Soy Food, Beverage Sector Declines 16%

CHICAGONew market research from Mintel reveals the soy food and beverage market sector experienced a 16-percent decline from 2008 to 2010 and is expected to fall another 17 percent by 2012 due to a number of factors, including competitive non-soy-based product threats, higher ingredient prices passed on to consumers, soy burnout and soy allergies.

 Aside from the depressed economy, consumers are experiencing soy burnout," said David Browne, senior analyst at Mintel. Not too long ago, American consumers were told soy is a super food that they cant get enough of; but now, theyre hearing they may be getting too much. With soy aversion now a relevant concern, there are tons of competitive products available that have made it easy to switch to something new."

Mintels research reported at least half of survey respondents use soy because they like the taste. Data suggest that health benefits resonate more with under-35s than their older counterparts. Taste was the main reason non-soy users steer clear of soy (45 percent), and about 25 percent of the non-users indicated soy is too expensive.

Soy sauce is the most widely used soy product (42 percent), followed somewhat distantly by soy-based products that feature soys flavor/characteristics more prominently, including soymilk (19 percent), soy protein-based energy bars (15 percent) and edamame (14 percent). 

Product developers may be able to gain new users by blending soy ingredients with nuts and grains to create innovative, better tasting and possibly more affordable food and beverages," Browne said. Among those who prefer alternatives to soy, 34 percent report having a preference for other non-dairy milk, such as coconut milk or oat milk, and 21 percent specifically prefer almond milk."