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Global specialty fats and oils market was valued at US$ 13,156.2 Mn in 2021 and is projected to attain a market value of US$ 25,970.3 Mn by 2030 at a healthy CAGR of 7.8 % during the forecast period 2022–2030.
These products can help improve heart health, lower cholesterol, and reduce the risk of certain diseases. They are also a great source of essential fatty acids, which are necessary for proper cell function. With the growing popularity of health and wellness, more people are looking for ways to improve their diet and lifestyle. Specialty fats and oils market offers a convenient way to do this. They can be used in cooking, as a spreads or condiments, or even taken as supplements. There are many different types of specialty fats and oils available on the market today. Some of the most popular include olive oil, fish oil, avocado oil, and coconut oil. Each one has its own unique set of benefits.
In 2021, top 5 players namely Wilmar International, Cargill, Incorporated, Bunge Limited, AAK AB, and Mewah International Inc held around 58.8% revenue share of the global specialty fats and oils market.
Fluctuations In Global Cocoa Production to Drive Specialty Fats and Oils Market
One of the main ingredients needed to make chocolate is cocoa beans. In recent years, the total world production of cocoa beans has been slightly hampered by the unpredictable weather currently prevailing in the main cocoa countries. Specialty fats offer a different approach to the problem of increasing demand and decreasing production volumes for cocoa as an ingredient.
Cocoa butter is the natural fat found in cocoa beans. It is prized for its smooth texture and rich flavor, and is used in a variety of applications, including baking, confectionery, and cosmetics. However, cocoa butter is expensive, and its price has been volatile in recent years.
As a result, many companies in the global specialty fats and oils market are searching for substitutes that can provide similar functionality at a lower cost. One group of substitutes that has gained traction in recent years is specialty fats. Moreover, they can be customized to have a wide range of properties, depending on the application. For example, some specialty fats can be designed to have a lower melting point, making them ideal for use in creams and lotions. Others can be designed to be more stable at high temperatures, making them suitable for use in baking applications.
Specialty fats offer a number of advantages over cocoa butter. They are typically less expensive than cocoa butter, and their price is more stable across the global specialty fats and oils market.
Increase in Consumption of Healthier Varieties of Food
There are a number of factors driving demand for specialty fats and oils. First, the health and wellness trend is leading consumers to seek out products that offer health benefits. Specialty fats and oils can provide a number of health benefits, including improve heart health, help with weight management, and more. Second, the growing popularity of plant-based diets is driving demand for alternative sources of fats and oils. Specialty fats and oils can provide a good source of essential fatty acids for those following a plant-based diet in the global specialty fats and oils market.
Finally, the ever-changing food landscape is creating new opportunities for specialty fats and oils. As consumers become more adventurous in their food choices, they are seeking out new and interesting flavors and ingredients. This has opened up the market for specialty fats and oils that can provide unique flavor profiles.
Health Concerns Pertaining to the Excessive Consumption of Fats and Oils
Major factor impacting demand has been the increased focus on healthy eating and sustainability. This has led to a shift in consumer preferences away from processed foods and towards natural ingredients. This trend has been particularly evident in the United States, where sales of specialty fats and oils have been declining in recent years.
In addition to this, the demand for specialty fats and oils market has been impacted due to the rise of plant-based alternatives. With more consumers looking to reduce their meat consumption for health or environmental reasons, companies are increasingly offering plant-based alternatives to traditional animal-based products. This trend is likely to continue, further eating into the market share of specialty fats and oils.
Product Type Analysis
Based on product type, oils hold highest market share of 78.3% of the global specialty fats and oils market. On the other hand, the fats segment is projected to continue growing at a CAGR of 7.9%.
Specialty oils are witnessing high demand in the current market scenario. The ever-growing population and their changing lifestyles are the key factors responsible for the rising demand for these oils. The health consciousness among people is also a key driver for the growth of this market.
The food industry is the largest consumer of specialty oils, accounting for over 50% of the total demand for oil in the global specialty fats and oils market. These oils are used in a variety of food products, such as salad dressings, sauces, marinades, and baking mixes. They provide numerous benefits, including improved flavor and texture, increased shelf life, and better nutrition. The cosmetics industry is another major consumer of specialty oils. These oils are used in a variety of cosmetic products, such as skin care creams, lotions, shampoos, and conditioners. They provide numerous benefits, including improved skin tone and texture, increased moisture retention, and protection from environmental damage.
The pharmaceutical industry is also a major consumer of specialty oils in the global specialty fats and oils market. These oils are used in a variety of pharmaceutical products, such as ointments, creams, gels, and capsules. They provide numerous benefits, including improved absorption and distribution of active ingredients, enhanced stability of finished products, and improved patient compliance.
By application, confectionary segment held 27% share of the global specialty fats and oils market in 2021. Whereas, the home cooking segment is projected to continue growing at the highest CAGR of 8.5%.
Today, confectionery industry is rapidly shifting towards clean-label and healthier choice ingredients for their finished products as consumer are fast shifting towards healthier lifestyle. The use of specialty fats and oils is rising in home cooking as they have become ideal choice for everyday cooking. Moreover, offering more richness and flavor to everyday cooking than regular oils.
End User Analysis
Based on end user, F&B segment contributed over 42.7% revenue to the global specialty fats and oils market.
The food and beverage industry is one of the most important sectors of the economy, and it is constantly evolving. One of the latest trends in the industry is the demand for specialty fats and oils. Specialty fats and oils are oils that have been processed to meet the specific needs of the food and beverage industry. They can be used in a variety of applications, including baking, frying, and as an ingredient in processed foods.
The demand for specialty fats and oils market has been growing in recent years, as more companies are looking for ways to improve their products. The use of these oils can help improve the taste, texture, and shelf life of food products. In addition, they can also help to improve the nutritional value of foods. There are a number of reasons behind the increasing demand for specialty fats and oils. One of the most important factors is the changing consumer preferences.
Consumers are becoming more health conscious and are looking for healthier alternatives to traditional fats and oils. Another reason for the increasing demand is the need for food manufacturers to meet the strict regulations that are now in place.
Distribution Channel Analysis
Based on distribution channel, offline segment generated over 80% revenue of the global specialty fats and oils market. Offline mode is highly popular among consumer especially in the older generation.
Based on region, Asia Pacific is estimated to grow at a significant CAGR of 8.5% during the forecast period. However, North America to continue holding lion’s share of more than 35% during the same period in the global specialty fats and oils market.
The reason for North America’s large appetite for specialty fats and oils is two-fold. First, the region has a large population of affluent individuals who are willing to pay a premium for these products. Second, the food industry in North America is highly competitive, which has driven manufacturers to develop new and innovative ways to use specialty fats and oils in their products. Some of the most popular specialty fats and oils used in North American food products include olive oil, canola oil, coconut oil, and palm oil. These ingredients are used in a variety of applications, such as baking, frying, salad dressings, and more.
List of Key Companies Profiled
Global Specialty Fats and Oils market is sub-segmented into:
By Product Type
By End User
By Distribution Channel
|Market Size Value in 2021||US$ 13,156.2 Million|
|Expected Revenue in 2030||US$ 25,970.3 Million|
|Unit||Value (USD Mn)|
|Segments covered||By Product Type, By Application, By End-User, By Distribution Channel, By Region|
|Key Companies||AAK AB, BASF SE, Bunge Limited, Cargill, D&L Industries, Fuji Oil Co. Ltd, IOI Corporation, Mewah International Inc, Wilmar International, Dulzer, IFFCO, Intercontinental Specialty Fats Sdn. Bhd, Musim Mas, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
The Specialty Fats and Oils Market was valued at US$ 13,156.2 Million in 2021.
The Specialty Fats and Oils Market has been estimated to grow with a compound annual growth rate of 7.8% during the forecast year 2030.
The parameters which are boosting the market include fluctuations in cocoa production across the world and a rise in the adoption and consumption of healthier versions of foods.
There are numerous applications of specialty fats and oils such as cosmetics, dairy, bakery, home cooking, and pharmaceutical products. Confectionary industries are dominating the market as these are rapidly shifting towards clean labels and healthier choice ingredients.
The largest user of specialty fats and oils is the food and beverages industry dealing with numerous products including bakery, confectionery, and dairy products.
In the foreseeable future, the Asia Pacific region is most likely to offer the highest profit margins.
In terms of distribution channels, the offline segment holds 80.8% of the global market share in 2021.
On the basis of type, the specialty oils segment occupies a major share of 78% in the market in 2021.
As a result of the coronavirus crisis, there was a change in both supply and demand for specialized fats and oils on the international market, along with rising price uncertainty. Numerous nations were making efforts to keep the market stable. Despite the lockdowns, governments from nations including India, China, and the US granted exemptions to the sector, allowing them to operate at a reduced capacity.
The rising health concerns pertaining to excessive consumption of fats & oils are hindering the market growth.
Consumption of specialty fats & oils has been increasing in several industrial applications owing to the growing demand for value-added ingredients across various industrial sectors.
Key players in the specialty fats & oils market are Cargill, Incorporated, Wilmar International, Bunge Limited, AAK AB, Mehwah International, IOI Loders Croklaan among others.