Market Size of Specialty Fats And Oils Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| 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?
Specialty Fats & Oils Market Analysis
The specialty fats and oils market was valued at USD 13,713.1 million for the current year and is expected to register a CAGR of 7.38% over the next five years.
- The growing demand for high-quality or specialty fats and oils that enables manufacturers to produce food products that are functionally superior as well as have improved nutrition content to cater to the demand for health-conscious consumers is augmenting the growth of the market. Specialty fats and oils have wide applications in the bakery, confectionery, dairy, infant nutrition, and others.
- Specialty fats are gaining popularity in infant nutrition as vegetable oils are commonly used to provide fatty acids in term and preterm infant formulas and human milk fortifiers (HMFs). Moreover, the rising presence of specialty fat manufacturers, including industry leaders like AAK, has led to the availability of customized solutions. These manufacturers offer specialty fats that can precisely control the triglyceride structure, ensuring enhanced absorbability and mimicking the composition of mother's milk. Additionally, they provide a range of man-made and natural contaminant-free ingredients, aligning with strict regional and local regulations. This enables food and beverage companies to meet regulatory requirements while catering to health-conscious consumers' evolving preferences and demands.
- Specialty fats offer a distinct solution to the challenge posed by the rising demand for cocoa as an ingredient amid declining production rates. Specialty fats, including cocoa butter substitutes and equivalents, have properties that are similar to those of cocoa. Specialty fats are additionally less expensive than cocoa butter.
- Specialty fats and oils are increasingly used to enhance product performance and ensure higher consumer acceptance, aiding the market's growth. Furthermore, the increasing number of manufacturers replacing cocoa butter with cocoa butter equivalents to enhance the quality and nutritional properties of the end products and increase their profit margins is anticipated to propel the market's growth.
- Specialty oils are marketed for their health-promoting properties, as hempseed oil helps reduce cholesterol levels, control high blood pressure, and help in the treatment of cancer, among others, in turn boosting the demand for specialty oils among food manufacturers.
Specialty Fats & Oils Industry Segmentation
Specialty fats and oils have unique properties desired in both industrial and non-edible applications. Specialty fats are also known as hard butter, confectionery fat, and cocoa butter alternatives. Some specialty oils contain a high amount of nutritionally desired components, including essential fatty acids, phytosterol, antioxidants, phospholipids, and other bioactive phenolics.
The specialty fats and oils market is segmented based on type, application, and geography. By type, the market is segmented into specialty fats and specialty oils. The specialty fats segment is further segmented into cocoa butter equivalents (CBE), cocoa butter replacers (CBR), cocoa butter substitutes (CBS), cocoa butter improvers (CBI), milk fat replacers (MFR), and other specialty fats. The specialty oils segment is further segmented into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, and other oils. By application, the market is segmented into bakery, confectionery, dairy products, infant nutrition, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.
For each segment, the market sizing and forecasts have been done based on value (in USD million).
| Type | ||||||||
| ||||||||
|
| Application | |
| Bakery | |
| Confectionery | |
| Dairy Products | |
| Infant Nutrition | |
| Other Applications |
| Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
|
Specialty Fats And Oils Market Size Summary
The specialty fats and oils market is experiencing significant growth, driven by the increasing demand for high-quality ingredients that enhance the nutritional and functional properties of food products. This demand is particularly evident in sectors such as bakery, confectionery, dairy, and infant nutrition, where specialty fats are used to improve product performance and consumer acceptance. The market is also benefiting from the rising popularity of specialty fats in infant nutrition, as they offer tailored solutions that mimic the composition of mother's milk. The presence of leading manufacturers, such as AAK, has further facilitated market expansion by providing customized and regulatory-compliant solutions. Additionally, the use of specialty fats as substitutes for cocoa butter is gaining traction due to their cost-effectiveness and ability to maintain product quality, thereby boosting the market's growth.
The market is characterized by a competitive landscape with numerous international, regional, and local players actively participating. Key companies are focusing on expansion strategies, including acquisitions and partnerships, to strengthen their market position and enhance their product offerings. The growing consumer preference for natural and premium-quality ingredients, coupled with the increasing awareness of health and wellness, is driving the demand for specialty fats and oils. This trend is further supported by the rising consumption of processed foods and the willingness of consumers to pay a premium for high-quality products. As a result, the market is poised for continued growth, with manufacturers investing in research and development to innovate and meet the evolving demands of end-users.
Specialty Fats And Oils Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Drivers
-
1.1.1 Growing Demand for Cocoa Butter Equivalents Among Food Manufacturers
-
1.1.2 Rising Application in Food Industry
-
-
1.2 Restraints
-
1.2.1 Health Concerns Pertaining to the Excessive Consumption of Fats and Oils
-
-
1.3 Porter's Five Forces Analysis
-
1.3.1 Threat of New Entrants
-
1.3.2 Bargaining Power of Buyers/Consumers
-
1.3.3 Bargaining Power of Suppliers
-
1.3.4 Threat of Substitute Products
-
1.3.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION
-
2.1 Type
-
2.1.1 Specialty Fats
-
2.1.1.1 Cocoa Butter Equivalents (CBE)
-
2.1.1.2 Cocoa Butter Replacers (CBR)
-
2.1.1.3 Cocoa Butter Substitutes (CBS)
-
2.1.1.4 Cocoa Butter Improvers (CBI)
-
2.1.1.5 Milk Fat Replacers (MFR)
-
2.1.1.6 Other Specialty Fats
-
-
2.1.2 Specialty Oils
-
2.1.2.1 Soybean Oil
-
2.1.2.2 Rapeseed Oil
-
2.1.2.3 Palm Oil
-
2.1.2.4 Coconut Oil
-
2.1.2.5 Olive Oil
-
2.1.2.6 Other Specialty Oils
-
-
-
2.2 Application
-
2.2.1 Bakery
-
2.2.2 Confectionery
-
2.2.3 Dairy Products
-
2.2.4 Infant Nutrition
-
2.2.5 Other Applications
-
-
2.3 Geography
-
2.3.1 North America
-
2.3.1.1 United States
-
2.3.1.2 Canada
-
2.3.1.3 Mexico
-
2.3.1.4 Rest of North America
-
-
2.3.2 Europe
-
2.3.2.1 United Kingdom
-
2.3.2.2 Germany
-
2.3.2.3 France
-
2.3.2.4 Italy
-
2.3.2.5 Russia
-
2.3.2.6 Rest of Europe
-
-
2.3.3 Asia-Pacific
-
2.3.3.1 China
-
2.3.3.2 Japan
-
2.3.3.3 India
-
2.3.3.4 Australia
-
2.3.3.5 Rest of Asia-Pacific
-
-
2.3.4 South America
-
2.3.4.1 Brazil
-
2.3.4.2 Argentina
-
2.3.4.3 Rest of South America
-
-
2.3.5 Middle East and Africa
-
2.3.5.1 United Arab Emirates
-
2.3.5.2 South Africa
-
2.3.5.3 Rest of Middle East and Africa
-
-
-
Specialty Fats And Oils Market Size FAQs
What is the current Specialty Fats And Oils Market size?
The Specialty Fats And Oils Market is projected to register a CAGR of 7.38% during the forecast period (2024-2029)
Who are the key players in Specialty Fats And Oils Market?
Bunge Limited, Wilmar International Limited, Golden Agri-Resources Ltd, Kuala Lumpur Kepong Berhad and Sime Darby Plantation Sdn Bhd are the major companies operating in the Specialty Fats And Oils Market.
