed, especially for livestock like poultry, hogs, and cattle. The protein-rich soybean meal is a valuable component of animal diets. A substantial portion of North American soybean production involves genetically modified (GM) varieties. GM soybeans are engineered for traits like herbicide resistance, which aids in weed control and crop management. Some North American regions host annual soybean festivals and events to celebrate the crop's importance. These festivals feature food tastings, cooking demonstrations, and educational activities. North American agricultural institutions and companies continue to invest in research and innovation to enhance soybean crop yields, develop new varieties, and explore novel applications for soy-based products. According to the research report "North America Soybeans Market Outlook, 2028," published by Bonafide Research, the market was valued at more than USD 11 Billion in 2022. Growing health awareness among North American consumers has led to an increased preference for healthier cooking oils. Soybean oil is considered heart-healthy as it is low in saturated fats and contains beneficial unsaturated fats like omega-3 and omega-6 fatty acids. The rising popularity of plant-based diets and vegetarianism in North America has contributed to the demand for soybean oil. It is a key ingredient in many plant-based food products, including meat substitutes, dairy alternatives, and plant-based spreads. Soybean producers and processors in North America are increasingly adopting sustainable farming and processing practices. Sustainability certifications and eco-friendly packaging options cater to environmentally conscious consumers. Health organizations and nutrition experts often promote the benefits of soybean oil through educational campaigns, emphasizing its role in heart-healthy diets. North American cuisine is diverse, incorporating a wide range of flavors and cooking techniques. Soybean oil's neutral flavor and adaptability make it a favored choice for diverse regional and international dishes. Health-conscious consumers in North America are seeking cooking oils with beneficial nutritional profiles. Soybean oil is rich in vitamin E, an antioxidant, and polyunsaturated fats, making it an attractive choice for those looking for heart-healthy options. Beyond food, soybean oil has diverse applications, including in the production of cosmetics, personal care products, and industrial products like paints and coatings. The growth of these industries contributes to soybean oil consumption. Soybean oil is used in the production of pharmaceuticals and nutraceuticals, such as dietary supplements, further diversifying its applications. The food industry's efforts to reduce Tran’s fats have led to resurgence in the use of soybean oil, as it contains minimal Tran’s fats naturally. Many foodservice establishments and manufacturers have shifted away from partially hydrogenated oils.

Based on countries, the market is segmented into United States, Canada, and Mexico. The United States consistently ranks as one of the world's largest soybean producers. Its extensive agricultural land, favorable climate, and advanced farming practices contribute to high soybean yields. Major soybean-producing states like Iowa, Illinois, and Minnesota are known for their substantial soybean crops. The United States has invested significantly in soybean varietal development. Research and breeding programs have led to the creation of soybean varieties with improved yields, pest resistance, and oil content, ensuring a consistent and high-quality supply of soybeans for oil extraction. The United States is home to a diverse and thriving food processing industry. Soybean oil is a staple ingredient in many processed foods, including snacks, baked goods, salad dressings, and margarine. The U.S. food industry's demand for soybean oil drives a significant portion of its consumption. In addition, Mexico's population is steadily growing, leading to increased demand for edible oils, including soybean oil. As dietary habits evolve, soybean oil is becoming a popular choice due to its versatility and affordability. Mexico's trade agreements, including the United States-Mexico-Canada Agreement (USMCA), facilitate the importation of soybean oil and soybean products. This ensures a consistent supply of soybean oil for the Mexican market. In North America Soybeans Market, based on nature, the market is divided into conventional and organic. The conventional segment of the North American soybean oil market is expected to hold the highest market. Conventional soybean oil production is typically more cost-effective compared to organic production methods. This cost advantage allows conventional soybean oil to be priced competitively, appealing to a broader consumer base, including budget-conscious households and food manufacturers. Conventional soybean farming often employs modern agricultural practices and technologies that result in higher yields per acre. This increased yield helps meet the high demand for soybean oil in various applications. Conventional soybean oil has a long history of use in North American cuisine and food processing. It is a familiar ingredient in many households and food products, and its neutral flavor complements a wide range of dishes. Conventional soybean oil is versatile cooking oil that can be used for frying, baking, sautéing, and salad dressings. Its versatility makes it a preferred choice for both home cooks and chefs in the foodservice industry. The existing infrastructure for conventional soybean oil processing is well-established and efficient, allowing for the large-scale production needed to meet the demand of the North American market. Conventional soybean oil is often more affordable than specialty or organic cooking oils, making it an economical choice for consumers and food businesses, especially in price-sensitive markets. Conventional soybean varieties are often bred for their resilience to common pests and diseases, reducing the need for extensive pesticide and herbicide use. This contributes to the cost-effectiveness of conventional soybean production. In terms of end User the market is divided into household, industrial and food service. The industrial sector, particularly the biodiesel industry, is a significant consumer of soybean oil. Soybean oil is used as a feedstock in biodiesel production, a renewable and sustainable alternative to fossil fuels. Government incentives and environmental regulations promoting biodiesel use have driven increased demand for soybean oil. Soybean oil is a versatile feedstock for various bio-based products, including biodegradable plastics, lubricants, and solvents. As environmental concerns and regulations push for more sustainable alternatives, soybean oil's use in these applications is growing. The pharmaceutical and nutraceutical industries utilize soybean oil as an ingredient in various medications, dietary supplements, and health products. The demand for these products, particularly dietary supplements, has been on the rise, boosting soybean oil consumption. Soybean oil is an ingredient in many cosmetics and personal care products due to its moisturizing and emollient properties. The personal care industry's expansion contributes to increased soybean oil usage. Soybean oil-based lubricants are being used in various industrial applications due to their biodegradability and environmentally friendly properties. The industrial sector's focus on sustainability has driven the adoption of soybean oil-based lubricants. Soybean oil has applications beyond food, such as in the production of candles, soaps, and detergents. As consumers seek eco-friendly and natural alternatives in these non-food products, soybean oil has gained traction.

The market is divided into convenience store, hypermarket/supermarket, direct sales, online and others based on distribution channel. The Convenience Store segment in the North American soybean oil market is expected to have the highest market share. Convenience stores cater to consumers with busy lifestyles who seek quick and easily accessible food and cooking essentials. Soybean oil is a staple cooking ingredient, and its availability in convenience stores makes it convenient for consumers to pick up during their daily routines. Convenience stores are strategically located in urban and suburban areas, making them highly accessible to consumers. This proximity ensures that consumers can easily purchase soybean oil without the need for extensive travel or planning. Many convenience stores operate 24/7 or have extended hours, allowing consumers to purchase soybean oil at their convenience, even outside regular supermarket operating hours. Convenience stores are designed to encourage impulse purchases. Shoppers often pick up soybean oil when they visit for other items or snacks, contributing to increased sales. Convenience stores offer single-serve and small-sized packages of soybean oil, which are attractive to consumers who want the right portion for a specific meal or who have limited storage space. Convenience stores experience a steady stream of foot traffic throughout the day. This consistent flow of customers increases the exposure of soybean oil to potential buyers. Convenience stores frequently offer promotions, discounts, and bundle deals that can encourage consumers to purchase soybean oil along with other items. Recent Developments: • Cargill is the largest soybean oil producer in the United States. In 2023, they announced plans to invest $1 billion in new soybean processing facilities in the United States and Canada. This investment is part of Cargill's strategy to meet the growing demand for soybean oil, which is used in a variety of food and industrial applications. • In 2022, Bunge announced plans to build a new soybean processing facility in Indiana. This facility is expected to be operational in 2024 and will have the capacity to process 1.5 million bushels of soybeans per day. • In 2023, ADM announced plans to invest $500 million in new soybean processing facilities in the United States. This investment is part of ADM's strategy to expand its soybean processing capacity and meet the growing demand for soybean oil. Considered in this report • Geography: North America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • North America Soybean market Outlook with its value and forecast along with its segments • Country-wise Soybean Oil market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Country covered in the report: • United States • Canada • Mexico By Nature • Conventional • Organic By End User • Household • Industrial • Food Service Distribution Channel • Convenience store • Hypermarket/Supermarket • Direct Sales • Online • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Starch industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.