“The Fats and Oils Market size was US$ 5.9 billion in 2023 and is likely to grow at a decent CAGR of 7.8% in the long run to reach US$ 8.6 billion in 2030.”
Market Dynamics
Introduction
Fats and oils are simple or mixed glyceryl esters of various organic acids, which belong to the fatty acid series; they are derived from plant or animal sources. Primary sources of fats and oils include plant sources, such as soybean, palm, rapeseed, olive oil, and sunflower oil; animal sources include butter & margarine, tallow, and lard. Apart from food uses, vegetable fats and oils are also increasingly used for industrial applications, such as soaps, detergents, paints, and oleochemicals, the major one of them being biodiesel.
Drivers
Most vegetable oils include palm oil, sunflower oil, soybean oil, and canola oil, among others; these normally go through several purification steps such as degumming, neutralization, bleaching, and deodorization to prevail high quality and uniformity in the edible oil products. During purification, physical or chemical methods are used to decrease or remove impurities whereby some portions are left due to their insignificance. In this case, the edible oils constitute mostly refined oils due to the higher quality of the products. Refined oils contain high monounsaturated fats in them The main intent of refistribution is to improve the stability of the oils.
The present-day processed oils are superior in quality, as produced through modern techniques, and are very nutritional. As a result, their consumption is rising every year because, with advancements in technology, their usage is increasing as well as the population. Nevertheless, there is an increasing market for better quality oil since consumers are moving towards classy products to retain the flavor but make it nutritious. Given this demand, manufacturers are doing everything possible to improve intermediary processing technologies as well as expand their product offerings. ADM of the United States jointly with Novozymes of Denmark built an innovative technology that redefined the fats & oil industry. This technology aided the company in the creation of high-quality edible oils because enzymes were included in the development of the food item oil.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Product-Type Analysis
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Vegetable Oils and Fats
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Vegetable Oils is expected to be the demand generator for the product.
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Application-Type Analysis
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Food and Industrial
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Food is anticipated to be the widely used application of the market during the forecasted period.
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Region Analysis
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North America, Europe, Asia- Pacific and The Rest of the World.
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Asia-Pacific is likely to grow at the fastest rate.
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By Product Type
“Vegetable oil expected to remain dominant as well as the fastest-growing product in the market during the forecast period.”
- The Fats and Oils Market is segmented into Vegetable Oils and Fats.
- Vegetable oils are expected to remain dominant as well as the fastest-growing product in the market during the forecast period.
- Some of the main vegetable oils employed in the foods include sunflower oil, rapeseed oil, soybean oil, palm oil, cottonseed oil, and coconut oil all of which have boosted the use of vegetable-sourced oils.
- The health benefits, easy availability, and cost-effectiveness are some of the factors that have driven the market for fats & oils. Within vegetable oils, the palm oil segment has dominated the market, as it is easily available and is relatively more stable than other oils.
By Application Type
“Food is expected to remain the dominant and fastest-growing application in the market during the forecast period.”
- The market is segmented into food and industrial.
- The food is expected to remain the dominant and faster-growing application of the market during the forecast period.
- Fats and oils are essential carriers of flavor and can enhance the overall taste of food. They dissolve and concentrate flavors, making dishes more palatable and enjoyable.
Regional Analysis
“The Asia-Pacific is expected to remain the largest market for fats and oils during the forecast period.”
- In terms of region, the Asia-Pacific is expected to remain the largest market for Fats and Oils during the forecast period.
- The region is home to two important palm and palm kernel oil-producing countries namely Malaysia, and Indonesia: and two major fats & oils consuming countries namely China, and India. This is one of the significant factors which ensures that the Asia pacific region is the largest as well as the fastest-growing market in fats & oils.
Key Players
The market is highly concentrated with the presence of 10 players across the region. The following are the key players in the Fats and Oils Market.
Here is the list of the Top Players (Based on Dominance)
- Associated British Foods PLC
- Archer Daniels Midland Company (ADM)
- Bunge Limited
- Wilmar International Limited
- United Plantations Berhad
- Unilever PLC
- Ajinomoto Co. Inc.
- Mewah International Inc.
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The Fats and Oils Market is segmented into the following categories.
Vegetable Oils, by Product Type
- Vegetable Oils (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Fats (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Vegetable Oils, by Application Type
- Food (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Vegetable Oils, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Fats and Oils Market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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