DUBLIN–(BUSINESS WIRE)–The “Global Fats & Oils Market by Type (Vegetable Oils (Palm, Soybean, Rapeseed, Sunflower, and Olive), Fats (Butter, Tallow, and Lard)), Application (Food and Industrial), Source (Vegetables and Animals), Form, and Region – Forecast to 2026” report has been added to ResearchAndMarkets.com’s offering.
The global market for fats and oils is estimated at $236.7 billion in 2021; it is projected to grow at a CAGR of 3.8% to reach $285.2 billion by 2026.
The palm oil sub-segment is estimated to hold the largest market share in the By Oil Type segment in the fats and oils market
Players from many regions such as the Middle East and South Asian countries are investing heavily to increase areas under palm tree plantations. Palm oil is the most important vegetable oil both in terms of production and market trading. It has an extremely complex environmental and social footprint as it is produced only in equatorial regions. Thus their use is estimated to be the largest in the global markets.
By fat type, the butter and margarine sub-segment is estimated to account for the largest market share in the fats and oils market
Butter has been observed to facilitate many health benefits; it may improve immunity, regulate hormones, protect vision, boost metabolism, increase brain function, reduce chances of heart disease and blood pressure, protect against cancer, act as a powerful antioxidant, and protect against gastrointestinal issues and conditions. Further, butter is made up of about 80% fat and 15% water, while margarine is a popular butter replacer which is mainly derived from animal fats.
Their use is highly rising in the processed foods sector due to which they are estimated to account for the highest market share in the fats type segment.
The vegetable sub-segment of the By Source segment is projected to observe the fastest growth in fats and oils market over the forecast period
Market demand for vegetable sourced fats and oils can be attributed to the rising attractiveness of healthy & fortified vegetable cooking oils, increase in population and rising living standards, rising demand of food commodities, improved retail network, increase in crop yield and oil production, change in the composition of vegetable oil, fortification of oils, increase in consumer health concerns, and rising industrial applications such as personal care, cosmetics, agrochemicals, animal feed, and biodiesel, among others. Further, the global rise in the vegan population is a driving factor for vegetable fats and oils.
The liquid sub-segment of the By Form segment is projected to observe the fastest market growth in the fats and oils market during the forecast period
The liquid form of fats and oils is highly preferred for storage, transport and trade purposes. However, the level of saturation of different oils and fats differs over a wide range of temperatures. Certain oils, such as oilec acid, are liquid at temperatures considerably below room temperature, whereas elaidic acid is solid even at temperatures above room temperature. This form of use largely depends on the form required as per the end use of the oil and fats respectively.
The food sub-segment of the By Application segment is projected to observe the fastest market growth in the fats and oils market during the forecast period
The food sector finds use for a wide array of fats and oils in products such as chocolates & confectioneries, bakery products, processed foods, and dairy products. They confer desirable characteristics on several foods and contribute to tenderness to the shortened cake. Also, by aerating batter, fats aid in establishing texture in cakes. Thus they are estimated to account for the larger market share compared to industrial applications.
Market Dynamics
Drivers
- Increasing demand for food boosting global consumption of vegetable oils
- Increased consumption of bakery & confectionery and processed food products
- Growing demand for biodiesel
Restraints
- Labeling of fat & oil products and the safety issues
Opportunities
- Emerging application of fats and oils as substitutes of trans-fats
- Growth in microencapsulation of fats and oils
Challenges
- High capital investments in extraction
- High dependence on imports, leading to high costs of end-products
Companies Mentioned
- AAK International
- Ajinomoto Co., Inc.
- Archer Daniels Midland Company
- Associated British Foods Plc
- Bunge Limited
- CSM Ingredients
- Cargill, Incorporated
- Fuji Oil Co., Ltd.
- Gemini Edibles & Fats India Pvt. Ltd.
- Goodhope Asia Holdings Ltd.
- International Foodstuff Company Holdings Limited (IFFCO)
- K S Oils
- Mewah International Inc.
- Oleo Fats, Inc.
- Richardson International Limited
- Unilever Plc
- United Plantations Berhad
- Vega Foods
- Welch, Holme & Clark Co., Inc.
- Wilmar International Limited
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