GLOBAL MARKET REPORT

The global soybean sector, valued at USD 155 billion, is dominated by Brazil, the United States, and Argentina. While production has surged, it has driven significant deforestation in the Brazilian Amazon and Cerrado. Voluntary Sustainability Standards (VSSs) like RTRS and ProTerra aim to mitigate these impacts, but their adoption remains low, representing only 1.6% to 2.3% of global production as of 2021. The report finds that VSS compliance offers limited financial incentives for most farmers, with premiums often being minimal or non-existent, though organic soy commands significantly higher prices. Climate change threatens future yields, necessitating the development of resilient cultivars and the establishment of deforestation-free supply chains.

• The global soybean sector is valued at USD 155 billion and is projected to grow to USD 278 billion by 2031, with a compound annual growth rate (CAGR) of 6%.
• Soybean production is a major driver of ecosystem loss, particularly in the Brazilian Amazon and Cerrado, with the Amazon shifting from a greenhouse gas sink to a carbon source.
• VSS-compliant soybean production remains a small fraction of the global market, accounting for 1.7% to 2.6% of total production in 2019 and 1.6% to 2.2% in 2021.
• Financial incentives for VSS compliance are inconsistent; while organic soybeans in 2017 averaged a price 64% higher than conventional soy, RTRS-certified soybeans provided a minimal premium of about 1%.
• Climate change is expected to reduce global soybean yields by the end of the century due to hotter and more humid weather, although some regions like India, China, Japan, and Eastern Canada may see improved conditions.
• The soybean value chain is characterized by an 'hourglass' structure where a small number of multinational traders and processors hold significant market power over numerous producers and consumers.
• Geopolitical shocks, including the Russia-Ukraine conflict, have increased production costs by causing fertilizer shortages and price spikes, particularly affecting Brazil which imports 85% of its fertilizer.
• The European Union is expected to implement its Deforestation Regulation in December 2024 to help establish deforestation-free supply chains.

APA

Voora, V., Bermudez, S., Le, H., Larrea, C., & Luna, E. (2024). GLOBAL MARKET REPORT. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-02/2024-global-market-report-soybean.pdf

Chicago

Voora, Vivek, Steffany Bermudez, Han Le, Cristina Larrea, and Erika Luna. GLOBAL MARKET REPORT. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-02/2024-global-market-report-soybean.pdf.

Wikipedia

{{cite report |last1=Voora |first1=Vivek |last2=Bermudez |first2=Steffany |last3=Le |first3=Han |last4=Larrea |first4=Cristina |last5=Luna |first5=Erika |title=GLOBAL MARKET REPORT |publisher=International Institute for Sustainable Development |date=February 2024 |url=https://www.iisd.org/system/files/2024-02/2024-global-market-report-soybean.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{voora2024global, author = {Voora, Vivek and Bermudez, Steffany and Le, Han and Larrea, Cristina and Luna, Erika}, title = {{GLOBAL MARKET REPORT}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = feb, url = {https://www.iisd.org/system/files/2024-02/2024-global-market-report-soybean.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }