Soyfoods To Cross $6.8 Billion By 2005.

The increasing evidence that a good diet is linked to good health and the prevention of such major disorders as heart disease and cancer, has led consumers to demand more healthful foods and beverages from processors. Consumers want products with less fat, cholesterol, and calories, and that

The current trend has induced many leading food and beverage processors to market some type of product containing soy, such as substitute meat or dairy products, or beverages using soymilk instead of cow's milk.

According to a soon-to-be-released study from Business Communications Co., Inc. RGA-099R Soyfoods: Trends and Developments, manufacturers' sales for soyfoods will increase from nearly $6 billion in 2000 to $6.9 billion in 2005, at an AAGR (average annual growth rate) of 2.7% during the 5-year forecast period.

Soyoil products (soybean oil and lecithin) constitute the largest share of manufacturers sales for soyfoods, comprising nearly 76% of the entire market. This segment is expected to increase from $4.5 billion in 2000 to $5 billion in 2005, an AAGR of 1.9%. The lion's share belongs to soybean oil, which is considered to be a staple in the food processing industry. Its moderate price, functionality, and nutritional profile, as well as wide availability and applicability, make it difficult to replace with any other fat or oil. Lecithin, too, is valued for its functionality and reasonable price but its applicability is relatively narrow.

Whole soybean products will be the fastest-growing, increasing from $922.4 million in 2000 to $1.2 billion in 2005, at an AAGR of 5.6% during the 5-year forecast period.

This is a product category that includes many different products that help consumers add soy into their diet, and use soyfoods as replacements for meat and dairy products.

Whole soybean products can be used as meals in themselves or ingredients, by processors and consumers. Some whole soybean products are marketed by mainstream processors who are able to get them into mainstream stores.

The third soyfood category is soy ingredients, which includes different types of soy protein, soy fiber, and soy isoflavones, and is projected to have good growth.

This market is forecast to grow at an AAGR of 4.7% thereby increasing from $523.3 million in 2000 to $659.2 million in 2005. Some consumers prefer to get soy into the diet through the use of processed foods that contain soy ingredients, rather than consume soy as a meal. These processed items are increasingly found in mainstream products.

RGA-099R Soyfoods: Trends and Developments, Published: September 2000, Price: $3450.

Manufacturers Sales For Soyfoods, 2000-2005
(in millions)

                             2000       2005       AAGR %
                                                 2000-2005

Soyoil products            4553.9     5001.1           1.9
Whole soybean products      922.4     1208.5           5.6
Soy ingredients             523.3      659.2           4.7

Total          5999.6     6868.8     2.7

* Manufacturers sales are defined as sales of soyfoods to food and beverage processors for use by themselves or as ingredients, and to various types of marketers who sell to retailers who then sell to the consumer.