United States Soybean Oil Market Outlook, 2028

Soybean farming is widespread in the United States, with the primary soybean-producing states being Iowa, Illinois, Minnesota, Indiana, Nebraska, and Ohio. These states are located in the Midwest, which is often referred to as the "Corn Belt" or the "Soybean Belt." Soybeans are commonly rotated with corn in the United States. This rotation is beneficial for soil health and nutrient management because soybeans fix nitrogen in the soil, reducing the need for synthetic fertilizers for subsequent corn crops. Soybeans are typically planted in the spring and harvested in the late summer or early fall. The precise planting and harvesting times can vary depending on local climate conditions. American farmers grow different varieties of soybeans, including both conventional and genetically modified (GM) soybeans. GM soybeans are engineered to be resistant to herbicides or pests, which can improve yields and reduce the need for chemical inputs. Soybean oil is extracted from soybean seeds through a process known as oilseed crushing. The seeds are cleaned, dehulled, and then subjected to mechanical pressing or solvent extraction to obtain the oil. The crude soybean oil is often subjected to refining processes to remove impurities and improve its quality. This can include degumming, neutralization, bleaching, and deodorization. Soybean oil is used for various purposes, including cooking, frying, and baking. It is also used in the production of industrial products such as biodiesel, animal feed, and various non-food products. Soybean farming and soybean oil production are major contributors to the U.S. economy. The United States is one of the world's largest producers and exporters of soybeans and soybean oil. These industries provide employment opportunities for many people, including farmers, farmworkers, and workers in processing facilities. Soybean production can vary from year to year based on factors such as weather conditions, disease outbreaks, and market demand. The U.S. Department of Agriculture (USDA) closely monitors soybean production and releases regular reports on crop forecasts and conditions.

According to the research report, “United States Soybean Oil Market Overview, 2028" published by Bonafide Research, the market is expected to witness significant growth during the forecast period. The annual soybean crop in the United States is a fundamental driver of the soybean oil market. Factors such as acreage planted, weather conditions during the growing season, and crop yields significantly impact the availability of soybeans for oil extraction. The demand for vegetable oils, including soybean oil, is influenced by global dietary trends and population growth. As populations expand and consumer preferences change, there is a growing demand for cooking oils, processed foods, and biofuels that use vegetable oils as feedstock. Consumer awareness of health and nutrition has a considerable impact on the demand for soybean oil. Soybean oil is often marketed as a healthier alternative to some other oils due to its low saturated fat content and high levels of unsaturated fats, such as omega-6 fatty acids. Soybean oil is used as a feedstock for biodiesel production, and government policies promoting renewable fuels can significantly influence soybean oil demand. Tax incentives, mandates, and renewable fuel standards impact the biodiesel industry, which, in turn, affects soybean oil prices. Government policies, subsidies, and support programs for agriculture play a significant role. Programs such as farm subsidies, crop insurance, and conservation initiatives can influence farmers' decisions regarding soybean planting and production levels. The price and availability of other vegetable oils, such as palm oil, can impact the competitiveness of soybean oil in various markets. Changes in production, supply disruptions, or fluctuations in prices of competing oils can affect soybean oil demand. Consumer preferences for natural, non-GMO, and sustainably sourced products can drive demand for specific types of soybean oil. Labels such as "organic," "non-GMO," and "certified sustainable" can influence purchasing decisions.

Based on nature, the market is divided into conventional and organic. Conventional soybean oil appeals to a broader cross-section of the population. Conventional soybean oil has been a staple in the American diet for decades. It has a long-established presence in households, restaurants, and food processing industries. As a result, consumer familiarity and trust in conventional soybean oil contribute significantly to its market dominance. Conventional soybean oil is typically more cost-effective to produce compared to organic alternatives. The conventional farming methods used to grow soybeans for oil production often involve larger-scale, mechanized agriculture, which can yield higher quantities of soybeans at a lower cost per unit. The lower production costs translate into a competitive pricing advantage for conventional soybean oil. Consumers are generally price-sensitive and conventional soybean oil's affordability appeals to a broader customer base, including budget-conscious households and the foodservice industry. Conventional soybean oil is a primary choice for the food processing and foodservice sectors. It is used extensively in the production of processed foods, snacks, baked goods, and restaurant frying operations. Its affordability and consistent quality make it a preferred option for businesses in these industries. The U.S. population consists of a wide range of consumer demographics, including those who prioritize affordability in their food purchases. Conventional soybean oil appeals to a broader cross-section of the population.

In terms of end User the market is divided into household, industrial and food service. The industrial segment is a significant driver of growth in the United States soybean oil market. The food processing industry is a major consumer of soybean oil in the United States. Soybean oil serves as a key ingredient in a wide range of processed foods, including snacks, baked goods, salad dressings, sauces, and ready-to-eat meals. Its neutral flavor and versatility make it a preferred choice for food manufacturers. The growth of the food processing sector directly correlates with increased soybean oil consumption. Soybean oil's high smoke point, typically around 450°F (232°C), makes it ideal for deep frying. This attribute is particularly valuable to fast-food chains, restaurants, and other foodservice establishments that rely on deep-frying techniques. The industrial sector benefits from soybean oil's ability to withstand high cooking temperatures without breaking down or producing off-flavors. Soybean oil's long shelf life contributes to its appeal in the food processing industry. It helps extend the shelf life of various food products, ensuring they remain fresh and palatable for an extended period. This is particularly valuable for packaged and processed foods. Soybean oil is often available in bulk packaging options suitable for industrial use. This minimizes packaging waste and provides cost efficiencies for large-scale operations.

The market is divided into convenience stores, hypermarkets, supermarkets, direct sales, online, and others based on distribution channels. Hypermarkets and supermarkets offer one-stop shopping convenience for consumers. Shoppers can find a wide variety of products, including soybean oil, under a single roof. This accessibility and convenience make it easy for consumers to purchase soybean oil while doing their routine grocery shopping. Hypermarkets and supermarkets typically stock a diverse range of soybean oil brands, types (e.g., conventional, organic, and specialty blends), and packaging sizes. This extensive selection allows consumers to choose products that align with their preferences, dietary needs, and budgets. Retailers in this channel frequently offer promotions, discounts, and bundle deals on soybean oil products. These promotional strategies attract budget-conscious shoppers and encourage them to purchase larger quantities or try new brands. Many hypermarkets and supermarkets have their own private label or store-brand soybean oil products. These private label offerings often come at lower price points, further enhancing affordability for consumers. To promote soybean oil products, retailers may conduct in-store demonstrations and offer product samples. This hands-on experience allows consumers to taste and experience the versatility of soybean oil in their cooking, potentially leading to higher sales. For instance, some popular hypermarkets and supermarkets for soybean oil in the United States include Walmart, Costco, Kroger, Target, Safeway, Publix, Sam's Club, Albertsons, Meijer, H-E-B, and many more.



Considered in this report:
• Geography: United States
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• United States Soybean Oil market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

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 as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic 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 doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Soybean Oil industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.