The market for fats & oils is estimated at USD 236.7 Billion in 2021 and it is projected to grow at a CAGR of 3.8% to reach USD 285.2 Billion by 2026. According to the report “Fats & Oils Market” written by MarketsandMarkets, a competitive intelligence and market research platform, this sector exhibits a fragmented scenario at a global level, with many small refineries processing oilseeds and animal fats into value-added oils and fats that are further utilized as ingredients and additives in the processed food and industrial sectors. Manufacturers, suppliers, and distributors of fats and oils are seeking to capitalize on increased awareness about nutritional composition, fortification, and label claims of products and are simultaneously providing improved offerings to enhance their revenues. Fats & oil based products are targeted for various end-user industries, such as bakery and confectionery, snacks and savory foods, convenience foods coupled with industrial utilization in biofuel, animal feed, and oleochemicals applications.
Palm oil is estimated to account for the largest share
The low level of linoleic acid and the virtual absence of linolenic acid makes the Palm oil relatively stable to oxidative deterioration. Depending on the oil palm variety, some Palm oils may appear to be more saturated. The dark red-orange-colored Palm oil is high in the concentration of carotenoids and anthocyanins. It is also high in vitamin E, present as tocopherols and tocotrienols. The oil finds major food processing applications, such as cooking, frying, margarines, shortenings, specialty tins, and spray drying. Thus, their use is growing in the global markets.
Butter and margarines to account for the fastest market growth
Butter consists essentially of a mixture of triglycerides, particularly those derived from fatty acids such as palmitic, oleic, myristic, and stearic acids. It is rich in Vitamins A, D, E, and K, as well as essential minerals such as manganese, chromium, iodine, zinc, copper, and selenium. Butter blends with sugar and adds flavor to the finished product. It is observed to 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. Thus, the sub segment is estimated to dominate the fats & oils market by fat type.
Asia Pacific estrimated to dominate the global fats & oils market
Asia Pacific is home to two important palm- and palm kernel oil-producing countries, such as Malaysia and Indonesia, which exert a strong influence on the regional consumption scenario of fats and oils. In view of a slowdown in the expansion of the mature oil palm area, further production growth in Indonesia and Malaysia is projected to be limited. Nevertheless, by 2030, Indonesia and Malaysia are projected to account for 83% of global palm oil production and 34% of global vegetable oil production. China and India are the two important countries consuming fats and oils. India is the world’s second-largest consumer and the largest importer of vegetable oils. The country is expected to maintain a high per capita consumption level, reaching 14 kg/capita by 2030. China’s domestic consumption of oils and fats is driven by the growing affluence of China’s middle-class population, in addition to the country’s growth rate of urbanization. Thus, due to these factors the region is estimated to dominate the global fats and oils market.
