Soy Sauce Market Size, Share & Industry Analysis, By Process (Brewed and Blended), Type (Light Soy Sauce, Dark Soy Sauce, and Others), End-user (Processed Food, Food Services Sector, and Households), and Regional Forecast, 2020-2032

The global soy sauce market size was USD 40.63 billion in 2019 and is projected to reach USD 69.98 billion by 2032, exhibiting a CAGR of 6.23% during the forecast period based on our analysis in the existing report.

Sauces market is one of the long-standings and diverse markets across the world, due to its offerings of savoury appeal to consumers in their daily diet. Sauces and condiments have been in huge demand among the consumers since initial times and the trend is still continuing in the global marketplace. Among the several oriental table sauces, this sauce is widely consumed owing to its offerings of sensorial appeal in the food.

Nowadays, the taste preferences of the consumers are becoming experimental and are looking for tasty and healthy sauces along with the extended shelf life. The manufacturers are increasingly focusing on introducing new products with low pH to preserve and increase the taste of soy sauce. The constant advancements in the technology and fast steady improvement of consumers’ living standards will aid the growth of market across the world.

However, the global pandemic caused by the outbreak of COVID-19 will directly affect the purchasing patterns and utility of these products in the overseas market negatively (especially foodservice sector consumption). According to the World Trade Organization 2020, the global trade scenario is expected to fall by between 13% to 32% in the year. The extended lockdown period, as well as the disruptions in the demand-supply chain, is expected to hamper the production and consumption of this sauce for the next couple of years. On the other hand, governments are increasingly focussing on developing and improving the economy as well as market conditions by imposing regulations and initiatives in the marketplace.

LATEST TRENDS

Free of Artificial Preservatives Sauces to aid the Market Growth

The consumers are becoming more aware of their food selections in the market and the origin of food is becoming a serious concern among them to maintain their health. An increasing number of consumers are reducing the unhealthy components from their diet and looking for clean-labelled soy sauce which is free from artificial preservatives. Clean-eating consumers scrutinize the sourced ingredients for the sauce and its manufacturing process along with the animal welfare practices of the brands in the market. Thus, manufacturers are introducing clean-label products in the market to meet the demand, which is expected to deliver long-term revenue in the worldwide marketplace. 

DRIVING FACTORS

Rising Demand for Nutritious Yet Umami Foods Trigger the Utility of these Products in their Processing

Spices and condiments play a vital role in dietary patterns mainly among Asian consumers all across the world. The consumers in the region prefer the spicy and umami flavored foods in their daily diet which enhances the taste of the foods.

Nowadays, the trend for Asian foods is growing, as consumers all across the world are becoming more experimental in their food choices. Thus, demand for Asian cuisines such as Chinese and Japanese foods are gaining huge popularity across the world. This sauce is one of the most consumed sauces for the preparation of these umami foods in the market. The emergence of the new food services sector and increasing product innovations in the packaged foods segment are majorly propelling the overall market. 

Availability of Abundant Soybeans to Promote the Innovations in the Soy Sauce Spectrum

Over the recent decades, the global consumption of soybeans has increased at a decent pace. Currently, it is one of the most prevalently grown and used commodity all over the globe. The utilization ranges from human consumption to animal feed, owing to its natural properties such as a rich source of protein, carbs, and others. According to the Food Climate Research Network (FCRN) at the University of Oxford, approximately, only 6% of total produced soybeans are utilized for human consumption every year. Thus, the manufacturers are utilizing the available raw materials in the production of varied soy sauce to meet its increased demand from several food sectors and households. Innovations and evolving food preferences of the consumer’s demand are some of the major factors that are driving the overall business in the global marketplace.

RESTRAINING FACTORS

Reduced Consumption of Soy sauce Products among the Women

Though soybeans are a rich source of nutrients such as fat, carbohydrates, and others, soy consumption may be unsafe during the state of pregnancy. According to the International Journal of Scientific & Technology Research (IJSTR) 2015, the increased and regular consumption of soy and soy sauce in pregnancy can hamper the health of the mother and child. Soy contains phytoestrogens that occur naturally in plants and may produce weak biological effects during the pregnancy. Thus, the reduced consumption of soy products among consumers is expected to hamper the market growth during the forecast period.

SEGMENTATION

By Process Analysis

Blended Segment is Leading in the Market Owing to its offerings at Relatively Cheaper Cost

The blending process is gaining huge popularity among the manufacturers and producers to meet the demand for effective and innovative products in the market. Blending helps to modify the taste and texture of the sauce by adding additives with savory and sweet tastes. On the other hand, the short fermentation process results in its low cost in the market which is further fuelling the demand for the product.

However, brewed soy sauce is also performing decently among the consumers who doesn’t want to lose the authenticity of soy flavor in the sauce, mainly in China. The demand for both the processed sauces is expected to proliferate the global market over the coming years.

By Type Analysis

Higher Nutritional Components of Dark Soy Sauce Promotes the Consumption Over Others

The types of soy sauces used in the preparation of several cuisines are dark, light, sweetened, and low-sodium products. Dark sauce is high in viscosity with less content of water as compared to others, hence rich in several nutritional components such as protein, calcium, phosphorus, and others. The growing consumer inclination towards nutritious and savory sauces has led the segment dominating in the global marketplace. Light soy sauce is also utilized for seasoning as well as dipping, which is further expected to boost the growth of the segment.

By End-user Analysis

Increasing Adaptation of Cross-cultured Food Trends has Resulted in the Increased Utility of the Product in the Food Services Sector

The consumers in several developing countries such as India, China, Indonesia, and others are adapting the varied food eating trends in the market. These have resulted in an increased dine-out trend and rising consumption of processed snacks in this region. Asian foods are gaining huge popularity among the developing as well as developed economies, which has necessitated the manufacturers to offer umami flavors in the food. The manufacturers and restaurants are utilizing the huge quantity of this product to meet the demand from several food sectors in the global marketplace. However, the households are also contributing to generating revenue through buying packaged soy sauces in the market. The self-cooking trend is encouraging households to utilize the significant quantity of the product which is expected to influence the market positively.

However, the drastic regulations and governmental measures along with the increased lockdown period due to COVID-19 have majorly impacted the expected revenue of the market. The food services sectors are not serving the consumers in this market condition that has reduced the sales of these products in the global marketplace.

REGIONAL INSIGHTS

Asia Pacific Holds a Major Market Share Owing to the Presence of Larger Consumer Base

Asia Pacific is leading in the global marketplace, exemplified by being a major producer as well as consumer of this type of sauce all across the world. The growth is majorly attributed to China as it has been a traditional condiment since initial times. The development of society & the advancements in the technologies have developed several innovative products in the market and has fuelled its consumption in the past few decades. China imports more than 50 MMT soybeans every year, from which it utilizes a specific quantity to produce this sauce to fulfill the demand-supply gap in the market. However, as the global pandemic of COVID-19 has hampered several overseas markets, it is expected to dampen the trade scenario of soybeans in the country. The disruptions in the availability of raw materials are expected to impede the overall soy sauce market for the next few years. 

North America remains the second largest consumer in the world, owing to the increasing adaption of varied foods among the consumers. The U.S. is a major market in the region which is utilizing a huge quantity of these ingredients in the food services sectors and packaged foods to cater to the demand for Asian foods in the market. On the other hand, the increasing numbers of individuals from different parts of the world are also proliferating a huge demand in the country.

Followed by Asia Pacific and North America, Europe is expected to hold a significant market share in the global marketplace. This is owing to the rising interest of the consumers over the various regional cuisines. Thai, Japanese, and Chinese cuisines are gaining huge popularity in the region that has necessitated the HoReCa sector to serve soy sauce-based foods in their outlets. However, South America and the Middle East and Africa are expected to hold the least market share, due to the lack of awareness and sub-optimal product penetration in the market.

KEY INDUSTRY PLAYERS

Market is Fragmented Owing to the Emergence of Local Players

The global market structure is moderately organized owing to the presence of various dominant players in the market. These manufacturers are focusing on the production of innovative and nutritious soy sauce to remain with the ongoing trend. Haitian Group, Kikkoman Corp., Nestle S.A., Kraft Heinz, and Yamasa Corporation are some of the key players with major market share.

LIST OF KEY COMPANIES PROFILED:

• Haitian Group (China)


• Kikkoman Corporation (Japan)


• Nestle S.A. (Switzerland)


• Kraft Heinz Company (US)


• McCormick & Co Inc. (US)


• Yamasa Corporation (Japan)


• Campbell Soup Company (US)


• MARUNAKA-SHOYU (Japan)


• Shoda Sauces Europe Company Limited (U.K.)


• Hormel Foods Corporation (U.S.)


• Halcyon Proteins (Australia)

KEY INDUSTRY DEVELOPMENTS:

• In August 2019, Kikkoman Corporation has inaugurated a new research & development (R&D) center in Japan to reinforce the focus on taste and innovations of soy sauces in the country.


• In May 2020, Lee Kum Kee Company Limited has announced to launch a new range of sauces in China viz. Hoisin Sauce. The new product will offer a combination of soy sauce and lime water to meet the demand of innovative sauces in the country.

REPORT COVERAGE 

This soy sauce market research report provides qualitative and quantitative insights with the impact of COVID-19 in the market. It also offers a detailed analysis of its utility, end-users, types, market size and growth rate for all possible segments in the market.

Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key soy sauce industry trends.

Report Scope & Segmentation