It seems like both serve the same purpose. Is there any difference that makes one useful in certain situations and not the other ?
2 Answers
In practice, they are very similar, but a Processor is more limited than a Bean. I generally use a Processor for simple use cases that just interact with the Exchange. Also, inline processors are a great way to interact without having to create a separate class.
Beans provide more flexibility and also support a true POJO approach. This allows you to more easily integrate with existing APIs (just need to convert the inputs/outputs to match, etc).
Beans also provide great features/flexibility with regards to Camel routing/EIP integration, including...
rich set of bindings that allow you to quickly bind data from the Exchange to attributes of a bean method, etc.
POJO consuming/producing allow you to interact with endpoints in a reusable manner
used as expressions/predicates (for POJO EIP implementation...filters, etc)

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Boils down to a matter of preference, I'd say. I generally opt for the POJO approach and so I started using beans to do my processing, but over time I've slowly moved to using Processors.
I was feeling pain in the following cases:
- Bean methods with more than one parameter
- Trying to get data out of the exchange params / the message headers
I know that Camel 2.8 takes out some of the pain of these cases by allowing annotations in your bean which guide Camel on how to call your bean's methods. I didn't want to go this route -- felt wrong to put Camel annotations into a bean that shouldn't care that it's being called by Camel.
In the end we created an annotation-free, client-agnostic bean and a very thin Processor that pulls everything it needs from camel and passes it to that bean.
Just my 2 cents - the bean route really isn't a bad one - it'll do the job just as well (esp in 2.8)
EDIT
Many improvements have been made to camel's use of POJOs to process messages since this was written - this answer may no longer be applicable.

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