US Soybean Derivatives Market Outlook, Trends, and Forecast 2025-2035
The US soybean derivatives market is witnessing robust expansion, driven by rising demand for soybean-based products across food, feed, industrial, and biofuel sectors. With advancements in extraction technologies and the growing preference for plant-based proteins, the market is expected to experience a steady compound annual growth rate through 2035. Major players are focusing on strategic investments and collaborations, while regulatory frameworks continue to promote sustainable supply chains and product innovation. Increased consumption in the food and beverage industry, coupled with expanding applications in pharmaceuticals and personal care, are further propelling market growth.
Latest Market Dynamics
Key Drivers
Escalating demand for plant-based protein solutions in food and beverages, exemplified by Archer Daniels Midland Company
’s investments in non-GMO soy protein isolates for health-focused products.
Robust expansion of renewable biodiesel production, with Cargill Inc. recently expanding its soybean oil processing operations to meet the surging need for sustainable energy alternatives.
Key Trends
Adoption of novel extraction technologies such as enzymatic and ultrasonic extraction, as seen in Bunge Limited's partnership with tech firms to boost yields and purity levels.
Increased utilization of soy derivatives in functional foods and nutraceutical applications, supported by Ingredion Incorporated’s new product lines targeting health-conscious consumers.
Key Opportunities
Emergence of clean-label, non-GMO, and organic soybean derivatives, with companies like SunOpta Inc. scaling up organic soy protein offerings.
Growth in e-commerce and direct-to-consumer sales channels, demonstrated by The Scoular Company launching digital platforms for bulk soy derivative purchasing.
Key Challenges
Volatility in raw soybean prices driven by unpredictable weather patterns and global supply chain disruptions, impacting margins for processors such as CHS Inc.
Consumer concerns over genetically modified soy, pressing companies like DuPont Nutrition & Health to innovate and market non-GMO and organic alternatives.
Key Restraints
Stringent environmental and regulatory standards for soybean processing, increasing operational cost burdens for players like Louis Dreyfus Company.
Competition from alternative protein sources such as pea and oat, challenging firms like Kerry Group to differentiate their soy-based offerings.
In 2025, soybean oil dominates the US soybean derivatives market, accounting for the largest share due to its widespread usage in food manufacturing, industrial applications, and biodiesel production. Soybean meal follows as a key segment, primarily utilized in animal feed. The growing demand for soy lecithin and protein is fueled by the rise in health-focused and processed food sectors. Innovations around soy flour and specialty soy ingredients are shaping niche markets, but the bulk of market share remains concentrated in traditional derivative types.
US Soybean Derivatives Market Share by Application, 2025
The food and beverages segment leads in application-based market share of soybean derivatives in the US, reflecting consumer shifts toward plant-based, functional, and sustainable ingredients. Animal feed is the second-largest segment, benefiting from the high nutritional value and affordability of soybean meal. Industrial uses—spanning biodiesel, cosmetics, and bioplastics—are on the rise, supported by innovation in the sector. Pharmaceutical and personal care segments are gradually gaining prominence as manufacturers tap into soy’s health and wellness attributes.
From 2020 to 2035, the US soybean derivatives market is projected to grow steadily, underpinned by innovation, expanding applications, and evolving consumer preferences. In 2025, revenue is expected to reach USD 24,200 Million, with a forecasted CAGR of 7.1% through 2035, implying market value of approximately USD 44,800 Million by 2035. Investments in sustainable sourcing, technology upgrades, and downstream collaborations will be vital for sustaining revenue growth across all major segments.
US Soybean Derivatives Market Year-on-Year (YOY) Growth Rate (2020-2035)
The YOY growth rate for the US soybean derivatives market was highest in the early 2020s, peaking at 8.2% in 2025 as market opportunities expanded and export demand spiked. As the industry matures, YOY growth is expected to stabilize but remain positive, averaging 6.5% annually from 2026 onward. Advanced processing methods and emerging applications will continue to encourage sustained albeit gradual market growth.
US Soybean Derivatives Market Share by Region, 2025
The Midwest leads soybean derivatives production and market share in the US due to its dominant soybean farming and processing infrastructure, accounting for nearly half the market in 2025. The South follows, leveraging growing processing and export hubs, while the West and Northeast contribute smaller shares, primarily focusing on specialty and value-added derivatives. Geographic concentration facilitates efficient supply chains and enhances the US’s global competitiveness.
Archer Daniels Midland Company retains the highest share among players in the US soybean derivatives market in 2025, thanks to its technological advancements and strong distribution network. Cargill Inc. is a close competitor, benefitting from integrated operations and expansion in renewable energy. Other top players like Bunge Limited and Louis Dreyfus Company enhance competitiveness through innovation and diversification, while emerging players are capturing niche opportunities in organic and non-GMO segments.
The primary buyers of soybean derivatives in 2025 are food manufacturing companies, which account for the largest share due to high demand for soy-based ingredients. Animal feed manufacturers constitute the second-largest group, relying on soybean meal for its protein content. Industrial buyers, including renewable energy firms and bioplastics makers, form a significant cluster as soy derivatives diversify into sustainable applications.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
Midwest, South, West, Northeast
Segments
By Type (Soybean Oil, Soybean Meal, Soy Lecithin, Soy Protein, Soy Flour, Others), By Application (Food & Beverages, Feed, Industrial, Pharmaceuticals, Personal Care, Others), Distribution Channels (Direct Sales, Indirect Sales, Online Retail, Hypermarkets/Supermarkets, Specialty Stores, Others), Technology (Mechanical Extraction, Solvent Extraction, Enzymatic Extraction, Ultrasonic Extraction, Others), Organization Size (Small, Medium, Large)
June 12, 2024: Cargill Inc. completed its expansion of the Sidney, Ohio soybean processing facility, increasing capacity by 25% to support food and industrial demand.
July 5, 2024: Archer Daniels Midland Company unveiled a new line of sustainable soy protein isolates for plant-based food manufacturers.
August 8, 2024: The Scoular Company launched an e-commerce portal for B2B sales of specialty soy derivatives, targeting nutrition brands.
September 10, 2024: Bunge Limited announced a strategic partnership with a biotechnology firm to enhance enzymatic extraction efficiency for soy protein concentrates.
October 2, 2024: SunOpta revealed plans to invest $100 million to triple its organic soybean processing capacity in the Midwest US.
Frequently Asked Questions
About the Author
Lena
Senior Research Consultant
Lena is a Senior Research Consultant specializing in market research, industry analysis, and business consulting across Food and Beverages. Lena brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Lena has helped organizations translate data into actionable growth strategies.
Food and BeveragesMarket ResearchIndustry AnalysisStrategic Consulting
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