peter golbitz soy sym aug 2

7/30/2019 Peter Golbitz Soy Sym Aug 2

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Global Soy & Soy Products

Market Drivers, Products, Trends

and Innovation

Presented by

Peter Golbitz

Director of International Business Development

SunOpta Grains and Foods Group

Minnesota, USA


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Production Disposition

Food Use

Soybeans for Food


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Soya 21st Century Food Platform

Soybeans are an extremely versatilefood source and are the base of a newfood platform for the 21stCentury

Soybeans can be used as a primary

component in virtually ever majorfood category including:

Meat and meat alternatives

Dairy and dairy alternatives

Fresh vegetables

Dried beans and grain

Cooking oils and fats

Flour-based products

Fermented foods and pastes


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Abundant & Growing Food Source

Soybeans are widely grownand available worldwide ata reasonable cost

Total production for

2010/11 should reach over250 million metric tons

Production has grown at anaverage rate of 3.5 percentannually for the past 10

years

Soybeans are the largestprotein and oilseed crop inthe world today


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Where Soybeans are Grown

World soybean productionis heavily concentrated inNorth and South Americawith the U.S. being the

largest producer, followedby Brazil and Argentina

The top 7 producingcountries account for 95%of world production

Production is expected tocontinue to grow in SouthAmerica due to availableland and water resources

World Soybean Production by Major

Producing Nations, 2010/11 Projection


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World Soybean Use

On average, the worlds

soybean crop is used asfollows:

87% is crushed into

soybean meal for animalfeed, proteins andvegetable oil

7% is used directly asanimal feed, seed or other

6% is used for directhuman food (some portionof above also likely used asfood through direct farmsales)

Use of World Soy

Production(average of 2005 2010)


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World Soybean Use for Food

The world will use about 15million metric tons ofsoybeans as direct food in2010/11

Use growing by 2% per yearfor the past five years

These beans are eithercommodity soybeans thathave been cleaned to ahigher standard or IdentityPreserved soybeans grownspecifically for food use

Use of soybeans for crush isgrowing more quickly, atabout 2.5% per year


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Leading Countries for Food Use

Asian countries lead the worldin direct food use of soybeansaccounting for over 95% ofestimated use in 2010/11

China is by far the worldslargest consumer of soybeansfor food major uses includesoymilk, tofu and fermentedfoods

Indonesia, with heavy use ofsoybeans for tempeh, is #2

Japan follows with heavy usefor tofu, fermented foods andsoymilk


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Market Drivers

Products

Trends

Innovation

World Soyfoods Market


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Soybeans: An Important Functional Food

Nutritionally dense Only plant food that is a complete protein

Provides all 8 essential amino acids

Contains healthy fats and dietary fiber

Vitamins and minerals Cholesterol-free, low in saturated fats

Heart Healthy FDA: 25 grams of soy protein per day may

reduce risk of heart disease

Functional Food Ingredient Can be used as a functional ingredient in

food systems and for human health

Applications in dairy and meat alternatives,baking, snack foods, cereals and more


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Soyfood Market Drivers

Market forces such as healthconcerns, need to reduce cost infood processing and functionalitydrive the demand for soybeans and

soy protein.

In addition, soy proteins areconsidered to be an essentialingredient in many processed

meats, increasing both the qualityand weight of the product.


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Low Cost:

Soybeans and soy proteins, by virtue of theirbeing lower in the value chain, will likely be lessexpensive than animal-based ingredients

Functionality: Extremely versatile and functional, soy proteins

can easily be formulated into many existing foodproducts as a nutritional enhancement or low-cost extension

Soy proteins can also be used to replace wholesoybeans in many traditional soyfoods such assoymilk, tofu and meat alternatives


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Health Benefits:

In 1999, the U.S. FDA approved a soy proteinhealth claim allowed foods containing 6.25grams of soy protein per serving to state that

they are heart healthy foods

Other benefits being researched includecancer prevention, bone health, kidneyhealth and weight management due to thesatiety of proteins

Hundreds of research papers have beenwritten touting the benefits of addingsoyfoods and soy protein to the diet


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Sustainability

Soybeans are the worlds most efficient,

abundant and low cost source of protein

They can be grown world wide - they

enrich the soil by fixing needed nitrogenand reduce chemical fertilizer inputs forother crops, such as corn

As the world looks to use resourcesmore efficiently, we will come to rely

more heavily upon plant proteins toprovide an ever-increasing portion ofthe human diet if everyone is to be fed



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World Soyfood Sales

The estimated value of allsoyfoods sold in the worldtoday is between $15 and $20billion and growing at between2 and 5% per year, with

soymilk accounting for aboutone third of the markets value(SunOpta est.)

Based on data fromMintel,Asia-Pacific region is showingthe greatest growth in soy

products along with LatinAmerica, while the U.S. is indecline, Europe shows slowgrowth and the Middle East &Africa has yet to emerge

Soyfood Product Launches, 2005 - 2009


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Soyfoods in the U.S.

U.S. food marketers havebecome creative with soyand found ways to use it inmany familiar food

products, creating newhealthier snacks, drinks,dairy alternatives, foodsand beverages

In 2009, total sales of all

soy-based foods in the U.S.totaled over $4.0 billion atthe retail level


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Soymilk in the U.S.

In 2009, there were over 600 soymilkproducts in the U.S. market, not includingprivate label products, with total retailsales of over $1.1 Billion

Vanilla and plain were the leading flavors,followed by chocolate

Two-liter carton was the leading package

75% of soymilk products are made withorganic soybeans

For the fourth year running, private labelproducts were the fastest growing brand(29%+ in 2008) indicating a growingpreference for generic vs. leading brandproducts


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Other soymilk-based foods in the U.S.

Soymilk, in powdered andliquid form is alsoprocessed into other dairyalternatives such as:

Yogurts Drinkable yogurts

Frozen desserts

Puddings

Coffee creamers Cheese products

And of course, tofu!


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Soyfoods in Europe

The market for soyfoods inEurope is dominated by meatand dairy alternatives andvaries considerably from

country to country based onregional taste preferences

Soymilk products sales areover 600 million according toa recent report from ProSoy

Recent trends include a rapidgrowth in soy yogurts andfunctional soymilk products


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Soyfoods in Europe

The market in Europe isdriven by:

Rapid growth in private labelstore brands

Demand for organic products

Vegetarianism or meat-free aspart of a mainstream diet

Overall health concerns

Concern about consumption of

animal products (mad-cow)

New convenient offerings in R-T-E meals


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Soyfoods in Asia

The market for soyfoods in Asia is filledwith traditionalfoods such as:

Tofu

Miso

Soy Sauce

Tempeh

Edamame

Soy Sprouts

Yuba

Natto


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Soymilk in Asia

Soymilk sales in Asias packaged

food market was estimated atnearly $1 billion in 2007 and isgrowing at over 10% per year,according to AC Neilsen

In addition to plain andsweetened products, manytraditional flavors are availableincluding Black Sesame, BrownSugar, Corn and Vegetable flavor

In China, half of the leadingproducts on the market are inpowdered form and mostcontain dairy ingredients


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Soymilk in Asia

Soymilk packaging includesfresh, aseptic and retortbottles that can be soldalongside of other soft

drinks, broadening theappeal and reach of theseproducts

For many Asians, thetraditional beany flavored

soymilk is preferred, and it isusually lighter in protein andhigher in sugar content thana milk alternative product


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Soymilk in Asia

New soymilk productintroductions in theAsia/Pacific area have beengrowing rapidly, with Chinashowing the greatest

number of products,followed by Japan, HongKong and others

With the exception of China,where there are manypowdered products beingintroduced, the vastmajority of these productsare in liquid form and ineither glass or plasticbottles, or Tetra Pak cartons

Soymilk Introductions Asia/Pacific Region,2005 2009

Source: Mintel GNPD


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Soymilk in Southeast Asia

According to The South-East Asian Marketfor Non-Dairy Drinks(2007, Organic Monitor)

Growth in the region is projected at 8.4% peryear through 2013 to reach 735 million literswith a value of $600 million

Per capita consumption was 1.2 liters peryear and increasing

The market is heavily concentrated inThailand, Malaysia and Singapore, withIndonesia and the Philippines having lowconsumption due to high prices and lack ofdomestic production

The leading companies in the region are: Green Spot Lactasoy YeoHiapSeng Ace Canning Dutch Mill


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Soyfoods in India

Textured soy protein, soymilk andtofu are available in India, withsoymilk sales growing rapidly

According to the AmericanSoybean Association, there were

approximately 32.5 million litersof soymilk produced in India in2008, up from 400 thousand litersin 2000

Given the overall population,

expansion of the hypermarkettrade, growth of the middle classand large vegetarian community,there appears to be abundantopportunity for growth


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Soyfoods in Latin America

Throughout Latin America,including Mexico andCentral and South America,sales of soyfoods are

growing quickly Textured soy protein meat

alternatives, soymilkproducts, energy bars andcereal mixes are appealing

to consumers looking forhealthier, low fat and highprotein foods


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Soymilk in Latin America

Across Latin America,soymilk comes in avariety of forms andflavors including

regular soymilk,soy/juice blends,soy/cow milk blends,powdered products andcanned evaporated

soymilk Lactose intolerance is a

big factor in marketdevelopment, as is cost


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Soyfoods in Africa

Throughout Africasoyfoods find theirway to consumersthrough both

consumer productsand governmentprograms

Popular foods include

textured soy protein,soy/maize cerealblends and soymilk


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Soymilk in South Africa

While still in an emergingmarket phase, soymilk productsare becoming more popular inSouth Africa with domestic and

imported products available The most popular package now

is the aseptic Tetra Pak, with nofresh or chilled product

available

Private label soymilks areshowing up in supermarkets,indicating some level of massmarket appeal


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In conclusion..

Soy-based foods are growing inpopularity worldwide and willcontinue to play an ever-increasingrole in the feeding of our planet

The soybeans high nutritive value,low cost and versatility allow it to beused in wide range of foods andpreparations

Whether it be a traditional or modern

soyfood product, sold on the streetcorner or packaged and sold in asupermarket, many people willconsume more soybeans in their dietfor years to come


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For more information, please contact:

Peter Golbitz, Director of International Business Development at

[email protected]

peter golbitz soy sym aug 2

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