Market Size of Fats and Oils Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.30 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Fats and Oils Market Analysis
The fats and oils market is projected to register a CAGR of 5.3% during the forecast period.
- Fats and oils are used extensively in food applications such as confectioners to produce candies and polish confectionery products. Refined olive oil and coconut oil are increasingly used for various bakery applications as they are bland in taste, allowing food to maintain its original flavor. They also do not exhibit any pungency, unlike mustard oil.
- According to the Food and Agricultural Organization (FAO) price index, the cost of fats and oils has increased by 40% between 2020 and 2021. In December 2021, these prices returned to their pre-COVID-19 levels. In 2021 compared to 2020, more industries utilized fats and oils as lubricants. Fats and oils have gained prominence as feed products due to their health benefits for poultry and cattle.
- Fats and oils are also well-known for high-energy food ingredients that contribute essential nutrients the body requires. Moreover, due to health concerns, consumers are gradually replacing trans fat with a healthier substitute, namely unsaturated liquid vegetable oils, such as olive, canola, corn, or soy. This is expected to drive demand for such products across the globe in various applications. Also, today, many fat and oil ingredients are available in great taste and texture while simultaneously targeting appealing label claims around nutrition content.
- Demand for such products is growing in the market and is expected to drive the fats & oils market over the forecast period. Fats and oils are high-energy supplements that ensure nutritional balance while minimizing feed costs. Thus, these are added as feed additives to reduce the incidence of bloat and energy density in the feed.
Fats and Oils Industry Segmentation
Fats and oils are lipids. They are important energy stores in animals and plants. Fats are solid at room temperature, whereas oils are liquids.
The scope of the fats and oils market includes segmentation by type, application, and geography. Based on type, the market is segmented into fats and oils. Fats are further segmented into butter, tallow, lard, and specialty fats. Moreover, oil is segmented into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, cotton seed oil, sunflower seed oil, and other oils. Based on application, the market is segmented into food & beverage, personal care & cosmetics, pharmaceuticals, animal feeds, and others. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.
For each segment, the market sizing and forecasts have been done based on value (in USD million).
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Fats and Oils Market Size Summary
The fats and oils market is experiencing significant growth, driven by their extensive use in food applications and increasing demand for healthier alternatives. Refined olive and coconut oils are gaining popularity in bakery products due to their neutral taste, which preserves the original flavor of foods. The market is also seeing a shift towards unsaturated liquid vegetable oils, such as olive, canola, corn, and soy, as consumers become more health-conscious and seek to replace trans fats. This trend is further supported by the nutritional benefits of fats and oils, which are used as high-energy supplements in animal feed to enhance nutritional balance and reduce feed costs. The market is also benefiting from the growing use of vegetable oils as sustainable alternatives in non-food industries, such as paints, lubricants, and paper, where they serve as eco-friendly substitutes for fossil fuels.
The market landscape is highly competitive and fragmented, with major players like Wilmar International, Cargill Inc., and Bunge Limited holding significant shares. These companies are focusing on expanding their global presence and production capacities through strategic investments, partnerships, and joint ventures. The demand for vegetable oils is further bolstered by policies supporting their use in biofuels, particularly in the European Union and the United States, where they are increasingly used as feedstocks for biodiesel and renewable diesel production. This regulatory support, combined with the market's shift towards sustainable and health-oriented products, is expected to drive continued growth in the fats and oils sector over the forecast period.
Fats and Oils Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Fats
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2.1.1.1 Butter
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2.1.1.2 Tallow
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2.1.1.3 Lard
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2.1.1.4 Specialty Fats
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2.1.2 Oils
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2.1.2.1 Soybean Oil
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2.1.2.2 Rapeseed Oil
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2.1.2.3 Palm Oil
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2.1.2.4 Coconut Oil
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2.1.2.5 Olive Oil
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2.1.2.6 Cotton Seed Oil
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2.1.2.7 Sunflower Seed Oil
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2.1.2.8 Other Oils
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2.2 Applications
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2.2.1 Food & Beverages
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2.2.1.1 Confectionary
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2.2.1.2 Bakery
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2.2.1.3 Dairy Products
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2.2.1.4 Other Applications
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2.2.2 Pharmaceuticals
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2.2.3 Animal Feed
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2.2.4 Personal Care & Cosmetics
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2.2.5 Others
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Italy
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle-East and Africa
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Fats and Oils Market Size FAQs
What is the current Fats and Oils Market size?
The Fats and Oils Market is projected to register a CAGR of 5.30% during the forecast period (2024-2029)
Who are the key players in Fats and Oils Market?
Cargill Incorporated, Bunge Limited, Fuji Oil Holding Inc., Olam International and The Archer Daniels Midland Company are the major companies operating in the Fats and Oils Market.
