The global market for fats and oils is estimated at USD 236.7 billion in 2021; it is projected to grow at a CAGR of 3.8% to reach USD 285.2 billion by 2026. Fats and oils form key primary materials and functional ingredients for the food and feed industries; they also find applications for industrial purposes.Fats and oils play a major role in the food industry due to their smooth, creamy, and rich texture and desirable flavor.
These attributes are vital and play an important role in terms of contributing towards market growth.Fats and oils have numerous applications such as butter, cooking oil, salad, animal feed, fatty acids, biodiesel, paints, personal care products, greases, and lubricants.
Further, the rising population, coupled with changes in lifestyles, leading to an increase in consumption of edible oils and processed foods, is driving the increase in the consumption of fats and oils.
The palm oil sub-segment is estimated to hold the largest market share in the by oil type segment for fats and oils market.
Players from many regions such as 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 fats and oils market.
Butter has been observed to facilitate many health benefits such as improve immunity, regulate hormones, protect vision, boost metabolism, increase brain function, reduce chances of heart disease and blood pressure, protects against cancer, acts as a powerful antioxidant, and protects against gastrointestinal issues and conditions.Further is made up of about 80% fat and 15% water.
While margarine are a popular butter replacer which are 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 vegan population is a driving factor for vegetable fats and oils.
The liquid sub-segment of 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 is liquid at temperatures considerably below room temperature, whereas elaidic acid is solid even at temperatures above room temperature. This the 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 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 a wide array of fats and oils into 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.
Break-up of Primaries • By Company Type: Tier 1 : 20% , Tier 2 : 50% , and Tier 3 : 30% • By Designation: CXOs- 31%, Managers – 24%, Executives- 45% • By Region: North America – 24%, Europe – 29%, Asia Pacific – 32%, South America- 12%, and Rest of the World (RoW) * – 3%. * RoW includes Middle East and Africa.
Leading players profiled in this report • Associated British Foods PLC (UK) • Archer Daniels Midland Company (ADM) (US) • Bunge Limited (US) • Wilmar International Limited (Singapore) • United Plantations Berhad (Malaysia) • Unilever PLC (UK) • Ajinomoto Co., Inc. (Japan) • Mewah International Inc. (Singapore) • Cargill, Incorporated (US) • Richardson International Limited (Canada) • International Foodstuff Company Limited (IFFCO) (UAE) • Goodhope Asia Holdings Ltd. (Singapore) • Vega Foods (Singapore) • Welch, Holme & Clark Co., Inc. (US) • Oleo Fats, Inc. (Philippines) • CSM Ingredients (US) • AAK International (UK) • Fuji Oil Co., Ltd. (Japan) • Gemini Edibles & Fats India Pvt. Ltd. (India) • K S Oils (Singapore)
Research Coverage This report segments the fats and oils market on the basis of type, application, form, source and region. In terms of insights, this research report focuses on various levels of analyses—competitive landscape, end-use analysis, and company profiles—which together comprise and discuss the basic views on the emerging & high-growth segments of the Fats and oils market, the high-growth regions, countries, government initiatives, market disruption, drivers, restraints, opportunities, and challenges.
Reasons to buy this report • To get a comprehensive overview of the fats and oils market • To gain wide-ranging information about the top players in this industry, their product portfolios, and key strategies adopted by them • To gain insights about the major countries/regions, in which the fats and oils market is flourishing
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