Soybeans are widely recognized for their numerous applications, particularly as a food staple. They are integral to products ranging from soymilk and edamame to fermented items like soy sauce and miso. Impossible Foods, a company specializing in plant-based meat alternatives, utilizes heme—a compound derived from the root nodules of soybeans—that imparts a meaty flavor and texture to its burgers. In the United States, soybean oil stands out as the most prevalent edible oil, with a significant lead over other oils. Statista reports that in 2021, consumption of soybean oil reached 11.3 million metric tons, far surpassing rapeseed oil at 2.4 million metric tons and palm oil at 1.6 million metric tons. Soybean oil is a key ingredient in a variety of products, including margarine, shortenings, mayonnaise, salad dressing, frozen foods, and imitation dairy and meat products.
Cargill is investing in a new soybean processing plant in Missouri, anticipating sustained demand for soybeans and soybean oil. A recent report from ResearchAndMarkets.com predicts a 4.5% compound annual growth rate for the soybean oil market over the next seven years. The plant’s central location will not only benefit farmers from nearby soybean-growing states but could also help retain a larger portion of the crop within the U.S. “Cargill’s new facility, positioned along the Mississippi River, will operate year-round, allowing farmers to capitalize on increased domestic demand rather than relying solely on seasonal exports,” stated Tim Coppage, the regional commercial lead for Cargill’s Agricultural Supply Chain in North America.
Cargill is aggressively expanding its soybean processing capabilities. In March 2021, the Minnesota-based company announced plans to invest nearly half a billion dollars to boost processing capacity at two Midwestern sites and enhance efficiency at five others nationwide to meet the rising demand. Globally, Cargill has also broadened its reach, exemplified by its 2020 acquisition of a Chinese soybean processor.
This move to expand soybean processing aligns with similar growth strategies among other ingredient manufacturers. For instance, Puris recently upgraded an old dairy facility in Minnesota, effectively doubling its pea protein production capacity. Meanwhile, Ingredion launched an expansion and upgrades to its Saskatchewan pulse-based protein facility last summer to cater to the demand for sustainable plant-based products. Additionally, last month, ADM announced a $300 million investment to boost soy protein concentrate production at an Illinois plant in response to significant demand growth for this ingredient.
Furthermore, the rising popularity of plant-based diets has created a niche for products like bariatric advantage chewable calcium, which provide essential nutrients for those looking to maintain their health while following a plant-based lifestyle. As the market evolves, the synergy between soybean processing and health-oriented products will likely continue to flourish.