Market Trends of germany soy protein Industry
Plant protein consumption growth fuels opportunities for key players in the ingredients sector
- The German plant protein market is driven by consumers' increasing conversion toward vegan diets due to their functional efficiency, the cost competitiveness offered by reliable plant protein products such as soy, wheat, and pea, and their increasing application in various processed foods. Soy protein is considered healthy for all age groups and helps maintain proper body functions. Plant-based protein alternatives are widely used in the food and beverage and supplement segments. They can be derived from sources such as soy, wheat, and other vegetables, which are essential parts of the food and beverage segment, thus boosting plant protein consumption in Germany. As more consumers increased their preference for vegan diets, the number of vegans in Germany doubled, reaching 2.6 million people and accounting for 3.2% of the population from 2016 to 2020.
- Favorable government policies to reduce various diseases, such as obesity and diabetes, by controlling meat consumption may result in a growing consumer shift toward wheat protein. Currently, at least 7.2% of the population in Germany has diabetes, most of them type 2 diabetes. The number of people with diabetes is expected to increase significantly over the next two decades.
- The growing demand for clean-label ingredients and stringent labeling regulations by food authorities are compelling food manufacturers to adopt natural ingredients. Thus, ingredient manufacturers operating in the market are focusing on developing innovative ingredients to cater to the growing demand and achieve a competitive advantage in the market. There is a rising demand for vegan food products and an increasing number of lactose-intolerant consumers in Germany. As a result, the overall plant protein consumption increased from 47 g in 2017 to 53 g in 2022.
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German soybean production has increased more than tenfold since last decade, with more consumers making it a part of their diet
- Soybean production in Germany increased rapidly in the past few years with the increasing number of consumers accepting the crop as part of their diet. Around 94,100 tons of soybeans were harvested in Germany in 2020, which is recorded as the largest quantity ever. Production grew by 12% on average in 2020 despite lower yields and increased to as much as 64% compared to 2018. German soybean production has increased more than tenfold since 2012 due to a steady expansion in the production area. The soybean area for the 2020 harvest amounted to 32,900 hectares, up by 14% Y-o-Y. On the other hand, yields were slightly lower.
- Over past decades, soy cultivation has exploded, from around 17 million metric tons in 1960 to more than 300 million metric tons to date. For instance, around 25-30% of soy is domestically produced in Germany. Western Germany saw the strongest drop in yields. North Rhine-Westphalia harvested around 25% less than the previous year, whereas yields in Hesse fell by 20%. However, since Hesse and Mecklenburg-Western Pomerania production areas significantly expanded in 2020, soybean output in the regions was larger than in 2019. Yields in south Germany were also slightly down, and those in eastern Germany generally rose considerably. Saxony-Anhalt registered the biggest increase at 130%.
- The demand for genetically modified crops is increasing in the region, catching up with most of the production in the region. Large quantities of genetically engineered soy, which has to be marked as such in Germany and the European Union, make their way unmarked onto the supermarket shelves via the food trough. German cultivators are planning to cultivate cold-proof beans for the crop to tolerate temperatures below 10 degrees Celsius.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Demand for premium baby foods on the rise
- Consumers shifting away from carbonated beverages may restrain the market
- Consumers' preferences shift to premium condiments and sauces, away from packaged soups
- The demand for functional dairy products is expected to drive the market
- Meat alternatives are emerging as the potential market drivers
- Healthy snacks are expected to drive the market in the future
- Feeds with specific claims are on the rise
- A strong hold of the bakery segment to drive market
- Fortification and innovative packaging trends to influence breakfast cereals market
- High confectionery production benefits German manufacturers
- Aging population to expand the consumer base
- Single-headed households to drive the RTE/RTC market
- Consumers with active lifestyles are expected to drive the market
- Natural cosmetic products are boosting the market studied
