Industrial Soy Flour Market Analysis

Soy flour is the by-product of soybeans and is an optimal substitute for several industrial applications. The industrial soy flours market consists of smaller and significant players aiming to benefit from using soy flour. Full-fat Soy Flour and Defatted Soy Flour are two major types of Industrial Soy Flour.

Key application areas of Industrial Soy Flour include Adhesive System, Industrial Fermentation and Others. The global market is based on the application of soy flour for resin replacement in panelling, particleboard, and plywood. Industrial soy flour also plays a crucial role in replacing the proteins extracted from animal blood.  

The industrial soy flours market includes the usage of full-fat and defatted soy flour in factories. Their essential purposes are to cater to the adhesive system and industrial fermentation.

Global Industrial Soy Flour market is expected to witness CAGR of 4.83% during the forecast period. The revenue generated by the global Industrial Soy Flour market in 2020 was over USD 368.41 million and expected to generate revenue worth USD 562.15 million in 2027. The incremental growth opportunity offered by the global Industrial Soy Flour is estimated to be USD 3.47 billion between 2021 and 2027.     

Interesting Facts about Industrial Soy Flour Industry

• Industrial Soy Flours are useful in replacing adhesives containing volatile organic compounds
• Industrial Soy Flours offers excellent water resistance
• Industrial Soy Flours facilitate low-cost manufacturing of adhesives with wide range of binding strengths
• Industrial Soy Flours based adhesives exhibit less drying time, uses less water and produces less waste than conventional plywood glues
• Cargill’s Prolia™ soy flour is one of the most widely known industrial soy flour product

Consequence of COVID 19 Outbreak

Covid’19 caused aggregate demands to take a nosedive. As the consumer side shrunk, its demand, production, and supply chain deteriorated during the lockdowns. The uncertainty in financial markets and overall chaos in the international markets caused a stagnancy in the industrial soy flours sector. As a result, the market experienced negative and underwhelming growth.

However, with covid reopening and recovering consumer confidence, there are potentials for the industrial soy flours industry to regain its speed. As lockdowns decrease and financial markets continue to find their bearings and stabilize, the industrial soy flours market is expected to show positive signs of growth in the upcoming times.

Growing Demand for Sustainable Products

The thriving interest in sustainability is a vital opportunity for the industrial soy flours sector. Ecological concerns continue to expand as the sense of social responsibility continues to rise. With consumers shifting towards renewable substitutes, soy glue made from soy flour- can help the sector boom.

In addition, manufacturers are looking for cost-efficient procedures to improve their competitive edge and profitability. That is why the application of industrial soy flours for industrial fermentation is increasing every passing moment. The fermentation allows stakeholders to produce vital and valuable products, including citric acid and ethanol. As more producers start employing industrial fermentation, the worldwide industrial soy flours market can experience the push it needs for further development.  

Limited R&D, Lack of Investment and Unexplored Application Areas

One of the biggest concerns for the industrial soy flours market is the lack of investment for research and development. Smaller players and less-developed economies still are not funding enough to carry out extensive research. That is restraining them from finding the potentials of industrial soy flours in boosting their operations and improving their efficiencies.

Insufficient awareness of the application of industrial soy flours is a critical concern today. In addition, while the global soy flour market is quite extensive and well-versed, the niche of the industrial soy flours sector is still relatively new and limited for several countries. That is yet another challenge to overcome in the upcoming years.

Furthermore, resin replacement is still quite costly, and hence, smaller players are still unable to incorporate it in their production process. More studies to avail the benefits of soy flours for processing and factory use can undoubtedly expand the international market for industrial soy flours even more. Lot of players are now investing considerable amount on R&D of industrial soy flours in order to explore its potential applications. Cargill, ADM, CHS, Danisco, Soja Austria, Goldensea, Harvest Innovations, Vippy Industries Ltd., Devansoy Inc. and Gushen Group are some of the prominent players in global industrial soy flours industry.