Dive Brief:
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Consumer interest in alternative proteins has given the global soy protein market such a boost that demand now outpaces supply. The market, which was valued at $4.8 billion last year, is expected to nearly double to $7.8 billion by 2024, according to a report from Transparency Market Research.
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North America led soy protein consumption in 2015, followed by Europe and the Asia Pacific region. More disposable income and the growing popularity of veganism continue to fuel the positive growth trend.
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Because soybeans are inexpensive, easy to grow and more than one-third protein, functional food product developers recognize them as an ingredient to be reckoned with – and profited from.
Dive Insight:
As U.S. farm acres dedicated to tobacco have dropped – falling to just 311,150 acres nationwide last year, according to the U.S. Department of Agriculture – a sizable share of that acreage has been rotated to soybeans.
In the past, soybeans have often been grown then plowed under because they contribute so much nitrogen into soil. Consumer demand for soy-based foods and other products, such as candles, lubricants, car body parts, interiors and seating, has changed that.
Soy protein has long been a much-used ingredient in animal feed, and its becoming a popular protein additive in human-oriented products for the same reason: It's inexpensive and easy to process.
Soy's price and functionality as a protein delivery vehicle will push growth in the food market because busy consumers are increasingly seeking functional value in their foods. The modern-day shopper doesn't have much time to shop, prepare and consume traditional meals that are naturally rich in protein, and many avoid meat sources to uphold vegetarian and vegan diets.
But soybeans are not unlimited. According to the report, the Asia-Pacific region and others are increasingly interested in them, so already-tight supplies could become an issue for U.S. product producers.