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China Soybean Market Overview:
China Soybean Market size is estimated to reach US$153 billion by 2030, growing at a CAGR of 6.6% during the forecast period 2024-2030. China is the world's largest importer and consumer of soybeans. This pivotal role significantly influences global soybean prices and trade patterns. The rising demand for soybean-based products beyond traditional soybean meal and oil, such as soy protein isolates and functional foods along with a thriving livestock industry is driving the growth of China’s Soybean Market. According to the April 2024 projections by Commodity Board Europe GmbH, China’s soybean imports are expected to remain steady at 103 million tons in the 2024/25 period, indicating a consistent demand for soybeans in China’s agricultural sector, despite various market dynamics.
A significant trend in China's soybean market is the intensified focus on domestic production. Driven by food security concerns and geopolitical tensions, the Chinese government is actively promoting soybean cultivation within its borders focusing majorly in the North East region of China. This region contributes to more than 40 %of the country's total soybean planting area. Additionally, the country is also strengthening its cooperating with other countries to boost trade of agricultural commodities. For instance, in May 2024 during the eighth China-Russia Expo, the two countries conducted in-depth discussions on bilateral cooperation, food security, food processing, providing suggestions and support for the development of agriculture in both countries, as reported by China News.
Report Coverage
The report: “China Soybean Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the China Soybean Market
By Type: Raw and Processed
By Source: Conventional and Organic
By Application: Animal Feed, Aqua Feed, Biofuel, Food and Beverage, Personal Care, Dietary Supplements, Pharmaceuticals, Lubricants, Coatings, Paints, Industrial Solvents, Adhesives and Sealants, Hydraulic Fluids, Building Materials and Others
By Product: Whole, Protein, Oil, Soymilk, Meal, Lecithin and others
Key Takeaways
• China and Russia have been strengthening their agricultural ties, with a particular focus on soybeans.
• Soybean meal is the undisputed leader in China’s soybean market primarily driven by its indispensable role as a protein-rich component in livestock feed.
• China has implemented a series of policies to stimulate soybean production aiming to reduce its reliance on imports and ensure food security.
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China Soybean Market- By Source
Conventional soybeans remain the dominant force in China's soybean market due to their cost-effectiveness, higher yields and established infrastructure. China's domestic feed production primarily uses conventional non-GM varieties. Animal meat security is key to overall food security in China. The Rural Policy blueprint published by the State Council placed greater emphasis on food security than previously, calling for all provinces to improve grain yields during the five-year period up to 2025. The demand for non-GMO soybeans is on the rise driven by growing health consciousness, affordable price and availability to consumers. Existing processing facilities are optimized for conventional soybeans, allowing for efficient extraction of soybean oil / meal and the varieties often offer higher yields, making them more attractive to farmers resulting the vast majority of soybeans processed in China are conventionally grown.
China Soybean Market- By Application
China's burgeoning food and beverage industry is a key driver of soybean demand. The food and beverage sector utilizes soybeans for oil extraction, protein production and direct consumption in products like tofu and soy milk. According to Britannica ProCon.org, 85% of the Chinese population suffers from lactose intolerance. Thus, there is a high demand for alternative dairy products. The growing preference for healthier and plant-based alternatives has fueled the consumption of soy-based products. Soy milk, tofu and soy-based meat substitutes are increasingly popular among Chinese consumers. This shift in dietary habits is expanding the market for value-added soybean products.
Key Drivers
Livestock Industry and Protein Demand
China's rapidly expanding livestock industry, driven by increasing meat consumption, has made the country the world's largest soybean importer. As per a report on Feb 2024 by International Institute for Sustainable Development (IISD), about 76% of soy production is used as low-cost, quality protein for animal feed for meat and dairy production, 20% is consumed as edible oils and human food products. The demand for protein-rich animal feed, primarily soybean meal, has surged. This robust demand has solidified soybeans as a crucial component of China's agricultural sector and economy, shaping the global soybean market.
Government Policies and Food Security
China's government implemented a multifaceted approach to bolster soybean production and security, including subsidies, research, import diversification and strategic reserves. Policies aimed at increasing domestic soybean production, reducing reliance on imports, and ensuring a stable supply have significantly influenced the market. The Chinese government envisions 92% self-sufficiency in staple grains and beans by 2033, up from 84% during 2021-2023, according to a news released in May 2024 and on a path towards President's goal to become an "agriculture power" by the middle of the century. Additionally, government initiatives to promote biofuel production have also created additional demand for soybeans.
Key Challenges
Dependency on Imports lacking self- sufficiency in production
China's massive soybean consumption, driven by its growing livestock industry, far exceeds its domestic production capacity due to limited arable land and lower yields compared to major exporters. As per OEC report in May 2024 China’s Soybean exports accounted up to $7.3M and imports accounted up to $4.99B, resulting in a negative trade balance of $4.98B. This heavy reliance on imports majorly from US and Brazil makes the country vulnerable to price fluctuations, supply chain disruptions and geopolitical tensions.
Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the China Soybean Market. The top 10 companies in the China Soybean Market are:
- Cargill
- ADM
- COFCO (China Oil and Food Corporation)
- Wilmar International
- Louis Dreyfus Company
- Bunge
- DuPont Shanghai
- Amaggi
- SunOpta
- Kerry Group
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