Soy chem to reach $2.7bn in 2013

I forgot to add this report to my last soy post about soybean-based chemicals demand expected to increase 7.8%/year to $2.7 billion by 2013 according to Freedonia Group.

Methyl soyate used in biodiesel is said to be by far the most established soy chemical although it is beginning to face competition from other raw materials. Methyl soyate is also finding greater use as a solvent in cleaning products and paints and coatings.

“Other soy oil derivatives, such as polyols, will benefit from corporate initiatives to use more renewable feedstocks, as well as from consumer demand for more greener products particularly in the plastics (foam products), and paint and coatings market. Intense research and development activities will further fuel growth in soybean oil derivatives as new products enter the market over the next 5 years.” – Freedonia

As long as soy chemicals performance is on par or better with their petrochemical-based counterparts, and with crude oil/petrochemical prices remain relatively high, Freedonia said the market penetration for soy chemicals will likely continue to expand.

US SOY CHEMICAL DEMAND

(million dollars)
% Annual Growth
2003 2008 2013 2003-2008 2008-2013
Soy Chemicals Demand 493 1873 2730 30.6 7.8
Biodiesel 26 1135 1510 112.8 5.9
Food and Beverages 256 308 425 3.8 6.7
Plastics 128 189 365 8.1 14.1
Others 83 241 430 23.8 12.3

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