Fats And Oil Market size is estimated to reach $307.3 billion by 2026, growing at a CAGR of 4.4% during the forecast period 2021-2026. Fats And Oils are an essential part of a healthy diet that supplies calories and helps in the absorption of fat-soluble vitamins, such as A, D, E, and K in the body. These are the most abundant lipids in nature that insulate body organs and provide energy for living organisms. Unsaturated and healthier fat products are increasingly being adopted across the world owing to the growing health consciousness among the customers and increasing awareness about the importance of essential fatty acids. The rise in the adoption of palm oil biodiesel as biofuel, growing demand for coconut oil as a substitute for vegetable oils for its essential fatty acids, and the rise in the healthier product launches of shortenings & margarine to reduce the consumption of high density lipoproteins are the factors that are set to drive the growth of the Fats And Oil Market for the period 2021-2026.
Fats And Oil Market Segment Analysis-By Fat Type
The Fats And Oil Market based on the Fat Type can be further segmented into Butter, Tallow, Lard, Shortenings & Margarine, and Others. The Butter segment held the largest share in 2020 and is also estimated to be the fastest-growing segment with a CAGR of 4.9% over the period 2021-2026. This growth is owing to the factors such as the increase in awareness about the presence of essential fatty acids in butter among the young population and the growing demand for butter in various food applications. The rise in the adoption of low-fat butter in developed nations is driving the growth of the Fats And Oil Market. The Shortenings & Margarine segment held the second-largest share in 2020 owing to the factors such as the growing adoption of shortenings & margarine in pastry products and the rise in the healthier product launches of shortenings & margarine to reduce the consumption of high density lipoproteins.
Fats And Oil Market Segment Analysis-By Oil Type
The Fats And Oil Market based on the Oil Type can be further segmented into Palm Oil, Rapeseed Oil, Soybean Oil, Sunflower Oil, Coconut Oil, and Others. The Palm Oil segment held the largest share in 2020 owing to the factors such as the increase in the adoption of palm oil biodiesel as biofuel and the rise in the demand for palm oil for edible purposes in emerging countries, such as India and China. The rise in the investment by the key players to develop high-quality palm oil is driving the growth of the Fats And Oil Market. The Coconut Oil segment is estimated to be the fastest-growing segment with a CAGR of 5.1% over the period 2021-2026. This growth is owing to the factors such as the rise in the adoption of coconut oil in the personal care industry, an increase in the demand for coconut oil as a substitute for vegetable oils for its essential fatty acids, and the growing awareness about the benefits of coconut oil.
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Fats And Oil Market Segment Analysis-By Geography
Asia-Pacific segment held the largest share with 27% of the overall market in 2020. The growth in this segment is owing to the factors such as the growing adoption of coconut oil in the personal care industry and an increase in awareness about the presence of essential fatty acids in butter. The rise in the healthier product launches of shortenings & margarine to reduce the consumption of high density lipoproteins is driving the growth of the Fats And Oil Market. North America segment is estimated to be the fastest-growing segment over the period 2021-2026. The growth in this segment is owing to the factors such as the rise in the adoption of palm oil biodiesel as biofuel in developed nations and the growing investment by the key players to develop quality and healthy fats and oils.
Fats And Oil Market Drivers
Increase in the Adoption of Coconut Oil in the Personal Care Industry
Coconut oil is increasingly being adopted in the personal care industry owing to its moisturizing properties when applied to the hair and skin and its ability to reduce hair damage caused by dryness. The key players are also extensively using coconut oil in creams, soaps, lotions, and moisturizers owing to its rich sources of vitamins, which is one of the major factors driving the growth of the Fats And Oil Market.
The Rise in the Favorable Policies on the Usage of Vegetable Oil
There has been an increase in the number of supportive policies implemented by the authorities of several nations to enhance the production and consumption of vegetable oils. The amount of soybean oil used in biofuel production in developed nations has been increasing rapidly. Moreover, palm oil contributes around 20% of the production of biodiesel and renewable diesel in the European region, which is further propelling the growth of the Fats And Oil Market.
Fats And Oil Market Challenges
Side Effects Associated with the Overconsumption of Fats And Oils
The key players in the market are collaborating with other players to carry out various research and development activities for launching high-quality fats and oils to reduce the consumption of high density lipoproteins. However, the rise in the side effects associated with the overconsumption of fats and oils is one of the major factors that is estimated to reduce the growth of the Fats And Oil Market.
Fats And Oil Market Competitive Landscape:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Fats And Oil Market. Key companies of this market are Cargill, Archer Daniels Midland Company, International Foodstuff Company Holdings Limited, Wilmar International Limited, Bunge Limited, Kuala Lumpur Kepong Berhad, Fuji Oil Holding Inc, Olam International, Musim Mas Group, and Ajinomoto Co. Inc among others.
Expansions/Product Launches:
In October 2020, Cargill has expanded the production capacity of special oils and fats at its Mairinque (SP) plant to keep up with rising customer demand for healthier food solutions for the food market and to enable the company to expand by 35 percent production capacity of the Liza and Mazola brands.
In February 2020, Bunge Limited has launched innovative oils to help in replicating the texture and cooking experience of meat and to meet the demand of consumers for plant-based meat alternatives for nutritional and sustainable reasons.
In October 2019, Musim Mas Group has expanded its production facilities by launching an R&D and Innovation facility in Singapore to enhance its focus on developing new solutions for palm oil functional blends and specialty fats for addressing different needs across the food industry.
Key Takeaways
Geographically, Asia-Pacific Fats And Oil Market accounted for the highest revenue share in 2020 and it is poised to dominate over the period 2021-2026 owing to the rise in the healthier product launches of shortenings & margarine to reduce the consumption of high density lipoproteins.
The increase in the adoption of palm oil biodiesel as biofuel in developed nations is driving the Palm Oil segment. However, the rise in the side effects associated with the overconsumption of fats and oils is one of the major factors that is said to reduce the growth of the Fats And Oil Market.
Detailed analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Fats And Oil Market report.
Related Reports:
A. Cooking Oils and Fats Market
https://www.industryarc.com/Research/Cooking-Oils-Fats-Market-Research-504562
B. Specialty Fats & Oils Market
https://www.industryarc.com/Research/Specialty-Fats-Oils-Market-Research-504471
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