Abstract
US demand to grow 8% annually through 2013
US demand for soy chemicals is forecast to increase eight percent per year to
$3.5 billion in 2013. Historically, soy has been consumed primarily in the
food market as an ingredient or additive. In this application, soy proteins
are widely used to contribute desirable appearance and textural properties. As
an added bonus, soy ingredients enhance the nutritional profile of foods by
boosting the protein content.
Industrial markets for soy ingredients to emerge
While soy ingredients will continue to penetrate the food and beverage
industry, industrial markets (e.g., biodiesel, paints and lubricants) will
also emerge. Growth in industrial markets will be the result of continued
intense research and development activities among soy industry participants,
and a growing desire by government and business to reduce dependence on
imports of crude oil. Utilization of a renewable resource and a favorable
environmental profile are factors promoting the development and use of
soy-based industrial products.
Historically, soy chemicals were used sparingly throughout industrial markets,
as they faced a significant cost disadvantage compared to petroleum-based
alternatives, which benefitted from low and stable pricing during much of the
1990s. While support from both government and business to reduce US reliance
on imports of crude oil initiated interest for soy chemicals in industrial
markets, another boost to the soy industry came from significant increases in
petroleum pricing during the middle part of this decade, when manufacturers
quickly became interested in finding reasonably priced petroleum alternatives.
Key biodiesel outlet to slow as producers diversify
During the past decade, biodiesel has gone from barely existing as an outlet
for soy chemicals to the single largest market in 2008. Demand for methyl
soyate in biodiesel is driven by environmental concerns, and government
incentives to find renewable resources and an alternative fuel. While
biodiesel will continue to provide opportunities for soy chemicals, demand
will begin to slow as biodiesel producers diversify into other renewable
feedstocks to reduce dependency on one particular product.
Smaller volume industrial markets to grow the fastest
Among other industrial end uses, more favorable opportunities will arise in
relatively smaller volume markets, such as adhesives, lubricants and consumer
wax. In these market, soy chemicals demand will be driven by environmental
concerns and the development of improved products; for example, soy protein
flour can be utilized in the production of wood adhesives. Industrial
lubricant applications for soy chemicals (e.g., industrial soybean oil)
include the manufacture of greases, metalworking fluids and transformer oils.
In consumer wax applications, soy waxes are rapidly penetrating the commercial
candle market due to their clean burn and ability to hold a high fragrance
loading.
Study coverage
This new Freedonia industry study, Soy Chemicals, presents historical data
(1998, 2003, 2008) plus forecasts for 2013 and 2018 by product (e.g.,
epoxidized soybean oil, glycerine, industrial soybean oil, lecithin, methyl
soyate, polyols, proteins, sucrose esters, isoflavones, vitamin E, waxes) and
by market (e.g., biodiesel, consumer wax products, paints and coatings, food
and beverages, cosmetics and toiletries, pharmaceuticals, plastics and rubber,
printing inks). In addition, market share is provided for leading soy chemical
suppliers, along with an overview of merger and acquisition activity,
competitive strategies, regulatory issues and the macroeconomy. Profiles of 26
soy chemical producers, such as Cargill, Archer-Daniels-Midland and Ag
Processing, are also included.
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