The global soybean oil market size is set to experience dynamic growth owing to the rising demand for soybean oil from the automobile industry, finds Fortune Business Insights™ in its report, titled “Soybean Oil Market, 2021-2028”.
The soybean oil serves as a plasticizer for hydrochloric acid released when the PVC degrades thermally. There is a high demand for soybean oil from the automobile industry as this type of oil is used as a lubricant that can help to improve the fuel efficiency of the automotive engine. Hence, the growing demand for this oil is projected to drive the growth of this market. Further, the soybean oil is temperature resistant, eco-friendly, and readily available. This type of oil requires lower cost of production, which is another major factor driving this market’s growth.
However, the strict rules and regulations about the utilization of soybean oil in food industry are projected to hinder the growth of this market.
COVID-19 Impact:
The COVID-19 pandemic has severely affected all major industries and economies worldwide. Due to the increasing lockdown restrictions and shutdown of businesses around the world, the production and distribution of soybean oil has been adversely affected, which is anticipated to hamper the growth of this market in several regions.
Market Segmentation:
On the basis of application, this market is classified into plasticizers, fuel additives, pigment dispersion agent, and others. Based on end-use, the market is divided into automotive, adhesives and sealants, food and beverages, and others. By geography, the market is clubbed into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Highlights/Summary:
The report delivers a holistic evaluation of all market segments and offers an in-depth analysis of the market drivers, trends, restraints, and opportunities. In addition, the report contains tangible insights into the regional dynamics shaping the market, as well as incorporates a granular examination of the key market players’ profiles and strategies.
Drivers/Restraints:
Increasing Demand for Soybean Oil from the Food Industry to Propel the Market
The soybean oil is used in food and beverage industry as a coating for wrapping the food items. This type of oil is biodegradable, renewable, and is easily available for use. Hence, there is a high demand for this oil from the food industry. This oil is widely used vegetable oil which serves as a substitute in the chemical industry due to its low price and maximum output. This is an important factor contributing to the growth of this market.
Regional Insights:
Increasing Demand for Soybean Oil from the Adhesives and Sealants Industry to Boost the Asia Pacific Market Growth
Asia Pacific region is projected to dominate in the soybean oil market share on account of the increasing usage of this oil from the automotive, adhesives and sealants industries.
North America region is anticipated to grow speedily in this market due to the easy accessibility to the soybean oil owing to its fewer prices is projected to fuel this market’s growth.
Competitive Landscape:
Strong Focus on Increased Production of Soybean Oil by Key Players to Boost Competition
The leading companies in the soybean oil market are focusing on increasing their production and distribution capabilities of this oil in several regions by collaborating with small scale and large scale companies. This has resulted in the increasing competition among key companies which will help them to widen their business offerings and strengthen their market position.
Industry Development:
May 2020: Elekeiroz, a producer and distributor of plasticizers signed an agreement with Nexoleum for the production of plasticizers using soybean oil as feedstock.
Source:
https://www.fortunebusinessinsights.com/soybean-oil-market-106282
