Market Size of South America Fats and Oil Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.59 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
South America Fats and Oils Market Analysis
The South American Fats and Oil Market are expected to record a CAGR of 4.59% during the forecast period, 2022-2027.
The COVID-19 outbreak has disrupted the food & beverage supply chain all across the country. Furthermore, the impact of the pandemic on society and the economy has been witnessed as a result of lockdowns across the globe. Labor mobility restrictions, travel bans, airline suspensions, and a slowdown in the economy affected the sustainability of supply chains of the food and beverage industry all across the globe. Consumers' consumption habits have been changed by their perception of the risk associated with COVID-19. To reduce the risk of infection, consumers used delivery services to buy groceries and food products. Furthermore, fear of potential food ingredient shortages has fueled the hoarding trend in consumers. The unavailability of raw materials has raised new concerns for market players.
The market is primarily being driven by its extensive applications in the food industry for making bakery, confectionery, dairy, and other products, along with its industrial use in the production of biodiesel, fatty acids, animal feeds, paints and coatings, plastics additives, soaps, lubricants and greases, cosmetics, pharmaceuticals, etc.
Also, the growing demand for plant-based food ingredients has propelled the application of oils in food products. In 2020, according to Good Food Institute (GFI), the plant-based food products market in the Latin American region was worth around USD 800 million.Due to several heart risks associated with partially-hydrogenated vegetable fats and their by-products, governments are repositioning their policies and rolling outlaws to limit their usage. This reflects the hindered growth of the market in the near future.
South America Fats and Oils Industry Segmentation
The South American fats and oils market is segmented by type into fats, specialty fats, and oils. Based on the application, the market is classified according to the application of fats and oils in food, industrial, and animal feed applications. The market is also differentiated on the basis of geography.
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| Brazil | |
| Argentina | |
| Chile | |
| Rest of South America |
South America Fats and Oil Market Size Summary
The South American fats and oil market is experiencing a steady growth trajectory, driven by its diverse applications across the food and industrial sectors. The market's expansion is largely attributed to the increasing demand for oils in food products, particularly with the rise of plant-based ingredients. The region's food industry utilizes fats and oils in the production of bakery, confectionery, and dairy products, while industrial applications include biodiesel, animal feeds, and various consumer goods. Despite the positive growth outlook, the market faces challenges such as the impact of COVID-19 on supply chains and changing consumer behaviors, which have led to concerns over ingredient shortages and altered purchasing patterns.
Brazil stands out as a key player in the market, being a leading producer and exporter of soybean oil, with significant exports to major global markets. The country's advancements in vegetable oil applications, particularly in cosmetics, and its growing local consumption have bolstered soybean agriculture. Additionally, the region is witnessing a shift towards sustainable practices, with countries like Colombia and Ecuador focusing on sustainable palm oil production. Palm oil's competitive pricing and reduced trans fat content have contributed to its popularity. Major industry players, including Cargill Inc., Bunge Limited, and Olam International, are actively innovating and expanding their product offerings to meet the evolving demands of the market, emphasizing oil stability, purity, and versatility in applications.
South America Fats and Oil 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 By 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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2.1.2 Specialty Fats
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2.1.2.1 Cocoa Butter Equivalents
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2.1.2.2 Cocoa Butter Replacers
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2.1.2.3 Cocoa Butter Substitutes
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2.1.2.4 Cocoa Butter Improver
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2.1.2.5 Milk Fat Replacer
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2.1.2.6 Other Specialty Fats
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2.1.3 Oils
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2.1.3.1 Soybean Oil
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2.1.3.2 Palm Oil
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2.1.3.3 Coconut Oil
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2.1.3.4 Olive Oil
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2.1.3.5 Sunflower Seed Oil
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2.1.3.6 Other Oils
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2.2 By Application
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2.2.1 Food
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2.2.1.1 Confectionary
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2.2.1.2 Bakery Products
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2.2.1.3 Dairy Products
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2.2.1.4 Other Foods
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2.2.2 Industrial
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2.2.3 Animal Feed
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2.3 Geography
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2.3.1 Brazil
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2.3.2 Argentina
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2.3.3 Chile
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2.3.4 Rest of South America
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South America Fats and Oil Market Size FAQs
What is the current South America Fats and Oil Market size?
The South America Fats and Oil Market is projected to register a CAGR of 4.59% during the forecast period (2024-2029)
Who are the key players in South America Fats and Oil Market?
Cargill Inc., Bunge Limited, Olam International Limited , Fuji Oil Holding Inc. and ADM are the major companies operating in the South America Fats and Oil Market.
