Why the Soybean Meal Market is Transforming: Deep Analysis and Future Outlook
Causes of Market Transformation
• Increases in Global Protein Consumption: Population growth and rising consumption of meat, particularly within developing regions of Asia and the Pacific, contribute to demand for high-protein animal feed, specifically soybean meal.
• Climate Change: Weather patterns are becoming increasingly unpredictable—in particular, droughts, floods, and shifting growing seasons across some of the key producing regions (US Midwest, Brazil, Argentina) may disrupt supply chains which will have an impact on prices, affordability, and availability.
• Pressure for Sustainability: Consumers and governments are pushing the markets for sustainable, non-GMO sourcing and production that preserves and protects environmental attributes and sustainability.
• Changes in Policy and Trade: Tariffs, export controls, and geopolitical tensions between major consumers and producers mitigate the typical global flow of soybean meal trade.
Market Size
• The Soybean Meal Market was valued at approximately US$ 131.89 Billion in 2024.
• It is projected to grow at a compound annual growth rate (CAGR) of approximately 5.7%, reaching US$ 246.73 Billion by 2035.
• The Asia-Pacific region represents the largest regional market share of the global market, consuming over 38% of the global market primarily commanded by China and India.
• Major exporters including Brazil and Argentina continue to bolster global trade flows of soybean meal resulting in continued demand from food and feed sectors on global scale.
Expert Insights
•Agricultural economists and industry analysts are reporting that “the soybean meal sits at the intersection of food security and environmental stewardship” indicating the importance of soybean meal in agricultural nutrition, as well as, climate resilience.
•Policymakers emphasize the importance of sustainable agriculture standards and support for climate-adaptive farming practices.
•Innovation leaders discuss technological advancements in digital trading, processing, and traceability as key competitive differentiators.
Market Segmentation
Type Segmentation
1. Full-Fat Soybean Meal
• Has not had the oil content removed that remains after extraction of soybean oil.
• Typically used in poultry and monogastric animal feeds since it has a higher energy density than defatted soybean meal.
• Typically accounts for a large percentage of feed formulations and is even more important to developing areas of the world due to the need for low cost feed products.
• The increase in demand for this product type during 2021-2022 is a result of the rapid increase in energy and other feedstuff prices, along with its applications as energy has become increasingly important and alongside protein content of feed.
2. Defatted Soybean Meal
• Soybean meal with oil content fully removed during initial processing resulting in higher protein concentration.
• As of 2025, defatted soybean meal currently captures approximately 45% of the market (most commonly used) because of its high availability of protein.
• Defatted soybean meal is preferred for cattle, swine, and aquaculture feeds as protein is the major nutrient in these feeds.
• Is also preferred in many developed regions of the world with developed feed industries and when there is demand for non-GMO and sustainability certifications.
3. High-Protein Soybean Meal
• Produced using further processing of soybean meal to concentrate protein chunks.
• Niche segment that is seeing growth as a result of increased focus of precision nutrition in animal farming.
• High-protein soybean meal can be used to support higher productivity in livestock and fish farming and help reduce feed conversion ratios for producers while producing less load on the environment.
Application Segmentation
1. Animal Feed
• This is the leading application segment, accounting for approximately 48% of that market volume.
• This application is utilized throughout livestock species savings for poultry, swine, cattle, and aquaculture.
• These products provide the necessary amino acid profiles to promote desirable growth, reproduction, and product quality.
• Increased consumer demand for meat, dairy, and fish products globally will drive this segment.
• Developments in this segment include blended soybean meals directed toward specific livestock species alongside their life stage.
2. Food Additives
• Soybean meal is used as a protein enrichening ingredient in food processing and plant-based diets.
• As plant-based protein options continue to emerge, there is growing interest in this application as the global market shifts toward vegetarian and vegan options.
• The introduction of textured soy products and concentrates are opening up new applications in the food space.
3.Fertilizer
• Some regions utilize soybean meal in organic fertilizers for its nitrogen content.
• This application supports sustainable farms by recycling the protein-rich agricultural byproduct.
4. Industrial Applications
• Growing interest in bio-based products, such as adhesives, plastics, and specialty chemicals.
• Soy bean meals are being increasingly involved in the growing green chemistry initiatives to act as a replacement for petrochemicals.
• Ultimately, this application segment creates diversity and value added in the soybean meal market.
Distribution Channel Segmentation
1. Direct to Farm and Feed Mills
• As a general term, these are bulk sales to a larger livestock operation and then industrial feed mill producers.
• Staying ahead in this distribution channel is crucial for continued steady supplies to concentrated regions around the country.
· This application segment contributes to diversification and value addition in the soybean meal market.
2. Wholesale Distributors
• Serve smaller farms, feed mills, and regional markets.
• Provide flexibility and local access.
• Especially relevant in emerging and transitioning economies.
3. Retail Outlets
• Include supermarkets, hypermarkets, and specialty animal feed stores.
• Continue to grow in urban and peri-urban locations, especially in developing economies.
• Support smaller livestock keepers and niche product categories (e.g., organic feed).
4. Online Sales Platforms
• Fastest-growing channel supported by digitization and improvements to logistics.
• More often used for specialty animal feed and ingredients specifically for human food proteins.
• Offers the potential for reach and convenience especially if there are disruptions to trade in global markets.
By Region
• Asia-Pacific (largest market share, includes China, India, Southeast Asia)
• North America (largest producer and exporter)
• South America (key exporters include Brazil; Argentina)
• Europe (focus is on organic and sustainability certified soybean meal)
• Middle East & Africa (emerging market with growing protein demands)
The regional segmentation highlights the diverse demand base and regional dynamics that are occurring, driving growth in the Soybean Meal Market.
Historical Comparisons
• Not the same as decades ago when the soybean meal market was substantially more focused on domestic livestock feed and much less globalized with the advent of value-added nutrition products catering to emerging plant-based food segments.
• Use past supply shocks (e.g., 2012 US drought) as examples of implications for how climate-related disruptions can trigger volatility in the market and response in public policy.
Long-term Impacts
• Economic: Markets are expected to see robust growth towards 2035, with projections suggesting nearly $247 billion due primarily to the expansion of the livestock sector along with its associated plant based protein alternatives.
• Environmental: The adoption of sustainability standards will promote practices that contribute to reductions in deforestation, greenhouse gas emissions, and water consumption associated with soybean production.
• Social: The increased presence of proteins in the market can provide better nutrition in developing countries and also enhance rural economies and employment in agro- industries.
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Policy and Preparedness Recommendations
• Create incentives to produce sustainably and/or adhere to sustainability certification.
• Assist farmers with seeds that are climate resilient, technology for crop management, and insurance programs.
• Create transparent trade policy that reduces disruption.
• Facilitate development and research into feed optimization and alternative protein alternatives.
Conclusion
The Soybean Meal Market is entering a pivotal phase, driven by the unrelenting global demand for premium protein animal feed, and through increased use in Plant Based Food and industrial applications. Given their expected continued growth associated with rising meat consumption, urbanization, and sustainability driven actions, the market is rapidly evolving.
The Asia-Pacific region has maintained its position as a global leader in soybean meal consumption, and investment towards infrastructure and livestock industries continues to thrive in the region, maintaining its large share of the global meal market. North and South America will continue to be critical areas for production and exporting to meet demand in their respective regions and globally.
Competition, in this market beyond the established players, will be driven by technological advancements, regulation, and new product developments that will affect the competitive dynamics given climate and resource challenges, enabling longer term viability.
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