The global soybean oil market is expected to reach $ 15.84 billion in the coming years.
Development of biofuel production will become one of the main drivers.
This forecast is made by the US Department of Agriculture. According to him, , by 2022, the demand for soybean oil in the world, as well as its production, may grow significantly.
By 2030, the demand for biodiesel in the United States alone could reach about $ 40 billion per year. This is due to a strong environmental trend and the transition to energy sources that leave a lower carbon footprint.
At the same time, it is the producers of soybeans and soybean oils that may be among the main beneficiaries of the growing demand for biodiesel fuel.
The palm oil market is limited, and the rapeseed market is still very small.
Only 7% of biodiesel is currently produced from rapeseed oil, while soybean oil is about 54%, that is, more than half of the total volume.
According to forecasts, by 2025, the demand for soybean oil as a feedstock for biofuel production may outstrip the demand for palm oil.
It is planned that over the next 10 years, the processing of soybeans for oil will grow annually by about 3.5%, while the production of palm oil against this background will decline.
The prospects for the development of this industry are enormous.
Today it is already said that soybean oil-based fuels could even be used in aviation. This means that demand is practically unlimited, while it will be difficult for supply to grow up to the level to satisfy it.
How much does soybean oil cost?
Currently, the price increase is very significant: during the first half of 2021, the price of soybean oil increased by more than 60%, while the price of soybeans only grew by 20%.
This is largely due to the fact that soybean oil is viewed not so much as a food product, but as a raw material for biofuel production.
And the more actively it starts to be used in this role, the more likely it is that the price will continue to rise. This pattern may become a factor that will limit the growth in the use of soybean oil in the energy sector.
Currently, the US and Brazil are the leaders in soybean production, which produce more than 100 million tons per year. Further, Argentina is far behind — at least half as much.
It is assumed that these are the countries that can significantly benefit from the increased popularity of biofuels in the world.
