Textured Soy Protein Market

[133 Pages Report] Textured soy protein, also known as textured vegetable protein, is derived from soy flour, soy concentrates, or soy protein isolates, and has major application as meat substitutes. As opposed to natural soy protein, textured soy protein is usually a defatted soy flour product, a by-product of soybean oil extraction.

According to the Soyfoods Association of North America (SANA), “textured soy protein (TSP) may be unflavored or meat/chicken flavored, may appear in chunks, slices, flakes, crumbles, or bits, and is sold at natural food supermarkets, food cooperatives, buying clubs, health food stores, or the natural foods section of traditional supermarkets.

The global textured soy protein market is estimated at USD 1.58 Billion in 2016; it is projected to grow at a CAGR of 9.5% from 2017, to reach USD 2.73 Billion by 2022. The base year considered for the study is 2016, and the forecast period is from 2017 to 2022. The basic objective of the report is to define, segment, and project the global market size for the textured soy protein market based on type, source, application, and region.

By source, soy protein concentrates to account for the largest market share during the forecast period

In this report, the textured soy protein market is broadly segmented into soy protein concentrates, soy protein isolates, and soy flour. Soy protein concentrates to account for the largest market as they are easily digestible, cheap, and available in granule, flour, and spray-dried forms. They are well-suited for consumers of all age groups, including children, pregnant & lactating women, and the geriatric population. In terms of volume, the soy protein isolates segment was the second-largest owing to its higher protein content (90%). Soy protein isolates are also estimated to be the fastest-growing, during the forecast period, both in terms of value and volume.

By type, the non-GMO segment is expected to dominate the textured soy protein market during the forecast period

Non-GMO textured soy proteins are high protein products that are also rich in dietary fibers, minerals, contain no cholesterol, lactose, or casein, and are free from microbiological contamination. The organic segment is projected to grow at the highest CAGR during the forecast period. Natural textured soy proteins are extracted from organic soy, in the form of isolates, concentrates, and flour, and find wide-scale application in snacks, nutritional supplements, meat alternatives, and extenders. The demand for organic soy protein is increasing rapidly, with more people becoming health conscious and demanding organic products. The busy schedules of consumers have led to the rising demand for organic food & beverage products containing textured soy proteins. Manufacturers are focusing on product innovation in organic soy protein to cater to the increasing demand.

g By food application, meat application to dominate the market during the forecast period

With supportive health claims from the Joint Health Claim Initiative (JHCI), soy proteins are developed as essential ingredients in functional foods and nutraceuticals. According to the Commonwealth Scientific and Industrial Research Organization (CSIRO), 60% of the global supermarket products contain textured soy protein. Textured soy proteins are formulated to suit specific applications such as bakery, dairy replacers, or meat alternatives. The feed segment is the fastest-growing application for textured soy protein in the coming years. The rising demand for animal by-products will result in increased attention toward animal care and welfare, which in turn is expected to drive the consumption of textured soy protein in feed. Animals rely on a continuous supply of proteins for healthy functioning, growth, reproduction, and metabolism. Hence, nutritional diets containing an adequate amount of protein fibers are essential in the feed. This has resulted in the rising demand and usage of textured soy protein in feed.

North America to dominate the textured soy protein market during the forecast period

Among consumer soy foods, functional foods, and dairy replacers are projected to be the fastest-growing segments in North America. The demand for textured soy protein is growing at a high rate; changing consumer preference from meat to plant protein is one of the main reasons driving the market for soy protein. Also, soy-based proteins are a major source of protein for vegans worldwide. The high nutritional profile, low carbon footprint, and low price of plant-sourced protein are driving the consumption of these proteins in food applications. The global demand for textured soy protein is increasing significantly, especially in developed countries such as the US and countries in the European Union.

The global textured soy protein market is competitive. It comprises major players such as ADM, Cargill, DuPont, Wilmar International, and Victoria Group, which focus on expansions & investments, agreements, joint ventures, and acquisitions to strengthen their base in the textured soy protein market. Apart from these companies, there are other textured soy protein companies such as Bremil Group, Linyi Shansong Biological Products, Shandong Yuxin Bio-Tech, Crown Soya Protein Group, Sonic Biochem, and Hung Yang Foods, which are also strengthening their position through new product launches and expansions.

Market Dynamics

Driver: Inexpensive source of protein

Increased soy crop cultivation in developing regions such as South America and Asia Pacific, in addition to the already widespread cultivation of soybean across the globe, has increased the availability of soy products such as textured soy proteins. Raw materials for deriving textured soy protein are therefore easy to obtain from contract farmers or oilseed crushers offering soy meal. The low processing costs associated with textured soy proteins are suitable for the operational demands of manufacturers and thereby allow the processors to spend adequately on product development. As a result of these trends, the cost of textured soy protein is cheaper when compared to that of other protein sources such as meat, dairy, and whey proteins. Additionally, the prices of conventional dairy products have increased in the recent past, and textured soy protein, being one of the major plant sources of protein, is one of the most suitable alternatives considered in terms of price.

Restraint: Stringent government regulations for genetically modified crops

The European Union (EU) has stringent regulations in place for genetically modified (GM) crops due to the risks associated with humans and the environment. Soy, one of the largest sources of plant protein and the largest plant-based protein ingredient, if genetically modified in seed form, could have adverse effects if consumed and is hence restricted in the European region.

Genetically modified crops are prohibited in developed regions such as Europe, where several countries as part of the European Union have banned their farmers from cultivating genetically modified crops. The key countries include Germany, France, Northern Ireland, and Scotland. This has affected the genetically modified soybean market in the region and is expected to hamper growth in the future owing to the cultivation and adoption of non-GM soybean crops for food processing applications in European countries. It is also likely to affect exports of soybean from developing countries such as Argentina, where soybean crops are mostly GM-based. This would lead to an overall increase in the prices of products incorporating non-GM soybean.

Opportunity: Increase in soybean production and consumption in emerging markets

Changing lifestyles and the shift from processed food to healthy food products has been observed in developing economies over the past decade, leading to the growth in demand for textured soy proteins, not only for food products but also for applications such as animal feed, cosmetics, and personal care products.

The demand for textured soy protein is high in developed markets such as the US and Europe. The trend of consumer preference for healthy products is rising, wherein marketing campaigns are planned for highlighting their use and health benefit claims. Developing countries such as China and India are projected to experience an increase in demand for textured soy protein in the coming years from these regions. The Asia Pacific region provides a cost advantage in terms of production and processing. High demand, coupled with low cost of production, would aid the suppliers, subsequently driving the growth of the market in the region.

Countries such as India, lack in post-harvest management techniques and lack in an efficient supply chain. However, the increase in per-capita income and consumers’ buying capabilities are expected to drive the growth of the textured soy protein market over the next few years.

Challenge: Unpleasant flavor of soy products

Recent consumer trends toward “cholesterol-free” food products have helped increase the demand for textured soy protein, impacting the demand for animal proteins. The main factor that has limited the use of soy products in western countries was the unpalatable taste of soy products, which is linked to the action of the lipoxygenase enzyme on the soybean oil. During the hydration and milling process, the lipoxygenase in soy breaks down the oil into various chemicals such as hexanal, and these chemicals have unpleasant flavors which are described as ‘beany,’ ‘green,’ ‘bitter,’ ‘grassy,’ ‘painty,’ ‘astringent,’ and ‘rancid.’ Moreover, the unpleasant flavor of soy protein makes it undesirable for consumption. This flavor is caused due to the presence of compounds such as aldehydes, ketones, furans, and alcohols. Medium-chain aldehydes are one of the major reasons for the beany and grassy taste of soy products. The low cost of soy and high nutritional value are the main factors that motivate researchers to develop innovative and likable flavors in soy products. Efforts are being made to identify ways to neutralize the unpleasant flavor during the extraction process or by the addition of sugar compounds during the processing phase.

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Scope of the Report

This research report categorizes the textured soy protein market based on type, application, source, and region. It forecasts revenue growth and analyzes trends in each of these submarkets.

Based on Type, the textured soy protein market has been segmented into:

• Non-GMO
• Conventional
• Organic

Based on Source, the market has been segmented into:

• Soy protein concentrates
• Soy protein isolates
• Soy flour

Based on Application, the textured soy protein market has been segmented into:

• Food
  • Meat substitutes
  • Dairy alternatives
  • Infant nutrition
  • Bakery products
  • Cereals & snacks
• Feed

Based on Region, the market has been segmented into:

• North America
• Europe
• Asia Pacific
• RoW (South America and the Middle East & Africa)

Key Market Players

ADM (US), Cargill (US), DowDuPont  (US), Wilmar International  (Singapore), Victoria Group  (Serbia)

Recent Developments

• In November 2017, Cargill North America protein business planned to expand its Nashville facility to cater to the increasing demand for proteins. The company invested USD 146.0 million.
• In September 2017, DuPont and Dow Chemicals entered into a merger agreement to form the new company–DowDuPont. The value of the merger stood at USD 130.00 billion. Post-merger, the companies will operate into three independent divisions, namely, agriculture, materials science, and specialty products.
• In June 2016, Soja protein expanded its presence in the Asian and African markets. Following this expansion, the company would cater to Jordan, Egypt, Tunisia, Morocco, South Korea, the Philippines, Indonesia, Vietnam, and other Asian & African countries.
• In May 2016, Adani Wilmar and Ruchi Soya (India) entered into a joint venture to combine their procurement, marketing, distribution, and sales businesses for soya foods, by-products, and all other food products. Wilmar expanded its footprint in the Indian soy market through this joint venture.
• In February 2016, ADM signed an agreement with Harvest Innovations (US), engaged in the manufacture of textured soy protein and other soy products, to purchase more than 50% stake in the company. ADM expanded its product portfolio with this agreement.

Critical questions the report answers:

• What are the industry trends that would be seen over the next five years?
• Which vertical of the textured soy protein market is likely to lead the market during the forecast period?
• Which end-user segment is expected to witness the maximum growth during the forecast period?
• Which would be the leading region with the highest share in the textured soy protein market during the forecast period?
• How many companies implementing organic and inorganic strategies are expected to gain increased market share?

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